DexCom, Inc.’s (NASDAQ:DXCM) third-quarter 2025 revenue reached $1.209 billion, beating the analyst consensus estimate of $1.179 billion.Revenue grew 22% year-over-year on a reported basis and 20% year-over-year on an organic basis.U.S. revenue grew 21% and international revenue grew 22% on a reported basis and 18% on an organic basis, all on a year-over-year basis.GAAP operating income was $242.5 million or 20.1% of revenue, an increase of 480 basis points compared to the third quarter of 2024.Adjusted ope ...

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Viewpoint - Dexcom shares fell 12% in premarket trading due to executives indicating that the company's 2026 growth forecast may not meet Wall Street expectations [1] Company Summary - Dexcom is a medical device maker that specializes in continuous glucose monitoring systems [1] - The decline in share price reflects investor concerns regarding future growth potential [1] Industry Summary - The medical device industry is facing scrutiny as companies adjust growth forecasts amid changing market conditions [1] - Investor sentiment in the sector may be influenced by individual company performance and guidance [1]

Core Viewpoint - A class action lawsuit has been filed against DexCom, Inc. for misleading statements regarding the reliability and safety of its G6 and G7 continuous glucose monitoring systems during the specified Class Period from July 26, 2024, to September 17, 2025 [1][5]. Group 1: Lawsuit Details - The lawsuit alleges that DexCom made unauthorized design changes to the G6 and G7 systems that compromised their reliability, posing health risks to users [5]. - It is claimed that DexCom overstated the enhancements and reliability of the G7 device, while downplaying the severity of issues related to the adulterated devices [5]. - The lawsuit indicates that these actions subjected DexCom to increased regulatory scrutiny and potential legal and financial repercussions [5]. Group 2: Investor Information - Investors who purchased DexCom securities during the Class Period may be eligible for compensation without incurring out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm directly for more information [3][6]. - A lead plaintiff must be appointed by December 29, 2025, to represent the class in the litigation [1][3]. Group 3: Law Firm Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements for investors, including over $438 million in 2019 [4]. - The firm has been recognized for its success in securities class action settlements and has a history of representing investors globally [4].

For the quarter ended September 2025, DexCom (DXCM) reported revenue of $1.21 billion, up 21.6% over the same period last year. EPS came in at $0.61, compared to $0.45 in the year-ago quarter.The reported revenue represents a surprise of +2.72% over the Zacks Consensus Estimate of $1.18 billion. With the consensus EPS estimate being $0.57, the EPS surprise was +7.02%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1.21 billion for Q3 2025, a 22% increase compared to $994 million in Q3 2024, with organic revenue growth of 20% [20] - U.S. revenue reached $852 million, up 21% from $702 million in Q3 2024, driven by growth in Type 2 diabetes contributions [20][21] - International revenue grew 22% to $357.4 million, with organic growth of 18%, marking the third consecutive quarter of accelerating international growth [21] - Gross profit was $741.3 million, representing 61.3% of revenue, down from 63.0% in Q3 2024, impacted by higher scrap rates [22][24] - Operating income was $272.9 million, or 22.6% of revenue, compared to $212.0 million, or 21.3% in Q3 2024 [24] - Net income for Q3 was $242.5 million, or $0.61 per share, the highest quarterly earnings per share in the company's history [24] Business Line Data and Key Metrics Changes - The company continues to see strong performance in Type 2 diabetes, with new customer starts increasingly coming from this population due to expanded coverage [8][21] - The introduction of Dexcom Smart Basal aims to improve basal insulin management for Type 2 customers, enhancing the user experience [11][12] - Stelo surpassed $100 million in revenue within its first year, indicating strong market acceptance and potential for further growth [13][14] Market Data and Key Metrics Changes - The company has established coverage for nearly 6 million Type 2 non-insulin lives in the U.S., representing about half of the Type 2 NIT commercial population [9] - France and Canada are highlighted as fast-growing markets, with significant new coverage contributing to growth [21] Company Strategy and Development Direction - The company is focused on expanding coverage for Type 2 diabetes patients and enhancing product personalization through new features [10][11] - The upcoming launch of the G7 15-day system is expected to enhance the company's market position, with finalized contracts with major payers [15][52] - The company is committed to improving customer experience through digital innovations like My Dexcom Account [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by expanding CGM access and the increasing body of evidence supporting CGM use among Type 2 patients [9][10] - The company anticipates a strong performance in Q4 and 2026, with expectations for record new patient starts [77] - Management acknowledged challenges in Q3 but emphasized improvements in product quality and customer satisfaction [34][35] Other Important Information - The company raised its revenue guidance for 2025 to a range of $4.630 billion to $4.650 billion, reflecting approximately 15% growth for the year [25] - Non-GAAP gross profit margin guidance was lowered to approximately 61% due to scrap dynamics [25] Q&A Session Summary Question: Insights on 2026 growth estimates - Management refrained from providing specific guidance for 2026 but indicated a double-digit growth potential based on current coverage and access [30][31] Question: G7 performance and impact of quality issues - Management confirmed that quality issues have been resolved, and while there was a slight impact on new starts in Q3, they expect improvements moving forward [34][35] Question: Growth in new patient segments - Management noted strong performance across all Type 2 markets, including intensive and non-insulin users, and emphasized ongoing efforts to drive growth [40][41] Question: Expanded coverage potential in 2026 - Management stated that the base case for guidance includes current coverage, with potential for expanded coverage to be recognized as it materializes [44][45] Question: Revenue contribution from the 15-day sensor - Management indicated that the 15-day sensor will have a nominal contribution in the current year but is expected to drive additional patient uptake in 2026 [53][54] Question: Actions to ensure clear communication regarding product quality - Management is actively engaging with prescribers and users to communicate improvements and address concerns regarding product performance [58][59] Question: Gross margin impacts and future expectations - Management indicated that scrap and freight issues are expected to improve, leading to a return to more normalized margin rates in 2026 [62][72]

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1.21 billion for Q3 2025, a 22% increase compared to $994 million in Q3 2024, with organic revenue growth of 20% [20][21] - U.S. revenue reached $852 million, up 21% from $702 million in the same quarter last year [20][21] - Gross profit was $741.3 million, representing 61.3% of revenue, down from 63.0% in Q3 2024 [22] - Operating income was $272.9 million, or 22.6% of revenue, compared to $212.0 million, or 21.3% in Q3 2024 [24] - Net income for Q3 was $242.5 million, or $0.61 per share, marking the highest quarterly earnings per share in the company's history [24] Business Line Data and Key Metrics Changes - The company experienced strong growth in Type 2 diabetes segments, with new customer starts increasingly coming from this population due to expanded coverage [8][20] - The introduction of Dexcom Smart Basal aims to enhance the management of basal insulin for Type 2 customers, addressing their specific needs [11][12] - Stelo surpassed $100 million in revenue within its first year, indicating strong market acceptance and growth potential [13][14] Market Data and Key Metrics Changes - International revenue grew 22% to $357.4 million, with organic growth of 18%, marking the third consecutive quarter of accelerating international growth [21] - France and Canada were highlighted as strong markets, with France showing consistent growth due to new coverage [21] Company Strategy and Development Direction - The company is focused on expanding coverage for Type 2 diabetes patients, aiming to secure access for the entire population of over 25 million Americans [9][10] - The launch of the G7 15 Day system is anticipated to enhance the company's product offerings and market position [14][15] - The company is committed to improving customer experience through new digital platforms and ongoing software updates [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of expanding access to CGM for Type 2 diabetes patients [8][9] - The company acknowledged challenges related to sensor deployment but indicated improvements have been made, leading to a positive outlook for Q4 and beyond [34][35] - Management expects to return to record levels of new patient starts in 2026, driven by existing coverage and potential new coverage opportunities [77] Other Important Information - The company raised its revenue guidance for 2025 to a range of $4.630 billion to $4.650 billion, reflecting approximately 15% growth for the year [25] - Operating expenses increased to $468.4 million in Q3 2025, up from $413.9 million in Q3 2024, as the company continues to invest in R&D [24] Q&A Session Summary Question: Insights on 2026 growth estimates - Management refrained from providing specific guidance for 2026 but indicated a positive outlook based on current coverage and access to CGM [30][31] Question: G7 performance and deployment issues - Management confirmed that deployment challenges have been addressed, and they expect improvements in new starts and prescribing patterns moving forward [34][35] Question: Growth in new patient segments - The company noted strong performance across all Type 2 markets, including intensive and non-insulin users, and is actively exploring marketing strategies to drive uptake [40][41] Question: Expanded coverage potential for 2026 - Management stated that the base case for guidance includes current coverage, with potential for expanded coverage being a positive but not guaranteed factor [44][45] Question: 15 Day sensor launch and revenue contribution - The company is excited about the upcoming broader launch of the 15 Day sensor, with expectations for it to contribute to revenue growth in 2026 [52][53] Question: Gross margin and scrap rate issues - Management indicated that scrap and freight issues have impacted margins but expect improvements as they transition back to more cost-efficient shipping methods [70][72]

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1.21 billion for Q3 2025, a 22% increase compared to $994 million in Q3 2024, with organic revenue growth of 20% [17] - U.S. revenue totaled $852 million, up 21% from $702 million in Q3 2024, driven by growth in Type 2 diabetes contributions [17][18] - International revenue grew 22% to $357.4 million, with organic growth of 18%, marking the third consecutive quarter of accelerating international growth [18] - Gross profit was $741.3 million, representing 61.3% of revenue, down from 63.0% in Q3 2024, impacted by higher scrap rates [19][20] - Operating income was $272.9 million, or 22.6% of revenue, compared to $212.0 million, or 21.3% in Q3 2024 [22] - Net income reached $242.5 million, or $0.61 per share, the highest quarterly earnings per share in the company's history [22] Business Line Data and Key Metrics Changes - The company continues to see strong performance in Type 2 diabetes, with new customer starts coming from the entire Type 2 population due to expanded coverage [5][6] - The Dexcom Smart Basal feature aims to improve basal insulin management for Type 2 customers, currently under FDA review [9] - Stelo surpassed $100 million in revenue within its first year, indicating strong market acceptance and potential for international expansion [10] Market Data and Key Metrics Changes - Coverage for nearly 6 million Type 2 non-insulin lives has been established, representing about half of the Type 2 NIT commercial population in the U.S. [6] - France and Canada are highlighted as fast-growing markets, with significant new coverage contributing to growth [18] Company Strategy and Development Direction - The company is focused on expanding coverage for Type 2 diabetes patients and enhancing product personalization [8][10] - The launch of the G7 15-day system is anticipated to enhance the company's market position, with contracts finalized with major payers [11][12] - The company is committed to improving customer experience through digital innovations like My Dexcom Account [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing expansion of CGM access for Type 2 diabetes, viewing it as a matter of "when, not if" [6][7] - The company is optimistic about future growth opportunities, particularly in expanding access and improving product offerings [15][22] Other Important Information - The company raised its revenue guidance for 2025 to a range of $4.630 billion to $4.650 billion, reflecting approximately 15% growth for the year [23] - Operating expenses increased to $468.4 million in Q3 2025, compared to $413.9 million in Q3 2024, as the company continues to invest in R&D [21] Q&A Session Summary Question: Insights on 2026 growth estimates - Management refrained from providing specific guidance for 2026 but indicated a double-digit growth runway based on current coverage [27] Question: G7 performance and impact of quality issues - Management confirmed that quality issues have been resolved, and while there was a slight impact on new starts, they expect to return to record levels in Q4 [30][32] Question: Growth in new patients and market strategy - Growth is observed across all Type 2 markets, with ongoing adjustments in marketing strategies to capture new patient segments [35] Question: Expanded coverage potential in 2026 - The base case for guidance includes current coverage, with potential for expanded coverage not factored in [39][40] Question: Revenue contribution from the 15-day sensor - The broader launch of the 15-day sensor is expected soon, with nominal revenue contribution anticipated in the current year but significant potential in 2026 [46][47] Question: Gross margin and scrap rate impacts - Management indicated that scrap and freight issues are expected to improve, with a return to normalized margins anticipated in 2026 [56][67] Question: Type 2 user utilization rates - Utilization rates for Type 2 users are strong, with AID customers showing the highest utilization, followed by intensive insulin users [68] Question: Quality issues and new patient starts - Quality issues had a slight impact on Q3 starts, but management expects to return to record levels without needing expanded access [72]

Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $1.21 billion, up 22% from $994.2 million in the same period in 2024[110] - Gross profit for the same period was $731.4 million, representing a 23% increase from $593.8 million in the prior year[110] - Operating income increased by 60% to $242.5 million compared to $152.0 million in the third quarter of 2024[110] - Net income for the third quarter of 2025 was $283.8 million, up 111% from $134.6 million in the same period in 2024[110] - Revenue for the nine months ended September 30, 2025, was $3,402.4 million, a 17% increase from $2,919.5 million in 2024[124] - Gross profit for the same period was $2,009.2 million, representing a gross profit margin of 59.1%, down from 61.1% in 2024[124] - Operating income increased by 43% to $588.8 million, compared to $411.1 million in the prior year[124] - Net income rose to $569.0 million, a 34% increase from $424.5 million in 2024, with diluted net income per share increasing to $1.42[124] Customer Growth - The company added approximately 500,000 - 600,000 net customers in 2024, excluding Stelo customers, contributing to revenue growth[121] - The company added approximately 500,000 - 600,000 net customers in 2024, contributing to increased sales volume of disposable sensors[130] Expenses - Research and development expenses increased by $22.1 million, primarily due to higher compensation and related costs[122] - Selling, general and administrative expenses rose by $25.0 million, driven by increased headcount and advertising costs[122] - Research and development expenses increased by 9% to $450.9 million, driven by higher compensation costs[131] Cash Flow and Liquidity - Cash, cash equivalents, and short-term marketable securities totaled $3.32 billion as of September 30, 2025, with $2.96 billion (approximately 89%) located in the United States[136] - Positive cash flows from operating activities were $1.15 billion for the nine months ended September 30, 2025[137] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,146.7 million, up $458.6 million from $688.1 million in the same period of 2024[154] - The company experienced a $172.8 million increase in net proceeds from marketable securities due to liquidity management[154] - Cash used in financing activities decreased by $569.0 million, from $(733.2) million in 2024 to $(164.2) million in 2025[154] Debt and Obligations - The company has $1.21 billion of outstanding 2025 Notes maturing on November 15, 2025, which will need to be repaid or refinanced[147] - As of September 30, 2025, the company had a debt-to-assets ratio of 0.33, indicating total assets are more than enough to cover debts[144] - There were no material changes to the company's lease obligations during the nine months ended September 30, 2025[151] - The company anticipates significant expenditures related to the build-out of manufacturing facilities and investment in equipment[151] - The company may repurchase outstanding debt securities or shares of common stock depending on market conditions and liquidity[149] Other Financial Information - Other income, net increased primarily due to $82.3 million in higher net gains on equity investments[122] - There were no material changes to the company's quantitative and qualitative disclosures about market risk during the nine months ended September 30, 2025[156]