Here are 1-3 brief analogies for DexCom (DXCM):

• It's like a medical-grade Fitbit, providing continuous, real-time blood sugar data specifically for people managing diabetes.
• Think of it as the Keurig or HP of diabetes management: you buy the primary monitor, and then regularly purchase its consumable sensors.
• It's like a personalized, 24/7 'check engine light' for your body's glucose levels, giving constant insights and alerts similar to smart home monitoring systems like SimpliSafe but for health.

• Dexcom G7: A continuous glucose monitoring system providing real-time glucose readings directly to a compatible smart device or receiver.
• Dexcom G6: A real-time continuous glucose monitoring system that eliminates the need for fingersticks for calibration and treatment decisions.
• Dexcom ONE: A real-time continuous glucose monitoring system designed to be simple and affordable, making CGM accessible to more people with diabetes.

Major Customers of DexCom (DXCM)

DexCom (DXCM) primarily sells its continuous glucose monitoring (CGM) systems to other companies within the healthcare supply chain, rather than directly to individuals. While the ultimate end-users are individuals with diabetes who use the prescribed devices, DexCom's revenue generation occurs through sales to distributors, pharmacies, and other healthcare intermediaries.

DexCom's annual filings (10-K) state that no single customer accounted for 10% or more of its total revenue for the years ended December 31, 2023, 2022, or 2021. This indicates a diversified customer base among its business partners.

The major categories of companies that purchase DexCom products for distribution and dispensing are:

• Pharmacy Benefit Managers (PBMs) and Retail Pharmacies: These entities manage prescription drug benefits and dispense medical devices like CGMs to patients. Prominent public companies in this sector that would be customers include:
  • CVS Health (NYSE: CVS) - Operates CVS Caremark (PBM) and CVS Pharmacy.
  • UnitedHealth Group (NYSE: UNH) - Operates OptumRx (PBM).
  • Cigna Group (NYSE: CI) - Operates Express Scripts (PBM).
  • Walgreens Boots Alliance (NASDAQ: WBA) - Operates Walgreens pharmacies.
• Wholesale Distributors: These companies act as intermediaries, purchasing medical devices and pharmaceuticals in bulk from manufacturers and distributing them to retail pharmacies, hospitals, clinics, and other healthcare providers. Major public companies in this space include:
  • McKesson Corporation (NYSE: MCK)
  • Cardinal Health, Inc. (NYSE: CAH)
  • Cencora, Inc. (NYSE: COR, formerly AmerisourceBergen)
• Durable Medical Equipment (DME) Suppliers: These suppliers specialize in providing home medical equipment, which can include continuous glucose monitoring systems. While many are smaller or private, larger healthcare networks and pharmacies often have DME capabilities.

This comprehensive distribution network ensures DexCom's products reach individuals requiring CGM technology.

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Kevin Sayer Chairman & Chief Executive Officer
Kevin Sayer joined Dexcom in 2011 as President and Chief Operating Officer, became Chief Executive Officer in January 2015, and assumed the role of Chairman of the Board in July 2018. Prior to his time at Dexcom, he served as Chief Financial Officer of Biosensors International Group, Ltd. He was also Executive Vice President and Chief Financial Officer of Specialty Laboratories, Inc. Earlier in his career, he was Chief Financial Officer of MiniMed, Inc. from 1994 until its acquisition by Medtronic, Inc. in 2001, after which he became Vice President and General Manager of Medtronic MiniMed.

Jereme Sylvain Executive Vice President & Chief Financial Officer
Jereme Sylvain was promoted to Executive Vice President and Chief Financial Officer in March 2021. He joined Dexcom in September 2018 as Vice President, Finance and Corporate Controller, and then served as Senior Vice President, Finance and Chief Accounting Officer starting in March 2020. Before joining Dexcom, Mr. Sylvain held various roles at NuVasive, Inc., including Chief Accounting Officer and Vice President of Finance. He also held leadership positions at Thermo Fisher Scientific, where he was a Senior Director of Finance, and began his career at the public accounting firm Ernst & Young LLP.

Jake Leach President & EVP, Chief Operating Officer
Jake Leach joined Dexcom in 2004, initially leading the development of sensor electronics for the company's first commercial continuous glucose monitoring systems. He served as Chief Technology Officer starting in 2018, overseeing research, product development, project management, and engineering departments. In May 2025, he was promoted to President and Chief Operating Officer, expanding his responsibilities to include corporate strategy and development. He is slated to succeed Kevin Sayer as Chief Executive Officer effective January 1, 2026.

Donald Abbey EVP, Global Business Services, IT, Quality and Regulatory Affairs
Donald Abbey serves as Executive Vice President of Global Business Services, IT, Quality and Regulatory Affairs at Dexcom.

Michael Brown EVP, Chief Legal Officer
Michael Brown is the Executive Vice President and Chief Legal Officer at Dexcom, responsible for all legal and intellectual property matters globally. Before joining Dexcom in 2022, he was a partner at DLA Piper and previously at Stradling Yocca Carlson & Rauth, where he provided legal counsel, advised on business and legal issues, assisted with corporate governance, and managed mergers, acquisitions, and financings for emerging and public technology and life science companies.

Emerging Threats for DexCom (DXCM):

• Intensified Competition from Abbott's Freestyle Libre Line: Abbott's Freestyle Libre 3, with its small form factor, direct-to-phone connectivity, 14-day wear time, and competitive pricing, represents a significant and growing competitive threat. While Abbott is an existing competitor, the continuous innovation and aggressive market penetration of the Libre 3 and subsequent versions are eroding DexCom's premium market position and creating substantial pricing and market share pressure.

• Emergence of Long-Term Implantable CGMs: Senseonics' Eversense E3, offering a 6-month wear time from an implantable sensor, presents a disruptive alternative to DexCom's shorter-duration, patch-based systems. This technology appeals to users seeking less frequent sensor changes and could capture a segment of the market looking for a different form factor and convenience, challenging the traditional wear model dominant in the market.

Global Addressable Market for CGM Systems

U.S. Addressable Market for CGM Systems

DexCom (DXCM) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion into the Type 2 Diabetes Market, Including Non-Insulin Users: DexCom is actively expanding its reach into the Type 2 diabetes market, particularly targeting individuals who are not on insulin. The launch of Stelo, an over-the-counter (OTC) continuous glucose monitor (CGM), is a strategic move to tap into new patient populations, including those with prediabetes and Type 2 diabetes not on insulin. Stelo has already attracted a significant user base since its launch. This expansion is further bolstered by securing reimbursement for Type 2 non-insulin patients across major pharmacy benefit managers (PBMs) in the U.S., unlocking access for millions of additional lives.
2. International Market Expansion: The company anticipates continued steady international growth, with management projecting faster growth outside the U.S. compared to the domestic market in fiscal year 2025. DexCom is focused on actively expanding its global presence and securing reimbursement for its products in new markets, as seen with the expansion of G7 and Dexcom ONE+ availability across its international footprint and reimbursement in countries like France and Canada.
3. New Product Innovation and Enhancements: DexCom's commitment to product innovation, particularly within its G7 platform and upcoming G8 system, is a significant driver. The expected launch of the G7 15-day continuous glucose monitoring system in the second half of 2025 is anticipated to improve gross margins and enhance convenience for users. Additionally, the company is developing the next-generation G8 CGM, which is projected to be 50% smaller, more accurate, and feature multi-analyte sensing capabilities, potentially expanding the addressable market beyond traditional glucose monitoring to include measurements like ketones and lactate. DexCom also submitted its Smart Basal integration titration module, designed to simplify basal insulin titration, for FDA and CE mark review, with rollout expected in 2026.
4. Expanded Reimbursement and PBM Coverage in the U.S.: Increased access to DexCom's CGM products through expanded Pharmacy Benefit Manager (PBM) coverage is a substantial growth opportunity. As of January 1, 2025, two of the three largest PBMs now cover DexCom's CGMs for all diabetes patients, adding over 5 million covered lives. This broadened coverage is expected to lead to a significant increase in new patient starts and accelerate adoption rates and market penetration in the U.S.

Share Repurchases

• In 2024, DexCom made annual share repurchases totaling $750 million.
• The company executed annual share repurchases of $688.7 million in 2023 and $557.7 million in 2022.
• DexCom announced a new $750 million share repurchase program on July 25, 2024, which is authorized until June 30, 2025.

Outbound Investments

• In early 2021, DexCom launched Dexcom Ventures, a venture capital arm, to strategically invest in technologies that support continuous glucose monitoring and related software applications.
• Dexcom Ventures aims to identify and invest in technologies such as new blood sugar sensors, broader methods of tracking metabolism, and cybersecurity platforms for medical device software.
• In late 2023, DexCom indicated no immediate plans for material acquisitions or investments, with advancements to be made through capital expenditures as necessary.

Capital Expenditures

• DexCom's capital expenditures averaged $309.7 million annually from fiscal years 2020 to 2024.
• Capital expenditures were $358.8 million in 2024, an increase from a 5-year low of $199 million in 2020.
• The primary focus of these expenditures includes expanding production capacity, such as the manufacturing site in Malaysia in 2024, and investing in product and technology advancements like licensing rights for new products.