Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1,160 million for Q2 2025, a 15% increase compared to $1,000 million in Q2 2024 [21] - U.S. revenue totaled $841 million for Q2 2025, up 15% from $732 million in Q2 2024 [22] - International revenue grew 16% to $316 million in Q2 2025, with organic revenue growth of 14% [23] - Gross profit was $695.9 million, representing 60.1% of revenue, compared to 63.5% in Q2 2024 [25] - Operating income was $221.8 million, or 19.2% of revenue, compared to $195.4 million, or 19.5% of revenue in Q2 2024 [26] - Adjusted EBITDA was $327.6 million, or 28.3% of revenue, consistent with the previous year [27] - Net income for Q2 was $192.8 million, or $0.48 per share [27] Business Line Data and Key Metrics Changes - The company experienced strong growth from the type two non-insulin population, contributing to market share gains [10] - The Stello app, aimed at glucose biosensing, has been downloaded over 400,000 times, indicating growing brand awareness [10] - The DexCom OnePlus platform saw significant growth, particularly in international markets [23][24] Market Data and Key Metrics Changes - The company established reimbursement for nearly six million type two non-insulin lives in the U.S. [9] - Coverage for insulin users was expanded in Canada through the Ontario Drug Benefit Program, enhancing market presence [24] Company Strategy and Development Direction - The company is focused on expanding access to its technology and innovating its product portfolio to improve health outcomes [30] - A succession plan was announced, with Jake Leach set to take over as CEO in 2026, indicating a strategic leadership transition [29] - The company is balancing long-term platform innovation with rapid software development, introducing 17 app updates in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet revenue guidance due to strong performance in the first half of the year [36] - The management team is closely monitoring the competitive bidding process for Medicare, which could impact pricing and market dynamics [41][46] - The company is optimistic about the future, with ongoing clinical trials expected to bolster the case for broader access and adoption of CGM technology [101][104] Other Important Information - The company is working on a new 15-day G7 system, with FDA clearance secured and plans for launch in the second half of the year [12][70] - The company has prioritized maintaining continuity for customers amid supply chain challenges, resulting in record production levels [17][25] Q&A Session Summary Question: About the ability to raise full-year guidance - Management noted strong new starts and confidence in the non-insulin opportunity, leading to an increase in full-year revenue guidance [34][36] Question: Exposure to Medicare competitive bidding - Management indicated that approximately 15% of the business is fee-for-service Medicare and emphasized the importance of ensuring no interruption to beneficiaries [41][46] Question: Margin progression through the year - Management expects sequential improvement in margins as inventory levels stabilize and production efficiency increases [52][56] Question: Update on G8 and competitive dual analyte sensors - Management expressed excitement about G8's development and emphasized the importance of safety features in their CGM systems [60][64] Question: FDA progress and outlook for the 15-day system - Management reported positive progress with the FDA and confirmed the upcoming launch of the 15-day sensor [68][70] Question: Competitive dynamics in the type one patient population - Management highlighted the strong outcomes from their systems and the importance of continuous innovation to maintain their competitive edge [75][78] Question: Utilization rates for type two non-insulin users - Management reported high utilization rates of 75-80% among covered users and emphasized the value of integrated features in driving engagement [82][84] Question: Update on Stello app and user demographics - Management confirmed the guidance for Stello remains at 2-3% of sales, with a shift in user demographics towards health and wellness as coverage expands [88][90] Question: Guidance for the back half of the year - Management reiterated their commitment to meeting revenue guidance while remaining optimistic about growth opportunities [96][97] Question: Update on clinical trials for type two non-insulin users - Management confirmed ongoing trials aimed at improving glycemic control and expected readouts early next year [100][101]

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1,160 million for Q2 2025, a 15% increase compared to $1,000 million in Q2 2024 [22] - U.S. revenue totaled $841 million for Q2 2025, up 15% from $732 million in Q2 2024 [23] - International revenue grew 16% to $316 million in Q2 2025, with organic revenue growth of 14% [24] - Gross profit was $695.9 million, representing 60.1% of revenue, compared to 63.5% in Q2 2024 [27] - Operating income was $221.8 million, or 19.2% of revenue, compared to $195.4 million, or 19.5% of revenue in Q2 2024 [28] - Adjusted EBITDA was $327.6 million, or 28.3% of revenue, consistent with the previous year [29] Business Line Data and Key Metrics Changes - Strong growth was observed in the type two non-insulin population, contributing to market share gains [11] - The Stello app, an over-the-counter glucose biosensor, has been downloaded over 400,000 times, indicating growing brand awareness [11] - The company introduced a new smart food logging feature across its apps, enhancing user experience [13] Market Data and Key Metrics Changes - The company established reimbursement for nearly six million type two non-insulin lives in the U.S. [9] - Coverage expansion in Canada for insulin users through the Ontario Drug Benefit Program represents a significant market opportunity [25] Company Strategy and Development Direction - The company aims to expand coverage for the entire type two non-insulin population in the U.S. [10] - Focus on long-term platform innovation while embracing rapid software development akin to consumer technology companies [14] - The upcoming launch of the 15-day G7 system is anticipated in the second half of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on future opportunities and maintain momentum [30] - The transition of CEO responsibilities to Jake Leach is seen as a strategic move to ensure continued growth [30] - Management is closely monitoring macroeconomic conditions and capital market environments [29] Other Important Information - The company presented nearly 40 studies at the American Diabetes Association's Scientific Sessions, focusing on metabolic health management [19] - The company is working on a randomized controlled trial for type two non-insulin users, with results expected early next year [104] Q&A Session Summary Question: About the ability to raise guidance for the full year - Management noted strong performance in new starts and non-insulin opportunities, leading to increased confidence in revenue guidance [38][41] Question: Exposure to Medicare and potential risks - Management indicated that approximately 15% of the business is fee-for-service Medicare and emphasized the importance of ensuring no interruption to beneficiaries [44][49] Question: Margin progression through the year - Management expects sequential improvement in margins as inventory levels stabilize and operational efficiencies are realized [54][58] Question: Update on G8 and competitive dual analyte sensors - Management expressed excitement about G8's development and emphasized the importance of safety features in their offerings [62][65] Question: Update on FDA progress and 15-day launch - Management reported positive progress with the FDA and confirmed the 15-day product will be launched in the current quarter [71][72] Question: Competitive dynamics with insulin pump integration - Management highlighted their strong position in the market and ongoing innovation to maintain competitive advantages [75][78] Question: Utilization rates for type two non-insulin users - Management reported high utilization rates of 75-80% among covered users, driven by the value of the product [85][86] Question: Update on Stello app and user demographics - Management confirmed the guidance for Stello remains at 2-3% of sales, with a shift in user demographics towards health and wellness [90][92]