Financial Analysis

Commitments and Contingencies Legal Proceedings On April 24, 2025, the United States District Court for the District of Massachusetts entered final judgment in favor of Insulet Corporation in its ongoing litigation against EOFlow Co., Ltd.; EOFlow, Inc.; Nephria Bio, Inc.; and EOFlows CEO, Jesse Kim (collectively, Defendants), Insulet Corp. v. EOFlow Co. Ltd. et al ., 1:23-cv-11780-FDS (D. Mass.). The litigation concerned the Defendants misappropriation of Insulets proprietary trade secrets relating to the design and manufacture of the Omnipod insulin patch pump. On December 3, 2024, a unanimous jury found four trade secrets asserted by Insulet valid and misappropriated and awarded Insulet total damages of $452 million, composed of $170 million in compensatory damages and $282 million in exemplary damages. The district courts April 24, 2025 orders upheld the jury verdict and further entered a permanent injunction against Defendants. The injunction prohibits Defendants and others subject to the order from using, possessing, selling, distributing, or seeking regulatory approval for any products that were designed, developed, or manufactured, in whole or in part, using or relying on Insulets trade secrets. The injunction is worldwide and took effect immediately subject to a limited exception that permits six months of continuing sales to those patients of EOFlow that existed in the Republic of Korea and the European Union as of October 2023. The permanent injunction further requ …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt The components of debt consisted of the following: December 31, 2025 December 31, 2024 (in millions) Maturity Date Amount Effective Interest Rate Amount Effective Interest Rate Equipment financing 2025 $ % $ 8.7 5.90 % Mortgage 2025 % 60.9 5.74 % Convertible Senior Notes 2026 % 800.0 0.76 % Equipment financing 2028 34.9 4.27% - 10.44% 40.8 4.27% - 8.87% Revolving Credit Facility 2030 % % Term Loan B 2031 477.5 7.05 % 482.5 8.68 % Senior Unsecured Notes 2033 450.0 6.84 % Unamortized debt discount 2025 - 2033 (3.5) (5.4) Debt issuance costs 2025 - 2033 (9.7) (7.7) Total debt, net 949.2 1,379.8 Less: current portion 18.4 83.8 Total long term-debt, net $ 930.8 $ 1,296.1 Equipment Financings The Company has outstanding loans secured by manufacturing lines located at the Companys Acton, Massachusetts manufacturing facility. Senior Secured Credit Agreement The Companys senior secured credit agreement (the Credit Agreement) includes a $500 million senior secured term loan B (the Term Loan B) and a senior secured revolving credit facility (Revolving Credit Facility). In March 2025, the Company upsized the borrowing capacity under its Revolving Credit Facility to $500 million and extended the maturity date to March 2030. In June 2025, the Company amended its Term Loan B to bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 2.00%. At the same time, the Company further amended its Revolving Credit Facility such that borrowings bear interest at a rate of SOFR plu …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes the Companys disaggregated revenue: Years Ended December 31, (in millions) 2025 2024 2023 U.S. $ 1,919.8 $ 1,509.3 $ 1,251.0 International 754.3 523.4 410.1 Total Omnipod products 2,674.0 2,032.7 1,661.1 Drug Delivery 34.1 38.9 36.0 Total revenue $ 2,708.1 $ 2,071.6 $ 1,697.1 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Financial Instruments and Fair Value Financial Instruments Disclosed at Fair Value The following tables provide a summary of the significant financial instruments disclosed at fair value on a recurring basis: Fair Value Measurements at December 31, 2025 (in millions) Level 1 Level 2 Level 3 Total Term Loan B (1) $ 482.3 $ $ $ 482.3 Senior Unsecured Notes (1) 469.2 469.2 Equipment financings (2) 34.8 34.8 Total $ 951.4 $ $ 34.8 $ 986.2 Fair Value Measurements at December 31, 2024 (in millions) Level 1 Level 2 Level 3 Total Term Loan B (1) $ 485.8 $ $ $ 485.8 Convertible Senior Notes (1) 1,018.9 1,018.9 Equipment financings (2) 49.3 49.3 Mortgage (2) 60.6 60.6 Total $ 485.8 $ 1,018.9 $ 109.9 $ 1,614.7 (1) Fair value was determined using quoted market prices obtained from third-party pricing sources. (2) Fair value approximates carrying value and was determined using the cost basis. Financial Instruments Measured at Fair Value on a Recurring Basis The following tables provide a summary of financial instruments that are measured at fair value on a recurring basis: Fair Value Measurements at December 31, 2025 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash (1) $ 138.7 $ $ $ 138.7 Money market mutual funds (1) 577.4 577.4 Interest rate swaps (2) 1.0 1.0 Total assets at fair value $ 716.1 $ 1.0 $ $ 717.1 Liabilities: Interest rate swaps (2) $ $ 0.8 $ $ 0.8 Fair Value Measurements at December 31, 2024 (in millions) Level 1 Level 2 Level 3 Total Cash (1) $ 133.4 $ $ $ 133.4 M …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets, Net Goodwill The change in the carrying amount of goodwill for the period is as follows: Years Ended December 31, (in millions) 2025 2024 Goodwill at beginning of the year $ 51.5 $ 51.7 Foreign currency translation 0.1 (0.2) Goodwill at end of the year $ 51.6 $ 51.5 Intangible Assets, Net The gross carrying amount, accumulated amortization, and net book value of intangible assets at the end of each period were as follows: As of December 31, 2025 2024 (in millions) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 43.2 $ (35.8) $ 7.4 $ 43.1 $ (33.5) $ 9.6 Internal-use software 68.3 (14.1) 54.2 52.4 (15.6) 36.8 Developed technology 28.3 (6.9) 21.4 27.4 (4.9) 22.5 Patents 44.0 (9.9) 34.2 36.2 (6.5) 29.6 Total intangible assets $ 183.8 $ (66.7) $ 117.1 $ 159.1 $ (60.6) $ 98.5 Amortization expense for intangible assets was $10.5 million, $9.8 million, and $10.2 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amortization expense associated with the intangible assets included on the Companys consolidated balance sheet as of December 31, 2025 is expected to be as follows: Years Ending December 31, (in millions) 2026 $ 19.2 2027 $ 19.0 2028 $ 17.9 2029 $ 17.2 2030 $ 15.9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The U.S. and foreign components of income before income taxes were as follows: Years Ended December 31, (in millions) 2025 2024 2023 U.S. $ 248.0 $ 253.9 $ 199.5 Foreign 91.5 46.3 15.1 Income before income taxes $ 339.5 $ 300.2 $ 214.7 The provision for income taxes consists of the following: Years Ended December 31, (in millions) 2025 2024 2023 Current Federal $ 2.9 $ 5.8 $ State 1.8 6.4 3.7 Foreign 25.4 6.6 4.1 Total current tax expense 30.1 18.8 7.8 Deferred Federal 58.9 (111.1) 0.1 State 4.8 (18.6) Foreign (1.5) (7.2) 0.4 Total deferred tax expense (benefit) 62.3 (136.9) 0.5 Income tax expense (benefit) $ 92.4 $ (118.1) $ 8.3 Reconciliations of the U.S. federal statutory rate to the Companys effective tax rate for the year ended December 31, 2025 are as follows: Year Ended December 31, 2025 (in millions) Amount Percent U.S. federal statutory tax rate $ 71.3 21.0 % State and local income taxes, net of federal income tax effect (1) 6.0 1.8 Foreign tax effects United Kingdom 4.8 1.4 Other foreign jurisdictions (0.1) Effect of cross-border tax laws Tax credits: R&D (14.6) (4.3) Foreign tax credit (3.6) (1.1) Change in valuation allowance 0.5 0.1 Nontaxable or nondeductible items Extinguishment of debt 22.8 6.7 Other nondeductible items 2.0 0.6 Other (0.1) Changes in unrecognized tax benefits 3.6 1.1 Effective tax rate $ 92.4 27.2 % (1) State and local taxes in Colorado comprise the majority of this category. Reconciliations of the U.S. federal statutory rate …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases As of December 31, 2025, the Company leased certain automobiles and facilities for offices, laboratories, manufacturing, and warehousing, all of which were classified as operating leases. Certain of the Companys operating leases include escalating rental payments, some include the option to extend for up to 10 years, and some include options to terminate the leases at certain times within the lease term. In 2024, the Company exercised its option to purchase land and a manufacturing building in Malaysia for $18.1 million, which were classified as finance leases prior to the purchase. Operating lease assets and liabilities were included in the following consolidated balance sheet accounts in the amounts shown: Years Ended December 31, (in millions) 2025 2024 Operating lease asset: Other assets $ 43.7 $ 36.7 Operating lease liabilities: Accrued expenses and other current liabilities $ 3.0 $ 2.1 Other liabilities 48.9 40.0 Total operating lease liabilities $ 51.9 $ 42.1 The Companys operating and financing lease cost was as follows: Years Ended December 31, (in millions) 2025 2024 2023 Operating lease cost $ 10.6 $ 7.3 $ 8.8 Finance lease cost: Amortization of leased assets 0.7 0.4 Interest on lease liabilities 1.0 0.6 Total finance lease cost 1.7 1.0 Total operating and financing lease cost $ 10.6 $ 9.0 $ 9.8 Supplemental cash flow information related to leases is as follows: Years Ended December 31, (in millions) 2025 2024 2023 Right-of-use assets obtained in exchange fo …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards Income Taxes The Company adopted Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , during the fourth quarter of 2025, and applied the amendments prospectively. ASU 2023-09 requires additional annual income tax disclosures, including standardized categories for the effective tax rate reconciliation, disaggregation of income taxes paid, and expanded income tax-related disclosures. The required disclosures are included in Note 20. Segment Reporting The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures during the fourth quarter of 2024, and applied the amendments retrospectively. ASU 2023-07 requires incremental disclosures on reportable segments, primarily significant segment expenses. The required disclosures are included in Note 3. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Benefit Plans Defined Contribution Plan The Company maintains a tax-qualified 401(k) retirement plan in the United States. Through 2025, the Company generally made a matching contribution equal to 50% of each employees elective contribution to the plan up to 6% of the employees eligible pay. In addition, the Company offers defined contribution plans for eligible employees in its foreign subsidiaries. The total amount contributed by the Company to these defined contribution plans was $17.9 million, $13.3 million, and $12.1 million for the years ended December 31, 2025, 2024, and 2023, respectively. Deferred Compensation Plan The Company has an unfunded, non-qualified deferred compensation plan for non-employee directors that allows participants to defer receipt of RSUs or cash compensation in the form of stock until a later date. Deferred awards are credited to a deferred stock account. The shares are held in a rabbi trust, which is classified and accounted for as equity in a manner consistent with the accounting for treasury stock. As of December 31, 2025, 3,142.5 shares were held in the trust. No shares were held in the trust as of December 31, 2024. The shares will be distributed when board service ceases. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue and Contract Acquisition Costs The following table summarizes the Companys disaggregated revenue: Years Ended December 31, (in millions) 2025 2024 2023 U.S. $ 1,919.8 $ 1,509.3 $ 1,251.0 International 754.3 523.4 410.1 Total Omnipod products 2,674.0 2,032.7 1,661.1 Drug Delivery 34.1 38.9 36.0 Total revenue $ 2,708.1 $ 2,071.6 $ 1,697.1 The percentages of total revenue for customers that represent 10% or more of total revenue was as follows: Years Ended December 31, 2025 2024 2023 Distributor A 27% 28% 28% Distributor B 26% 26% 24% Distributor C 25% 21% 19% Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: As of December 31, (in millions) 2025 2024 2023 Accrued expenses and other current liabilities $ 14.0 $ 12.0 $ 15.4 Other liabilities 1.5 2.0 1.9 Total deferred revenue $ 15.5 $ 14.0 $ 17.4 Revenue recognized from amounts included in deferred revenue at the beginning of each respective period was as follows: As of December 31, (in millions) 2025 2024 2023 Deferred revenue recognized $ 8.2 $ 15.4 $ 16.0 Capitalized contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown: As of December 31, (in millions) 2025 2024 Prepaid expenses and other current assets $ 25.3 $ 20.1 Other assets 53.0 40.8 Total capitalized contract acq …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Geographic Data As described in Note 1, the Companys product offering primarily consists of the Omnipod platform and a drug delivery device based on the Omnipod platform. Operating segments are defined as components of an enterprise for which discrete financial information is available and is regularly reviewed by the chief operating decision-maker (CODM) in order to allocate resources and assess segment performance. The Company has determined that its Chief Executive Officer (CEO) is the CODM, as the CEO has ultimate responsibility for making key operating decisions, allocating resources, and evaluating the Companys financial performance. Based on this assessment, the Company operates in one reportable segment. While the CODM evaluates performance and allocates resource primarily using consolidated operating income, net income is also provided to the CODM. Geographic information about revenue, based on customer location, is as follows: Years Ended December 31, (in millions) 2025 2024 2023 U.S. $ 1,953.9 $ 1,548.2 $ 1,287.0 International 754.3 523.4 410.1 Total revenue $ 2,708.1 $ 2,071.6 $ 1,697.1 There were no significant segment expenses regularly provided to the CODM other than those reported in the Company's consolidated statements of income. Geographic information about long-lived assets, net, excluding goodwill and other intangible assets is as follows: As of December 31, (in millions) 2025 2024 U.S. $ 472.5 $ 475.9 Malaysia 220.0 159.1 China 74.1 78.5 Othe …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements reflect the consolidated operations of Insulet Corporation and its subsidiaries. The consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of the consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates. Amounts have been calculated using actual, non-rounded figures; accordingly, amounts may not recalculate, and columns and rows within tables may not add due to rounding. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Foreign Currency Translation The assets and liabilities of the Companys foreign subsidiaries are translated into U.S. dollars using exchange rates as of the balance sheet date, while income and expenses of foreign subsidiaries are translated using the average exchange rates in effect for the related month. The net effect of these translation adjustments is reported in accumulated other comprehensive income ( …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing