DexCom’s fourth quarter results reflected ongoing momentum in both product innovation and international expansion. Management attributed the quarter’s performance to the broad rollout of the G7 15-day sensor system in the U.S., which generated positive initial feedback from both customers and physicians due to improved wear time and accuracy. Operational improvements in manufacturing and logistics, such as reestablishing more efficient ocean shipping routes and addressing prior sensor deployment issues, were also highlighted as contributors to margin improvements this quarter. CEO Jacob Steven Leach emphasized that sell-through trends improved as the quarter progressed, supported by efforts to build inventory and streamline the customer support experience through digital initiatives like My Dexcom Account.
Is now the time to buy DXCM? Find out in our full research report (it’s free for active Edge members).
DexCom (DXCM) Q4 CY2025 Highlights:
- Revenue: $1.26 billion vs analyst estimates of $1.25 billion (13.1% year-on-year growth, 0.8% beat)
- Adjusted EPS: $0.68 vs analyst estimates of $0.65 (4.5% beat)
- Adjusted EBITDA: $422.2 million vs analyst estimates of $425.5 million (33.5% margin, 0.8% miss)
- Operating Margin: 25.6%, up from 17% in the same quarter last year
- Organic Revenue rose 12% year on year (beat)
- Market Capitalization: $28.02 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From DexCom’s Q4 Earnings Call
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Matthew Charles Taylor (Jefferies) asked about long-term growth prospects as coverage expands for type two non-insulin users. CEO Jacob Steven Leach highlighted ongoing evidence generation and international market opportunities, stating, “there is just this tremendous opportunity to have an impact.”
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Lawrence H. Biegelsen (Wells Fargo) focused on the timing and impact of potential Medicare coverage for type two non-insulin users. Leach explained that a randomized control trial is underway, with data expected mid-year, and expressed optimism about the eventual expansion of coverage.
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Travis Lee Steed (Bank of America) inquired about the G7 15-day sensor’s margin contributions and role in international growth. CFO Jereme Sylvain noted that while margin benefits are expected to grow over time, the immediate focus is on user conversion and market entry, with global rollout planned.
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Danielle Joy Antalffy (UBS) asked about utilization rates among new user segments. Leach and Sylvain stated that utilization rates remain high in covered populations and that improved digital engagement and AI features may further increase usage.
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David Harrison Roman (Goldman Sachs) questioned factors influencing revenue growth guidance, specifically the balance of new patient additions, retention, and pricing. Sylvain clarified that growth is driven by a combination of patient base expansion, retention, and modest pricing gains, with coverage assumptions remaining stable barring major policy changes.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory analyst team will be watching (1) progress on Medicare and international coverage expansion for type two non-insulin patients, (2) adoption rates and user feedback for the G7 15-day sensor system, and (3) execution of the new Ireland manufacturing facility and its impact on margins. Additional milestones include updates on Smart Basal deployments and the launch of enhanced digital tools that may influence utilization and retention.
DexCom currently trades at $72.55, up from $65.08 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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