Core Viewpoint - The transition of leadership at Dexcom from Kevin Sayer to Jake Leach is a strategic move aimed at evolving the company's focus from a single product technology to a broader health ecosystem platform, reflecting a planned organizational evolution rather than a crisis response [10][11][12] Leadership Transition - Jake Leach will take over as CEO on January 1, 2026, succeeding Kevin Sayer, who will remain as Executive Chairman of the Board [1] - This succession plan was disclosed during the Q2 2025 earnings call, indicating a well-structured transition [1] Jake Leach's Background - Leach has been with Dexcom since 2004, playing a crucial role in the development of the company's CGM technology, including the G4, G5, G6, and G7 iterations [5][6] - As COO, he managed global product development and operational strategies, demonstrating his capability to translate technical expertise into business execution [6][11] Kevin Sayer's Contributions - Sayer has led Dexcom since 2015, transforming it from a diabetes device company to a health data technology platform, achieving significant revenue and market value growth [7][9] - Under his leadership, Dexcom's revenue reached $1.157 billion in Q2 2025, a 15% year-over-year increase, with annual revenue guidance raised to between $4.6 billion and $4.63 billion [9] Strategic Implications of the Transition - The leadership change signals a shift in Dexcom's core competencies towards a platform strategy that integrates CGM technology into broader health management solutions [10][11] - Leach's role will involve transitioning the company from selling devices to empowering health scenarios, requiring a comprehensive understanding of both development and strategic thinking [11] Future Directions - Dexcom aims to enhance the G7 platform's market penetration, expand non-prescription CGM options like Stelo, and integrate AI for data prediction and lifestyle intervention [13] - The company plans to strengthen insurance coverage and international reimbursement channels to lower barriers for users and expand its market reach [13]

For the quarter ended June 2025, DexCom (DXCM) reported revenue of $1.16 billion, up 15.2% over the same period last year. EPS came in at $0.48, compared to $0.43 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.12 billion, representing a surprise of +3.06%. The company delivered an EPS surprise of +6.67%, with the consensus EPS estimate being $0.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expect ...

DexCom (DXCM) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this medical device company would post earnings of $0.33 per share when it actually produced earnings of $0.32, delivering a surprise of -3.03%.Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1,160 million for Q2 2025, a 15% increase compared to $1,000 million in Q2 2024 [21] - U.S. revenue totaled $841 million for Q2 2025, up 15% from $732 million in Q2 2024 [22] - International revenue grew 16% to $316 million in Q2 2025, with organic revenue growth of 14% [23] - Gross profit was $695.9 million, representing 60.1% of revenue, compared to 63.5% in Q2 2024 [25] - Operating income was $221.8 million, or 19.2% of revenue, compared to $195.4 million, or 19.5% of revenue in Q2 2024 [26] - Adjusted EBITDA was $327.6 million, or 28.3% of revenue, consistent with the previous year [27] - Net income for Q2 was $192.8 million, or $0.48 per share [27] Business Line Data and Key Metrics Changes - The company experienced strong growth from the type two non-insulin population, contributing to market share gains [10] - The Stello app, aimed at glucose biosensing, has been downloaded over 400,000 times, indicating growing brand awareness [10] - The DexCom OnePlus platform saw significant growth, particularly in international markets [23][24] Market Data and Key Metrics Changes - The company established reimbursement for nearly six million type two non-insulin lives in the U.S. [9] - Coverage for insulin users was expanded in Canada through the Ontario Drug Benefit Program, enhancing market presence [24] Company Strategy and Development Direction - The company is focused on expanding access to its technology and innovating its product portfolio to improve health outcomes [30] - A succession plan was announced, with Jake Leach set to take over as CEO in 2026, indicating a strategic leadership transition [29] - The company is balancing long-term platform innovation with rapid software development, introducing 17 app updates in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet revenue guidance due to strong performance in the first half of the year [36] - The management team is closely monitoring the competitive bidding process for Medicare, which could impact pricing and market dynamics [41][46] - The company is optimistic about the future, with ongoing clinical trials expected to bolster the case for broader access and adoption of CGM technology [101][104] Other Important Information - The company is working on a new 15-day G7 system, with FDA clearance secured and plans for launch in the second half of the year [12][70] - The company has prioritized maintaining continuity for customers amid supply chain challenges, resulting in record production levels [17][25] Q&A Session Summary Question: About the ability to raise full-year guidance - Management noted strong new starts and confidence in the non-insulin opportunity, leading to an increase in full-year revenue guidance [34][36] Question: Exposure to Medicare competitive bidding - Management indicated that approximately 15% of the business is fee-for-service Medicare and emphasized the importance of ensuring no interruption to beneficiaries [41][46] Question: Margin progression through the year - Management expects sequential improvement in margins as inventory levels stabilize and production efficiency increases [52][56] Question: Update on G8 and competitive dual analyte sensors - Management expressed excitement about G8's development and emphasized the importance of safety features in their CGM systems [60][64] Question: FDA progress and outlook for the 15-day system - Management reported positive progress with the FDA and confirmed the upcoming launch of the 15-day sensor [68][70] Question: Competitive dynamics in the type one patient population - Management highlighted the strong outcomes from their systems and the importance of continuous innovation to maintain their competitive edge [75][78] Question: Utilization rates for type two non-insulin users - Management reported high utilization rates of 75-80% among covered users and emphasized the value of integrated features in driving engagement [82][84] Question: Update on Stello app and user demographics - Management confirmed the guidance for Stello remains at 2-3% of sales, with a shift in user demographics towards health and wellness as coverage expands [88][90] Question: Guidance for the back half of the year - Management reiterated their commitment to meeting revenue guidance while remaining optimistic about growth opportunities [96][97] Question: Update on clinical trials for type two non-insulin users - Management confirmed ongoing trials aimed at improving glycemic control and expected readouts early next year [100][101]

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1,160 million for Q2 2025, a 15% increase compared to $1,000 million in Q2 2024 [22] - U.S. revenue totaled $841 million for Q2 2025, up 15% from $732 million in Q2 2024 [23] - International revenue grew 16% to $316 million in Q2 2025, with organic revenue growth of 14% [24] - Gross profit was $695.9 million, representing 60.1% of revenue, compared to 63.5% in Q2 2024 [27] - Operating income was $221.8 million, or 19.2% of revenue, compared to $195.4 million, or 19.5% of revenue in Q2 2024 [28] - Adjusted EBITDA was $327.6 million, or 28.3% of revenue, consistent with the previous year [29] Business Line Data and Key Metrics Changes - Strong growth was observed in the type two non-insulin population, contributing to market share gains [11] - The Stello app, an over-the-counter glucose biosensor, has been downloaded over 400,000 times, indicating growing brand awareness [11] - The company introduced a new smart food logging feature across its apps, enhancing user experience [13] Market Data and Key Metrics Changes - The company established reimbursement for nearly six million type two non-insulin lives in the U.S. [9] - Coverage expansion in Canada for insulin users through the Ontario Drug Benefit Program represents a significant market opportunity [25] Company Strategy and Development Direction - The company aims to expand coverage for the entire type two non-insulin population in the U.S. [10] - Focus on long-term platform innovation while embracing rapid software development akin to consumer technology companies [14] - The upcoming launch of the 15-day G7 system is anticipated in the second half of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on future opportunities and maintain momentum [30] - The transition of CEO responsibilities to Jake Leach is seen as a strategic move to ensure continued growth [30] - Management is closely monitoring macroeconomic conditions and capital market environments [29] Other Important Information - The company presented nearly 40 studies at the American Diabetes Association's Scientific Sessions, focusing on metabolic health management [19] - The company is working on a randomized controlled trial for type two non-insulin users, with results expected early next year [104] Q&A Session Summary Question: About the ability to raise guidance for the full year - Management noted strong performance in new starts and non-insulin opportunities, leading to increased confidence in revenue guidance [38][41] Question: Exposure to Medicare and potential risks - Management indicated that approximately 15% of the business is fee-for-service Medicare and emphasized the importance of ensuring no interruption to beneficiaries [44][49] Question: Margin progression through the year - Management expects sequential improvement in margins as inventory levels stabilize and operational efficiencies are realized [54][58] Question: Update on G8 and competitive dual analyte sensors - Management expressed excitement about G8's development and emphasized the importance of safety features in their offerings [62][65] Question: Update on FDA progress and 15-day launch - Management reported positive progress with the FDA and confirmed the 15-day product will be launched in the current quarter [71][72] Question: Competitive dynamics with insulin pump integration - Management highlighted their strong position in the market and ongoing innovation to maintain competitive advantages [75][78] Question: Utilization rates for type two non-insulin users - Management reported high utilization rates of 75-80% among covered users, driven by the value of the product [85][86] Question: Update on Stello app and user demographics - Management confirmed the guidance for Stello remains at 2-3% of sales, with a shift in user demographics towards health and wellness [90][92]

Financial Performance - Revenue for the three months ended June 30, 2025, was $1.16 billion, up 15% from $1.00 billion in the same period in 2024[108] - Gross profit for the same period was $688.8 million, reflecting a 10% increase from $626.7 million in the prior year[108] - Operating income increased by 35% to $212.6 million compared to $158.0 million in the same quarter of 2024[108] - Net income rose to $179.8 million, a 25% increase from $143.5 million in the same period last year[108] - Revenue for the six months ended June 30, 2025, was $2,193.1 million, a 14% increase from $1,925.3 million in 2024[123] - Gross profit for the same period was $1,277.8 million, with a gross profit margin of 58.3%, down from 61.7% in 2024[123] - Operating income increased by 34% to $346.3 million, representing 16% of revenue, compared to 13% in 2024[123] - Net income for the six months ended June 30, 2025, was $285.2 million, a slight decrease of 2% from $289.9 million in 2024[123] Customer Growth - The company added approximately 500,000 - 600,000 net customers in 2024, excluding Stelo customers, contributing to revenue growth[120] - The company added approximately 500,000 - 600,000 net customers in 2024, contributing to increased sales volume of disposable sensors[128] Revenue Composition - Disposable sensor revenue comprised approximately 97% of total revenue for the three months ended June 30, 2025, compared to 94% in the same period of 2024[120] Expenses - Research and development expenses increased by $10.5 million, emphasizing the company's commitment to future growth and product development[121] - Selling, general and administrative expenses decreased by $22.9 million due to lower legal expenses related to a settled patent infringement lawsuit[121] - Research and development expenses rose to $293.4 million, accounting for 13% of revenue, up from 14% in 2024[123] Cash and Liquidity - Cash, cash equivalents, and short-term marketable securities totaled $2.93 billion at the end of the second quarter of 2025[108] - Cash, cash equivalents, and short-term marketable securities totaled $2.93 billion as of June 30, 2025, with approximately 90% located in the United States[135] - Positive cash flows from operating activities were $486.8 million for the six months ended June 30, 2025[136] - The company had a working capital ratio of 1.52 and a quick ratio of 1.29 as of June 30, 2025, indicating sufficient current assets to cover short-term liabilities[140] - The debt-to-assets ratio was 0.33 as of June 30, 2025, indicating that total assets are more than enough to cover both short-term and long-term debts[143] - As of June 30, 2025, the company had $2.93 billion in cash, cash equivalents, and short-term marketable securities, an increase of $349.9 million from $2.58 billion as of December 31, 2024[150] - Net cash provided by operating activities for the six months ended June 30, 2025, was $486.8 million, a decrease of $1.8 million compared to $488.6 million in the same period of 2024[152] - Net cash provided by investing activities increased by $150.7 million, from a negative $114.1 million in 2024 to $36.6 million in 2025[152] Capital Expenditures - Capital expenditures increased by $58.1 million due to the build-out of the manufacturing facility in Ireland[154] - The company anticipates incurring significant expenditures related to the build-out of its manufacturing facilities and investment in equipment[149] Leasing and Debt Management - The company is party to various leasing arrangements that expire at various times through December 2030, with significant land leases in Malaysia and Ireland extending to 2082 and 3023, respectively[149] - The company may repurchase outstanding debt securities or shares of common stock as market conditions warrant, depending on liquidity and other factors[147] Market Risk and Adjustments - There were no material changes to the company's quantitative and qualitative disclosures about market risk during the six months ended June 30, 2025[156] - The company reported a $66.7 million increase in net non-cash adjustments primarily due to adjustments to deferred income taxes[154] - The effect of exchange rate changes on cash, cash equivalents, and restricted cash was an increase of $23.6 million[152]

Financial Performance Highlights - Dexcom reported revenue of $1.157 billion in Q2 2025, with 15% organic revenue growth compared to Q2 2024[12] - The company generated over 300 bps of operating expense leverage compared to Q2 2024[12] - Non-GAAP Gross Profit was $695.9 million for the three months ended June 30, 2025[31], compared to $638.1 million for the three months ended June 30, 2024[31] - Adjusted EBITDA for the three months ended June 30, 2025, was $327.6 million, compared to $283.9 million for the three months ended June 30, 2024[31] Revenue Breakdown and Growth - Sensor & Other revenue reached $1.1178 billion in Q2 2025[38] - Hardware Revenue was $39.3 million in Q2 2025[38] - US Revenue in Q2 2025 was $841.0 million, representing a 15% year-over-year growth[40] - International (INT'L) Revenue in Q2 2025 was $316.1 million, a 16% year-over-year increase[40] 2025 Guidance - Dexcom updated its 2025 annual revenue guidance to $4.600-4.625 billion[25] - The company anticipates a Non-GAAP Operating Margin of approximately 21% and an Adjusted EBITDA Margin of around 30% for 2025[25] Strategic Highlights - Dexcom received FDA clearance for Dexcom G7 15 day[12] - Dexcom launched the AI Smart Food Logging feature[12]

Exhibit 99.1 Dexcom Reports Second Quarter 2025 Financial Results, Updates Full Year 2025 Guidance and Announces CEO Succession Plan SAN DIEGO - (BUSINESS WIRE-July 30, 2025) - DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights: Second Quarter 2025 Strategic Highlights: "During the quarter, Dexcom delivered strong revenue results, presented compelling clinical data at ADA, and further advocated for expanded ...

Core Viewpoint - DexCom (DXCM) is expected to report quarterly earnings of $0.45 per share, reflecting a 4.7% increase year-over-year, with revenues projected at $1.12 billion, indicating an 11.8% year-over-year growth [1]. Financial Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating analysts' stable outlook [1]. - Analysts forecast 'Revenue- Hardware' to reach $38.99 million, showing a year-over-year decline of 32% [4]. - 'Revenue- Sensor and other' is projected to be $1.08 billion, suggesting a year-over-year increase of 14.5% [4]. - 'Revenue- United States' is expected to be $809.70 million, reflecting a 10.6% increase from the prior-year quarter [4]. - 'Revenue- International' is likely to reach $311.29 million, indicating a year-over-year growth of 14.3% [5]. Market Performance - Over the past month, DexCom shares have returned +3.1%, compared to the Zacks S&P 500 composite's +4.9% change [5]. - DexCom holds a Zacks Rank 2 (Buy), suggesting it is likely to outperform the overall market in the upcoming period [5].

Core Viewpoint - DexCom, Inc. (DXCM) is expected to report second-quarter 2025 results on July 30, with revenue estimates at $1.12 billion, reflecting an 11.8% year-over-year growth, and earnings per share (EPS) forecasted at 45 cents, indicating a 4.7% increase from the previous year [1][2][6] Group 1: Financial Performance - In the last reported quarter, DexCom's earnings missed estimates by 3.03%, with an average surprise of 0.47% over the past four quarters [1] - The company has seen its shares increase by 11.1% year-to-date, outperforming the industry decline of 10.2% and the S&P 500 Index's increase of 6.9% [1] - DexCom's full-year 2025 revenue guidance is set at $4.6 billion, representing organic growth of 14%, with expected gross and operating margins of approximately 62% and 21%, respectively [10] Group 2: Growth Drivers - Key growth factors for the second quarter include the expansion of the U.S. prescriber base, strong international performance, and the traction of Stelo, an over-the-counter continuous glucose monitor [3][8] - The company's continuous glucose monitoring (CGM) system is now covered by two of the three largest pharmacy benefit managers (PBMs), likely leading to increased adoption [4] - DexCom reported a record number of new patient starts in the past two quarters, indicating improved commercial execution and strong U.S. demand [7] Group 3: International Market Dynamics - The international segment of DexCom showed resilience, growing 7% year-over-year, driven by coverage expansion for type 2 diabetes patients, particularly in Japan and France [7] - The anticipated ramp-up of the G7 CGM and international growth are expected to aid margins in the upcoming quarter [6][10] Group 4: Product Innovations - Stelo is positioned as a significant growth driver for DexCom, targeting individuals with prediabetes and Type 2 diabetes who are not on insulin [8] - The company is enhancing Stelo's adoption through product iterations, awareness campaigns, and new distribution channels, including its launch on Amazon [9]