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SAN DIEGO - DexCom, Inc. (NASDAQ:DXCM) reported third-quarter earnings that exceeded analyst expectations, but shares plunged 10.7% as investors appeared concerned about margin pressure despite the company’s strong revenue growth.
The continuous glucose monitoring systems maker posted adjusted earnings of $0.61 per share, beating the analyst consensus of $0.57. Revenue rose 22% YoY to $1.21 billion, surpassing the $1.18 billion consensus estimate. The company also raised its full-year revenue guidance to a range of $4.63-4.65 billion, above the analyst consensus of $4.62 billion.
Despite the positive headline numbers, DexCom ’s gross margins showed signs of pressure. Non-GAAP gross profit margin fell to 61.3% from 63.0% in the same quarter last year, potentially contributing to the negative market reaction.
"During the quarter, we delivered strong revenue results, expanded access to Dexcom G7, and introduced multiple enhancements to Dexcom’s digital platform," said Jake Leach, DexCom’s president and interim CEO. "I am excited to lead Dexcom forward as we finalize 2025 and capitalize on the incredible opportunity ahead of us."
U.S. revenue grew 21% YoY while international revenue increased 22% on a reported basis and 18% on an organic basis. The company highlighted that its Stelo product, aimed at people with diabetes who don’t use insulin, surpassed $100 million in revenue over its first twelve months since launch.
DexCom’s GAAP operating income reached $242.5 million or 20.1% of revenue, representing a significant improvement of 480 basis points compared to the third quarter of 2024.
The company maintained a strong financial position with $3.32 billion in cash, cash equivalents, and marketable securities as of September 30, 2025, providing flexibility for production capacity expansion and new market opportunities.
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