Insulet Corporation reported first-quarter 2025 total revenue of $569.0 million, a 28.8% increase year-over-year (29.8% constant currency), exceeding the high end of its guidance range. U.S. Omnipod revenue grew 26.4% to $401.7 million, and International Omnipod revenue increased 32.2% (36.1% constant currency) to $152.4 million. The company's adjusted earnings per share (EPS) was $1.02, beating the consensus of 80 cents.
Gross margin in Q1 2025 reached 71.9%, a 240 basis point improvement over the prior year, driven by improved manufacturing efficiencies and increased volume. Operating income rose to $88.8 million, demonstrating operating leverage despite increased investments in R&D and SG&A. Net income was $35.4 million, impacted by a $39.5 million loss on extinguishment of debt related to convertible note repurchases.
Insulet raised its full-year 2025 guidance, projecting total Omnipod revenue growth of 20-23% (up from 17-21%) and total company revenue growth of 19-22% (up from 16-20%). Full-year gross margin is now guided to approximately 71% (up from 70.5%), and adjusted operating margin is reaffirmed at approximately 16.5%. This updated outlook reflects strong momentum in both U.S. and international markets, particularly with Omnipod 5 adoption in Type 1 and Type 2 diabetes.
The significant beat on Q1 revenue and profit estimates, coupled with a raised full-year guidance, indicates robust demand for Insulet's Omnipod products and effective execution of its growth strategy. The expansion of gross margin highlights operational efficiencies. The strong performance, particularly in the U.S. Type 2 market and international launches, reinforces Insulet's market leadership and provides a positive outlook for investor value.
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