Free cash flow generation remains inconsistent, with quarterly results swinging from a $21.5M peak in 2024Q3 to a $34.7M burn in 2023Q4, further obscured by substantial stock-based compensation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 19.61M | -9.72M | 24.23M | -31.81M | 50.46M | 111.36M | 24.67M | 41.91M | -8.32M | -66.14M | -61.17M | -58.76M | -61.38M | -47.76M | -33.47M | -21.55M |
| Operating CF Margin % | - | -0.96% | 2.58% | -4.25% | 6.3% | 15.85% | 4.95% | 11.57% | -4.52% | -61.46% | -72.61% | -80.66% | -123.44% | -164.64% | -1352.54% | - |
| Operating CF Growth % | 2.65% | -140.13% | 176.16% | -163.03% | -54.68% | 351.41% | -41.13% | 603.74% | 87.42% | -8.11% | -4.1% | 4.26% | -28.52% | -42.68% | -55.34% | - |
| Net Income | -94.55M | -204.71M | -96.03M | -222.61M | -94.59M | 15.57M | -34.38M | -24.75M | -122.61M | -73.03M | -83.45M | -72.42M | -79.52M | -63.14M | -33.02M | -25.51M |
| Depreciation & Amortization | 17.11M | 13.84M | 16.61M | 15.71M | 14.33M | 13.85M | 10.45M | 6.07M | 5.82M | 6.87M | 5.49M | 4.83M | 4.39M | 3.17M | 2.03M | 1.28M |
| Stock-Based Compensation | 82.55M | 92.38M | 101.38M | 88.08M | 84.92M | 60.75M | 58.43M | 58.07M | 23.74M | 12.63M | 11.66M | 13.1M | 14.99M | 4.46M | 245.83K | 253.36K |
| Deferred Taxes | 5.27M | 0 | 0 | 0 | 0 | 0 | -2.13M | -25K | 0 | -187K | 3.89M | 478K | 298K | 10.75M | -1.3M | 928.33K |
| Other Non-Cash Items | 22.77M | 111.81M | 14.04M | 104.69M | 50.46M | 6.82M | 28.88M | 14.89M | 76.27M | 3.7M | 1.12M | 215K | 260K | 25K | 1.07M | 544.01K |
| Working Capital Changes | -13.55M | -23.04M | -11.78M | -17.68M | -4.65M | 14.37M | -36.59M | -12.35M | 8.46M | -16.11M | 112K | -4.96M | -1.8M | -3.01M | -2.5M | 960.8K |
| Change in Receivables | -23.29M | -56.81M | -20.8M | 4.28M | -7.83M | -30.98M | -38.84M | -13.7M | -15.85M | -10.45M | 2.25M | -6.47M | -2.54M | -3.16M | -2.46M | 0 |
| Change in Inventory | 17.14M | 24.82M | 5.81M | -46.05M | -42.45M | -4.95M | -15.36M | -30.98M | 6.76M | -5.89M | -6.9M | -6.08M | -1.82M | -4.62M | -6.26M | 0 |
| Change in Payables | 10.24M | 2.23M | -2.39M | -4.86M | 24.49M | 10.28M | 1.12M | 8.91M | 1.64M | -1.95M | 3.23M | 3.35M | -1.23M | 859.5K | 3.59M | -33.93K |
| Cash from Investing | -131.76M | 72.88M | -23.48M | -85.74M | 33.17M | -186.88M | -296.06M | -56.95M | -90.74M | 2.78M | 10.45M | 2.42M | -35.47M | -11.11M | -5.53M | 5.88M |
| Capital Expenditures | -23.25M | -19.95M | -19.23M | -26.8M | -34.1M | -14.18M | -27.41M | -19.54M | -2.99M | -5.72M | -8.93M | -5.84M | -4.58M | -6.01M | -5.53M | -1.32M |
| CapEx % of Revenue | 2.26% | 1.97% | 2.05% | 3.58% | 4.26% | 2.02% | 5.49% | 5.39% | 1.62% | 5.31% | 10.6% | 8.01% | 9.21% | 20.72% | 223.42% | - |
| Acquisitions | 0 | 0 | 0 | -69.5M | -25.72M | 0 | 0 | 0 | 1.71M | 0 | -10.46M | 74K | 173K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.29M | -78.59M | -46.4M | 0 | -8.86M | -9.33M | -4.89M | 0 | -1.71M | 8.5M | 10.46M | -74K | -173K | -7.09M | -1M | 0 |
| Cash from Financing | 235.48M | -43.37M | 8.37M | 4.11M | 16.88M | 51.93M | 314.44M | 24.21M | 117.18M | 32.38M | 52.31M | 68.25M | 3.64M | 166.08M | 47.51M | 13.18M |
| Debt Issued (Net) | 235.1M | -40.76M | 44.91M | 0 | 0 | 0 | 278.69M | 0 | -87.71M | 0 | 49.99M | 0 | -75K | 24.48M | 16.6M | 12.96M |
| Equity Issued (Net) | -662K | -2.61M | -36.73M | 0 | 17.55M | 0 | 0 | 0 | 172.93M | 40.38M | 0 | 68.25M | 0 | 143.61M | 30.9M | 215.31K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -30M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.05M | 0 | 183K | 4.11M | -675K | 51.93M | 35.75M | 24.21M | 31.97M | -8M | 2.32M | 0 | 3.71M | -2M | 0 | 0 |
| Net Change in Cash | 125.75M | 21.4M | 10.37M | -113.65M | 101.34M | -23.43M | 43.44M | 9.35M | 18.13M | -30.98M | 1.59M | 11.91M | -93.21M | 107.22M | 8.51M | -2.49M |
| Free Cash Flow | -3.64M | -29.67M | 4.99M | -58.61M | 16.37M | 87.85M | -7.63M | 22.36M | -11.3M | -71.85M | -70.1M | -64.6M | -65.96M | -53.77M | -39M | -22.87M |
| FCF Margin % | -0.35% | -2.92% | 0.53% | -7.84% | 2.04% | 12.5% | -1.53% | 6.17% | -6.15% | -66.78% | -83.21% | -88.68% | -132.65% | -185.36% | -1575.96% | - |
| FCF Growth % | 4.11% | -694.09% | 108.52% | -458.12% | -81.37% | 1252.1% | -134.09% | 297.83% | 84.27% | -2.5% | -8.52% | 2.05% | -22.67% | -37.86% | -70.55% | - |
| FCF per Share | -0.05 | -0.44 | 0.08 | -0.90 | 0.26 | 1.37 | -0.13 | 0.38 | -0.23 | -12.66 | -22.93 | -22.34 | -28.34 | -23.44 | -31.09 | -18.23 |
| FCF Conversion (FCF/Net Income) | 0.04x | 0.05x | -0.25x | 0.14x | -0.53x | 7.15x | -0.72x | -1.69x | 0.07x | 0.91x | 0.73x | 0.81x | 0.77x | 0.76x | 1.01x | 0.84x |
| Interest Paid | 0 | 0 | 0 | 7.57M | 0 | 4.31M | 2.71M | 0 | 10.8M | 7.88M | 4.4M | 3.35M | 3.37M | 4.12M | 297K | 0 |
| Taxes Paid | 3.62M | 0 | 0 | 1.92M | 0 | 260K | 177K | 67K | 16K | 22K | 23K | 9K | 71K | 19K | 3K | 0 |
Liquidity and competitive pressure
Based on reported financial statements, TNDM exhibits a persistent disconnect between net income and operating cash flow, with stock-based compensation consistently exceeding $20 million per quarter, which suggests that reported earnings significantly understate the actual cash burn required to sustain current operations and product development cycles.
The wide variance between net income and operating cash flow indicates that GAAP profitability metrics are heavily influenced by non-cash charges. Investors should monitor whether the company can achieve cash-flow positivity without relying on aggressive stock-based compensation to offset operational deficits.
As indicated by recent quarterly data, TNDM's free cash flow trajectory remains highly erratic, swinging from a peak of $21.5 million in 2024Q3 to a low of -$34.7 million in 2023Q4, reflecting the company's struggle to maintain consistent cash generation amidst ongoing product launch and marketing investments.
The inability to sustain positive free cash flow suggests that the business model remains in a capital-intensive growth phase rather than a mature cash-harvesting stage. This volatility warrants further investigation into whether the Mobi platform can eventually stabilize cash flows or if it will continue to require significant capital support.
According to quarterly cash flow filings, TNDM's working capital movements have been highly inconsistent, with a notable $23.5 million outflow in 2025Q4 contrasting with a $15.1 million inflow in 2024Q3, suggesting that inventory management and collection cycles are not yet optimized for predictable cash conversion.
These fluctuations in working capital suggest that the company may be experiencing lumpy inventory build-ups related to new product transitions or shifting payment terms with distributors. Such instability complicates the forecasting of short-term liquidity needs and highlights potential inefficiencies in the supply chain.
Based on an analysis of recent SEC filings, the company's cash flow statement obscures the true cost of growth by heavily relying on stock-based compensation and capitalized costs, which effectively masks the underlying cash burn rate and complicates the assessment of long-term economic viability for shareholders.
The consistent use of stock-based compensation as a primary tool for talent retention appears to be a structural necessity rather than a discretionary expense. This practice may be artificially inflating the company's cash position, potentially misleading investors regarding the true cost of maintaining its competitive position in the insulin pump market.
Quick answers to the most common questions about buying TNDM stock.
Tandem Diabetes Care, Inc. (TNDM) generated $-9.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tandem Diabetes Care, Inc. (TNDM) reported negative free cash flow of $29.7M in 2025, indicating capital requirements exceeded cash from operations.
Tandem Diabetes Care, Inc. (TNDM) spent $19.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.