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 Performance - Fiscal 2025 revenue reached $4.66 billion, a 16% increase from 2024[454] - Gross profit for fiscal 2025 was $2.80 billion, up 15% from the previous year[454] - Operating income increased by 52% to $911.8 million in fiscal 2025[454] - Net income rose to $836.3 million, reflecting a 45% growth compared to 2024[454] - Operating cash flow for fiscal 2025 was $1.44 billion, up 46% from 2024[454] - Revenue from distributor sales in the U.S. was $3.20 billion, while international distributor sales totaled $763.3 million[466] - Revenue increased due to the addition of approximately 600,000 - 700,000 net customers, excluding Stelo customers, in 2025[468] Research and Development - Research and development expenses for fiscal 2025 were $599.1 million, an 8% increase from 2024[456] - Research and development expenses rose by $37.3 million primarily due to higher compensation costs, emphasizing the importance of R&D for future growth[470] Cash and Liquidity - The company ended fiscal 2025 with cash, cash equivalents, and short-term marketable securities totaling $2.00 billion[454] - Cash flows from operating activities were $1.44 billion for the twelve months ended December 31, 2025, an increase of $451.2 million compared to 2024[490] - Cash, cash equivalents, and short-term marketable securities totaled $2.00 billion as of December 31, 2025, a decrease of $580.7 million from the previous year[489] - The company expects to continue generating positive cash flows from operations for the foreseeable future[476] - As of December 31, 2025, the company had a working capital ratio of 1.88 and a quick ratio of 1.50, indicating sufficient current assets to cover short-term liabilities[480] - The company received net proceeds of $1.23 billion from the 2028 Notes offering, with plans to use the funds for general corporate purposes and capital expenditures[477] Debt and Financial Ratios - The debt-to-assets ratio was 0.20 as of December 31, 2025, indicating that total assets are sufficient to cover debts[482] Foreign Currency Exposure - A substantial portion of operations is in the U.S., with most sales made in U.S. dollars, leading to significant exposure to foreign currency fluctuations primarily affecting revenue[496] - Expansion of manufacturing sites in Ireland and Malaysia introduces additional foreign exchange currency risk, potentially impacting financial results[497] - Financial statements of international subsidiaries are translated into U.S. dollars using end-of-period exchange rates for assets and liabilities, affecting net income only upon sale or liquidation[498] - The company enters into foreign currency forward contracts to hedge monetary assets and liabilities, with derivative gains and losses included in other income[499] - Notional principal amounts of foreign currency contracts provide a measure of transaction volume but do not represent exposure to market loss[500] - The company actively monitors and manages financial exposures due to exchange rate fluctuations as part of its overall risk management program[500] Product Development - The company launched the G7 continuous glucose monitoring system in 2023 and plans to introduce the G7 15 Day system in late 2025[438] - Dexcom's Stelo biosensor for prediabetes and Type 2 diabetes was launched in August 2024, marking its entry into the over-the-counter market[438] Operating Expenses - Selling, general and administrative expenses increased by $83.7 million, offset by a $87.2 million decrease in legal expenses related to a settled lawsuit[470] - Gross profit margin percentage decreased in 2025 compared to 2024 due to supply availability inefficiencies and lower production yield[468]

Dexcom earnings Q4 2025 Safe harbor statement This presentation contains "forward - looking statements" that are based on our management's beliefs and assumptions and on inform ation available to management as of February 12, 2026. We intend for such forward - looking statements to be covered by the safe harbor provisions fo r forward - looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward - looking statements include informatio n concerning our possible or assum ...

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, Inc. (DXCM) is set to report its fourth-quarter 2025 results on February 12, with adjusted earnings per share (EPS) of 61 cents in the last quarter exceeding the Zacks Consensus Estimate by 7% [1] Group 1: Q4 Estimates and Preliminary Results - The Zacks Consensus Estimate for Q4 revenues is $1.25 billion, reflecting a 12.4% increase year over year, while the earnings estimate is 65 cents, indicating a 44.4% growth [2] - Preliminary results suggest Q4 2025 total revenues of approximately $1.26 billion, up 13% from Q4 2024, with U.S. revenues projected at $892 million (11% growth) and international revenues expected to rise 18% to around $368 million [3] Group 2: Factors Influencing Performance - Recovery in new customer starts following G7 deployment issues and quality-related disruptions is a critical factor for Q4 performance [4] - Management noted that new starts in Q3 were slightly below record levels due to sensor deployment issues, but improvements in sensor performance and educational samples are expected to enhance new-start momentum in Q4 [5] - Gross margins are anticipated to improve as supply chain pressures ease, with management indicating that scrap rates and freight costs have improved sequentially [6][7] Group 3: International Growth and Market Dynamics - Sustained international momentum and broader adoption among type 2 diabetes patients are expected to positively impact earnings, with accelerating international growth supported by coverage expansions in markets like France and Canada [10] - The ability to convert increased access into volume growth in Q4 is likely to significantly influence earnings outcomes [11] Group 4: Seasonal Trends and Future Outlook - Investors are likely to focus on exit-rate trajectories adjusted for seasonality, as the fourth quarter now contributes a smaller share of full-year revenues [12] - Despite potentially modest headline growth, underlying patient growth remains solid, prompting investors to assess trends in user growth and pricing stability for a healthy baseline in 2026 [13] Group 5: Earnings Prediction - The Zacks model predicts an earnings beat for DexCom, supported by a positive Earnings ESP of +3.08% and a Zacks Rank of 3 (Hold) [14][15]

Core Viewpoint - Analysts forecast that DexCom (DXCM) will report quarterly earnings of $0.65 per share, reflecting a year-over-year increase of 44.4%, with anticipated revenues of $1.25 billion, marking a 12.4% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenue- Hardware' to reach $38.01 million, indicating a decrease of 15.5% from the prior-year quarter [5]. - The estimated 'Revenue- Sensor and other' is $1.20 billion, reflecting an increase of 12% from the previous year [5]. - 'Revenue- United States' is expected to be $886.13 million, showing a growth of 10.4% year-over-year [5]. - The average prediction for 'Revenue- International' is $356.26 million, indicating a 14.7% increase from the year-ago quarter [6]. Stock Performance - DexCom shares have experienced a decline of 1.2% over the past month, while the Zacks S&P 500 composite has remained unchanged [6]. - With a Zacks Rank 3 (Hold), DXCM is expected to closely follow overall market performance in the near term [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 Viewpoint - Wall Street anticipates a year-over-year increase in earnings for DexCom, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - DexCom is expected to report quarterly earnings of $0.65 per share, reflecting a year-over-year increase of +44.4% [3] - Revenues are projected to reach $1.25 billion, representing a 12.5% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.21% lower in the last 30 days, indicating a reassessment by analysts [4] - The direction of estimate revisions may not always align with the aggregate change [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for DexCom is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +4.75% [12] - DexCom currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, DexCom exceeded the expected earnings of $0.57 per share by delivering $0.61, resulting in a surprise of +7.02% [13] - Over the past four quarters, DexCom has beaten consensus EPS estimates two times [14] Conclusion - While an earnings beat may influence stock movement, other factors can also play a significant role in stock performance [15] - Monitoring Earnings ESP and Zacks Rank is crucial for making informed investment decisions ahead of earnings releases [16]

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]