Dexcom (DXCM) FY 2025 Conference September 03, 2025 02:15 PM ET Company ParticipantsJacob Leach - President & Chief Operating OfficerJereme Sylvain - EVP & CFOConference Call ParticipantsLawrence Biegelsen - Senior Medical Device Equity Research AnalystLawrence BiegelsenWelcome back. I'm Larry Biegelsen, the Medical Device Analyst at Wells Fargo. And it's my pleasure to host this fireside chat with the management team from DexCom. With us we have Jake Leach, President and COO and the incoming CEO and Jeremy ...

Financial Data and Key Metrics Changes - The company is guiding for 14% to 15% top-line growth for 2025, with an expectation of about 200 basis points of operating margin leverage [14][15] - The company aims to exit 2025 with a gross margin around 66%, up from a full-year guidance of approximately 62% [73] Business Line Data and Key Metrics Changes - The company reported a strong performance in the Stelo product line, achieving $100 million in revenue within the first twelve months of its launch [39] - The G7 product has seen significant enhancements, with improvements in warranty replacements and complaint rates, indicating a positive trend in reliability and accuracy [20][21] Market Data and Key Metrics Changes - The company is seeing increased coverage for continuous glucose monitoring (CGM), with more people having access than currently using the technology, indicating a strong growth opportunity [7] - International markets are expected to contribute to growth, with a tiered pricing model allowing for incremental revenue from new markets [33][34] Company Strategy and Development Direction - The company is focused on executing its commitments for 2025, with priorities including expanding CGM coverage globally and enhancing its international presence [9][12] - The company is building a metabolic health platform, with plans to leverage the Stelo product and over-the-counter CGM to reach a broader population [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong double-digit growth in the foreseeable future, driven by expanding healthcare coverage and market opportunities [15][70] - The management team is optimistic about the upcoming fifteen-day sensor launch, emphasizing the importance of ensuring a smooth transition for users [25][28] Other Important Information - The company is addressing concerns regarding the reliability of the G7 product, stating that improvements have been made and that deployment challenges have been resolved [20][22] - The company is preparing for a randomized controlled trial (RCT) for Type 2 diabetes patients not using insulin, with results expected in the first half of next year [49][51] Q&A Session Summary Question: What are the strategic priorities for the next 12 to 24 months? - The company emphasized executing on 2025 commitments, expanding CGM access, and enhancing international presence [9][12] Question: How does the company view growth in the upcoming quarters? - Management indicated that guidance reflects a commitment to stability and execution, with expectations for continued patient growth and revenue alignment [29][30] Question: What is the outlook for the Type 2 non-insulin opportunity? - The company is seeing traction in the non-insulin space and is focused on ensuring physicians are aware of coverage options for their patients [46][47] Question: How is the company addressing competitive threats from new products? - Management expressed confidence in the G7 product's features and its ability to compete effectively against emerging products in the market [66][68] Question: What are the expectations for gross margins in 2026? - While specific guidance for 2026 was not provided, management indicated strong tailwinds for margin expansion due to new product launches and cost reductions [75][76]