DexCom reported Q3 2025 earnings, posting revenue of $1.209 billion, a 22% increase from $994.2 million in the same quarter a year earlier. GAAP gross profit rose to $731.4 million, giving a gross margin of 60.5%, up from 59.7% in Q3 2024. GAAP operating income reached $242.5 million, or 20.1% of revenue, compared with $152.0 million (15.3%) a year earlier. Net income was $283.8 million, translating to a diluted earnings per share of $0.70.
The non‑GAAP figures were also strong: net income of $242.5 million, or $0.61 per diluted share; gross profit of $741.3 million, a 61.3% margin; and operating income of $272.9 million, a 22.6% margin. Sensor and other revenue accounted for 97% of total revenue in the quarter.
Sequentially, Q2 2025 revenue was $1.147 billion, with a non‑GAAP gross margin of 60.1% and an operating margin of 19.2%. The improvement in Q3 margins reflects higher sensor volumes and stable pricing, offsetting the impact of increased scrap and freight costs that the company cited as a headwind.
Management highlighted margin pressure from higher scrap and freight costs but noted that operating expense leverage helped mitigate the effect. The company raised its full‑year 2025 revenue guidance to $4.630 billion–$4.650 billion, an increase of about 15% from prior guidance. Non‑GAAP gross margin guidance was lowered to roughly 61% due to scrap dynamics, while non‑GAAP operating margin and adjusted EBITDA outlooks were raised.
Segment performance showed U.S. revenue growth of 18% and International growth of 12%. New product launches, including the Dexcom Smart Basal and a 15‑day sensor system, were highlighted as key drivers of growth. DexCom maintains a cash position exceeding $3.3 billion and has continued share repurchases.
The company remains focused on expanding its addressable patient population in the Type 2 non‑insulin market and maintaining its competitive moat in continuous glucose monitoring.
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