Core Viewpoint - Dexcom reported a total revenue of $1.157 billion for Q2 2025, reflecting a 15% year-over-year growth, maintaining its leadership in the continuous glucose monitoring (CGM) market despite short-term pressure on gross margins [2][5]. Financial Performance - Total revenue for Q2 2025 was $1.157 billion, with a year-over-year growth of 15% and a non-GAAP net profit of $193 million, slightly exceeding analyst expectations [2][5]. - The sensor and subscription revenue reached $1.118 billion, accounting for 97% of total revenue, with an 18% year-over-year growth [4][5]. - Hardware revenue decreased to $39.3 million, representing only 3% of total revenue, down 31% year-over-year, indicating a shift towards a subscription-based model [5]. - Non-GAAP gross margin was 60.1%, down 3.4 percentage points year-over-year, attributed to production challenges with the G7 sensor [5]. - The company held $2.93 billion in cash and cash equivalents as of June 30, indicating a strong financial position [5]. Product Development and Market Strategy - Dexcom has made significant advancements in its CGM product line, including the G7 sensor, which received FDA approval for a 15-day wear period, enhancing user compliance and cost efficiency [6][8]. - The Stelo platform is being developed for non-insulin-dependent type 2 diabetes and prediabetes populations, with a target market of 25 million people [10]. - An AI-driven food logging feature has been integrated into the G7 and Stelo systems, enhancing user experience and data interpretation [12]. Clinical Evidence and Market Expansion - Recent clinical studies presented at the ADA conference demonstrated the effectiveness of Dexcom's CGM in various populations, including pregnant women and patients with chronic kidney disease, supporting broader market applications [13][14][15]. - The company is preparing for the implementation of a competitive bidding process for CGM products by the CMS in 2027, emphasizing its product differentiation in terms of user experience and clinical applications [16]. Leadership Transition - Dexcom announced that Jake Leach will succeed Kevin Sayer as CEO starting January 1, 2026, ensuring continuity in strategic direction and organizational stability [17][20].

Core Insights - DexCom reported strong Q2 2025 results with GAAP revenue of $1.16 billion, exceeding analyst estimates of $1.12 billion, and Non-GAAP EPS of $0.48, surpassing the consensus of $0.44, indicating robust performance in the type 2 diabetes market [1][2] Financial Performance - Q2 2025 Non-GAAP EPS was $0.48, up 11.6% from $0.43 in Q2 2024 [2] - GAAP revenue reached $1.16 billion, a 15.2% increase from $1.004 billion in Q2 2024 [2] - Operating income on a GAAP basis was $212.6 million, a 34.6% increase from $158 million in Q2 2024 [2] - Non-GAAP gross margin decreased to 60.1% from 63.5% year-over-year [2][8] - Net income on a Non-GAAP basis was $193 million, reflecting a 10.9% increase from $174 million in Q2 2024 [2] Market and Operational Developments - U.S. sales grew 15% to $841 million, while international revenue rose 16% to $316 million [5] - Sensor and recurring revenue now account for 97% of total sales, up from 94% a year ago, indicating strong demand and patient retention [5] - The company reported record new patient starts, particularly among type 2 diabetes patients, aided by expanded coverage for non-insulin users [6] Product Innovation and Strategy - The FDA approved the Dexcom G7 15 Day CGM System, expected to launch in the second half of 2025, promising longer sensor wear and higher accuracy [7] - The Stelo, an over-the-counter CGM, has gained traction with over 200,000 app downloads and is expected to contribute 2-3% to revenue growth in FY2025 [7] - Strategic partnerships and operational investments are focused on expanding market access and scaling production [4] Future Outlook - Management raised full-year revenue guidance to $4.60–4.63 billion, projecting 14–15% growth [11] - Non-GAAP gross margin is expected to be approximately 62%, with gradual margin improvement anticipated as logistics costs decrease [11] - The focus for the remainder of fiscal 2025 includes launching the G7 15 Day CGM, scaling Stelo, and enhancing access for type 2 diabetes patients [12]

Core Insights - DexCom, Inc. (DXCM) reported second-quarter 2025 adjusted earnings per share (EPS) of 48 cents, exceeding the Zacks Consensus Estimate of 45 cents by 6.7% and up from 43 cents in the prior-year quarter [2] - Total revenues grew 15.2% year over year to $1.16 billion, driven by strong category demand and recent access wins, particularly for type 2 diabetes [3][8] - Despite positive results, DXCM shares declined nearly 5.5% in after-hours trading on July 30, although the stock has gained 9.9% year to date [4] Revenue Details - Sensor and other revenues, which account for 97% of total revenues, increased 18% year over year to $1.12 billion, while hardware revenues decreased 31% to $39.3 million [6] - U.S. revenues (73% of total revenues) rose 15% year over year to $841 million, and international revenues (27%) improved 16% to $316.1 million [7] Margin Analysis - Adjusted gross profit totaled $695.9 million, up 9.1% from the prior-year quarter, with an adjusted gross margin of 60.1%, down 340 basis points year over year [9][10] - Total adjusted operating income was $221.8 million, reflecting a 13.5% increase from the prior-year period [10] Financial Position - DexCom ended the second quarter with cash, cash equivalents, and marketable securities worth $2.93 billion, up from $2.7 billion in the first quarter of 2025 [11] - Total assets amounted to $7.33 billion, an increase from $6.75 billion sequentially [11] 2025 Guidance - The company raised its revenue outlook for 2025 to a range of $4.6-$4.625 billion, implying 14-15% year-over-year growth [12] - Adjusted gross margin is expected to be approximately 62%, with adjusted operating margin projected at around 21% [12] Product and Market Developments - DexCom is set to launch the 15-day G7 sensor in the second half of 2025, with ongoing development of the next-gen G8 platform [15] - The company has seen strong new customer additions due to expanded reimbursement for type 2 diabetes, and international momentum is supported by key coverage wins [14][18] Management Transition - Current CEO Kevin Sayer will step down in early 2026, with Jake Leach, a long-time executive, set to take over [17]

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-51222 DEXCOM, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation o ...

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]