DexCom Inc. reported fourth‑quarter 2025 results on February 12, 2026, posting revenue of $1.26 billion, a 13% year‑over‑year increase, and earnings per share of $0.68, beating the consensus estimate of $0.65. The earnings beat was driven by robust demand for the G7 15‑day continuous glucose monitoring system and the over‑the‑counter Stelo platform, which together helped lift revenue while the company maintained disciplined cost control.
Gross profit rose to $792.7 million, or 62.9% of revenue, up from 58.9% in the same quarter a year earlier. The margin expansion was largely attributable to progress in freight expense management—specifically the reestablishment of ocean shipping—and to improved scrap rates as the supply‑chain performance strengthened throughout the quarter.
Operating income reached $323.0 million, representing a 25.6% margin versus 17.0% a year earlier. The combination of higher revenue and a tighter cost base drove the operating‑income lift, underscoring the company’s ability to convert sales growth into profitability gains.
Segment data show U.S. revenue grew 11% to $1.10 billion, while international revenue expanded 18% to $1.16 billion, reflecting stronger penetration in overseas markets. The G7 15‑day system’s launch in early January and the continued adoption of Stelo in the non‑diabetes metabolic health space were key contributors to the top‑line growth.
CEO Jake Leach said, "We are pleased to finish 2025 on a strong note with revenue exceeding the high end of our guidance and the initial launch of our latest sensor technology with the G7 15 Day system." The CFO highlighted the margin improvement, noting that the company had "drove more than 200 basis points of sequential gross margin improvement during the fourth quarter" through freight and scrap‑rate efficiencies.
DexCom reaffirmed its fiscal‑2026 revenue guidance at $5.16 billion to $5.25 billion, the same range set in the prior quarter. Management indicated that margin recovery will depend on further supply‑chain efficiencies and the transition to ocean freight, signaling confidence in continued growth while acknowledging ongoing operational challenges.
The company ended 2025 with $2.00 billion in cash, cash equivalents, and marketable securities, and it surpassed $1 billion in free cash flow for the first time in the year, underscoring its strong financial position.
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