Core Insights - Dexcom presented breakthrough outcomes for Type 2 diabetes management and outlined its product roadmap at the ATTD 2026 conference, emphasizing the need for continuous glucose monitoring (CGM) to become standard care for all Type 2 diabetes patients, including those not on insulin therapy [1][2] Group 1: Product Features and Innovations - Dexcom showcased new registry study data indicating that long-term use of Dexcom G7 supports weight management and lowers A1C levels for non-insulin-treated Type 2 diabetes patients, highlighting the importance of CGM access for this demographic [1] - The company introduced its upcoming product features during the conference, including advancements in Dexcom G7 and Dexcom ONE+, as well as a new health and wellness product line called Stelo [1] - Dexcom's commitment to innovation includes the introduction of the Dexcom Academy, an education platform for healthcare professionals, which is currently available in several countries with plans for further expansion [1][2] Group 2: Clinical Evidence and Impact - A multi-center primary care registry study revealed that after one year of using Dexcom G7, non-insulin-treated Type 2 diabetes patients experienced significant improvements in A1C and weight management, reinforcing the benefits of CGM [1] - New evidence presented at the conference indicated that Dexcom CGM use is associated with reductions in diabetic ketoacidosis (DKA)-related hospitalizations and emergency room visits for both children and adults with Type 1 diabetes [1] - A prospective study demonstrated that Dexcom Smart Basal was safe and effective for optimizing basal insulin therapy in Type 2 diabetes patients, showcasing the technology's versatility [1] Group 3: Educational Initiatives - Dexcom introduced the first consensus-based CGM competency framework aimed at providing healthcare professionals with a structured approach to delivering CGM support, which will be utilized in the Dexcom Academy [1] - The company hosted symposiums at the conference to discuss the clinical implications of its technology and the benefits of early CGM use in prediabetes and Type 2 diabetes management [1]

Summary of Dexcom's Conference Call Company Overview - **Company**: Dexcom - **Industry**: Continuous Glucose Monitoring (CGM) - **Key Personnel**: CFO Jereme Gloekler, new CEO Jake Leach, former Executive Chairman Kevin Sayer [1][2][6] Core Points and Arguments - **Market Size and Growth**: - Approximately 600 million people globally diagnosed with diabetes, expected to rise to 853 million by 2050 [5] - 40% of the U.S. population has prediabetes, indicating a growing crisis [5] - Only 2% of the diabetes population currently uses CGM, highlighting a significant unmet need [6] - **Company Strategy**: - Focus on being the premier glucose sensing solution and improving customer experience [7][9] - Plans to expand internationally, as Dexcom is under-indexed outside the U.S. [10] - Aiming for scalable production, with a goal to produce as many sensors as Apple makes iPhones [10] - **Financial Performance**: - Revenue growth of approximately 15% organically in 2025, with an active customer base growth of over 20% [12] - Guidance for 2026 includes revenue growth of 11%-13%, gross margins of 63%-64%, and over $1 billion in free cash flow [15][40] - **Product Developments**: - Launch of Dexcom G7 15-Day system, which includes SmartBasal for remote insulin titration [13][14] - Introduction of Dexcom ONE, an over-the-counter product, generating $130 million in revenue in 2025 [31] - Upcoming Dexcom G8 expected to be the most accurate sensor with advanced sensing capabilities [35][36] - **Clinical Evidence and Coverage**: - Ongoing efforts to secure coverage for Type 2 diabetes patients, with potential to unlock 12 million additional lives [21] - Real-world data shows significant health improvements for users of CGM, including reductions in A1C, weight, and BMI [19][20] Additional Important Content - **Customer Experience Enhancements**: - Development of a digital experience for better customer support and account management [27] - Integration with electronic health records (EHR) to facilitate data sharing with healthcare providers [30] - **International Expansion**: - Significant opportunities in countries like Japan, France, and Canada, where coverage is expanding [22][23] - Plans to launch a manufacturing facility in Ireland by 2026 to enhance global supply chain resilience [34][35] - **Challenges and Learnings**: - Acknowledgment of past challenges, including supply chain issues and an FDA warning letter, with a focus on learning and improving operations [44][45] - **Future Outlook**: - Anticipation of double-digit growth and gross margin expansion, with a strong emphasis on expanding coverage and improving product offerings [40][46] This summary encapsulates the key points discussed during the conference call, highlighting Dexcom's strategic direction, market opportunities, and financial outlook.

Core Insights - DexCom, Inc. (DXCM) reported Q4 2025 adjusted EPS of 68 cents, exceeding the Zacks Consensus Estimate of 65 cents by 4.6%, and up from 45 cents in the prior-year quarter [1] - Full-year adjusted EPS was $2.09, reflecting a 27.4% increase from 2024 [1] - GAAP net income per share for Q4 was also 68 cents, up from 38 cents year-over-year [1][2] Revenue Performance - Total revenues for Q4 grew 13% year-over-year to $1.26 billion, surpassing the Zacks Consensus Estimate by 0.6% [3] - Full-year revenues for 2025 increased by 16% to $4.66 billion [4] - U.S. revenues, accounting for 70.8% of total revenues, rose 11% to $891.5 million, while international revenues improved 18% to $368.1 million [5] Margin and Operating Income - Adjusted gross profit reached $799.8 million, a 20.9% increase from the prior-year quarter, with an adjusted gross margin of 63.5%, up 410 basis points year-over-year [9] - Total adjusted operating income was $331.5 million, up 58.2% from the previous year, with an adjusted operating margin of 26.3%, an increase of 750 basis points [10] Financial Position - As of the end of Q4, the company had cash, cash equivalents, and marketable securities totaling $2 billion, down from $3.32 billion in Q3 2025 [11] - Total assets were reported at $6.34 billion, a decrease from $7.5 billion [11] Future Guidance - For 2026, DexCom expects revenues between $5.16 billion and $5.25 billion, indicating 11-13% growth year-over-year [12] - The company anticipates an adjusted gross margin of approximately 63-64% and an adjusted operating margin of about 22-23% [12] Strategic Developments - The nationwide launch of the G7 15-Day system is expected to enhance customer experience and drive growth [8] - The company is preparing for potential Medicare coverage for type 2 non-insulin users, which could significantly expand its market [19] - The G7 system's improvements in accuracy and reliability are expected to support ongoing adoption and market share growth [15]

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]

Investor Presentation February 12, 2026 CONFIDENTIAL – DO NOT DISTRIBUTE 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 February 12, 2026. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include inform ...

Company Overview - DexCom, Inc. (DXCM) is a medical device company with a market cap of $26.6 billion, specializing in continuous glucose monitoring (CGM) systems for diabetes and metabolic health management globally [1] Stock Performance - Over the past 52 weeks, DXCM shares have declined by 22.8%, underperforming the S&P 500 Index, which gained 14.4% during the same period [2] - Year-to-date, DXCM stock has risen by 2.7%, slightly outperforming the S&P 500's 1.4% gain [2] - The stock has also lagged behind the State Street Health Care Select Sector SPDR ETF (XLV), which rose by 6.2% over the past 52 weeks [3] Recent Financial Results - In Q3 2025, DexCom reported an adjusted EPS of $0.61 and revenue of $1.21 billion, both exceeding expectations [4] - Despite the strong financial results, shares fell by 14.6% the following day due to a cut in 2025 adjusted gross margin guidance from 62% to approximately 61% [4] - Management's decision not to provide 2026 guidance raised concerns about potential growth falling below market expectations and highlighted risks related to the D7 product execution [4] Analyst Expectations - For the fiscal year ending December 2025, analysts project a 26.2% year-over-year increase in adjusted EPS to $2.07 [5] - The company's earnings surprise history is mixed, with two beats and two misses in the last four quarters [5] - Among 28 analysts covering the stock, the consensus rating is a "Strong Buy," supported by 22 "Strong Buy" ratings, one "Moderate Buy," four "Holds," and one "Strong Sell" [5] Analyst Ratings - On January 20, TD Cowen analyst Josh Jennings reaffirmed a "Buy" rating on DexCom, maintaining a price target of $84 [6]

Core Insights - Dexcom (DXCM) is launching a nationwide AI-driven upgrade to its Stelo platform, enhancing users' understanding of glucose health and supporting long-term wellness goals [2][6] - The upgrade includes a nutrition database with over one million food entries, improving the Smart Food Logging feature and providing detailed macro- and nutrient-level breakdowns for logged meals [2][8] Company Developments - The new features will support various meal-logging methods such as text search, barcode scanning, and photo capture, streamlining the glucose tracking experience [3][4] - The updated Smart Food Logging functionality and Daily Insights tools will be available through upcoming iOS and Android app updates [3][4] - Management indicated that the enhancements are a response to user feedback aimed at simplifying nutrition tracking and reducing barriers to informed dietary choices [4] Market Positioning - The expanded Stelo offerings are expected to strengthen Dexcom's competitive position in the personal and preventive health market by increasing user engagement with AI-enabled nutrition analytics [6] - By broadening the Stelo platform's utility beyond glucose sensing to integrated lifestyle guidance, Dexcom enhances its value proposition for both existing and new customers [6] User Impact - Users reported improved dietary behaviors, physical activity, and weight-management habits after 30 days of using Stelo, indicating that enhanced insights into food-related glucose responses may support more effective metabolic health management [11][12] - The redesigned Daily Insights feature will provide personalized recommendations based on prior-day glucose, activity, nutrition, and sleep data, leveraging AI for adaptive guidance [10] Industry Outlook - The glucose biosensors market was valued at $10.71 billion in 2025 and is projected to grow at a CAGR of 8.9% through 2034, driven by increasing diabetes prevalence and technological advancements [13]

Core Insights - Dexcom, Inc. is launching an advanced AI-enabled enhancement to its Stelo glucose biosensor, aimed at improving user understanding of glucose health and supporting long-term health goals [1][6] Product Features - The new features include an expanded Smart Food Logging capability, integrating a comprehensive nutrition database with over one million food options, allowing users to log meals through text search, barcode scanning, or photo capture [1][5] - The redesigned Daily Insights feature will provide users with personalized recommendations based on their glucose, activity, nutrition, and sleep data, utilizing a sophisticated card-based system [4][5] User Impact - After 30 days of using Stelo, most users reported positive changes in dietary habits, physical activity, and weight management, indicating the effectiveness of the product in managing metabolic health [3] - The updates aim to reduce friction in nutrition tracking, empowering users to make informed dietary decisions and achieve health goals with greater confidence [2][4] Company Background - Dexcom has been a leader in glucose biosensing technology for over 25 years, helping individuals manage diabetes and track glucose levels effectively [8] - The company is set to launch a completely reimagined Stelo app experience later this year, following the completion of development and regulatory approvals [6]