Dexcom Reports First Quarter 2025 Financial Results and Announces $750 Million Share Repurchase Program

DexCom, Inc. (NASDAQ:DXCM) today reported its financial results as of and for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights:

• Revenue grew 12% year-over-year to $1.036 billion on a reported basis and 14% year-over-year on an organic¹ basis.
• U.S. revenue grew 15% and international revenue grew 7% on a reported basis and 12% on an organic¹ basis, all on a year-over-year basis.
• GAAP operating income of $133.7 million or 12.9% of revenue, an increase of 190 basis points compared to the first quarter of 2024. Non-GAAP operating income* of $143.1 million or 13.8% of reported revenue, a decrease of 140 basis points compared to the first quarter of 2024.

First Quarter 2025 Strategic Highlights:

• Secured broader coverage in the US with 2 of the 3 largest PBMs now covering Dexcom CGM for anyone with diabetes.
• Expanded Stelo's distribution footprint with launch on the Amazon storefront.
• Shortly after the end of the quarter, received FDA clearance for Dexcom G7 15 Day System.

"To start the year, Dexcom delivered a quarter of strong revenue results and unlocked significant new type 2 coverage," said Kevin Sayer, Dexcom's chairman, president and CEO. "As we progress through 2025, we will advance our product portfolio with the launch of our Dexcom G7 15 Day system and continue to advocate for expanded global access to our glucose biosensors."

2025 Annual Guidance and $750 Million Share Repurchase Program

Dexcom is updating fiscal year 2025 guidance for Non-GAAP Gross Profit Margin, and reiterating guidance for Revenue, Non-GAAP Operating Margin, and Adjusted EBITDA Margin at the following levels:

• Revenue of $4.60 billion (14% growth)
• Non-GAAP Gross Profit Margin of approximately 62%. The reduction relative to prior guidance primarily results from incremental costs related to near-term supply dynamics that were previously disclosed as the company reestablishes optimal finished goods inventory levels.
• Non-GAAP Operating Margin of approximately 21%
• Adjusted EBITDA Margin of approximately 30%

The company also announced a $750 million share repurchase program in conjunction with first quarter results.

First Quarter 2025 Financial Results

Revenue: In the first quarter of 2025, worldwide revenue grew 12% to $1.036 billion on a reported basis, up from $921.0 million in the first quarter of 2024.

Gross Profit: GAAP gross profit totaled $589.0 million or 56.9% of revenue for the first quarter of 2025, compared to $561.9 million or 61.0% of revenue in the first quarter of 2024.

Non-GAAP gross profit* totaled $596.2 million or 57.5% of reported revenue for the first quarter of 2025, compared to $569.1 million or 61.8% of reported revenue in the first quarter of 2024.

Operating Income: GAAP operating income for the first quarter of 2025 was $133.7 million or 12.9% of revenue, compared to GAAP operating income of $101.1 million or 11.0% of revenue for the first quarter of 2024.

Non-GAAP operating income* for the first quarter of 2025 was $143.1 million or 13.8% of reported revenue, compared to non-GAAP operating income of $140.2 million or 15.2% of reported revenue for the first quarter of 2024.

Net Income and Diluted Net Income Per Share: GAAP net income was $105.4 million, or $0.27 per diluted share, for the first quarter of 2025, compared to GAAP net income of $146.4 million, or $0.36 per diluted share, for the first quarter of 2024.

Non-GAAP net income* was $127.7 million, or $0.32 per diluted share, for the first quarter of 2025, compared to non-GAAP net income of $128.2 million, or $0.32 per diluted share, for the first quarter of 2024. The first quarter 2025 non-GAAP net income excludes $7.9 million of amortization of intangible assets, $1.0 million of business transition and other significant items, $0.5 million of intellectual property litigation costs, $4.2 million of loss from equity investments, and $8.7 million of tax adjustments.

Cash and Liquidity: As of March 31, 2025, Dexcom held $2.70 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.

* See Table E below for a reconciliation of these GAAP and non-GAAP financial measures.

Conference Call

Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the Dexcom Investor Relations website at investors.dexcom.com by navigating to "Events and Presentations," and will be archived for future reference. To listen to the conference call, please dial (888) 414-4585 (U.S./Canada) or (646) 960-0331 (International) and use the confirmation ID "9430114" approximately five minutes prior to the start time.

Statement Regarding Use of Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), please see the section titled "About Non-GAAP Financial Measures" below as well as the related Table E. We have not reconciled our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin estimates for fiscal year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, reconciliations of our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates are not available without unreasonable effort.

About DexCom, Inc.

Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.

Dexcom. Discover what you're made of. For more information, visit www.dexcom.com.

Category: IR

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements that are not purely historical regarding Dexcom's or its management's intentions, beliefs, expectations and strategies for the future, including those related to Dexcom's future operating results and financial position, including estimated Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin for fiscal year 2025, and expected growth rates as compared to the year ended December 31, 2024; future expenses and investments; and potential business plans and opportunities. All forward-looking statements included in this press release are made as of the date of this press release, based on information currently available to Dexcom as of the date hereof. Forward-looking statements deal with future events and are therefore subject to various risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from Dexcom's current expectations are more fully described in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Dexcom's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings filed with the Securities and Exchange Commission. Except as required by law, Dexcom assumes no obligation to update any such forward-looking statement after the date of this communication or to conform these forward-looking statements to actual results.

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated May 1, 2025 contains non-GAAP financial measures. These non-GAAP financial measures include organic revenue, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP diluted weighted average shares outstanding, as well as Adjusted EBITDA.

We report non-GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by senior management in our financial and operational decision making. Our non-GAAP financial measures exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization and our senior management. While we compute non-GAAP financial measures using a consistent method from quarter to quarter and year to year, we may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand our business.

Management believes organic revenue is a meaningful metric to investors as it provides a more consistent comparison of Dexcom's revenue to prior periods as well as to industry peers. We exclude the following items from organic revenue:

• The effect of non-CGM revenue acquired or divested in the trailing twelve months; and
• The effect of foreign currency fluctuations

Management believes that the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods. Management believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing our past and future operating performance.

Table E reconciles the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

Our policy is to exclude the following items from non-GAAP financial measures for non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share:

• Amortization of acquired intangible assets;
• Business transition and related costs associated with acquisition and divestiture, integration and business transition activities, including severance, relocation, consulting, leasehold exit costs, third-party merger and acquisition costs, and other non-recurring significant items;
• Credits related to the employment of personnel during the COVID-19 pandemic;
• Income or loss from equity investments;
• Third-party intellectual property litigation costs in connection with Dexcom's patent infringement litigation against Abbott Diabetes Care, Inc.;
• Litigation settlement costs;
• Gain or loss on extinguishment of debt; and
• Adjustments related to taxes for the excluded items above, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items

Adjusted EBITDA excludes non-cash operating charges for share-based compensation, depreciation and amortization as well as non-operating items such as interest income, interest expense, gain or loss on extinguishment of debt, income or loss from equity investments, and income tax expense or benefit. For the reasons explained above, Adjusted EBITDA also excludes business transition and other significant items, COVID-19 credits, litigation settlement costs, and intellectual property litigation costs.

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INVESTOR RELATIONS CONTACT:

Sean Christensen

Vice President - Finance and Investor Relations

[email protected]

(858) 203-6657

MEDIA CONTACT:

James McIntosh

(619) 884-2118