PODD · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

INSULET CORP · 2026-11-04 · Importance 42 · Surprise 40

Gross margin for the three months ended September 30, 2026 rose to 75.1% from 72.2%, an increase of 280 basis points. Improved manufacturing efficiencies drove the improvement, with a further 90-basis-point benefit from a warranty-accrual adjustment reflecting fewer Pod replacements than originally estimated for the voluntary MDCs. Nine-month gross margin increased 40 basis points to 71.7%, as manufacturing efficiencies were partly offset by higher warranty costs related to the voluntary MDCs and higher inventory excess and obsolescence reserves during the transition to new Pod configurations.

Key facts

• Gross margin was 75.1% for the three months ended September 30, 2026, compared with 72.2% in 2025, a 280-basis-point increase primarily driven by improved manufacturing efficiencies and, to a lesser extent, a 90-basis-point warranty-accrual adjustment related to voluntary MDCs. source
• Gross margin was 71.7% for the nine months ended September 30, 2026, compared with 71.3% in 2025, a 40-basis-point increase primarily driven by manufacturing efficiencies, partially offset by higher voluntary-MDC warranty costs and inventory excess and obsolescence reserves related to new Pod configurations. source