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Highlight

  • Q1 2025 revenue climbs 12% year-over-year to $1.036 billion, driven by the U.S. performance

  • FDA clears Dexcom G7 15 Day System shortly after quarter-end

  • Company updates 2025 outlook and announces $750 million share repurchase plan

DexCom, Inc. (Nasdaq:DXCM) has reported its financial performance for the first quarter of 2025, with notable revenue growth, expanded product reach, and key regulatory milestones that signal continued momentum for the glucose monitoring technology leader.

For the quarter ended March 31, 2025, Dexcom posted total revenue of $1.036 billion, marking a 12% increase compared to the same period in 2024. On an organic basis, which excludes the impact of currency and certain other factors, revenue rose by 14%. This growth was driven largely by the company’s performance in the U.S. market, where revenue surged 15% year-over-year. International revenue also saw a healthy rise of 7% on a reported basis and 12% organically.

GAAP operating income for the quarter stood at $133.7 million, or 12.9% of revenue—a 190 basis point improvement from the first quarter of 2024. However, on a non-GAAP basis, operating income was $143.1 million, or 13.8% of revenue, reflecting a 140 basis point decline from the same period last year.

In a major strategic move, Dexcom has achieved broader U.S. coverage for its continuous glucose monitoring (CGM) systems. The company confirmed that two of the three largest pharmacy benefit managers (PBMs) in the U.S. now provide coverage for Dexcom CGM devices for all individuals with diabetes, regardless of type. 

Additionally, Dexcom’s Stelo product line, targeted toward Type 2 diabetics not on insulin therapy, is now available via Amazon, broadening its retail footprint and accessibility.

In another key development shortly after the quarter ended, Dexcom received FDA clearance for its new Dexcom G7 15 Day System, extending wear duration and further enhancing its product lineup.

Despite the positive top-line growth, gross profit margins experienced pressure. GAAP gross profit for Q1 was $589.0 million, or 56.9% of revenue, compared to $561.9 million and 61.0% in Q1 2024. The decline reflects higher near-term supply-related costs, which Dexcom noted were already anticipated as it works to restore optimal inventory levels.

Looking ahead, Dexcom reaffirmed its full-year 2025 revenue guidance of $4.60 billion, representing a 14% annual growth target. However, it revised its non-GAAP gross profit margin projection to approximately 62%, down from earlier estimates due to supply chain adjustments. Non-GAAP operating margin is expected to hold steady at around 21%, with an adjusted EBITDA margin forecasted at approximately 30%.

Dexcom also unveiled a $750 million share repurchase program, offering additional value to shareholders.