stockrowWhat it does
DexCom designs and sells continuous glucose monitoring systems, or CGMs, for people managing diabetes and metabolic health. Founded in 1999 and headquartered in San Diego, the company is led by Chief Executive Officer Jacob Leach.
A CGM uses a wearable sensor to measure glucose throughout the day. Dexcom’s G7 and G7 15 Day systems send readings to a receiver or compatible device, show trends and alert users to high or low glucose levels. The systems can also share readings with designated followers, such as family members, and connect with compatible insulin delivery devices.
The G7 is cleared in the United States for people with diabetes ages two years and older. The G7 15 Day is authorized for adults with diabetes in the United States. Their disposable sensors have different wear periods: 10-day for the G7 and 15.5 day for the G7 15 Day.
Dexcom also sells Stelo, an over-the-counter biosensor designed for adults with prediabetes and Type 2 diabetes who do not use insulin. Its Dexcom ONE+ system has been launched in several European countries. Dexcom Clarity provides cloud-based reporting, while Share and Follow let designated recipients remotely monitor a user’s glucose information and receive alerts. Patients, caregivers and clinicians can use the information as part of diabetes management.
How it makes money
Dexcom generates revenue by selling disposable sensors and reusable transmitters and receivers. Sensors must be replaced as their wear periods end, so continued use involves repeat purchases. The company expects CGM systems to account for substantially all product revenue for the foreseeable future.
For FY2025, international revenue was $1.3 billion; worldwide revenue for Q3 2026 was $1.34 billion.
The product portfolio includes the G7 and G7 15 Day, as well as Dexcom ONE+ in several European countries. Stelo is sold over the counter in the United States and does not require a prescription. Dexcom anticipates transitioning G6 customers to G7 and G7 15 Day sensors by the end of 2026. The company also works with insulin delivery partners to integrate glucose readings into their devices, including for some semi-automated insulin delivery uses.
What a patient pays depends in part on insurance eligibility and coverage. In the United States, Medicare, Medicaid in the majority of states and commercial insurers cover G7 subject to eligibility and coverage criteria. G7 15 Day has met the category requirements for therapeutic CGM systems set by the U.S. Centers for Medicare & Medicaid Services and will also be covered for Medicare beneficiaries.
Revenue is affected by pharmacy rebates that Dexcom estimates under contractual arrangements. Sales are typically lower in the first quarter than in the immediately preceding fourth quarter, a pattern Dexcom attributes to U.S. insurance deductible resets and unfunded flexible spending accounts. Dexcom says it has not seen worldwide pricing deteriorate.
Customers and how it sells
Dexcom’s target market includes people with Type 1 and Type 2 diabetes who use insulin, as well as some people with diabetes who do not use insulin and struggle with low glucose. Stelo also addresses adults with prediabetes and Type 2 diabetes who do not use insulin. Healthcare professionals, caregivers and designated followers use or help patients use Dexcom’s systems and data.
Dexcom has a direct sales organization in North America and certain international markets that calls on physicians, endocrinologists and diabetes educators. It also uses distributors in North America and several international markets, e-commerce in certain markets, and direct-to-consumer marketing where permitted.
In FY2025, the United States accounted for 71.5% of revenue and international markets for 28.5%. Dexcom has operations across North America, Africa, Asia Pacific, Europe, Latin America and the Middle East. In Q3 2026, U.S. revenue was $970 million and international revenue was $375 million.
Dexcom has signed an agreement to acquire a partner’s business to operate directly in selected European markets. The company says the deal had not closed as of its Q3 2026 update. It also plans to launch Dexcom Direct, a service intended to help patients navigate access through insurance and other pathways.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $3.3 billion | 71.5% | 15.4% |
| International | $1.3 billion | 28.5% | 16.1% |
Suppliers and costs
Dexcom relies on outside manufacturers and suppliers, including single- or sole-source suppliers for some supplies. It says its products are technologically complex and alternative sources can be difficult to develop and qualify. Switching components may require product redesign and new regulatory submissions.
The company has manufacturing plants in the United States, Europe and Asia Pacific. Its Ireland facility recently began commercial production, expanding manufacturing capacity and the global supply network. Dexcom expects the Ireland ramp to have an impact as it continues into the first part of 2027.
Cost of sales includes materials, direct labor, assembly and testing, scrap, and factory overhead. Overhead includes facilities, procurement, manufacturing engineering and quality assurance. Research and development spending includes sensing technology, clinical trials, regulatory work and quality programs. Selling, general and administrative costs include employee compensation, sales commissions, advertising, software licenses, legal fees and other professional services.
Dexcom says falling product prices could adversely affect its business if it cannot reduce expenses, including production costs per unit. It also expects significant capital expenditures as it invests in equipment and manufacturing facilities.
- Revenue$4.7B
- Cost of revenue−$1.9B
- Research and development−$599.1M
- Selling, general and administrative−$1.3B
- Operating income$911.8M
Competitive position
Dexcom competes in glucose monitoring against makers of CGMs and single-point finger-stick devices. Abbott Laboratories sells the Libre family of CGMs. Medtronic’s MiniMed business markets Guardian Connect and Simplera glucose monitoring products and has developed insulin pumps integrated with CGMs. Roche Diabetes Care, LifeScan and Ascensia Diabetes Care also compete in glucose monitoring.
Competition involves product performance, price and reimbursement, ease of use, distribution, customer support and the speed of innovation. Abbott has received FDA clearance to integrate certain Libre sensors into automated insulin delivery systems and is pursuing integrations with third-party devices. Dexcom also faces potential competition from companies developing products for general health and wellness.
Dexcom’s systems connect with mobile devices and can share readings with followers. Its insulin delivery collaborations let partner devices receive glucose readings and, in some cases, use them for semi-automated delivery. The company also maintains direct sales, distribution and support networks and seeks insurance coverage for its products.
Our reading: Device integrations and data sharing provide a moderate switching advantage because changing CGMs can also affect connected devices and established care routines. Our reading: Coverage and distribution support access, but they are not exclusive advantages: competitors also pursue reimbursement and integrated delivery. Our reading: Dexcom’s sensor technology and development capabilities support differentiation, although rapid product introductions make that advantage contestable.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Abbott Laboratories | CGMs, including Libre, and integrated insulin delivery | High |
| Medtronic plc | CGMs and integrated insulin delivery | High |
| Roche Diabetes Care | Glucose monitoring devices | Medium |
| LifeScan, Inc. | Finger-stick glucose monitoring | Medium |
| Ascensia Diabetes Care | Finger-stick glucose monitoring | Medium |
Growth opportunities
Dexcom is pursuing wider CGM use among people with Type 2 diabetes who do not use insulin, alongside its existing insulin-using customers. The company estimates that the broader U.S. Type 2 population that does not use insulin or have hypoglycemia risk exceeds 25 million people. It is working with treatment programs and seeking broader coverage for its systems.
In its CONNECT trial, Dexcom reported a 1.6% A1c improvement in the CGM group over a six-month study period and a 0.9% difference between the CGM and control groups. The company has provided the publication update to medical directors evaluating Medicare coverage expansion for the Type 2 non-insulin population.
International expansion includes new products and a shift to direct operations in selected markets. Dexcom plans to launch G7 15 Day in Canada beginning in November 2026 and in Japan in early 2027, following regulatory clearances. Its proposed European partner-business acquisition had not closed as of the Q3 2026 update.
Dexcom is also developing future technologies and pursuing partnerships with insulin delivery and consumer technology companies. It is exploring offerings for people with prediabetes, people who are obese, people who are pregnant and people in hospitals. For 2026, Dexcom expects revenue in the range of $5.20 to $5.25 billion. Q3 2026 worldwide revenue grew 11% compared with Q3 2025.
- $2.4BFY2021
- $2.9BFY2022
- $3.6BFY2023
- $4.0BFY2024
- $4.7BFY2025
- $5.2BFY2026 guidance
Structural risks
- Pricing and reimbursement: Falling product prices could hurt results if Dexcom cannot reduce costs. Loss or reduction of insurance coverage could increase users’ out-of-pocket costs, while expanded coverage for competing CGMs can increase competition.
- Product concentration and development: Dexcom expects CGM systems to account for substantially all product revenue for the foreseeable future. Rapid technological change, competing products or unsuccessful development efforts could limit commercialization or make its technology obsolete.
- Regulation and quality: The FDA issued a warning letter in March 2025 describing manufacturing-process and quality-management non-conformities. Dexcom has responded; failure to satisfy regulatory requirements could lead to product restrictions, recalls or interruptions to production.
- Supply and manufacturing: Dexcom depends on outside suppliers, including single- or sole-source suppliers. Supply interruptions, component defects or difficulty qualifying alternatives could delay production or affect product quality.
- Access and adoption: Adoption depends on demonstrating safety, effectiveness, reliability, cost-effectiveness and ease of use to healthcare professionals and users. International reimbursement remains limited in some markets, and regulatory reviews can be delayed or result in limited indications.
- Inventory and costs: If demand is lower than forecast or remediation of non-conforming inventory differs from assumptions, Dexcom may need additional inventory write-downs. Manufacturing expansion also requires investment in facilities and equipment.
Bottom line
Our reading
Our reading: Dexcom is a sensor-led medical device business whose repeat purchases depend on patients continuing to use its glucose monitoring systems. [item7] [item1]
Our reading: Connected devices and clinical use can support customer retention, but reimbursement decisions, competing CGMs and manufacturing quality remain central exposures. [item1] [item1a] [call_qa] Expansion among non-insulin users and in international markets offers room to grow, subject to coverage and execution. [item1] [call_prepared]