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October 30, 2025 • 3 min read
DexCom, a key player in the continuous glucose monitoring (CGM) market for people with diabetes, recently released its financial results for the third quarter of 2025. Let's dive into the numbers from its latest 10-Q filing to understand the company's performance and what it signals for its trajectory.
DexCom posted impressive top-line results, with Q3 revenue reaching $1.21 billion, a solid 22% increase compared to the same period last year. This growth wasn't isolated to one region; it was a global success story.
This balanced growth indicates strong, widespread demand for DexCom's CGM systems. The company continues to rely heavily on its distributor sales channel, which accounted for 85% of revenue, a consistent figure from the prior year.
The following flow diagram illustrates how DexCom's quarterly revenue translated into costs, expenses, and ultimately, net income.
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While strong sales are great, converting that revenue into profit is what truly matters. Here, DexCom showed significant improvement. Gross profit climbed 23% to $731.4 million, with the gross margin nudging up slightly to 60.5%.
The bigger story is in the operating income, which surged by 60% to $242.5 million. This impressive leap demonstrates strong operating leverage. While revenue grew by 22%, total operating expenses only increased by 11%. Specifically, Selling, General, and Administrative (SG&A) expenses grew by a modest 8%, showing the company is scaling its operations efficiently without a proportional increase in overhead costs. This discipline is a key driver of enhanced profitability.
DexCom's net income more than doubled, rocketing 111% to $283.8 million from $134.6 million in Q3 2024. While the strong operational performance was the primary engine, a significant boost came from a non-operational source.
"Other income, net" jumped from $25.4 million last year to $109.8 million this quarter. The filing's notes reveal that this was largely driven by $82.3 million in higher net gains on equity investments. While a welcome addition to the bottom line, it's an item investors should note as it may not be a recurring source of income.
DexCom's third quarter was marked by robust, geographically balanced revenue growth and, more importantly, a significant expansion in profitability. The company's ability to control operating costs as it grows is a powerful indicator of a maturing and efficient business model. With a strong cash and securities position of $3.32 billion at the end of the quarter, DexCom appears well-capitalized to fund future growth and innovation in the competitive diabetes tech landscape.
Last updated: October 30, 2025