Core Insights - DexCom reported revenue of $1.21 billion for the quarter ended September 2025, reflecting a year-over-year increase of 21.6% and a surprise of +2.72% over the Zacks Consensus Estimate of $1.18 billion [1] - Earnings per share (EPS) for the quarter was $0.61, compared to $0.45 in the same quarter last year, resulting in an EPS surprise of +7.02% against the consensus estimate of $0.57 [1] Revenue Breakdown - Revenue in the United States reached $851.9 million, exceeding the six-analyst average estimate of $843.25 million, with a year-over-year change of +21.4% [4] - International revenue was $357.4 million, surpassing the six-analyst average estimate of $332.15 million, marking a year-over-year increase of +22.3% [4] - Revenue from hardware was $34.2 million, below the average estimate of $39.65 million based on three analysts, representing a year-over-year decline of -19.3% [4] - Revenue from sensors and other products was $1.18 billion, exceeding the estimated $1.14 billion by three analysts, with a year-over-year increase of +23.5% [4] Stock Performance - DexCom shares have returned +3.2% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]

Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $1.21 billion, up 22% from $994.2 million in the same period in 2024[110] - Gross profit for the same period was $731.4 million, representing a 23% increase from $593.8 million in the prior year[110] - Operating income increased by 60% to $242.5 million compared to $152.0 million in the third quarter of 2024[110] - Net income for the third quarter of 2025 was $283.8 million, up 111% from $134.6 million in the same period in 2024[110] - Revenue for the nine months ended September 30, 2025, was $3,402.4 million, a 17% increase from $2,919.5 million in 2024[124] - Gross profit for the same period was $2,009.2 million, representing a gross profit margin of 59.1%, down from 61.1% in 2024[124] - Operating income increased by 43% to $588.8 million, compared to $411.1 million in the prior year[124] - Net income rose to $569.0 million, a 34% increase from $424.5 million in 2024, with diluted net income per share increasing to $1.42[124] Customer Growth - The company added approximately 500,000 - 600,000 net customers in 2024, excluding Stelo customers, contributing to revenue growth[121] - The company added approximately 500,000 - 600,000 net customers in 2024, contributing to increased sales volume of disposable sensors[130] Expenses - Research and development expenses increased by $22.1 million, primarily due to higher compensation and related costs[122] - Selling, general and administrative expenses rose by $25.0 million, driven by increased headcount and advertising costs[122] - Research and development expenses increased by 9% to $450.9 million, driven by higher compensation costs[131] Cash Flow and Liquidity - Cash, cash equivalents, and short-term marketable securities totaled $3.32 billion as of September 30, 2025, with $2.96 billion (approximately 89%) located in the United States[136] - Positive cash flows from operating activities were $1.15 billion for the nine months ended September 30, 2025[137] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,146.7 million, up $458.6 million from $688.1 million in the same period of 2024[154] - The company experienced a $172.8 million increase in net proceeds from marketable securities due to liquidity management[154] - Cash used in financing activities decreased by $569.0 million, from $(733.2) million in 2024 to $(164.2) million in 2025[154] Debt and Obligations - The company has $1.21 billion of outstanding 2025 Notes maturing on November 15, 2025, which will need to be repaid or refinanced[147] - As of September 30, 2025, the company had a debt-to-assets ratio of 0.33, indicating total assets are more than enough to cover debts[144] - There were no material changes to the company's lease obligations during the nine months ended September 30, 2025[151] - The company anticipates significant expenditures related to the build-out of manufacturing facilities and investment in equipment[151] - The company may repurchase outstanding debt securities or shares of common stock depending on market conditions and liquidity[149] Other Financial Information - Other income, net increased primarily due to $82.3 million in higher net gains on equity investments[122] - There were no material changes to the company's quantitative and qualitative disclosures about market risk during the nine months ended September 30, 2025[156]

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 ...

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Core Viewpoint - Medical device maker Dexcom exceeded Wall Street estimates for third-quarter results, driven by strong demand for its continuous glucose monitoring systems [1] Company Summary - Dexcom reported robust performance in the third quarter, indicating a positive trend in the demand for its products [1] Industry Summary - The continuous glucose monitoring systems market is experiencing significant growth, as evidenced by Dexcom's strong quarterly results [1]

Exhibit 99.1 Dexcom Reports Third Quarter 2025 Financial Results and Updates Full Year 2025 Guidance SAN DIEGO - (BUSINESS WIRE-October 30, 2025) - DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter ended September 30, 2025. Third Quarter 2025 Financial Highlights: Third Quarter 2025 Strategic Highlights: "During the quarter, we delivered strong revenue results, expanded access to Dexcom G7, and introduced multiple enhancements to Dexcom's digital platform," said Jake ...

Core Viewpoint - A class action lawsuit has been filed against DexCom, Inc. and certain officers for alleged violations of federal securities laws during the Class Period from July 26, 2024, to September 17, 2025, seeking damages for misleading statements regarding the company's products and operations [1][5]. Company Overview - DexCom is a medical device company focused on continuous glucose monitoring (CGM) systems for diabetes management, with key products including the Dexcom G6 and G7 systems launched in 2018 and 2023, respectively [4]. Allegations and Misleading Statements - The lawsuit alleges that DexCom made materially false and misleading statements about the G6 and G7 systems, including unauthorized design changes that compromised their reliability and safety, leading to increased health risks for users [5]. - Specific allegations include overstated claims about the G7's accuracy and functionality, downplaying the severity of issues with the devices, and failing to disclose the risk of regulatory scrutiny and potential legal repercussions [5]. Regulatory Issues - On March 7, 2025, DexCom received a warning letter from the FDA regarding manufacturing and quality management concerns, which led to a significant drop in stock price [6]. - The FDA later published the warning letter, confirming that the G6 and G7 products were "adulterated" due to modifications made without prior approval, resulting in larger inaccuracies and increased risks for users [7]. Market Reactions - Following the FDA's warning and subsequent reports of issues with the G7, DexCom's stock experienced notable declines, including a drop of $7.12 per share (9.15%) on March 10, 2025, and further declines after Oppenheimer downgraded the stock rating due to concerns about the G7's performance [6][8][9]. - A report by Hunterbrook highlighted severe health risks associated with the G7, linking inaccuracies to hospitalizations and fatalities, which further impacted DexCom's stock price, resulting in a drop of $8.99 per share (11.76%) [10][11].