PODD · 10-Q · 2026Q2 · Full report

Pod Configuration Transition

INSULET CORP · 2026-08-05 · Importance 31 · Surprise 42

Insulet is transitioning to new Pod configurations, which increased its inventory excess and obsolescence reserve during the first six months of 2026. The transition also contributed to lower gross margin in that period, alongside higher warranty costs associated with voluntary medical device corrections. The company’s manufacturing efficiencies and higher average selling price partly offset these transition-related pressures.

Key facts

• The 90 basis point decrease in gross margin was primarily driven by higher warranty costs resulting from the voluntary medical device corrections and, to a lesser extent, an increase in inventory excess and obsolescence reserve as we transition to our new Pod configurations. source