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1. Company Snapshot

1.a. Company Description

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally.The company provides its systems for use by people with diabetes, as well as for use by healthcare providers.Its products include DexCom G6, an integrated CGM system for diabetes management; Dexcom Real-Time API, which enables invited third-party developers to integrate real-time CGM data into their digital health applications and devices; Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions; and Dexcom Share, a remote monitoring system.


The company's products candidature comprises Dexcom G7, a next generation G7 CGM system.DexCom, Inc.has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products.


The company markets its products directly to endocrinologists, physicians, and diabetes educators.DexCom, Inc.was incorporated in 1999 and is headquartered in San Diego, California.

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1.b. Last Insights on DXCM

DexCom, Inc.'s recent performance has been negatively impacted by a class action lawsuit filed against the company and certain of its senior executives for securities fraud. The lawsuit alleges potential violations of the federal securities laws, which has led to significant stock drops. Despite posting double-digit Q3 growth and raising its 2025 revenue outlook, the company's shares tumbled. Additionally, investors have been urged to contact law firms to discuss their rights, with multiple law firms announcing the filing of class action lawsuits. Allworth Financial LP raised its holdings in DexCom by 33.8% during the quarter.

1.c. Company Highlights

2. DexCom's Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

DexCom reported a strong third quarter with worldwide revenue reaching $1.21 billion, representing a 22% growth on a reported basis and 20% on an organic basis. The company's gross profit was $741.3 million or 61.3% of revenue, impacted by higher scrap rates at manufacturing facilities. Operating expenses were $468.4 million, and operating income was $272.9 million or 22.6% of revenue. Adjusted EBITDA was $368.4 million or 30.5% of revenue. Net income was $242.5 million or $0.61 per share, the highest quarterly earnings per share in the company's history, beating analyst estimates of $0.57.

Publication Date: Nov -01

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue hit $1.21B, up 22% reported and 20% organic, with U.S. revenue at $852M (+21%) and international at $357.4M (+22%).
  • Product Launches:: G7 15-day system secured Medicare and commercial reimbursement, while Stelo surpassed $100M in 12 months post-launch.
  • Financial Performance:: Net income of $242.5M ($0.61/share), a new EPS record, with adjusted EBITDA of $368.4M (30.5% of revenue).
  • Margin Guidance:: Non-GAAP gross profit margin lowered to ~61% due to scrap rates, but expects normalization in 2026 with 29-30% adjusted EBITDA margin.
  • Future Outlook:: Raised 2025 revenue guidance to $4.63B–$4.65B (15% growth), with 2026 expected to see double-digit growth driven by G7 scale-up and new markets.

Revenue Growth and Segment Performance

The company's U.S. revenue totaled $852 million, a 21% increase, while international revenue grew 22% to $357.4 million. DexCom saw more new customer starts coming from the type 2 population, with coverage established for nearly 6 million type 2 non-insulin lives. The company is working towards coverage for the entire type 2 population of over 25 million Americans. As Jereme Sylvain mentioned, "We're raising our revenue guidance to $4.630 billion to $4.650 billion, representing 15% growth for the year."

Margin Performance and Guidance

The company's gross margin was impacted by freight and scrap costs, with a 50-50 split between the two. DexCom expects to see benefits from switching to ocean freight and reducing out-of-box failures. The company is guiding non-GAAP operating margin and adjusted EBITDA margin to 20% to 21% and 29% to 30%, respectively. The scrap rate issue related to materials and deployment is expected to dissipate in Q4 and into 2026, allowing for a more normalized margin rate.

Valuation and Growth Prospects

With a P/E Ratio of 31.59 and an EV/EBITDA of 22.52, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.2%. The company's guidance for double-digit growth for the next couple of years, driven by the current coverage landscape and potential for expanded access and market share gains, supports these expectations. DexCom's strong product pipeline, including the G7 15-day system and the upcoming G8 platform, positions the company for long-term success.

Future Outlook and Product Pipeline

The company is excited about its future prospects, with a remarkable opportunity to improve the lives of millions of people worldwide. Its core values remain clear, and it will continue to focus on serving customers and empowering them to take control of their health. The transition to G7 is expected to take a couple of years, similar to previous upgrades, and is expected to have a significant impact on gross margin, allowing for both top-line growth and margin expansion.

3. NewsRoom

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Bragar Eagel & Squire, P.C. Urges DexCom and Wildermuth Investors to Contact the Firm Regarding Their Rights Before Upcoming Deadlines

Dec -04

Source: globenewswire.com

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DXCM Deadline Approaching on December 26, 2025: Kessler Topaz Meltzer & Check, LLP Reminds DexCom, Inc. (DXCM) Investors of Class Action Lawsuit Deadline

Dec -04

Source: globenewswire.com

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DexCom, Inc. Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm Before December 26, 2025 to Discuss Your Rights - DXCM

Dec -04

Source: prnewswire.com

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Listening to Healthcare Professionals: Dexcom Launches New Education Offering, Dexcom Academy

Dec -04

Source: businesswire.com

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DXCM Investors Have Opportunity to Lead DexCom, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Dec -04

Source: prnewswire.com

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DexCom, Inc. Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - DXCM

Dec -04

Source: prnewswire.com

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DXCM DEADLINE: ROSEN, SKILLED INVESTOR COUNSEL, Encourages DexCom, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - DXCM

Dec -04

Source: newsfilecorp.com

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DEXCOM, INC. (NASDAQ: DXCM) SHAREHOLDER ALERT Bernstein Liebhard LLP Reminds DexCom, Inc. Investors of Upcoming Deadline

Dec -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.50%)

6. Segments

Patient Monitoring Equipment

Expected Growth: 15.5%

Growing demand for real-time glucose level monitoring drives growth, fueled by increasing prevalence of diabetes and advancements in wearable technology, enabling DexCom's patient monitoring devices.

7. Detailed Products

G6 CGM System

A continuous glucose monitoring system that provides real-time glucose readings every 5 minutes, with a sensor that can be worn for up to 10 days.

G6 Pro CGM System

A professional continuous glucose monitoring system designed for healthcare professionals to use with their patients, providing detailed glucose data to inform treatment plans.

Dexcom CLARITY

A diabetes management software that provides a comprehensive view of glucose data, trends, and patterns, enabling more informed decision-making.

Dexcom G4 PLATINUM CGM System

A continuous glucose monitoring system that provides real-time glucose readings every 5 minutes, with a sensor that can be worn for up to 7 days.

8. DexCom, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

DexCom, Inc. has a low threat of substitutes due to its strong brand recognition and patented technology in the continuous glucose monitoring market.

Bargaining Power Of Customers

DexCom, Inc. has a medium bargaining power of customers due to the presence of multiple competitors in the market, but its strong brand loyalty and customer retention rates mitigate this risk.

Bargaining Power Of Suppliers

DexCom, Inc. has a low bargaining power of suppliers due to its strong relationships with suppliers and the availability of multiple suppliers for its components.

Threat Of New Entrants

DexCom, Inc. has a medium threat of new entrants due to the high barriers to entry in the continuous glucose monitoring market, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

DexCom, Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry in the continuous glucose monitoring market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.63%
Debt Cost 3.95%
Equity Weight 44.37%
Equity Cost 10.07%
WACC 6.66%
Leverage 125.40%

11. Quality Control: DexCom, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Abbott

A-Score: 6.2/10

Value: 2.7

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Stryker

A-Score: 5.3/10

Value: 1.8

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Boston Scientific

A-Score: 5.1/10

Value: 0.9

Growth: 6.6

Quality: 6.7

Yield: 0.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
DexCom

A-Score: 4.1/10

Value: 1.0

Growth: 9.1

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Thermo Fisher

A-Score: 4.0/10

Value: 1.6

Growth: 6.1

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Danaher

A-Score: 3.8/10

Value: 1.6

Growth: 4.0

Quality: 6.8

Yield: 1.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

65.49$

Current Price

65.49$

Potential

-0.00%

Expected Cash-Flows