Dexcom (DXCM) investor relations material

Market performance and demand trends

• Strong new patient growth continued in Q2, with momentum in both U.S. and international markets, though the U.S. leads in access and adoption.

• Type 2 non-insulin and basal insulin segments are expanding rapidly, but type 1 and intensive type 2 growth remains consistent.

• U.S. type 1 CGM penetration is estimated at 60–65%, with share win rates in basal insulin rising above 40%.

• International markets lag the U.S. in access, but new coverage in places like Canada and emerging opportunities in Europe, Australia, and the Middle East are expected to drive future growth.

• Market access teams are focused on unlocking new coverage, especially for basal and type 2 intensive populations.

Competitive landscape and product positioning

• Integration with automated insulin delivery (AID) systems is a key differentiator, with over 2.6 million cumulative years of patient experience.

• Concerns about competitor integration (e.g., Abbott/Medtronic) are minimal due to high loyalty and existing integrated solutions.

• Dexcom Stelo and new coverage options are helping shift physician preferences in the non-insulin type 2 segment.

• Compliance rates among new users, including broader populations, remain strong and stable.

• Continuous product improvements, such as enhanced adhesive and Bluetooth range for G7, have reduced complaint rates.

Guidance, growth outlook, and strategic initiatives

• 2025 is positioned as a year of execution, with raised guidance reflecting confidence in re-acceleration and momentum.

• Strong double-digit growth is anticipated for 2026, contingent on successful execution and patient base expansion in 2025.

• Expansion of coverage, especially in Medicare and commercial plans, is seen as a major catalyst for future growth.

• The transition to a 15-day G7 sensor is underway, expected to accelerate through 2026, with per-member-per-month contracts protecting revenue per patient.

• Vendor consolidation and competitive bidding in 2027–2028 are being monitored, with a focus on minimizing customer disruption and leveraging scale.