Slides
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Dexcom earnings Q3 2026
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Safe harbor statement This presentation contains “forward - looking statements” that are based on our management’s beliefs and assumptions and on inform ation available to management as of October 29, 2026. We intend for such forward - looking statements to be covered by the safe harbor provisions for forward - looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward - looking statements include informatio n concerning our possible or assumed strategy, future operations, financing plans, operating model, future operating results and financial position, inclu din g estimated revenue, organic revenue growth, non - GAAP gross profit margin, non - GAAP operating margin, and Adjusted EBITDA margin for fiscal year 2026, projec ted costs, competitive position and the effects of competition on our business, industry environment, potential growth opportunities, potential mark et opportunities, and the plans and objectives of management. This presentation also contains estimates and other statistical data made by independent partie s r elating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Forward - looking statements include all statements that are not historical facts and can be identified by terms such as “anticipa tes,” “believes,” “could,” “seeks,” “estimates,” “targets,” “guidance,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “prospects,” “pro jec ts,” “should,” “will,” “would” or similar expressions and the negatives of those terms, although not all forward - looking statements contain these identifying words. Forwa rd - looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievemen ts to be materially different from any future results, performance or achievements expressed or implied by the forward - looking statements. We cannot guarantee that we will achieve the plans, intentions, or expectations disclosed in our forward - looking statements, and you should not place undue reliance on our f orward - looking statements. We assume no obligation to update any such forward - looking statement after the date of this presentation or to conform these for ward - looking statements to actual results. The risks and uncertainties that may cause actual results to differ materially from our current expectations are more fully d esc ribed in our annual report on Form 10 - K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (SEC) on February 12, 2026, our most recent quarterly report on Form 10 - Q for the quarter ended September 30, 2026, as filed with the SEC on October 29, 2026, and our other reports f iled with the SEC. This presentation also contains non - GAAP financial measures. The appendix reconciles the non - GAAP financial measures in this pre sentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non - GA AP financial measures include organic revenue, non - GAAP gross profit, non - GAAP gross profit margin, non - GAAP operating income (loss), non - GAAP operati ng margin, non - GAAP net income (loss), non - GAAP diluted net income (loss) per share, non - GAAP diluted weighted - average shares outstanding and free cash flow, as well as Adjusted EBITDA and Adjusted EBITDA margin. We have not reconciled our organic revenue growth, non - GAAP gross profit margin, non - GAAP ope rating margin and Adjusted EBITDA margin estimates for fiscal year 2026 because certain items that impact these figures are uncertain or out of ou r control and cannot be reasonably predicted. Accordingly, reconciliations of our organic revenue growth, non - GAAP gross profit margin, non - GAAP operati ng margin and Adjusted EBITDA margin are not available without unreasonable effort. We report non - GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial perfo rmance prepared in accordance with GAAP. These non - GAAP financial measures are not based on any comprehensive set of accounting rules or principles , differ from GAAP measures with the same names, and may differ from non - GAAP financial measures with the same or similar names that are used by ot her companies. We believe that non - GAAP financial measures should only be used to evaluate our results of operations in conjunction with the corre sponding GAAP financial measures. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non - GAAP information and the reconciliations between these presentations, to more fully understand our business.
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Third quarter 2026 $1.344 billion in revenue Key Financial Highlights Strategic Highlights 11% organic revenue 1 growth over Q3’25 (14% US; 5% INT’L 2 ) CONNECT study published in The New England Journal of Medicine subsequent to the quarter 1. Growth was 11% on a reported basis. Organic revenue excludes non - CGM revenue acquired or divested in the trailing twelve months , as well as the impact of foreign exchange. 2. Growth was 5% on a reported basis. Organic revenue excludes non - CGM revenue acquired or divested in the trailing twelve months, as well as the impact of foreign exchange . 3. Dexcom defines free cash flow conversion as (operating cash flow minus capex)/non - GAAP net income . Quarterly record Non - GAAP EPS of $ 0.73 YTD Free Cash Flow Conversion 3 of 119%
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Third quarter performance 1. Excludes non - CGM revenue acquired or divested in the trailing twelve months, as well as the impact of foreign exchange. 2. See appendix for the definition of Adjusted EBITDA. * See the appendix for a reconciliation to the most directly comparable GAAP financial measure and for additional information . Total Revenue & Organic Growth Rate* 1 Non - GAAP Gross Profit and Margin* Non - GAAP Operating Margin* Adjusted EBITDA Margin* 2 $1,209 $1,260 $1,192 $1,308 $1,344 $0 $300 $600 $900 $1,200 $1,500 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 ($MM) ($MM) $741 $800 $757 $838 $875 $0 $150 $300 $450 $600 $750 $900 $1,050 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 30.5% 33.5% 30.6% 32.2% 32.4% 0% 7% 14% 21% 28% 35% Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 61.3% 63.5% 63.5% 65.1% +20% +12% +12% +11% +12% 64.1% 22.6% 26.3% 22.2% 25.1% 25.3% 0% 5% 10% 15% 20% 25% 30% Q3'25 Q4'25 Q1'26 Q2'26 Q3'26
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2026 Guidance as of October 29, 2026 2026 Annual Revenue and Profitability Guidance 1 Adjusted EBITDA is defined as EBITDA adjusted to exclude non - recurring charges and stock - based compensation. * See the appendix for additional information on our non - GAAP financial measures.. • Gross margin expansion: – Improved freight and manufacturing efficiencies compared to 2025 – Growing contribution from G7 15 Day • Operating margin expansion even with incremental opex supporting Ireland manufacturing facility • Continued advancement in Stelo with revenue contribution building from 2025 Revenue Non - GAAP Gross Profit Margin* Non - GAAP Operating Margin* Adjusted EBITDA Margin* 1 Previous Updated ~64% ~64% ~23.5 – 24% ~24% ~31.5 – 32% ~32% 5.18 – 5.25 billion USD 5.20 – 5.25 billion USD Objectives & considerations
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Appendix Revenue Data and GAAP Reconciliations
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Three Months Ended September 30, (In millions, except per share data) 2026 2025 GAAP net income $ 275.1 $ 283.8 Amortization of intangible assets (1) 11.9 8.0 Business transition and other significant items (2) 0.4 22.7 Intellectual property litigation costs (3) — (0.3) Income from equity investments — (82.7) Adjustments related to taxes (4) (12.4) 11.0 Non-GAAP net income $ 275.0 $ 242.5 GAAP net income $ 275.1 $ 283.8 Interest expense on senior convertible notes, net of tax 1.6 2.8 GAAP net income used for diluted EPS, if-converted (5) $ 276.7 $ 286.6 Non-GAAP net income $ 275.0 $ 242.5 Interest expense on senior convertible notes, net of tax — 1.2 Non-GAAP net income used for diluted EPS, if-converted (5) $ 275.0 $ 243.7 GAAP diluted net income per share (5) $ 0.72 $ 0.70 Amortization of intangible assets (1) 0.03 0.02 Business transition and other significant items (2) — 0.06 Intellectual property litigation costs (3) — — Income from equity investments — (0.21) Adjustments related to taxes (4) (0.03) 0.03 Impact of adjustment to GAAP diluted shares (6) 0.01 0.01 Non-GAAP diluted net income per share (5) (7) $ 0.73 $ 0.61 GAAP diluted weighted-average shares outstanding 383.5 407.4 Non-GAAP diluted weighted-average shares outstanding 375.8 399.7 Reconciliation of non-GAAP diluted weighted-average shares outstanding: GAAP diluted weighted-average shares outstanding 383.5 407.4 Adjustment for dilutive impact of senior convertible notes due 2028 (8) (7.7) (7.7) Non-GAAP diluted weighted-average shares outstanding 375.8 399.7 Three Months Ended September 30, (In millions) 2026 2025 GAAP gross profit $ 864.4 $ 731.4 Amortization of intangible assets (1) 10.9 7.1 Business transition and other significant items (2) — 2.8 Non-GAAP gross profit $ 875.3 $ 741.3 GAAP operating income $ 327.2 $ 242.5 Amortization of intangible assets (1) 11.9 8.0 Business transition and other significant items (2) 0.4 22.7 Intellectual property litigation costs (3) — (0.3) Non-GAAP operating income $ 339.5 $ 272.9 GAAP net income $ 275.1 $ 283.8 Business transition and other significant items (2) 0.4 18.4 Depreciation and amortization 74.5 63.6 Intellectual property litigation costs (3) — (0.3) Income from equity investments — (82.7) Share-based compensation 36.8 45.1 Interest expense and interest income (11.2) (28.0) Income tax expense 59.6 68.5 Adjusted EBITDA $ 435.2 $ 368.4 (1) Represents amortization of acquired intangible assets. (2) For the three months ended September 30, 2026, business transition and other significant items are primarily related to rent for vacated office space in San Diego, California. For the three months ended September 30, 2025, business transition and other significant items are primarily related to workforce reduction costs associated with organizational realignment and rent for vacated office space in San Diego, California. (3) We have excluded third-party attorney’s fees, costs, and expenses incurred by Dexcom exclusively in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc., as further described in the section titled “Legal Proceedi ngs” in Dexcom’s Annual Report on Form 10-K for the year ended December 31, 2024. (4) For the three months ended September 30, 2026 and September 30, 2025, tax adjustments are primarily related to the tax effect of non-GAAP adjustments and shortfalls from share -based compensation for employees. (5) When our senior convertible notes are dilutive on a GAAP or non -GAAP basis, net income used for calculating GAAP and non - GAAP diluted net income per share includes an interest expense add back, net of tax, under the if -converted method. In loss periods, basic and diluted net loss per share are the same since the effect of potential common shares is anti -dilutive and therefore excluded. (6) The adjustments are for the transition from GAAP diluted net income per share to non -GAAP diluted net income per share due to our senior convertible notes. (7) The sum of the non-GAAP per share components may not equal the totals due to rounding. (8) We adjust for the dilutive effect of our senior convertible notes when the effect is not the same on a GAAP and non -GAAP basis for a given period. DexCom, Inc. Itemized Reconciliation between GAAP and Non - GAAP Financial Measures Nine Months Ended September 30, (In millions) 2026 2025 Reconciliation of free cash flow: Net cash provided by operating activities $ 1,120.4 $ 1,146.7 Purchases of property and equipment (214.2) (261.6) Free cash flow $ 906.2 $ 885.1
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DexCom , Inc. Trended Unaudited Quarterly and Annual Revenue Related Metrics by Geography Total Company 2024 – 2026 YTD Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 YTD'24 YTD'25 YTD'26 Revenue Metrics By Geography US Revenue (millions) 653.2$ 731.9$ 701.9$ 802.8$ 750.5$ 841.0$ 851.9$ 891.5$ 832.3$ 933.4$ 969.8$ 2,087.0$ 2,443.4$ 2,735.5$ Year over year growth 24% 19% (2%) 4% 15% 15% 21% 11% 11% 11% 14% 12% 17% 12% Quarter over quarter growth (decline) (15%) 12% (4%) 14% (7%) 12% 1% 5% (7%) 12% 4% % of Total revenue 71% 73% 71% 72% 72% 73% 70% 71% 70% 71% 72% 71% 72% 71% INT'L Revenue (millions) 267.8$ 272.4$ 292.3$ 310.7$ 285.5$ 316.1$ 357.4$ 368.1$ 359.6$ 375.0$ 374.7$ 832.5$ 959.0$ 1,109.3$ Year over year growth 24% 7% 12% 17% 7% 16% 22% 18% 26% 19% 5% 14% 15% 16% Quarter over quarter growth (decline) 1% 2% 7% 6% (8%) 11% 13% 3% (2%) 4% 0% % of Total revenue 29% 27% 29% 28% 28% 27% 30% 29% 30% 29% 28% 29% 28% 29% Total Revenue (millions) 921.0$ 1,004.3$ 994.2$ 1,113.5$ 1,036.0$ 1,157.1$ 1,209.3$ 1,259.6$ 1,191.9$ 1,308.4$ 1,344.5$ 2,919.5$ 3,402.4$ 3,844.8$ Year over year growth 24% 15% 2% 8% 12% 15% 22% 13% 15% 13% 11% 13% 17% 13% Quarter over quarter growth (decline) (11%) 9% (1%) 12% (7%) 12% 5% 4% (5%) 10% 3%
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DexCom , Inc. Trended Unaudited Quarterly and Annual Organic Revenue Metrics Total Company 2024 – 2026 YTD Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 YTD'24 YTD'25 YTD'26 Organic Revenue (1) INT'L Revenue - Reported 267.8$ 272.4$ 292.3$ 310.7$ 285.5$ 316.1$ 357.4$ 368.1$ 359.6$ 375.0$ 374.7$ 832.5$ 959.0$ 1,109.3$ Impact of Acquired Revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Impact of Divested Revenue (2.8) (0.2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (3.0) 0.0 0.0 Impact of Foreign Exchange (3.2) 0.8 0.5 (5.3) 9.9 (6.2) (11.4) (9.4) (26.6) (9.9) 1.7 (1.9) (7.7) (34.8) INT'L Revenue - Organic (2) 261.8$ 273.0$ 292.8$ 305.4$ 295.5$ 309.8$ 346.0$ 358.7$ 333.0$ 365.1$ 376.4$ 827.6$ 951.3$ 1,074.5$ Year over year growth (3) 26% 10% 16% 19% 12% 14% 18% 15% 17% 16% 5% 17% 15% 12% % of Total revenue 29% 27% 29% 28% 28% 27% 29% 29% 29% 28% 28% 28% 28% 28% Total Revenue - Reported 921.0$ 1,004.3$ 994.2$ 1,113.5$ 1,036.0$ 1,157.1$ 1,209.3$ 1,259.6$ 1,191.9$ 1,308.4$ 1,344.5$ 2,919.5$ 3,402.4$ 3,844.8$ Impact of Acquired Revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.2) (0.7) 0.0 0.0 (0.9) Impact of Divested Revenue (2.8) (0.2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (3.0) 0.0 0.0 Impact of Foreign Exchange (3.2) 0.8 0.5 (5.3) 9.9 (6.2) (11.4) (9.4) (26.6) (9.9) 1.7 (1.9) (7.7) (34.8) Total Revenue - Organic (2) 915.0$ 1,004.9$ 994.7$ 1,108.2$ 1,045.9$ 1,150.9$ 1,197.9$ 1,250.2$ 1,165.3$ 1,298.3$ 1,345.5$ 2,914.6$ 3,394.7$ 3,809.1$ Year over year growth (3) 25% 16% 3% 8% 14% 15% 20% 12% 12% 12% 11% 14% 16% 12% (1) Organic revenue excludes non-CGM revenue acquired or divested in the trailing twelve months, as well as the impact of foreign exchange. (2) The sum of the components may not equal the totals due to rounding. (3) Formula for organic growth is [(current period organic revenue) / (prior year period reported revenue - divested revenue)] - 1
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DexCom, Inc. Definitions related to Non - GAAP Financial Measures Amortization of intangible assets – We are required under GAAP to record the fair values of the intangible assets of the entity on our balance sheet and amortize them over their useful lives. We exclude these non - cash amortization charges related to acquired intangible assets from our non - GAAP finan cial measures. Business transition and other significant items – Represents costs associated with acquisition and divestiture, integration and business transition activities, including sever ance, relocation, consulting, leasehold exit costs, third - party merger and acquisition costs, and other non - recurring significant item s. We exclude business transition and other significant items from our non - GAAP financial measures because they are unrelated to our ongoing business operating results. Intellectual property litigation costs – Represents third - party litigation costs associated with our patent infringement litigation against Abbott Diabetes Care, Inc. We exclude intellectual property litigation costs from our non - GAAP financial measures because we do not incur such charges on a predictabl e basis and exclusion of such charges enables more consistent evaluation of our operating performance. Litigation settlement costs – Represents significant one - time litigation settlements. We exclude litigation settlement costs when evaluating our operating performance because we do not incur or receive litigation settlements on a predictable basis and exclusion of litigation settlements enables more co nsistent evaluation of our operating performance. Income or loss from equity investments – Income or loss from equity investments, which includes realized and unrealized gains or losses from marketable and non - marketa ble equity securities. These amounts may reflect changes in value due to observable price changes or impairments. We exclude inco me or loss from equity investments from our non - GAAP financial measures because they are unrelated to our ongoing business operating results. Gain or loss on extinguishment of debt – Represents gains or losses associated with our debt. We exclude these gains and losses from our non - GAAP financial measures because they are unrelated to our ongoing business operating results. Adjustments related to taxes – Adjustments related to taxes for non - GAAP excluded items, as well as excess benefits or tax deficiencies from share - based comp ensation, and the quarterly impact of other discrete items. Adjusted EBITDA – Adjusted EBITDA excludes non - cash operating charges for share - based compensation (including equity - related charges associated with severance, restructuring, or other business transition activities), depreciation and amortization as well as non - operating items such as in terest income, interest expense, gain or loss on extinguishment of debt, income or loss from equity investments, and income tax expense or benefit. For the reasons explained abo ve, Adjusted EBITDA also excludes business transition and other significant items, litigation settlement costs, and intellectual property litigation costs.