DexCom Reports $1.036 Billion Revenue in Q1 2025, 12% Increase Year-Over-Year

DexCom, Inc. reported a revenue of $1.036 billion for the first quarter of 2025, marking a 12% increase from $921 million in the same period of 2024. The company's gross profit also saw a rise, reaching $589 million, up from $561.9 million year-over-year. However, net income decreased to $105.4 million, down 28% from $146.4 million in the prior year, primarily due to increased income tax expenses and lower other income. Basic and diluted net income per share were both reported at $0.27, compared to $0.38 and $0.36, respectively, in the previous year.

The increase in revenue was largely attributed to a rise in sales volume of disposable sensors, which accounted for approximately 96% of total revenue. DexCom added around 500,000 to 600,000 net customers in 2024, excluding those using its new product, Stelo. Despite this growth, the company faced pricing pressures related to rebate eligibility and channel mix, which impacted overall profitability. Operating income increased by 32% to $133.7 million, reflecting improved operational efficiency despite the challenges.

In terms of operational developments, DexCom launched its new biosensor, Stelo, in August 2024, aimed at adults with prediabetes and Type 2 diabetes. The company also received FDA clearance for the Dexcom G7 15 Day CGM System in April 2025, further expanding its product offerings. The company’s workforce grew, contributing to increased research and development expenses, which rose to $145.2 million from $141.5 million in the previous year. Selling, general, and administrative expenses decreased slightly to $310.1 million, down from $319.3 million, primarily due to lower legal expenses following a settled patent infringement lawsuit.

DexCom's cash, cash equivalents, and short-term marketable securities totaled $2.70 billion as of March 31, 2025, an increase from $2.58 billion at the end of 2024. The company generated $183.8 million in cash from operating activities during the quarter, although this was a decrease from $209.2 million in the same period last year. The company also announced a share repurchase program of up to $750 million, which is expected to be executed over the next year, depending on market conditions.

Looking ahead, DexCom remains focused on expanding its product line and customer base while navigating the challenges posed by market conditions and pricing pressures. The company plans to continue investing in research and development to enhance its technology and product offerings, aiming to maintain its competitive position in the continuous glucose monitoring market.