Dexcom (NASDAQ: DXCM) boosts 2026 guidance on $1.308B Q2 revenue
Rhea-AI Filing Summary
Dexcom reported financial results for the quarter ended June 30, 2026. Revenue grew 13% year-over-year to $1.308 billion, with U.S. revenue up 11% and international revenue up 19%. GAAP gross margin was 63.4% and non-GAAP gross margin 64.1%. GAAP operating income was $318.3 million, a 24.3% margin, while non-GAAP operating income was $328.3 million, or 25.1% of revenue. GAAP net income was $249.1 million, or $0.64 per diluted share, and non-GAAP net income was $269.1 million, or $0.70 per diluted share. Adjusted EBITDA was $421.3 million.
Strategic updates included a 2026 Investor Day, positive CONNECT trial results in type 2 diabetes patients not using insulin, and the launch of a redesigned Stelo app with AI-driven insights. Dexcom raised the midpoint of 2026 revenue guidance to $5.18–$5.25 billion and increased targets for Non-GAAP Gross Profit Margin to about 64%, Non-GAAP Operating Margin to 23.5–24%, and Adjusted EBITDA Margin to 31.5–32%. As of June 30, 2026, Dexcom held $1.95 billion in cash, cash equivalents and marketable securities, with its revolving credit facility undrawn.
Positive
- Revenue grew 13% to $1.308 billion, with U.S. revenue up 11% and international revenue up 19%, and GAAP operating margin expanding to 24.3%, an increase of 590 basis points year-over-year.
- 2026 guidance was increased, with revenue now expected at $5.18–$5.25 billion (approximately 11–13% growth) and higher targets for Non-GAAP Gross Profit, Operating, and Adjusted EBITDA margins.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $1.308 billion
GAAP operating income: $318.3 million
GAAP net income: $249.1 million
+5 more
8 metrics
Revenue
$1.308 billion
Q2 2026 revenue, 13% year-over-year growth
GAAP operating income
$318.3 million
Q2 2026, 24.3% of revenue
GAAP net income
$249.1 million
Q2 2026 consolidated net income
Non-GAAP diluted EPS
$0.70
Q2 2026 non-GAAP diluted net income per share
Cash and investments
$1.95 billion
Cash, cash equivalents and marketable securities as of June 30, 2026
2026 revenue guidance
$5.18–$5.25 billion
Fiscal 2026 revenue outlook, approximately 11–13% growth
Non-GAAP gross margin guidance
64%
Approximate Non-GAAP Gross Profit Margin targeted for fiscal 2026
Adjusted EBITDA
$421.3 million
Adjusted EBITDA for Q2 2026
Key Terms
organic revenue, Adjusted EBITDA, senior convertible notes, share-based compensation, +2 more
6 terms
organic revenue financial
"Revenue grew 13% year-over-year to $1.308 billion on a reported basis and 12% on an organic basis."
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
Adjusted EBITDA financial
"Adjusted EBITDA excludes non-cash operating charges for share-based compensation, depreciation and amortization..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
senior convertible notes financial
"When our senior convertible notes are dilutive on a GAAP or non-GAAP basis, net income used for calculating..."
A senior convertible note is a loan a company issues that ranks near the top of payment priority and can be exchanged for the company’s stock under preset terms. Think of it as an IOU that promises interest payments and first dibs on repayments if assets are liquidated, but also gives the lender the option to become an owner later; investors watch these for repayment safety, interest income, and potential stock dilution.
business transition and other significant items financial
"Business transition and other significant items are primarily related to rent for vacated office space in San Diego..."
intellectual property litigation costs financial
"We have excluded third-party attorney’s fees, costs, and expenses incurred exclusively in connection with patent infringement litigation..."
Earnings Snapshot
Revenue: $1.308 billion · Guidance included
Quarter ended June 30, 2026
Revenue
$1.308 billion
Revenue grew 13% year-over-year to $1.308 billion.
GAAP net income
$249.1 million
Compared with $179.8 million in the second quarter of 2025.
GAAP diluted EPS
$0.64
Compared with $0.45 per diluted share in the second quarter of 2025.
Non-GAAP diluted EPS
$0.70
Compared with $0.48 per diluted share in the second quarter of 2025.
GAAP operating margin
24.3%
Increased by 590 basis points compared to the second quarter of 2025.
Non-GAAP operating margin
25.1%
Increased by 590 basis points compared to the second quarter of 2025.
Guidance
For 2026, Dexcom guides revenue of $5.18–$5.25 billion (approximately 11–13% growth), Non-GAAP Gross Profit Margin of approximately 64%, Non-GAAP Operating Margin of approximately 23.5–24%, and Adjusted EBITDA Margin of approximately 31.5–32%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Dexcom (DXCM) perform financially in Q2 2026?
Dexcom reported Q2 2026 revenue of $1.308 billion, up 13% year-over-year. GAAP net income was $249.1 million, with GAAP diluted EPS of $0.64 and non-GAAP diluted EPS of $0.70, reflecting higher margins and profitability versus the prior year period.
What were Dexcom (DXCM) gross and operating margins in Q2 2026?
In Q2 2026, Dexcom delivered a GAAP gross margin of 63.4% and non-GAAP gross margin of 64.1%. GAAP operating margin was 24.3% and non-GAAP operating margin 25.1%, each increasing by 590 basis points compared to the second quarter of 2025.
What 2026 guidance did Dexcom (DXCM) provide for revenue and margins?
For 2026, Dexcom guides revenue of $5.18–$5.25 billion, about 11–13% growth. It targets approximately 64% Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin of 23.5–24%, and Adjusted EBITDA Margin of 31.5–32%, raising both revenue midpoint and margin expectations.
How strong is Dexcom (DXCM)'s cash and liquidity position?
As of June 30, 2026, Dexcom held $1.95 billion in cash, cash equivalents and marketable securities. The company also reported its revolving credit facility remains undrawn, providing additional financial flexibility to support capacity expansion and new market opportunities.
What strategic and clinical milestones did Dexcom (DXCM) highlight this quarter?
Dexcom emphasized its 2026 Investor Day, which outlined market opportunities and a long-term outlook, positive CONNECT trial results in type 2 diabetes not using insulin, and the initial launch of a reimagined Stelo app with AI-driven insights and enhanced food logging.
How did Dexcom (DXCM) revenue by region and channel look in Q2 2026?
In Q2 2026, Dexcom generated $933.4 million U.S. revenue and $375.0 million international revenue. Distributor sales totaled $1,102.4 million and direct sales $206.0 million, showing growth across both U.S. and international markets compared to Q2 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 30, 2026
(Exact Name of the Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
(858 ) 200-0200
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging growth company | ||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 30, 2026, DexCom, Inc. (“Dexcom”) issued a press release announcing its financial results for the quarter ended June 30, 2026 and certain other information. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1 hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit is not incorporated by reference in any filing of Dexcom under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Number | Description | |||||||
| 99.1 | Press release dated July 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DEXCOM, INC. | ||||||||
| By: | /s/ JEREME SYLVAIN Jereme Sylvain Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||
Date: | July 30, 2026 | |||||||
Exhibit 99.1
Dexcom Reports Second Quarter 2026 Financial Results
SAN DIEGO - (BUSINESS WIRE-July 30, 2026) - DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
•Revenue grew 13% year-over-year to $1.308 billion on a reported basis and 12% year-over-year on an organic1 basis.
•U.S. revenue grew 11% and international revenue grew 19% on a reported basis and 16% on an organic1 basis, all on a year-over-year basis.
•GAAP operating income of $318.3 million or 24.3% of revenue, an increase of 590 basis points compared to the second quarter of 2025. Non-GAAP operating income* of $328.3 million or 25.1% of reported revenue, an increase of 590 basis points compared to the second quarter of 2025.
Second Quarter 2026 Strategic Highlights:
•Hosted 2026 Investor Day, highlighting market opportunities, business strategy, innovation efforts, and a new long-term financial outlook.
•Announced positive results from the CONNECT randomized controlled trial, demonstrating that Dexcom CGM use among people with type 2 diabetes not using insulin resulted in clinically meaningful and statistically significant improvements in glucose control compared to routine care.
•Initiated launch of the fully reimagined Stelo app experience, bringing a more consumer-friendly feel, new AI-driven insights, and enhanced food logging capabilities to Stelo customers.
“During the quarter, we had the opportunity to host many of you at our 2026 Investor Day, where we highlighted our substantial market opportunity and introduced a new long-term financial outlook through 2030,” said Jake Leach, Dexcom’s president and CEO. “This quarter’s performance and the successful outcomes from our CONNECT trial reinforce our confidence in the path ahead and position us well to deliver on our long-range plan.”
2026 Annual Guidance
Dexcom is raising the midpoint of fiscal year 2026 Revenue guidance and increasing fiscal year 2026 guidance for Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin to the following levels:
•Revenue of $5.18 - $5.25 billion (approximately 11-13% growth)
•Non-GAAP Gross Profit Margin of approximately 64%
•Non-GAAP Operating Margin of approximately 23.5-24%
•Adjusted EBITDA Margin of approximately 31.5-32%
Second Quarter 2026 Financial Results
Revenue: In the second quarter of 2026, worldwide revenue grew 13% to $1.308 billion on a reported basis, up from $1.157 billion in the second quarter of 2025.
Gross Profit: GAAP gross profit totaled $830.0 million or 63.4% of revenue for the second quarter of 2026, compared to $688.8 million or 59.5% of revenue in the second quarter of 2025.
Non-GAAP gross profit* totaled $838.5 million or 64.1% of reported revenue for the second quarter of 2026, compared to $695.9 million or 60.1% of reported revenue in the second quarter of 2025.
Operating Income: GAAP operating income for the second quarter of 2026 was $318.3 million or 24.3% of revenue, compared to GAAP operating income of $212.6 million or 18.4% of revenue for the second quarter of 2025.
1 Second quarter 2026 organic revenue was $1.298 billion and excludes $9.9 million of foreign exchange impact and $0.2 million of acquired non-CGM revenue.
Non-GAAP operating income* for the second quarter of 2026 was $328.3 million or 25.1% of reported revenue, compared to non-GAAP operating income of $221.8 million or 19.2% of reported revenue for the second quarter of 2025.
Net Income and Diluted Net Income Per Share: GAAP net income was $249.1 million, or $0.64 per diluted share, for the second quarter of 2026, compared to GAAP net income of $179.8 million, or $0.45 per diluted share, for the second quarter of 2025.
Non-GAAP net income* was $269.1 million, or $0.70 per diluted share, for the second quarter of 2026, compared to non-GAAP net income of $192.8 million, or $0.48 per diluted share, for the second quarter of 2025. The second quarter 2026 non-GAAP net income excludes $9.4 million of amortization of intangible assets, $0.6 million of business transition and other significant items, and $10.0 million of loss from equity investments.
Cash and Liquidity: As of June 30, 2026, Dexcom held $1.95 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.
* See Table D below for a reconciliation of these GAAP and non-GAAP financial measures.
Conference Call
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the Dexcom Investor Relations website at investors.dexcom.com by navigating to “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (888) 414-4585 (U.S./Canada) or (646) 960-0331 (International) and use the confirmation ID “9430114” approximately five minutes prior to the start time.
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), please see the section titled “About Non-GAAP Financial Measures” below as well as the related Table D. We have not reconciled our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin estimates for fiscal year 2026 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, reconciliations of our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates are not available without unreasonable effort.
About DexCom, Inc.
Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.
Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.
Category: IR
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Dexcom’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to Dexcom’s future operating results and financial position, including estimated Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin for fiscal year 2026, and expected growth rates as compared to the year ended December 31, 2025; future expenses and investments; and potential business plans and opportunities. All forward-looking statements included in this press release are made as of the date of this press release, based on information currently available to Dexcom as of the date hereof. Forward-looking statements deal with future events and are therefore subject to various risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from Dexcom’s current expectations are more fully described in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Dexcom’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings filed with the Securities and Exchange Commission. Except as required by law, Dexcom assumes no obligation to update any such forward-looking statement after the date of this communication or to conform these forward-looking statements to actual results.
INVESTOR RELATIONS CONTACT:
Sean Christensen
Senior Vice President - Finance and Investor Relations
investor-relations@dexcom.com
(858) 203-6657
MEDIA CONTACT:
mediarelations@dexcom.com
DexCom, Inc.
Table A
Consolidated Balance Sheets
(In millions, except par value data)
(Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,105.0 | $ | 917.7 | |||||||
| Short-term marketable securities | 842.0 | 1,081.0 | |||||||||
| Accounts receivable, net | 1,257.7 | 1,216.1 | |||||||||
| Inventory | 726.4 | 629.1 | |||||||||
| Prepaid and other current assets | 155.5 | 189.4 | |||||||||
| Total current assets | 4,086.6 | 4,033.3 | |||||||||
| Property and equipment, net | 1,577.2 | 1,559.9 | |||||||||
| Operating lease right-of-use assets | 88.0 | 77.4 | |||||||||
| Goodwill | 24.1 | 24.2 | |||||||||
| Intangibles, net | 101.6 | 70.8 | |||||||||
| Deferred tax assets | 304.1 | 295.6 | |||||||||
| Other assets | 273.7 | 278.7 | |||||||||
| Total assets | $ | 6,455.3 | $ | 6,339.9 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 2,191.5 | $ | 1,944.0 | |||||||
| Accrued payroll and related expenses | 136.3 | 169.2 | |||||||||
| Short-term operating lease liabilities | 20.7 | 21.6 | |||||||||
Other current liabilities | 9.2 | 7.7 | |||||||||
| Total current liabilities | 2,357.7 | 2,142.5 | |||||||||
| Long-term senior convertible notes | 1,242.8 | 1,240.9 | |||||||||
| Long-term operating lease liabilities | 82.6 | 73.4 | |||||||||
| Other long-term liabilities | 150.8 | 137.1 | |||||||||
| Total liabilities | 3,833.9 | 3,593.9 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at June 30, 2026 and December 31, 2025 | — | — | |||||||||
Common stock, $0.001 par value, 800.0 million shares authorized; 412.4 million and 377.4 million shares issued and outstanding, respectively, at June 30, 2026; and 410.7 million and 384.8 million shares issued and outstanding, respectively, at December 31, 2025 | 0.4 | 0.4 | |||||||||
| Additional paid-in capital | 2,376.5 | 2,281.5 | |||||||||
Accumulated other comprehensive income | 90.0 | 115.0 | |||||||||
| Retained earnings | 2,882.5 | 2,433.9 | |||||||||
Treasury stock, at cost; 35.0 million shares at June 30, 2026 and 25.9 million shares at December 31, 2025 | (2,728.0) | (2,084.8) | |||||||||
| Total stockholders’ equity | 2,621.4 | 2,746.0 | |||||||||
| Total liabilities and stockholders’ equity | $ | 6,455.3 | $ | 6,339.9 | |||||||
DexCom, Inc.
Table B
Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | 1,308.4 | $ | 1,157.1 | $ | 2,500.3 | $ | 2,193.1 | |||||||||||||||
| Cost of sales | 478.4 | 468.3 | 920.0 | 915.3 | |||||||||||||||||||
| Gross profit | 830.0 | 688.8 | 1,580.3 | 1,277.8 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 153.0 | 148.2 | 298.3 | 293.4 | |||||||||||||||||||
| Selling, general and administrative | 358.7 | 328.0 | 708.4 | 638.1 | |||||||||||||||||||
| Total operating expenses | 511.7 | 476.2 | 1,006.7 | 931.5 | |||||||||||||||||||
| Operating income | 318.3 | 212.6 | 573.6 | 346.3 | |||||||||||||||||||
| Other income (expense), net | (0.8) | 28.5 | 13.4 | 49.1 | |||||||||||||||||||
| Income before income taxes | 317.5 | 241.1 | 587.0 | 395.4 | |||||||||||||||||||
| Income tax expense | 68.4 | 61.3 | 138.4 | 110.2 | |||||||||||||||||||
| Net income | $ | 249.1 | $ | 179.8 | $ | 448.6 | $ | 285.2 | |||||||||||||||
| Basic net income per share | $ | 0.65 | $ | 0.46 | $ | 1.17 | $ | 0.73 | |||||||||||||||
| Shares used to compute basic net income per share | 382.2 | 392.1 | 383.7 | 391.6 | |||||||||||||||||||
| Diluted net income per share | $ | 0.64 | $ | 0.45 | $ | 1.15 | $ | 0.71 | |||||||||||||||
| Shares used to compute diluted net income per share | 390.1 | 408.2 | 391.8 | 407.8 | |||||||||||||||||||
DexCom, Inc.
Table C
Revenue by Customer Sales Channel and Geographic Region
(Dollars in millions)
(Unaudited)
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||
| Distributor | $ | 893.5 | $ | 208.9 | $ | 1,102.4 | $ | 800.0 | $ | 177.8 | $ | 977.8 | |||||||||||||||||||||||
| Direct | 39.9 | 166.1 | 206.0 | 41.0 | 138.3 | 179.3 | |||||||||||||||||||||||||||||
| Total revenue | $ | 933.4 | $ | 375.0 | $ | 1,308.4 | $ | 841.0 | $ | 316.1 | $ | 1,157.1 | |||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||
| Distributor | $ | 1,690.4 | $ | 422.3 | $ | 2,112.7 | $ | 1,520.6 | $ | 337.2 | $ | 1,857.8 | |||||||||||||||||||||||
| Direct | 75.3 | 312.3 | 387.6 | 70.9 | 264.4 | 335.3 | |||||||||||||||||||||||||||||
| Total revenue | $ | 1,765.7 | $ | 734.6 | $ | 2,500.3 | $ | 1,591.5 | $ | 601.6 | $ | 2,193.1 | |||||||||||||||||||||||
DexCom, Inc.
Table D
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP gross profit | $ | 830.0 | $ | 688.8 | $ | 1,580.3 | $ | 1,277.8 | |||||||||||||||
Amortization of intangible assets (1) | 8.5 | 7.1 | 15.6 | 14.3 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 838.5 | $ | 695.9 | $ | 1,595.9 | $ | 1,292.1 | |||||||||||||||
| GAAP operating income | $ | 318.3 | $ | 212.6 | $ | 573.6 | $ | 346.3 | |||||||||||||||
Amortization of intangible assets (1) | 9.4 | 7.9 | 17.4 | 15.8 | |||||||||||||||||||
Business transition and other significant items (2) | 0.6 | 1.1 | 1.7 | 2.1 | |||||||||||||||||||
Intellectual property litigation costs (3) | — | 0.2 | — | 0.7 | |||||||||||||||||||
| Non-GAAP operating income | $ | 328.3 | $ | 221.8 | $ | 592.7 | $ | 364.9 | |||||||||||||||
| GAAP net income | $ | 249.1 | $ | 179.8 | $ | 448.6 | $ | 285.2 | |||||||||||||||
Business transition and other significant items (2) | 0.5 | 0.9 | 1.5 | 1.9 | |||||||||||||||||||
| Depreciation and amortization | 68.2 | 63.0 | 135.3 | 123.0 | |||||||||||||||||||
Intellectual property litigation costs (3) | — | 0.2 | — | 0.7 | |||||||||||||||||||
Loss from equity investments | 10.0 | 0.4 | 10.0 | 4.6 | |||||||||||||||||||
| Share-based compensation | 39.0 | 45.3 | 82.3 | 79.5 | |||||||||||||||||||
| Interest expense and interest income | (13.9) | (23.3) | (30.3) | (47.1) | |||||||||||||||||||
| Income tax expense | 68.4 | 61.3 | 138.4 | 110.2 | |||||||||||||||||||
| Adjusted EBITDA | $ | 421.3 | $ | 327.6 | $ | 785.8 | $ | 558.0 | |||||||||||||||
| GAAP net income | $ | 249.1 | $ | 179.8 | $ | 448.6 | $ | 285.2 | |||||||||||||||
Amortization of intangible assets (1) | 9.4 | 7.9 | 17.4 | 15.8 | |||||||||||||||||||
Business transition and other significant items (2) | 0.6 | 1.1 | 1.7 | 2.1 | |||||||||||||||||||
Intellectual property litigation costs (3) | — | 0.2 | — | 0.7 | |||||||||||||||||||
Loss from equity investments | 10.0 | 0.4 | 10.0 | 4.6 | |||||||||||||||||||
Adjustments related to taxes (4) | — | 3.4 | 7.7 | 12.1 | |||||||||||||||||||
| Non-GAAP net income | $ | 269.1 | $ | 192.8 | $ | 485.4 | $ | 320.5 | |||||||||||||||
DexCom, Inc.
Table D (Continued)
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP net income | $ | 249.1 | $ | 179.8 | $ | 448.6 | $ | 285.2 | |||||||||||||||
| Interest expense on senior convertible notes, net of tax | 1.7 | 2.9 | 3.3 | 5.8 | |||||||||||||||||||
GAAP net income used for diluted EPS, if-converted (5) | $ | 250.8 | $ | 182.7 | $ | 451.9 | $ | 291.0 | |||||||||||||||
| Non-GAAP net income | $ | 269.1 | $ | 192.8 | $ | 485.4 | $ | 320.5 | |||||||||||||||
| Interest expense on senior convertible notes, net of tax | — | 1.3 | — | 2.5 | |||||||||||||||||||
Non-GAAP net income used for diluted EPS, if-converted (5) | $ | 269.1 | $ | 194.1 | $ | 485.4 | $ | 323.0 | |||||||||||||||
GAAP diluted net income per share (5) | $ | 0.64 | $ | 0.45 | $ | 1.15 | $ | 0.71 | |||||||||||||||
Amortization of intangible assets (1) | 0.02 | 0.02 | 0.05 | 0.04 | |||||||||||||||||||
Business transition and other significant items (2) | — | — | — | 0.01 | |||||||||||||||||||
Intellectual property litigation costs (3) | — | — | — | — | |||||||||||||||||||
Loss from equity investments | 0.03 | — | 0.03 | 0.01 | |||||||||||||||||||
Adjustments related to taxes (4) | — | 0.01 | 0.02 | 0.03 | |||||||||||||||||||
Impact of adjustment to GAAP diluted shares (6) | 0.01 | — | 0.01 | — | |||||||||||||||||||
Non-GAAP diluted net income per share (5) (7) | $ | 0.70 | $ | 0.48 | $ | 1.26 | $ | 0.81 | |||||||||||||||
| GAAP diluted weighted-average shares outstanding | 390.1 | 408.2 | 391.8 | 407.8 | |||||||||||||||||||
| Non-GAAP diluted weighted-average shares outstanding | 382.4 | 400.5 | 384.1 | 400.1 | |||||||||||||||||||
| Reconciliation of non-GAAP diluted weighted-average shares outstanding: | |||||||||||||||||||||||
| GAAP diluted weighted-average shares outstanding | 390.1 | 408.2 | 391.8 | 407.8 | |||||||||||||||||||
Adjustment for dilutive impact of senior convertible notes due 2028 (8) | (7.7) | (7.7) | (7.7) | (7.7) | |||||||||||||||||||
| Non-GAAP diluted weighted-average shares outstanding | 382.4 | 400.5 | 384.1 | 400.1 | |||||||||||||||||||
(1) Represents amortization of acquired intangible assets.
(2) For the three and six months ended June 30, 2026 and June 30, 2025, business transition and other significant items are primarily related to rent for vacated office space in San Diego, California.
(3) We have excluded third-party attorney’s fees, costs, and expenses incurred by Dexcom exclusively in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc., as further described in the section titled “Legal Proceedings” in Dexcom’s Annual Report on Form 10-K for the year ended December 31, 2024.
(4) For the three and six months ended June 30, 2026 and June 30, 2025, tax adjustments are primarily related to the tax effect of non-GAAP adjustments and shortfalls from share-based compensation for employees.
(5) When our senior convertible notes are dilutive on a GAAP or non-GAAP basis, net income used for calculating GAAP and non-GAAP diluted net income per share includes an interest expense add back, net of tax, under the if-converted method. In loss periods, basic and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.
(6) The adjustments are for the transition from GAAP diluted net income per share to non-GAAP diluted net income per share due to our senior convertible notes.
(7) The sum of the non-GAAP per share components may not equal the totals due to rounding.
(8) We adjust for the dilutive effect of our senior convertible notes when the effect is not the same on a GAAP and non-GAAP basis for a given period.
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated July 30, 2026 contains non-GAAP financial measures. These non-GAAP financial measures include organic revenue, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP diluted weighted average shares outstanding, as well as Adjusted EBITDA.
We report non-GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by senior management in our financial and operational decision making. Our non-GAAP financial measures exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization and our senior management. While we compute non-GAAP financial measures using a consistent method from quarter to quarter and year to year, we may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand our business.
Management believes organic revenue is a meaningful metric to investors as it provides a more consistent comparison of Dexcom’s revenue to prior periods as well as to industry peers. We exclude the following items from organic revenue:
•The effect of non-CGM revenue acquired or divested in the trailing twelve months; and
•The effect of foreign currency fluctuations
Management believes that the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods. Management believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing our past and future operating performance.
Table D reconciles the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.
Our policy is to exclude the following items from non-GAAP financial measures for non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share:
•Amortization of acquired intangible assets;
•Business transition and related costs associated with acquisition and divestiture, integration and business transition activities, including severance, relocation, consulting, leasehold exit costs, third-party merger and acquisition costs, and other non-recurring significant items;
•Income or loss from equity investments, which includes realized and unrealized gains or losses from marketable and non-marketable equity securities. These amounts may reflect changes in value due to observable price changes or impairments;
•Third-party intellectual property litigation costs in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc.;
•Litigation settlement costs;
•Gain or loss on extinguishment of debt; and
•Adjustments related to taxes for the excluded items above, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items
Adjusted EBITDA excludes non-cash operating charges for share-based compensation (including equity-related charges associated with severance, restructuring, or other business transition activities), depreciation and amortization as well as non-operating items such as interest income, interest expense, gain or loss on extinguishment of debt, income or loss from equity investments, and income tax expense or benefit. For the reasons explained above, Adjusted EBITDA also excludes business transition and other significant items, litigation settlement costs, and intellectual property litigation costs.