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Mar 31

DexCom Q1 2025 Earnings Report

Dexcom delivered solid financial results in Q1 2025 with double-digit revenue growth and expanded U.S. coverage.

Key Takeaways

Dexcom reported strong Q1 2025 performance with over $1 billion in revenue and maintained profitability, while securing broader PBM coverage and FDA clearance for its new 15-day CGM system.

Revenue reached $1.036 billion, up from $921.0 million a year ago.

Net income was $105.4 million, with diluted EPS of $0.27.

Expanded U.S. coverage with 2 of the 3 largest PBMs now covering Dexcom CGM for anyone with diabetes.

Received FDA clearance for the Dexcom G7 15 Day System post-quarter end.

Total Revenue
$1.04B
Previous year: $921M
+12.5%
EPS
$0.32
Previous year: $0.32
+0.0%
Gross Margin
56.9%
Previous year: 61%
-6.7%
Operating Margin
12.9%
Previous year: 11%
+17.3%
Non-GAAP Operating Margin
13.8%
Previous year: 15.2%
-9.2%
Gross Profit
$589M
Previous year: $562M
+4.8%
Cash and Equivalents
$2.7B
Previous year: $851M
+217.2%

DexCom

DexCom

DexCom Revenue by Segment

DexCom Revenue by Geographic Location

Forward Guidance

Dexcom reaffirmed its revenue and margin guidance for FY2025, adjusting its gross margin outlook due to near-term supply chain costs.

Positive Outlook

  • Revenue guidance maintained at $4.60 billion
  • Non-GAAP Operating Margin guided at ~21%
  • Adjusted EBITDA Margin guided at ~30%
  • Expanded U.S. PBM coverage supports growth
  • Post-quarter FDA clearance for 15-day G7 CGM system enhances product portfolio

Challenges Ahead

  • Non-GAAP gross margin guidance lowered to ~62%
  • Margin reduction driven by near-term supply dynamics
  • Incremental costs tied to restoring finished goods inventory
  • Non-GAAP operating margin declined YoY in Q1
  • Hardware revenue dropped significantly compared to Q1 2024

Revenue & Expenses

Visualization of income flow from segment revenue to net income