Tandem Diabetes Care (TNDM) saw its stock price surge by 5.01% in Friday's intraday trading session following the release of its first-quarter 2025 financial results. The medical device company, known for its insulin pump technology, reported mixed results that nonetheless impressed investors with strong revenue growth and market expansion.

The company's Q1 revenues reached $234.4 million, marking a substantial 22% increase from the same period last year and surpassing analyst expectations by 6.5%. This impressive top-line growth was driven by robust performance in both domestic and international markets. In the United States, non-GAAP sales rose 15% year-over-year to $150.6 million, while international sales surged to $83.8 million from $61.9 million in the prior year.

Despite the revenue beat, Tandem Diabetes Care reported a wider net loss of $130.6 million, or $1.97 per share, compared to a loss of $0.65 per share in Q1 2024. This figure missed analyst estimates significantly. However, investors appeared to focus on the positive aspects of the report, including a 112 basis point expansion in gross margin to 50.5%, despite rising costs. The company also highlighted the recent launch of its Control-IQ+ technology for type 2 diabetes patients in the United States, signaling potential for further market penetration. With these developments and reaffirmed full-year guidance, Tandem Diabetes Care seems well-positioned for continued growth, explaining the market's positive reaction despite the earnings miss.