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]

Dexcom Dexcom earnings Q3 2025 nigbetes Nasdag Safe harbor statement This presentation contains "forward-looking statements" that are based on our management's beliefs and assumptions and on information available to management as of October 30, 2025. We intend for such forward-looking statements to be cavered by the sofe harlpor provisions for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include information conceening our possi ...