AI Takeaway
DexCom delivered strong FY2025 results with revenue growing 15.6% to $4.66B, operating income surging 52% to $911.8M, and net income rising 45.1% to $836.3M, reflecting significant operating leverage and improved profitability.
Revenue
$4.66B
++15.60% YoY
EPS (Basic)
$2.14
++46.58% YoY
Gross Margin
60.1%
-0.36% YoY
Operating Income
$911.8M
++51.97% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
DexCom grew total revenue by 15.6% year-over-year to $4.66B in FY2025, up from $4.03B in the prior year, driven by continued adoption of its continuous glucose monitoring (CGM) systems across both domestic and international markets.
Source: Source: 10-K Income Statement
Operating income jumped 52.0% to $911.8M, with operating margin expanding approximately 470 basis points to 19.6% from 14.9%, as SG&A expenses grew only 0.4% ($1.29B) while revenue grew 15.6%, demonstrating strong cost discipline.
Source: Source: 10-K Income Statement
Operating cash flow increased 45.6% to $1.44B, and cash & equivalents rose 51.4% to $917.7M, reflecting the company's improving ability to convert earnings into cash and fund operations internally.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockDexCom operates in an increasingly competitive continuous glucose monitoring market where rivals such as Abbott Laboratories continue to expand their product offerings. Pricing pressure and market share competition could compress gross margins, which already declined slightly by approximately 36 basis points to 60.1% in FY2025.
Source: Source: 10-K Income Statement, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.45 versus the $0.66 analyst consensus — a -32.1% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.66B | $4.03B | +15.60% |
Cost of Revenue | $1.86B | $1.59B | +16.64% |
Gross Profit | $2.8B | $2.44B | +14.92% |
Operating Income | $911.8M | $600M | +51.97% |
Net Income | $836.3M | $576.2M | +45.14% |
EPS (Basic) | $2.14 | $1.46 | +46.58% |
EPS (Diluted) | $2.09 | $1.42 | +47.18% |
R&D Expense | $599.1M | $552.4M | +8.45% |
SG&A Expense | $1.29B | $1.29B | +0.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.34B | $6.48B | -2.23% |
Current Assets | $4.03B | $4.3B | -6.23% |
Total Liabilities | $3.59B | $4.38B | -17.98% |
Current Liabilities | $2.14B | $2.93B | -26.93% |
Stockholders' Equity | $2.75B | $2.1B | +30.60% |
Cash & Equivalents | $917.7M | $606.1M | +51.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.44B | $989.5M | +45.60% |
Investing Cash Flow | $536M | $-207.5M | +358.31% |
Financing Cash Flow | $-1.69B | $-734.8M | -129.50% |
Share Buybacks | $500M | $750M | -33.33% |
D&A | $251.8M | $217.7M | +15.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.1% | 60.5% | -0.36% |
Operating Margin | 19.6% | 14.9% | +4.68% |
Net Margin | 17.9% | — | — |
ROE | 30.5% | — | — |
ROA | 13.2% | — | — |
Current Ratio | $1.883 | — | — |
Debt to Equity | $1.309 | — | — |
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DexCom had a strong FY2025, with revenue growing 15.6% to $4.66B and net income rising 45.1% to $836.3M. Operating margin expanded to 19.6% from 14.9%, reflecting significant operating leverage as SG&A costs grew only 0.4%.
The key takeaways from DexCom's FY2025 results include robust revenue growth of 15.6%, a 52% surge in operating income to $911.8M, and operating cash flow jumping 45.6% to $1.44B. The company also significantly strengthened its balance sheet, with total liabilities falling 18% and stockholders' equity rising 30.6%.
Yes, DexCom significantly improved profitability in FY2025, with net margin reaching 17.9% and diluted EPS growing 47.2% to $2.09 from $1.42 in the prior year. ROE reached 30.5%, reflecting highly efficient use of shareholder capital.
DexCom's financial health improved considerably in FY2025, with a current ratio of 1.88, cash & equivalents up 51.4% to $917.7M, and total liabilities down 18% to $3.59B. The debt-to-equity ratio of 1.31 remains elevated but improved as equity grew 30.6% during the year.
DexCom invested $599.1M in R&D in FY2025, an 8.5% increase from $552.4M in the prior year, representing approximately 12.9% of total revenue. This continued investment signals the company's focus on next-generation CGM product development.