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]

Group 1 - The article highlights DexCom, Inc. (NASDAQ: DXCM) as a focus for investment, particularly noting a temporary stock boost of 10% in late June due to an announcement from the Department of Health and Human Services [1] - The Biotech Forum, led by Bret, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live chat discussions and weekly research updates [1] - The forum emphasizes covered call opportunities in the biotech sector, indicating a trend among seasoned investors [1]

Core Viewpoint - DexCom has faced significant challenges in the past year, including a 26% decline in stock price, but it has strong potential for growth in the next five years due to its market position and product offerings [1]. Group 1: Market Opportunity - DexCom specializes in continuous glucose monitoring (CGM) systems, which provide automatic and frequent blood sugar level measurements, leading to better health decisions for diabetes patients [2]. - The company has over 2.5 million customers globally as of 2024, indicating a strong installed base, yet there remains a substantial opportunity for growth in the CGM market [4]. - In the U.S., there are over 4.5 million diabetes patients on insulin therapy who are eligible for CGM but are not currently using it, highlighting a significant untapped market [5]. - The launch of Stelo, an over-the-counter CGM option, has expanded DexCom's addressable market to include diabetes patients not on insulin and those with prediabetes, where CGM penetration is currently low [6]. Group 2: Financial Performance and Valuation - Despite a decline in shares due to lower-than-expected revenue per customer, the company is positioned to improve its financial results as it continues to expand in the CGM market [9]. - DexCom's forward price-to-earnings ratio is 41.5, significantly higher than the healthcare sector average of 15.8, but this is on the lower end compared to its historical averages [10]. - The company has historically maintained high valuation metrics while delivering market-beating returns, suggesting potential for similar performance in the next five to ten years [12]. Group 3: Competitive Landscape and Ecosystem - DexCom competes with Abbott Laboratories in the CGM market, but there is ample opportunity for both companies to succeed given the large global market for CGM technology [12]. - The company benefits from a network effect, as its technology is compatible with various devices and applications, enhancing its ecosystem and attractiveness to developers [13]. - As more compatible technologies are launched, DexCom's appeal to patients is likely to increase, reinforcing its leadership position in the CGM market beyond the next five years [14].

Core Viewpoint - DexCom (DXCM) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. DexCom's Earnings Outlook - The recent rating upgrade for DexCom reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending December 2025, DexCom is projected to earn $2.03 per share, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of DexCom to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Viewpoint - Johnson Fistel, PLLP has initiated an investigation into DexCom, Inc. for potential breaches of fiduciary duties and violations of federal securities laws due to misleading public statements made by certain insiders regarding the company's expansion strategy and market share [1][2]. Summary by Relevant Sections Investigation Details - The investigation focuses on actions taken by DexCom insiders between April 28, 2023, and June 5, 2024, which led to the issuance of false and misleading statements about the company's growth and market position [2]. - DexCom began making corrective disclosures starting April 25, 2024, revealing that its growth and business prospects were significantly lower than previously claimed [2]. - By the final corrective disclosure on July 25, 2024, DexCom's share price had decreased by over 40.6% [2]. Shareholder Rights - Current stockholders who held DexCom stock before April 28, 2023, are encouraged to contact Johnson Fistel to discuss their legal rights regarding the investigation [3].