Business Description
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include DexCom G6, an integrated CGM system for diabetes management; Dexcom Real-Time API, which enables invited third-party developers to integrate real-time CGM data into their digital health applications and devices; Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions; and Dexcom Share, a remote monitoring system. The company's products candidature comprises Dexcom G7, a next generation G7 CGM system. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
Business History
Generated: Jun 7, 2026 5:12pmPrice Overview
Last updated: Jun 7, 2026 5:09pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 2.14
Total Equity: $2.75B
Shares: 405,500,000
Total Debt: $1.24B
Cash: $917.70M
EBITDA: $1.16B
Total Debt: $1.24B
Cash: $917.70M
Revenue: $4.66B
Revenue: $4.66B
Revenue: $4.66B
Total Equity: $2.75B
Tax Rate: 23.2%
Equity: $2.75B
Total Debt: $1.24B
Cash: $917.70M
Current Liabilities: $2.14B
Long-Term Debt: $1.24B
Total Debt: $1.24B
Total Equity: $2.75B
Shares: 405,500,000
Shares: 405,500,000
CapEx: -$363.50M
Shares: 405,500,000
Stock Price: $72.86
Net Income: $836.30M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:16pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.9B | $3.6B | $4.0B | $4.7B |
| Cost of Revenue | $768.0M | $1.0B | $1.3B | $1.6B | $1.9B |
| Gross Profit | $1.7B | $1.9B | $2.3B | $2.4B | $2.8B |
| Operating Expenses | $1.4B | $1.5B | $1.7B | $1.8B | $1.9B |
| Operating Income | $265.8M | $391.2M | $597.7M | $600.0M | $911.8M |
| Net Income | $216.9M | $341.2M | $541.5M | $576.2M | $836.3M |
| EBITDA | $377.5M | $565.3M | $916.7M | $945.7M | $1.2B |
| EPS | $0.56 | $0.88 | $1.44 | $1.46 | $2.14 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.1B | $642.3M | $566.3M | $606.1M | $917.7M |
| Total Current Assets | $3.7B | $3.7B | $4.4B | $4.3B | $4.0B |
| Total Assets | $4.9B | $5.4B | $6.3B | $6.5B | $6.3B |
| Current Liabilities | $720.8M | $1.8B | $1.6B | $2.9B | $2.1B |
| Long-Term Debt | $2.0B | $1.2B | $2.4B | $1.2B | $1.2B |
| Total Liabilities | $2.9B | $3.3B | $4.2B | $4.4B | $3.6B |
| Total Equity | $2.0B | $2.1B | $2.1B | $2.1B | $2.7B |
| Retained Earnings | $138.7M | $479.9M | $1.0B | $1.6B | $2.4B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:16pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $442.5M | $669.5M | $748.5M | $989.5M | $1.4B |
| Capital Expenditure | -$389.2M | -$364.8M | -$236.6M | -$358.8M | -$363.5M |
| Free Cash Flow | $53.3M | $304.7M | $511.9M | $630.7M | $1.1B |
| Acquisitions (net) | -$30.2M | -$3.9M | $0 | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | -$557.7M | -$688.7M | -$750.0M | -$500.0M |
| Net Change in Cash | $235.4M | -$410.3M | -$75.8M | $39.8M | $311.8M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$5.8B $5.8B – $5.9B
|
$6.5B $6.5B – $6.5B
|
$7.3B $7.3B – $7.4B
|
$8.2B $8.1B – $8.3B
|
| EBITDA |
$2.0B $2.0B – $2.1B
|
$2.3B $2.3B – $2.3B
|
$2.6B $2.5B – $2.6B
|
$2.9B $2.9B – $2.9B
|
| Net Income |
$1.2B $1.2B – $1.4B
|
$1.4B $1.2B – $1.6B
|
$1.8B $1.7B – $1.8B
|
$2.1B $2.0B – $2.1B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:16pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +18.8% | +24.5% | +11.3% | +15.6% |
| Gross Profit Growth | +12.1% | +21.5% | +6.5% | +14.7% |
| Operating Income Growth | +47.2% | +52.8% | +0.4% | +52.0% |
| Net Income Growth | +57.3% | +58.7% | +6.4% | +45.1% |
| EBITDA Growth | +49.7% | +62.2% | +3.2% | +23.0% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:15pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-15 | Brown Michael Jon | S-Sale | 1,700.00 | $75.55 | $128,435 |
| 2026-06-15 | FOLETTA MARK G | S-Sale | 3,801.00 | $74.10 | $281,651 |
| 2026-06-15 | FOLETTA MARK G | S-Sale | 199.00 | $74.82 | $14,889 |
| 2026-06-03 | Coleman Jon | S-Sale | 4,912.00 | $73.00 | $358,576 |
| 2026-06-04 | Coleman Jon | S-Sale | 4,911.00 | $74.13 | $364,052 |
| 2026-05-28 | ALTMAN STEVEN R | A-Award | 5,565.00 | $0.00 | $0 |
| 2026-05-28 | Malady Kyle | A-Award | 5,575.00 | $0.00 | $0 |
| 2026-05-28 | AUGUSTINOS NICHOLAS | A-Award | 5,575.00 | $0.00 | $0 |
| 2026-05-28 | FOLETTA MARK G | A-Award | 6,331.00 | $0.00 | $0 |
| 2026-05-28 | Heller Bridgette P | A-Award | 5,575.00 | $0.00 | $0 |
| 2026-05-28 | Osterloh Albert Frederick IV | A-Award | 1,630.00 | $0.00 | $0 |
| 2026-05-28 | Driscoll Rimma | A-Award | 5,605.00 | $0.00 | $0 |
| 2026-05-28 | Ashley Euan A. | A-Award | 5,565.00 | $0.00 | $0 |
| 2026-05-28 | Collins Richard Alexander | A-Award | 5,605.00 | $0.00 | $0 |
| 2026-05-28 | GALA RENEE D | A-Award | 5,605.00 | $0.00 | $0 |
| 2026-05-22 | Leach Jacob Steven | F-InKind | 1,451.00 | $71.90 | $104,327 |
| 2026-05-22 | Brown Michael Jon | F-InKind | 1,451.00 | $71.90 | $104,327 |
| 2026-05-22 | Sylvain Jereme M | F-InKind | 1,451.00 | $71.90 | $104,327 |
| 2026-05-22 | Stern Sadie | F-InKind | 1,451.00 | $71.90 | $104,327 |
| 2026-05-22 | Coleman Jon | F-InKind | 7,362.00 | $71.90 | $529,328 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly trajectory first: revenue went $1.00B → $994M → $1.04B → $1.16B → $1.21B → $1.26B → $1.19B across the last seven quarters. That last print is a sequential decline of ~5.6% off the Q4 high, and Q1 net margin compressed back to 16.7% from 21.2%. The model deck calls "recent_revenue_yoy: 15.6%" which is true vs Q1'25's weak $1.04B base — but Q1'25 was itself a guide-down quarter for DexCom (the infamous sales force reorg). So the YoY comp is flattered by a depressed base. Two-year stacked, Q1'26 at $1.19B vs Q1'24 at ~$921M is ~14% CAGR, decent but decelerating from the 17% annual rate. The deceleration narrative is real, not a model artifact.
Margins tell a more interesting story. Full-year 2025 op margin hit 19.6% with $911M op income on $4.66B rev, up meaningfully from 14.9% in 2024. FCF of $1.08B on $4.66B = 23% FCF margin is genuinely strong, and the FCF CAGR of 45% reflects operating leverage finally showing. But Q1'26's 16.7% net margin suggests the 2025 margin expansion may not be linear — possibly tariff exposure, Stelo OTC launch costs, or GLP-1 displacement starting to bite incremental volume. The synthesis verdict of "High Conviction Required" is doing a lot of hand-waving; the pre-flight note about "40-50x earnings, 6-8x sales" is stale — at $72.86 the stock trades at 30x TTM P/E and 5.6x sales. This is no longer a premium-multiple growth name. It's been rerated already, down ~50% from $140+ highs.
Where I disagree with the model stack: the Market Forces "fairly valued" and Narrative layer's "12-18% narrative premium" feel anchored to the old story. At 30x earnings with 24% earnings CAGR, 23% FCF margins, $917M cash, and an entrenched duopoly position in CGM, this is actually screening cheap for the quality — IF you believe the Q1'26 wobble is noise and not the start of GLP-1-driven volume erosion. The contrarian bear case the models underweight: semaglutide/tirzepatide reduce the Type 2 CGM TAM the bulls are counting on, because well-controlled GLP-1 patients don't need continuous monitoring. Abbott's Libre Rio (OTC) launched into the same Stelo whitespace. And the insider activity, while small, is one-directional — awards followed by sales, no opens-market buying at $72 from anyone who'd know if Q2 is recovering. That's a tell.
My verdict: I dissent mildly from "High Conviction Required" as a cop-out. At $72.86, DXCM is priced for ~8-10% revenue growth and stable margins — not the 13-15% the recent trajectory still supports. If 2026 lands at $5.1-5.3B revenue with 19-20% op margins, you get ~$3.50-3.80 EPS and a fair multiple of 25-28x = $90-105. The market is pricing in a real chance the GLP-1/saturation bear case is right. I think the risk/reward is favorably skewed below $75 for anyone with 2-year patience, but the Q2'26 print is the binary — if revenue doesn't reaccelerate sequentially above $1.25B and margins don't recover to ~20%, the bear thesis gets confirmed and fair value drops to $55-60. Starter position justified, full position needs Q2 confirmation. The models' "fairly valued" framing misses that a 30x P/E on a name that compounded earnings 24% is mathematically cheap if growth is durable — the entire question is durability, and one quarter doesn't answer it.
GPT Critique
DexCom's financial trajectory presents a compelling narrative of growth and profitability, yet with some evident volatility. Their quarterly revenue shows a significant leap from $994.2M in Q3 2024 to $1.26B in Q4 2025, suggesting robust growth. However, a slight retreat to $1.19B in Q1 2026 reflects some instability or external pressures impacting the business. This volatility is also mirrored in their margins, with net income margins fluctuating from a low of 10.2% in Q1 2025 to a high of 23.5% in Q3 2025, before dropping again to 16.7% in Q1 2026. Notably, despite these fluctuations, the firm's annual financials reveal a consistent upward trajectory, with annual revenue increasing from $2.91B in 2022 to $4.66B in 2025, and net income following suit. This indicates operational resilience and an ability to capitalize on existing market opportunities.
I agree with Opus's observation that DexCom's recent revenue deceleration is significant. It is apparent that the Q1 2026 revenue dip and margin compression are indicative of potential market or operational challenges. Opus highlights the "deceleration narrative" and cites the sequential revenue drop and margin compression as indicators of this trend, which aligns with the data showing a 5.6% sequential decline in revenue from Q4 2025 to Q1 2026. This suggests that while the company's growth is substantial, it is not without potential headwinds. Where I diverge from Opus is in his assertion that the market is "pricing in a real chance the GLP-1/saturation bear case is right." I see the current pricing as more reflective of temporary operational hiccups rather than a structural shift in the market dynamics.
Opus argues that the market forces and narrative layers are "anchored to the old story," implying that DexCom's rerating is unjustified for its current valuation metrics. I concur with his assessment that the stock's current P/E ratio of 30x, combined with its historical earnings CAGR of 24%, suggests that the market might be undervaluing the company's potential for sustained growth, assuming that the recent performance dip is short-term. However, where I find room for disagreement is in his skepticism about the market's reaction to potential GLP-1 competition. While competition from GLP-1s like semaglutide is a valid concern, the entrenched nature of DexCom's CGM systems and the high switching costs for patients and healthcare providers could mitigate this risk more than Opus suggests.
A careful skeptic might argue that both Opus and I are potentially underestimating the impact of emerging competition and regulatory challenges on DexCom's growth prospects. They could point to the insider selling as a red flag, indicating possible insider knowledge of challenges ahead. Furthermore, they might highlight that the robust growth and margins could already be priced in, leaving less room for upside unless DexCom can consistently surpass expectations.