Core Insights - Dexcom achieved revenues of $4.66 billion in 2025, reflecting a 16% increase from approximately $4 billion in 2024, with Q4 2025 earnings of $1.26 billion indicating a 12.6% year-over-year rise [1] - The 2026 revenue outlook is projected to be between $5.16 billion and $5.25 billion, which, while showing healthy double-digit growth of 11%–13%, is below analysts' expectations of $5.24 billion [2] Financial Performance - Q4 2025 earnings of $1.26 billion represent a 12.6% increase year-over-year, with an organic growth rate of 12% [1] - The company's market capitalization stands at $25.38 billion, with a slight decline in share price to $64.92 at market open on 13 February, before rallying over 8% by mid-morning [3] Strategic Initiatives - The company aims to enhance awareness of its new G7 15-day device launched in December 2025 and improve customer experience for users of its CGM systems [4] - Dexcom plans to launch Smart Basal, a personalized dosing module for managing type 2 diabetes, which is expected to simplify workflows and improve outcomes for users [5] - The company is focused on expanding its international market presence by raising awareness and increasing access to CGM technology [5] Market Position - In 2025, Dexcom held the second largest CGM market share in the US at 44.7%, trailing Abbott, which has a 48.5% share [6] - Dexcom's market share in regions such as Europe, Asia Pacific, and the Middle East & Africa is significantly lower compared to Abbott [6]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported worldwide revenue of $1.26 billion, a 13% increase from $1.11 billion in Q4 2024, with organic growth at 12% [17] - U.S. revenue reached $892 million in Q4 2025, up 11% from $803 million in Q4 2024 [17] - International revenue grew 18% to $368 million in Q4 2025, with organic growth at 15% [18] - Gross profit for Q4 was $799.8 million, representing 63.5% of revenue, an increase from 59.4% in Q4 2024 [19] - Operating income was $331.5 million, or 26.3% of revenue, compared to $209.5 million, or 18.8% of revenue, in Q4 2024 [20] - Adjusted EBITDA for Q4 was $422.2 million, or 33.5% of revenue, up from $300.1 million, or 27.0% of revenue, in Q4 2024 [20] - The company closed the quarter with approximately $2 billion in cash and cash equivalents, indicating strong financial flexibility [21] Business Line Data and Key Metrics Changes - The rollout of the Dexcom G7 15-day system has received positive feedback, enhancing customer experience and potentially increasing market share [8][9] - The company is focusing on improving customer experience through new digital support systems and AI integration [9][10] - The early access launch of Dexcom Smart Basal aims to improve outcomes for Type 2 diabetes management [10] Market Data and Key Metrics Changes - International markets, particularly Germany, the UK, and France, showed strong growth, with France being one of the fastest-growing markets due to Type 2 access expansion [18] - The company plans to expand its CGM product portfolio in international markets in 2026, targeting new segments [14] Company Strategy and Development Direction - The company aims to be the premier glucose sensing solution, focusing on sensor accuracy, reliability, and connectivity [7][8] - Strategic priorities include enhancing customer experience, expanding international market share, and driving growth through product innovation [12][14] - The company is preparing for an Investor Day in May 2026 to provide further outlook details [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in metabolic health and the impact of CGM technology on patient outcomes [28] - The company anticipates total revenue for 2026 to be between $5.16 billion and $5.25 billion, reflecting growth of 11%-13% [22] - Management highlighted the importance of maintaining strong category growth and expanding CGM access globally [23] Other Important Information - The company has successfully managed supply chain challenges, leading to improved gross margins and reduced sensor deployment issues [15] - The launch of the new patch technology is expected to enhance customer experience across the product portfolio [11] Q&A Session Summary Question: Discussion on glucose journey and market potential - Management believes the company is in the early stages of addressing metabolic health and sees significant growth opportunities, especially with potential Medicare coverage for Type 2 non-insulin users [26][28] Question: CMS proposal for Type 2 non-insulin coverage - Management is optimistic about upcoming CMS coverage decisions and expects to see positive outcomes from ongoing clinical trials [32][35] Question: Impact of the 15-day product on margins and market expansion - The 15-day product is expected to contribute to margins over time, with significant opportunities for international market expansion [38][41] Question: Operating expenses and investment in manufacturing - The increase in operating expenses is primarily due to investments in the new Ireland manufacturing facility, which will enhance production capabilities [46][48] Question: Utilization rates among different user segments - Utilization rates remain stable across various user segments, with high engagement expected to drive further growth [52][54] Question: Revenue outlook and new patient dynamics - Management provided insights into the factors influencing revenue growth, emphasizing the importance of patient retention and utilization [60][62] Question: Strengthening U.S. sensor uptake trends - Improved sensor deployment and the launch of new products have positively impacted sell-through trends, contributing to stable user retention [68][70] Question: Pricing dynamics with potential Medicare unlock - Management discussed the stable pricing environment and the impact of competitive bidding processes on future pricing strategies [75][78] Question: International growth strategy and competition - The company aims to close the revenue gap with competitors by expanding its product portfolio and increasing market penetration in international markets [82][84]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported worldwide revenue of $1.26 billion, a 13% increase from $1.11 billion in Q4 2024, with organic growth at 12% [17] - U.S. revenue reached $892 million in Q4 2025, up 11% from $803 million in Q4 2024 [17] - International revenue grew 18% to $368 million in Q4 2025, with organic growth at 15% [18] - Gross profit for Q4 was $799.8 million, representing 63.5% of revenue, an increase from 59.4% in Q4 2024 [19] - Operating income was $331.5 million, or 26.3% of revenue, compared to $209.5 million, or 18.8% of revenue in Q4 2024 [20] - Adjusted EBITDA for Q4 was $422.2 million, or 33.5% of revenue, up from $300.1 million, or 27.0% of revenue in Q4 2024 [20] - The company closed the quarter with approximately $2 billion in cash and cash equivalents, indicating strong financial flexibility [21] Business Line Data and Key Metrics Changes - The rollout of the Dexcom G7 15-Day system has received positive feedback, enhancing customer experience and potentially increasing market share [8][9] - The company is focusing on expanding its product portfolio, including the introduction of Stelo and a new CGM system in international markets by 2026 [14] Market Data and Key Metrics Changes - The international business showed particular strength in Germany, the United Kingdom, and France, with France being one of the fastest-growing markets due to Type 2 access expansion [18] - The company anticipates that international market opportunities could surpass the U.S. market in the future [14] Company Strategy and Development Direction - The company aims to be the premier glucose sensing solution, focusing on improving sensor accuracy, reliability, and connectivity [8] - A strategic priority is to enhance customer experience across all stakeholders, including prescribers and caregivers, through new digital support systems and AI integration [9] - The company plans to expand its international market share by increasing awareness and access to CGM technology globally [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in metabolic health management, particularly with upcoming Medicare coverage for Type 2 non-insulin users, which could provide access to approximately 12 million people [28] - The company expects total revenue for 2026 to be in the range of $5.16 billion to $5.25 billion, reflecting growth of 11%-13% [22] - Management highlighted the importance of maintaining gross margin improvements and operational efficiencies while investing in new product launches and manufacturing capabilities [23] Other Important Information - The company has surpassed $1 billion in free cash flow for the first time in 2025, indicating strong cash generation capabilities [22] - An Investor Day is planned for May 2026 to provide further details on the company's outlook [16] Q&A Session Summary Question: Discussion on the glucose journey and potential coverage - Management believes the company is in the early stages of addressing metabolic health issues, with significant growth opportunities as coverage expands for Type 2 non-insulin users [26][28] Question: CMS proposal for Type 2 non-insulin coverage - Management is optimistic about upcoming CMS coverage decisions and expects to see results from a randomized control trial in mid-2026 [32][35] Question: Impact of the 15-Day product on margins and new markets - The 15-Day product is expected to contribute to margins over time, with significant opportunities for international expansion [38][41] Question: Operating expenses and investment in manufacturing - The increase in operating expenses is primarily due to investments in the new Ireland manufacturing facility, which will enhance future production capabilities [46][49] Question: Utilization rates among different user segments - Utilization rates remain stable across various user segments, with high rates observed in Type 1 and Type 2 insulin users [52][54] Question: 2026 revenue outlook and new patient dynamics - Revenue growth will depend on patient retention, utilization, and pricing, with expectations for continued strong performance in new patient additions [60][62] Question: International growth strategy and competition - The company aims to close the revenue gap with competitors by expanding coverage and product offerings in international markets [82][84]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported worldwide revenue of $1.26 billion, a 13% increase from $1.11 billion in Q4 2024, with organic growth at 12% [15][16] - U.S. revenue reached $892 million in Q4 2025, up 11% from $803 million in Q4 2024 [15] - International revenue grew 18% to $368 million in Q4 2025, with organic growth at 15% [16] - Gross profit for Q4 was $799.8 million, representing 63.5% of revenue, an increase from 59.4% in Q4 2024 [17] - Operating income was $331.5 million, or 26.3% of revenue, compared to $209.5 million, or 18.8% of revenue, in Q4 2024 [18] - Net income for Q4 was $265.1 million, equating to $0.68 per share [18] - The company closed the quarter with approximately $2 billion in cash and cash equivalents, indicating strong financial flexibility [18] Business Line Data and Key Metrics Changes - The rollout of the Dexcom G7 15-day system has received positive feedback, enhancing customer experience and potentially increasing market share [6][12] - The company is focusing on improving customer experience through new digital support systems and AI integration [7][8] - The early access launch of Dexcom Smart Basal aims to improve outcomes for Type 2 diabetes management [8] Market Data and Key Metrics Changes - The international business showed strength, particularly in Germany, the United Kingdom, and France, with France being one of the fastest-growing markets due to Type 2 access expansion [16] - The company anticipates that international market opportunities could surpass those in the U.S. over time [11] Company Strategy and Development Direction - The company aims to be the premier glucose sensing solution, focusing on sensor accuracy, reliability, and connectivity [6] - Strategic priorities include enhancing customer experience, expanding international market share, and driving growth through product innovation [10][11] - The company plans to introduce new products in 2026, including Stelo and a new CGM system for international markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in metabolic health management and the impact of upcoming Medicare coverage for Type 2 non-insulin users [24][26] - The company expects total revenue for 2026 to be in the range of $5.16 billion to $5.25 billion, reflecting growth of 11%-13% [19][20] - Management highlighted the importance of maintaining gross margin improvements and operational efficiencies while investing in new facilities [20][47] Other Important Information - The company has surpassed $1 billion in free cash flow for the first time in 2025 [19] - An Investor Day is planned for May 2026 to provide further details on the company's outlook [13] Q&A Session Summary Question: Discussion on the company's glucose sensing journey and market potential - Management believes the company is in the early stages of addressing metabolic health issues, with significant growth opportunities in Type 2 coverage expected in the next 12-24 months [24][26] Question: Inquiry about CMS coverage for Type 2 non-insulin users - Management is optimistic about upcoming CMS coverage decisions and is preparing for potential impacts on market access [30][33] Question: Impact of the 15-day product rollout on margins and new markets - The 15-day product is expected to contribute to margins over time, with significant opportunities for international expansion [36][39] Question: Discussion on operating expenses and investments - Increased operating expenses are primarily due to investments in the new Ireland manufacturing facility, which will enhance future production capabilities [46][47] Question: Utilization rates among different user segments - Utilization rates remain stable across various user segments, with high engagement expected to drive further growth [51][52] Question: Revenue outlook and new patient dynamics for 2026 - Revenue growth will depend on patient retention, utilization, and pricing strategies, with a focus on maintaining a stable user base [56][60] Question: Stability of the U.S. sensor uptake trends - Management noted improvements in sensor deployment and stable user retention, contributing to positive sell-through trends [64][66] Question: Pricing dynamics related to Medicare coverage - Pricing strategies will be influenced by competitive bidding processes, with expectations for stable pricing amidst increased volume [72][74] Question: International market growth strategies - The company plans to deepen its presence in existing markets and expand into new regions, with a focus on generating evidence to support market access [80][82]

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]