DexCom at Wells Fargo Conference: Strategic Growth Plans

On Wednesday, 03 September 2025, DexCom (NASDAQ:DXCM) presented at the Wells Fargo 20th Annual Healthcare Conference 2025. The company highlighted its strategic priorities and growth outlook amidst recent leadership changes. While DexCom is optimistic about future growth, it faces challenges in product reliability and competitive pressures.

Key Takeaways

• DexCom reaffirms its 2025 revenue and operating margin targets.
• New product developments, including a fifteen-day sensor and the upcoming G8, are underway.
• The company anticipates significant growth in the type 2 non-insulin diabetes market.
• Competitive pressures from Abbott are acknowledged, with DexCom focusing on product safety and clinical value.
• DexCom is actively buying back shares, reflecting confidence in its business value.

Financial Results

• DexCom is committed to executing its 2025 financial goals, focusing on revenue and margin targets.
• Q3 is expected to see all three PBMs covering non-insulin diabetes, offering significant growth opportunities.
• The Stelo product generated $100 million in revenue within its first year.
• International growth is bolstered by recent successes in Ontario.
• Share buybacks indicate strong confidence in the company’s value.

Operational Updates

• The G7 product’s reliability has improved, with ongoing enhancements in sensor accuracy.
• DexCom is preparing to launch a fifteen-day sensor, ensuring a smooth transition to prevent market disruption.
• Development of the G8 product, featuring multiple analytes and continuous ketone sensing, is in progress.
• International expansion plans include launching Stelo in new markets.

Future Outlook

• DexCom aims for robust double-digit growth, driven by global CGM coverage expansion and business scaling.
• The type 2 non-insulin market presents significant growth potential, supported by PBM coverage and RCT outcomes.
• The company is optimistic about potential CMS coverage expansion for CGM.
• DexCom is developing additional nutritional insights for Stelo users.

Q&A Highlights

• Management addressed concerns about G7 reliability, countering third-party reports with positive market feedback.
• The competitive landscape was discussed, particularly the potential for dual ketone glucose sensors from competitors.
• Recommendations to CMS focused on minimizing disruption and ensuring access to the latest technologies.

For more details, please refer to the full transcript below.

Full transcript - Wells Fargo 20th Annual Healthcare Conference 2025:

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Welcome back. I’m Larry Biegelsen, the Medical Device Analyst at Wells Fargo. And it’s my pleasure to host this fireside chat with the management team from DexCom. With us we have Jake Leach, President and COO and the incoming CEO and Jeremy Sylvain, the CFO. So I think this is Jake’s first fireside chat since being promoted to the CEO role, which is official 01/01/2026.

Jake Leach, President and COO, Incoming CEO, DexCom: That’s right.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So Jeremy and Jake, you very much for being here.

Jake Leach, President and COO, Incoming CEO, DexCom: Thanks for having us, Larry. It’s a pleasure.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So let’s start off with the recent CEO announcement. Jake, congratulations on the new role. Please talk about your vision for DexCom over the next five to ten years.

Jake Leach, President and COO, Incoming CEO, DexCom: Yes, of course. So thanks, everyone, for being here. Thanks, Larry, for having us. As I look at the future for DexCom, I couldn’t be more excited to lead this incredible company into the future. I’ve been at DexCom for twenty one years and I’ve been a part of many of the pivotal innovations in the CGM category, starting all the way back with the first real time CGM and then transitioning to connectivity with insulin pumps, mobile phone, smartphone connectivity, the non adjunctive claims, the replacement of finger sticks and then the most recent innovations around over the counter CGM.

And I think as we look at the opportunity in front of us, there’s so much benefit that CGM can bring to the world. If we look at just the coverage landscape that we have right now for continuous glucose monitoring, there are more people today that have coverage for CGM than are using CGM. So there’s that are not using CGM. So it really is a strong benefit for the growth of the company. And that coverage is only going to expand as we go forward.

When I think about Dexcom in the long run, we’re really building a metabolic health platform. Today, we’re very focused on diabetes and we’re going to continue on that focus. But with our launch of Stelo and over the counter CGM, we’re just starting to see the benefits of what we can provide to a much, much broader population.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s helpful. And for those on the webcast, I would say I’ve never seen this many people in fireside chat room before. So definitely a good sign. So Jake, what are your strategic priorities over the next call twelve to twenty four months?

Jake Leach, President and COO, Incoming CEO, DexCom: Sure. So most important top priority right now is executing 2025. We put a commitment out there for revenue and operating margin and we intend to hit that. Last year, we did not meet our commitments. So executing on 2025 is super important for us and for me and the management team.

As I look out a little farther, continuing to gain access for CGM pushing for more coverage globally. When I think about that opportunity, there are so many people that still don’t have coverage for CGM around the world that’s going to be a big priority. The other priority is continue to look at how we scaled our business. We’ve grown substantially, but we still have quite a bit to do. I’ve been very involved in much of the operations and manufacturing.

And I look forward to continue to look at other parts of the business around our technical support, how we support customers. The other big focus for me that may be a little different than what we’ve done in the past is our international presence. I want us to be ready to take advantage of coverage when it comes internationally. Historically, we’re very focused on a certain segment of the market in those kind of top tier high risk type one. Moving forward, as coverage opens up in type two insulin use and beyond, DexCom is going be ready to take advantage of that.

So we need to look at our commercial infrastructure, look at what markets we’re directing, what new distributor markets we’re going to bring. That’s some of the priorities for the next twenty four months.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s helpful. So Jake, we’ll talk about twenty six later, but I wanted to ask you at a high level how you think about the growth algorithm for DexCom going forward. This year, you’re guiding to 14% to 15%, top line growth about 200 basis points of operating margin leverage, but it’s all off of arguably an easy comp because of some of the issues you had last year. So maybe just give us some high level thoughts about, I know you don’t have an LRP, maybe when you plan to issue a new LRP and how you want kind of new investors to think about the growth algorithm for the company?

Jake Leach, President and COO, Incoming CEO, DexCom: Yes. So when I look at the coverage that exists today, healthcare coverage and the coverage that’s going to come, and you look at the scale that we’ve built and the opportunity out there. I don’t see any reason why this business isn’t a strong double digit growth into the foreseeable future. And I’m not talking about like teetering on 9%, low single digit percent, We’re talking about strong double digit growth. There’s no reason why we can’t achieve that.

And we are working on we have an LRP as an incoming CEO. It’s important for me to pressure test that and make sure I’m comfortable with it. We have a new Chief Commercial Officer. It’s about ninety days in role, John Coleman. And so he and I and Jeremy and the rest of management team are working on our LRP.

We will be bringing that to you. It’s important, it’s a commitment that we’re making to investors and to ourselves. And we will be bringing that soon. 2026, early sometime Soon, yes.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Soon, could be sooner than ’twenty six.

Jake Leach, President and COO, Incoming CEO, DexCom: We know that our current LRP runs out of 2025, and so we need to make

Larry Biegelsen, Medical Device Analyst, Wells Fargo: I’m sure trying to sometime this year, like the goal. Soon, very soon. Just soon. Okay. Got it.

Okay. You keep highlighting. Working on

Jeremy Sylvain, CFO, DexCom: your calendar is way too busy, Larry. Keep looking for time, it’s not available. Okay, good to hear.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So before we move on to the business, wanted to give you an opportunity to respond to some of the concerns in the market a few weeks ago. There was a third party report highlighting some concerns around G7 reliability and accuracy issues. Just talk about your reaction to those concerns that the report raised and how you’re addressing those, please?

Jake Leach, President and COO, Incoming CEO, DexCom: Yes, certainly. So obviously, we saw the report too. It doesn’t reflect what we’re hearing from the market. There’s a number of things in that report specifically about the reliability of G7. If we look at the history of G7 from the time we launched it several years ago, we’ve made significant enhancements to the platform.

We’ve added a new patch. We’ve done a lot on the SensorPro processing, deployment. So if you look at our metrics, things like warranty replacements, complaint rates, performance of the sensor accuracy, all of that has continued to improve over time. And we haven’t seen anything that has changed that trajectory. There is one thing though we have experienced earlier this year, we did have some deployment challenges where the systems when you deploy sensor G7, it would not deploy properly and so it would fail quickly.

It was a pretty bad experience for users, they weren’t happy with it. It was unusual for them to have a sensor fail that quickly. We did see that start to pop up earlier this year. We addressed it had to do with a number of supplier component issues that we addressed. And so we’ve fixed it and we’ve seen that number start coming down.

I do believe that that’s part of what has caused people to mention their issues is that deployment challenge did occur, but the numbers are going back down. When it comes to accuracy, days of wear all those things we’ve seen nothing but improvements in that. One of the other interesting parts of that report, I wish I knew where who they talked to there, because I’d love to make sure that they’ve got a good understanding what’s really going on. But there was also some concern about DME relationships and there’s we’ve been very focused on communicating with all of our large DME partners and making sure that we understand what’s important to them and they understand what’s important to us. And they’re very important partners going forward as we think about continued business in that channel as well as Medicare expansion at some point in time that the fee for service Medicare goes through DME.

So they’re an important partner. And so not sure who they spoke to, but we feel very comfortable with our relationships with our DME suppliers.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: And how do you ensure these issues don’t impact the upcoming fifteen day sensor launch?

Jake Leach, President and COO, Incoming CEO, DexCom: So I think we’ve put a lot of additional technology in the fifteen day. We’ve got the fifteen day Warrior launches ongoing now. So fifteen days out commercially in a small community of influencers. We’re basically building up the collateral for the launch. We will launch the product imminently.

We feel very confident about the quality of that product as it goes out the door.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Remind us of the transition, how long you think it’s going

Jake Leach, President and COO, Incoming CEO, DexCom: to take from ten day to fifteen day? Yes, it’s important. Our number one concern here is making sure that we don’t cause any kind of disruption in the market. If someone either upgrades the fifteen day or as a new patient to fifteen day, we want to make sure that the insurance coverage is there, they have a very smooth experience as well as the AID compatibility with an AID system, either one that they’re currently on or one that they want to begin using. We got to make sure that compatibility is there.

So that’s been part of the planning for fifteen day launch. So we have compatibility with the vast majority of our pump partners. We have one that’s going to be compatible very soon. So the launch is going take a little time. It’s a new prescription required.

So to go onto a fifteen day product, the user needs to use their ten day supplies and then upgrade with a new prescription to fifteen day. Obviously, someone who is a new user can go straight to fifteen days. So it’s not going to look too dissimilar from our G6 upgrade. So it’s going to take a little bit of time. We won’t push users there immediately.

We want them to have the choice, but we do believe that over time everybody’s going to transition to that fifteen day sensor.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Got it. So let’s transition to the business 2025 outlook. You posted 15%, I think organic growth in the second quarter. I think the guidance implies kind of stable growth in the second half of the year. So I guess my question is how are thinking about how the rest of the year plays out?

And given that the comps are a little bit easier, why wouldn’t growth accelerate?

Jeremy Sylvain, CFO, DexCom: Yes, so I can certainly take that one. The way we really thought about guidance is, Jake alluded to it a little bit earlier, it’s really about a commitment and holding firm to our commitments as we started the year. Obviously, last year we didn’t hit those commitments and so after two quarters and two really good quarters and I think it a demonstration of really strong patient performance. I think it was really just our intent to live up to those commitments versus taking any sort of victory lap or any sort of pound our chest moment. So I don’t want to say that our guidance is what it is and we’ve done the math and we understand the comp challenges.

I think what we would say is, look, let’s live up to our commitments. We owe it to you a year of living to those commitments. If we can outperform that, Larry, we’ll pass it right along. I think that’s the best way to do it, kind of earning back some of that confidence that we are going to execute what we

Larry Biegelsen, Medical Device Analyst, Wells Fargo: say we’re going to do. And any color on Q3, Q4 cadence and the Street properly calibrated that kind of thing?

Jeremy Sylvain, CFO, DexCom: Yes, look, I think we came out of the quarter, I think where folks heads were at over the course of the year is in line with our guidance. While we don’t guide to quarters, we didn’t do anything and then folks I think where folks are coming to is in line with our guidance. So as long as folks are staying in line with our guidance, we feel good about the year. We obviously reiterated and increased the year by a little bit. So I think that’s the way to think about it.

Obviously, we’re very bullish on CGM. This is going to Q3 is going be the first quarter where we actually have all three PBMs in the market now covering non insulin diabetes. So that’s a real good opportunity for us, not sorry, non insulin diabetes, that’s a real good opportunity for us. On top of some of the international wins that we’ve seen build up, we talked about Ontario drug benefit, big win for us. Historically, we were not in that market.

And so there’s a big win, big opportunity for us there as long as some other along with some other wins outside The United States. So look, I like the way the best of the back half of the year is going to show up for us. I just think it’s up for us to make sure we deliver against our execution, deliver a little bit more, we will.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Okay, perfect. I definitely want to drill down on the two topics you mentioned, non insulin, Type two non insulin and international. Maybe just start with international, I’m sorry. It has slowed a little bit, maybe 12% to 14% in the first half of the year. How are you thinking, Jake, about international going forward?

Jake Leach, President and COO, Incoming CEO, DexCom: So one of the things that’s important to think about as we move into international markets and push harder there is we have a tiered pricing model in international markets. So you have the G7 and then you’ve got our DexCom one plus product that comes in at a different price point. That DexCom one plus is in markets where we were not historically and so all of that is incremental growth. And so if you look at volume growth, it is higher than that top line revenue growth. The way I think about international markets is there’s a lot of opportunity.

We have a great product portfolio to compete in those markets. And as more coverage comes, we’re going to continue to execute and be ready to take advantage of it. We’re going to enter more markets, we’re going to go to direct in more markets when it makes sense, when the opportunity is there. And so it’s important part of what will be different about the way Texcom is executing in the future versus how we’ve done in the past.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: And switching back to The U. S. Stella has been very successful, but at least relative to our expectations. And I think your expectations at two to 3% looks like it’s coming towards the 3%. But the flip side of that is, it makes it look like The U.

S. Core G Series prescription business is a little bit slower. And we see kind of a disconnect between patient growth, which looks good versus the revenue growth. So the question is, when do we see is that accurate that the patient growth is faster than the revenue growth for the G Series in The U. S?

And when do we see those converge?

Jeremy Sylvain, CFO, DexCom: Yes. So I think the underlying patient growth, it is faster than the revenue growth rate, but that’s been pretty consistent with what we’ve seen. As you expect to see those volume and revenue trends come in, If you kind of go back to Q4, Q1 and Q2, you really started to see it coming in a little bit in Q4, a little bit more in Q1, a little bit more in Q2 and I’d expect it to continue to come in over time. We talked about lapping a rebate challenge from last year and stabilizing and lapping a DME transition. If you think about it, remember last year a lot of the DME challenges we had really occurred over the second and third quarter, we’re now lapping that on an annualization basis.

So having some of that come into line is our expectations over the course of the year And I would expect that to continue into out years, where we start to lap it and starts to get more stable. Remember, we’re at 100% rebate rate right now. So you can’t go higher than that, right, every unit we send out now, we assume is subject to a full rebate that helps us ultimately as we start to lap that.

Jake Leach, President and COO, Incoming CEO, DexCom: And you started the question with your comments around CELLo and we have been happy with how CELLo has performed. We just lapped the twelve month anniversary of the launch. So we launched CELLo last year in August. And in the first twelve months, we’ve done $100,000,000 in revenue. There’s few wearables, I think that have been able to do that in the first twelve months.

And we really are just starting to get going. We’ve made quite a bit of updates to the app. We’ve brought a nutrition information. We’re now the photo meal logging where you can take a picture of the app. We’re going to bring in all kinds of additional insight around nutrition, because we really think that that’s one of the opportunities as we look broadly at the Stelo opportunity to bring that nutrition in.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So to follow-up on Stelo, dollars 100,000,000 in first twelve months, that’s new to me. I don’t know if you’ve disclosed that before. Any way to think about peak sales in the next five years? And how big can this product be? We’ll get

Jeremy Sylvain, CFO, DexCom: to that when we give you the LRP soon. And when we have that, we’ll ultimately give you some context. The reason why we want to talk about it, but we do want to lay it out because we talked about Type two coverage coming in. That’s a great win for us because ultimately we know when there’s coverage, we know that folks tend to use the product more often. And so we’re going to combine that with the Stelo platform.

We’re also going to bring Stelo outside The United States. And so we want to lay that all out for you in an LRP, but it’s not 100, obviously it’s hundreds and hundreds of millions is what we expect it to be. But give us time, we’ll give you a specific number in the LRP, which I think will give you some comfort around it. It’s a big massive opportunity for us.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: Soon, of course.

Jake Leach, President and COO, Incoming CEO, DexCom: We do intend also to bring that product to international markets. Today, it’s only available in The U. S. That’s been our focus. But as time goes on, we want to launch it in multiple different geographies.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s helpful. So type two, a few questions. I guess before the RCT and the CMS coverage, you have 6,000,000 or so covered lives are expected by the end of this year. How are you able to access those? I mean, are you seeing the benefit?

Are you accessing those patients today? You’re able to target the right physicians and patients? Talk about the opportunity before CMS coverage.

Jake Leach, President and COO, Incoming CEO, DexCom: Yes. We it’s a big expansion in the number of lives that have access to CGM. And so as we look at it, we are seeing traction there. We’re taking share certainly in the non insulin using space, where we historically haven’t been. And one of the keys to a success here is making sure when a doctor writes a prescription for one of these patients, they have confidence that they’re going to be covered when they go into the physician’s office.

So the idea of writing a prescription and having a patient go to the pharmacy and be quoted a cash pay price because they’re not covered is not something a physician wants. So our sales force carries tools to help physicians better understand exactly who in their practices are covered, what insurance coverage looks like and that’s only going to continue to improve. And that awareness around the out of pocket cost and the benefit of CGM is something that’s part of the main message for our sales force as we’ve expanded to primary care.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: If I think about the big catalysts that investors are excited about with DexCom, one is the Type two non insulin opportunity, other is the gross margin opportunity with fifteen days. So we’ll get to that later. But on Type two, my question is non insulin, you’re doing the RCT. I don’t think you disclosed kind of the design, so it’s hard for us to assess. But how confident are you that, that study is going to be positive?

We’re going

Jake Leach, President and COO, Incoming CEO, DexCom: to see results like we saw in mobile. Anything you can say? Sure. Yes. So it’s a randomized controlled trial that we’re running in patients that have Type two, but don’t use insulin.

And it’s a pretty large swath of users. So you think about folks that are taking GLP-1s, people that are on oral medications, whole SGLT2s, it’s the whole gamut of type two diabetes. And what we’re powered it for is showing benefit in A1C reduction as well as time and range metrics for this population. And based on everything we’ve seen in previously run studies and previous evidence is that there will be a strong benefit. We’re shooting for as good or maybe even better than what we saw in the mobile study.

That study our RCT will read out in the first part of next year. And so we look forward to sharing that with everyone. That evidence will be used to support a number of different access submissions for Type two around the globe, just as we’ve used the previous studies like mobile to gain access in countries outside The U. S. As well as in The U.

S.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: If it reads out early next year, so ATTD or ADA, any which one is more likely for presentation? We may do

Jake Leach, President and COO, Incoming CEO, DexCom: it there, may do a unique presentation, we’ll see. It depends on when we finally get the last patients out, but it’ll be in the first half of the year for sure. The other important aspect is CMS coverage may come before that trial is done. We’re running it because we know the importance of that evidence for the future DexCom. But in previous years, we’ve been surprised at how coverage has come.

We do see that commercial coverage is moving pretty fast in this category. So CMS wants to be able to offer their beneficiaries the best opportunities to take care of themselves. So who knows, it

Jeremy Sylvain, CFO, DexCom: could move faster. So that’s new to me. Maybe I’m just not paying close attention. What is giving you the confidence that or what signals are you seeing that suggests CMS coverage might come before early next year? There’s a lot of ground swirl out there.

I mean, if you look at it’s funny, CGM has somehow made it into late night talk show conversations. I don’t think we ever thought that was going to happen before. Certainly, you hear it on the agenda of the current administration, all different levels of it. And so, we’ve been meeting over time with CMS and other various legislative bodies and we know there’s interest and ultimately bending this curve, that’s a bit of a challenge to really the entire population. We also know based on our history, all the approvals that have taken place in CMS coverage expansion have happened on non normal cycles, to where they publish kind of out sort of normal trend.

So I think while we know the RCT and going that process and getting ADA coverage to move from evidence to A evidence and pulling that package together is the most surefire way to follow it. There’s been a lot of groundswell and interest in CGM and expanding into the population. And so it gives us some confidence that, hey, maybe things could happen earlier. We’re planning for it as if it doesn’t. We’re also planning for it capacity wise in case it does.

So mobile, it happened

Larry Biegelsen, Medical Device Analyst, Wells Fargo: three to six months after the day it was presented something like that. It was quick. Think it

Jeremy Sylvain, CFO, DexCom: was three months actually.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: It sounds like you’re hopeful that it could be at least maybe that’s almost like a worst case scenario, but

Jake Leach, President and COO, Incoming CEO, DexCom: it could be even better. Our goal is to be ready when it does come, make sure we’ve got the capability to get make the product and get it to patients. I mean, I’m CMS and I’m looking at my beneficiary population, there’s one in three of the population has diabetes, three out of four have diabetes or pre diabetes. So that’s a pretty significant issue for CMS to manage. And so I think we all know how it’s the benefits of CGM and so it’s just a matter of time.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s helpful. And then so okay, let me ask about then the other, which is the other pipeline product. And in the context of dual ketones and additional analytes, I mean, you know from as well as I, there’s concerns about Abbott coming out with the dual ketone glucose sensor sometime next year. There’s debate about the clinical utility of that. But I think investors are concerned that they’re going to have something you don’t have.

Can you put you’ve talked about G8 being able to measure multiple analytes, but I don’t think you’ve said Ketone

Jeremy Sylvain, CFO, DexCom: one of

Larry Biegelsen, Medical Device Analyst, Wells Fargo: those analytes, and I don’t think you’ve been very precise on the timing. Maybe just talk about the competitive threat there and anything else you can say on when you could kind of neutralize that?

Jake Leach, President and COO, Incoming CEO, DexCom: Sure, yes. When you mentioned concern, thought you’re talking about there is definitely concern about the idea of continuous ketone sensing and the actual outcomes you can drive with it, what does it actually provide, how do you there’s no clinical guidelines out there for it. So how is this going to work with a glucose signal and a ketone sensor signals? Think that is an important issue to tackle. But when it comes to our G8 product, G8 is a super important part of our product pipeline.

It is the next generation of our wearable. So it will go across, we call it G8, but it will go across all of our products like Stello and DexCom OnePlus and others products similar to the way we’ve done that with our G7. That platform is 50% smaller, but has a whole lot more functionality built into it. It’s got a new generation of electronics in it, so it’s lower power, that’s how we make the device smaller, but it also has additional functionality for multiple analytes. So you get it has the capability to do that.

It also has some really advanced features in order to enhance accuracy and reliability even further, because as we’ve seen over time, accuracy and reliability is one of the most important things CGM does, whether it’s powering an AID system or it’s someone who is determining, hey, do I have an issue with my metabolic health? Accuracy and reliability is key for that and that’s part of that GA platform. To the specifics on the analytes that we have there are multiple that we’re working on, we see multitude of use cases for a wearable that can measure glucose continuously as well as other analytes. Ketones is certainly one of those. When I think about ketones, I think about there’s opportunity outside of diabetes more in the ketogenic diets, people who are doing intermittent fasting, it really could be a benefit to have a continuous ketone sensor in that type of an environment alongside of a glucose sensor.

I think that’s one of the things we’re exploring. We’re also looking at alternate analyte technologies to put inside glucose. So look at other chronic diseases, kidney disease, liver disease, there’s some opportunities there that we feel we could make an impact. And so we’re in the process of both looking at those business opportunities as well as the technology to drive it. But GA is certainly designed to be a multi analyte platform.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So Jeremy, remind me on the timing, you gave some window after G7, I don’t know, it’s like two to four years or something like that. Can you be can you remind us of what you’ve said that window? And could you be any talk about whether it’s on the earlier or later end because it’s pretty wide?

Jeremy Sylvain, CFO, DexCom: We typically in terms of you’re talking about G8 launch time frame. So we typically go in four, four point five year launch cycles. And so we launched G7 late ’twenty two, early ’twenty three. And we typically go in those four, four point five year launch cycles and this wouldn’t this is tracking in that general ballpark. We’ll have more specifics as we get closer to it.

We’ve got a history, right, G6 launched in 2018, four point five years later we launched G7. Certainly G5 to G6 was about a similar timeframe, a little shorter than that. So we’ve shown you that’s about the windows that make sense. And that’s how we typically plan our business and our capital investment cycles, etcetera.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: So it sounds like if for example, GA comes out in 2027 and Abbott’s out with the dual ketone glucose sensor in 2026, you don’t think this is a big competitive threat to you at least in 2026?

Jake Leach, President and COO, Incoming CEO, DexCom: No, not really, because the way you guys think about it is the patient population and the products. And if you look at G7 and what it offers people with diabetes, particularly on insulin, which is what we’re talking about here. The most important safety feature of a product for someone with diabetes on insulin is hypoglycemia safety, right, safety from going low that can be deadly, if not managed properly. And G7 has the urgent low soon alert, which gives our users a heads up alert when they’re going low, that they can actually treat that low before it actually occurs. That’s a really critical clinically proven feature of G7 that resonates really well with prescribers and patients and that’s obviously something you give up if you’re going to try a different product.

There’s all the other features around G7 as well. When you think about diabetes ketoacidosis, DKA and that’s a lot of what we’re talking about here with ketone sensing levels. The number one way to avoid DKA is to maintain normal blood glucose levels. And the best way to protect the ketone level is off of a glucose level. So we do think that in all the clinical studies that we’ve seen, especially the ones that we’ve run with DexCom, DKA events go down to almost zero when you’ve got someone using a CGM sensor because they’re managing their glucose and they’re not getting into this condition where their body glucose too high, they can’t use it, so they’re using producing ketones.

So we do feel that while a part of the portfolio going forward, we’re not concerned about that. Obviously watch it and we’ll watch how the clinical environment evolves over time and how standards evolve. But at this point in time, comfortable with our portfolio and how it’s going

Larry Biegelsen, Medical Device Analyst, Wells Fargo: to compete. Okay, that’s helpful. Let’s move to 2026. We talked a little bit about the LRP already. The Street’s modeling about 16% next year growth versus about 14% this year.

Talk about just kind of the puts and takes and just kind of reaction to where you think where consensus is right now?

Jeremy Sylvain, CFO, DexCom: Yes. So we don’t want to get into 2026 till we provide guidance for it. And so and I understand the questions out there. It’s why when we talk about an LRP and Jake’s alluding to strong double digit growth is we are very, very bullish on this business. I mean to the point, I mean, we’re buying shares back right now.

So for what it’s worth, know our share buybacks out there, we’re buying them because we do believe in this business. In terms of how you’re thinking about 2026 and what the factors are, look, the factors are we’ve got the biggest expansion we’ve ever had in coverage in Type two and IT, just really starting in this third quarter is our third PBM. All of those things annualize as you move into next year. So those are certainly interesting tailwinds. A lot of the price volume deltas we’ve even talked about start to peel off a bit.

We talked about the drivers in the back half of this year, all of those annualized as you move into next year and there’s multiple wins that are coming. We also know behind the scenes we’re getting more wins in the non insulin space as we go into the renewal cycle. So the major formularies have covered us, but then the sub formularies we’re in the process of winning across those as well. You’ve got massive expansions in coverage, a sales force that’s finally got a year underneath their belts is able to really get out and get into those call points, samples in the cupboard, supply ultimately coming up to the levels we’d expect it to do, International wins as well as we move out there, product portfolio with both G7 DexCom one plus competing in tenders. Again, remember these tenders some in three year cycles and we’re winning more and more tenders as we move out there.

There’s a lot of opportunities in that growth algorithm to really finish out 2025 strong and the best way to have a great 2026 is to finish 2025 out strong. So that’s what we’re working on right now. We’ll give you the 2026 numbers as we get closer.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s helpful. Jeremy, the margins, I mean, the guidance this year implies you kind of exit this year at like 66% gross margin, somewhere in that ballpark. And I think that’s come up on maybe one of the last few earnings calls. Pretty steep ramp. My question is with 15, we can all do the math, it’s a big gross margin tailwind.

I think the guidance this year is about 62%. It is for the full year, you exited 66% about. How should we think about next year you were at 65% I think peak, it seems like given the exit rate here in fifteen days should at least be at 65% next year?

Jeremy Sylvain, CFO, DexCom: Yes. So again, we’ll give 2026 guidance, but let me give you some detail points, which I think is helpful as you start to think about it. Clearly, talked about getting to a $10 sensor and then going beyond that over time. And we talked about doing that by the 2025 into 2026. We’re right on that pathway in our standard costs.

So that’s an excellent driver. That becomes part of all of our plans around margin. Then you throw in a fifteen day sensor, right, that’s a significant opportunity as well. So those two opportunities plus some of the again, the channel mix dynamics kind of slowing down over the course of future years really puts us in a great position from a margin perspective. So while we’re not ready to give margin numbers for 2026 and beyond, it will be part of the LRP.

We will be going through it, but there’s a lot of tailwinds, right. We had a pretty tough first half of the year with some, I’m not calling standard COGS, but OCOG. So your classic freight and we had some write offs, we had a recall reserve that we put on the books in the second quarter that was about 100 bps of a headwind. So I think when you start to think those things and you peel all of those off, you can see how our trajectory over the course of the year is moving and that’s consistent with the volume going through the channels, the economies of scale you see playing out in Malaysia, the standard costs coming down to ten, 15 day just continuing to be a bigger and bigger piece of our P and L going forward. All of those things leave us excited for ’26 and we’ll give you some numbers around that and future years here soon.

Jake Leach, President and COO, Incoming CEO, DexCom: Yes, just some additional colors around, we’re still expediting quite a bit of freight for this year. That’s continuing to decrease as we get to the back half of the year, it’s helping. We will be starting up our new factory in Ireland next year. So that’ll be part of the gross margin will factor in there too. But I think as we look at the business going forward, fifteen day and ultimately our G8 product, G8 has been designed with very aggressive cost targets that Jeremy talked about the $10 sensor on the G7 center cost on G7, obviously G8 is set below that by a pretty aggressive target.

And the team is doing a really nice job kind of coming in line with what we want, we have targeted for it. So there’s a lot of opportunity for gross margin expansion there over time as we continue to look at it.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: And I just wanted to ask about competitive bidding before we run out of time. I believe you submitted comments, I don’t think they posted publicly yet. Is there anything you could share on what you’re recommending to CMS?

Jake Leach, President and COO, Incoming CEO, DexCom: Sure. So as we look at competitive bidding, there’s the proposal that was out there. And there’s lot of different aspects to it. I think our number one focus here is ensuring that there’s not an interruption of beneficiaries. Today, are thousands of DME suppliers over 2,000 that supply CGM to beneficiaries and bill Medicare.

And so as part of this proposal is to reduce that number to a smaller set. And our goal there and thinking about that is let’s how would you do that and not be disruptive. So we’ve actually recommended that CMS delayed this process and think more about the supplier base as well as some of the changes in the categorization of CGM moving to the pay as you go pay the rental type model, which we think is not a bad idea because it allows people access to the latest technologies. But it’s something that needs to be taken carefully because this is could be quite disruptive and the last thing CMS or DexCom or anybody really wants this disruption to beneficiaries.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: That’s perfect. So Jake, thirty seconds left, feel free to go a little bit over, but I want to give you the last word here. Really good discussion. Appreciate you being here, both you and Jeremy. Any closing remarks?

Anything you want to highlight that we didn’t touch upon?

Jake Leach, President and COO, Incoming CEO, DexCom: Yes, would just say, as we look to the future, it’s extremely bright. We have this tremendous opportunity with the current market as well as continued coverage expansion. And I think if you look at as an investor, if you look at how DexCom is valued at this point in time, I think our growth rates of strong double digit into the future are maybe not reflective in the current valuation.

Larry Biegelsen, Medical Device Analyst, Wells Fargo: All right, perfect. We’ll end it there. Thank you.

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