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]