Dexcom (DXCM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.036 billion, up 14% organically and 12% reported year-over-year, driven by strong demand, expanded PBM coverage, and new product launches like Stelo.

• Record new customer starts, especially among Type 2 non-insulin users, supported by broader U.S. coverage and commercial execution.

• Net income was $105.4 million (GAAP), down from $146.4 million in Q1 2024, primarily due to higher taxes and lower other income.

• Announced $750 million share repurchase program and received FDA clearance for the 15-day G7 system post-quarter.

• Appointed Jon Coleman as Chief Commercial Officer to strengthen global commercial leadership.

Financial highlights

• Gross profit was $596.2 million (57.5% margin), down from 61.8% in Q1 2024 due to supply chain costs and product/channel mix.

• Operating income was $143.1 million (13.8% margin, non-GAAP); GAAP operating income was $133.7 million (12.9% margin).

• Adjusted EBITDA was $230.4 million (22.2% margin), up from $220.9 million in Q1 2024.

• U.S. revenue grew 15% to $750.5 million; international revenue rose 7% to $285.5 million (12% organic).

• Cash, cash equivalents, and marketable securities totaled $2.70 billion at quarter-end.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $4.6 billion, representing 14% growth.

• Non-GAAP gross margin guidance reduced to ~62% due to Q1 results, expedited freight, tariffs, and FX impacts.

• Non-GAAP operating margin and adjusted EBITDA margin guidance maintained at ~21% and ~30%, respectively.

• 15-day G7 launch and related margin impact already factored into guidance; ramp expected to be measured.

• Management expects continued investment in R&D and manufacturing to support growth and new product launches.