Dexcom (NasdaqGS:DXCM) FY Conference Transcript

Dexcom FY Conference Summary Company Overview - Company: Dexcom (NasdaqGS:DXCM) - Event: FY Conference held on January 12, 2026 - CEO: Jake Leach, presenting for the first time as President and CEO Key Industry Insights - Continuous Glucose Monitoring (CGM): Dexcom is a pioneer in the CGM industry, introducing several innovations that have transformed diabetes management, including real-time hypoglycemia alerts and remote monitoring systems [2][3] - Market Size: Approximately 10 million people globally use CGM, representing less than 2% of the diabetes population. In the U.S., 40% of adults have prediabetes, indicating a significant growth opportunity for CGM technology [6] Financial Performance - 2025 Revenue: Approximately $4.662 billion, a growth of 16% (15% organic) compared to 2024. The company exited 2025 with about 3.5 million active customers, a 20% increase from 2024 [9][10] - Stelo Product Revenue: Generated $130 million in 2025, contributing positively to growth [10] - 2026 Revenue Guidance: Expected annual revenue of $5.16-$5.25 billion, representing growth of 11%-13% [11][12] Strategic Priorities 1. Premier Glucose Solution: Aim to be the leading glucose solution for all customers, prescribers, and partners [7] 2. Customer Experience: Enhance customer interactions and experiences with Dexcom products [7] 3. International Market Expansion: Focus on increasing market share internationally, particularly in regions with limited access to CGM [8] Product Innovations - G7 15-Day Sensor: Launched successfully, noted for its accuracy and user experience improvements [20] - Smart Basal Technology: Designed to optimize insulin dosing for patients, improving adherence and outcomes [22] - Stelo Over-the-Counter CGM: Launched in late 2024, with over 500,000 users and a new AI-based meal logging feature [24][25] Market Opportunities - Untapped Market: Over 9 million people in the U.S. have CGM coverage but are not using it, presenting a significant growth opportunity [13] - International Expansion: Plans to introduce products like Stelo in international markets, aiming to build coverage and awareness [56][57] Clinical Evidence and Coverage Expansion - Type 2 Registry: Data from a registry tracking non-insulin users shows high sensor utilization and sustained improvements in A1C and glucose metrics [14][15] - Upcoming Clinical Trials: Anticipated release of strong clinical evidence for non-insulin users, which is expected to support coverage expansion [17] Operational Enhancements - Manufacturing Capacity: New sensor manufacturing facility in Ireland expected to come online in late 2026, enhancing production capabilities [27] - Quality Management: Significant updates to quality management systems and supply chain investments to support growth [26] Financial Metrics and Projections - Free Cash Flow: Expected to deliver $1 billion in free cash flow and $1.5 billion in adjusted EBITDA in 2026 [32] - Gross Margin: Anticipated expansion in gross margin due to the success of the G7 15-day sensor and operational efficiencies [12][44] Conclusion - Dexcom is positioned for strong growth in 2026, driven by innovative products, expanding market access, and a commitment to improving diabetes management for patients globally. The company aims to leverage its leadership in CGM technology to capture a larger share of the diabetes care market while enhancing customer experiences and operational efficiencies [32][54]