DexCom, Inc. Q4 FY2025 earnings call

• Key Focus Areas:
  • Premier glucose sensing: Broad rollout of G7 15-day system in US with excellent initial feedback on wear time and accuracy.
  • Customer experience: My Dexcom Account, DexCom Smart Basal launch, Direct EHR integration with 160+ health systems, Stelo nutrition database, app redesign planned, new patch technology for better sensor survival.
  • International expansion: Tailored CGM products, plan to add new products in 2026, international market potential larger than US over time.
• 2025 Closing: Q4 revenue growth 13%, full-year revenue above guidance. Manufacturing/logistics teams improved inventory, shipping, and supply chain.

In 2025, worldwide revenue was $1,260,000,000, up 13% from $1,110,000,000 in 2024 (12% organic growth). US revenue in Q4 2025 was $892,000,000, up 11% from Q4 2024. International revenue in Q4 2025 was $368,000,000, up 18% (15% organic growth), with France a fast-growing market due to type two access expansion. Q4 2025 gross profit was $799,800,000 (63.5% of revenue), an improvement from 59.4% in 2024, driven by freight and scrap rate improvements.

2026 revenue expected $5.16 to $5.25 billion (growth 11%-13%). Non-GAAP gross profit margin 63%-64%, operating profit margin ~22%-23%, adjusted EBITDA margin ~30%-31%. Gross margin to improve 200-300 basis points due to lower freight, manufacturing efficiencies, and G7 15-day contribution. Plan to invest in Ireland manufacturing facility, sales, innovation.

Forward-looking statements subject to risks and uncertainties detailed in SEC filings, including coverage landscape changes, competitive dynamics, and supply chain issues.

Q: Talk about big picture items and coverage potential A: Jacob Steven Leach discussed early innings of glucose journey, coverage expansion for type two non-insulin users and Medicare, international opportunity.

Q: Type two non-insulin coverage timeline A: Jacob Steven Leach mentioned ongoing work with CMS, RCT data expected mid-2026, private payers moving towards coverage.

Q: G7 15-day rollout and international growth A: Jereme M. Sylvain discussed G7 15-day's margin contribution and international expansion potential, Jacob Steven Leach talked about extending 15-day to portfolio globally.

Q: OpEx guidance and Ireland facility A: Jereme M. Sylvain explained OpEx leverage and investment in Ireland manufacturing facility, which will impact P&L in 2026.

Q: Utilization and user trends A: Jacob Steven Leach and Jereme M. Sylvain discussed utilization rates across user segments, stable trends, and efforts to drive higher utilization.

Q: 2026 revenue outlook and new patients A: Jereme M. Sylvain explained revenue guidance factors, including patient base growth, mix, and coverage impact.

Q: US sensor uptake and user base stability A: Jereme M. Sylvain discussed improved sell-through trends, recovery from sensor issues, and stable user base retention.

Q: Pricing and Medicare unlock A: Jereme M. Sylvain talked about pricing dynamics, CMS coverage unlock process, and competitive bidding impact.

Q: International growth and margin impact A: Jacob Steven Leach and Jereme M. Sylvain discussed international expansion opportunities, time frame, and margin considerations.

Q: Basal adoption and Smart Basal A: Jacob Steven Leach discussed Smart Basal as a tool for deeper basal adoption, piloting in clinics.

Q: Gross margin and hardware mix A: Jereme M. Sylvain explained gross margin guidance, scrap and freight overhangs, and hardware mix evolution.

Q: Stelo contribution and innovation pipeline A: Jereme M. Sylvain and Jacob Steven Leach discussed Stelo revenue contribution, innovation plans, and clinical validation.

Q: G7 15-day durability and rebates A: Jacob Steven Leach and Jereme M. Sylvain discussed sensor survival improvements with new patch technology and rebate dynamics.

Q: Revenue cadence and seasonality A: Jereme M. Sylvain discussed revenue cadence expectations, sequential quarter trends.

Q: G7 non-intensive type two coverage status A: Jereme M. Sylvain discussed current covered lives and ongoing efforts to expand coverage.