DexCom, Inc.

What they do

Dexcom develops and commercializes CGM sensors that continuously transmit glucose readings to receivers, mobile apps and connected devices without routine finger sticks. Its current generation products are the Dexcom G7 and the G7 15 Day, launched in 2023 and late 2025 respectively, and Stelo, an over-the-counter glucose biosensor launched in August 2024 for adults with prediabetes or Type 2 diabetes who do not use insulin. The company sells directly in North America and certain international markets and through distributors elsewhere, calling on endocrinologists, physicians and diabetes educators to drive adoption, and relies on Medicare, Medicaid and commercial insurer reimbursement for most customers.

Revenue drivers

• Dexcom G7 and G7 15 Day CGM systems — The core franchise: FDA-cleared iCGM products for people with diabetes ages two and older (G7) and adults 18+ (G7 15 Day), carrying a 10-day and 15.5-day sensor wear period respectively. These drive worldwide revenue, which totaled $4.66 billion in fiscal 2025 and $1.308 billion in Q2 2026.
• Stelo over-the-counter biosensor — Launched in August 2024 as the first OTC glucose biosensor in the U.S., targeting adults with prediabetes and Type 2 diabetes who do not use insulin. It extends Dexcom beyond reimbursed diabetes care into consumer metabolic health and is being supported with a reimagined app experience and AI-driven insights.
• U.S. vs. international mix — In Q2 2026, U.S. revenue grew 11% year-over-year while international revenue grew 19% on a reported basis and 16% organically, making international the faster-growing region. Growth in both regions is driven by CGM adoption and reimbursement coverage.
• Legacy products (G6, Dexcom One, Dexcom ONE+) — Prior-generation systems remain in the portfolio and are named among the products for which most customers rely on third-party payors; they represent the installed base being transitioned to G7 and G7 15 Day.

Recent performance

For the second quarter of 2026, Dexcom reported revenue of $1.308 billion, up 13% year-over-year on a reported basis and 12% organically, versus $1.157 billion in Q2 2025. GAAP gross profit was $830.0 million, or 63.4% of revenue, and GAAP operating income was $318.3 million, or 24.3% of revenue, up 590 basis points from 18.4% a year earlier. GAAP net income was $249.1 million, or $0.64 per diluted share, compared with $179.8 million, or $0.45 per diluted share, in Q2 2025. Non-GAAP operating income was $328.3 million, or 25.1% of revenue. The company also announced positive results from the CONNECT randomized controlled trial in people with Type 2 diabetes not using insulin.

Strategy

Management hosted a 2026 Investor Day introducing a long-term financial outlook through 2030, and stated that Q2 2026 performance and the CONNECT trial results reinforce confidence in that plan. Product development is focused on improved performance and convenience, intelligent insulin administration, and networked platforms with open architecture and connectivity to other devices. Dexcom continues to support insulin pump and automated insulin delivery partnerships and, with Stelo, is pursuing consumer technology partnerships for metabolic health insights. It is also exploring expansion into prediabetes, obesity, pregnancy and the hospital setting, and may apply its technology beyond glucose monitoring. Capital priorities include expanding production capacity while maintaining strategic flexibility.

Risks

• Pricing and reimbursement pressure — Dexcom states it has experienced and expects to continue experiencing decreasing prices due to future Medicare reimbursement changes and pricing pressure from managed care organizations and other third-party payors.
• Payor dependence — Most customers rely on third-party payors, including government programs and private insurance, to cover the cost of G6, G7, G7 15 Day, Dexcom One and Dexcom ONE+, so coverage and eligibility criteria directly affect revenue.
• Regulatory and product approval risk — G7 and G7 15 Day are Class II iCGM devices subject to special FDA controls, and marketing authorizations were obtained through the 510(k) process in December 2022 and April 2025, so future product changes depend on continued regulatory clearance.
• Competitive and market adoption risk — Success of newer offerings such as Stelo and G7 15 Day depends on clinician recommendation, patient adoption and reimbursement, in a market where Dexcom describes cost-containment efforts and competition for access.

Outlook

For fiscal year 2026, management raised the midpoint of revenue guidance and increased guidance for non-GAAP gross profit margin, non-GAAP operating margin and adjusted EBITDA margin. Revenue is guided to $5.18-$5.25 billion, roughly 11-13% growth, with non-GAAP gross margin of approximately 64%, non-GAAP operating margin of approximately 23.5-24%, and adjusted EBITDA margin of approximately 31.5-32%. The company also introduced a new long-term financial outlook through 2030 at its 2026 Investor Day. As of June 30, 2026, Dexcom held $1.95 billion in cash, cash equivalents and marketable securities with its revolving credit facility undrawn.