Dexcom (Nadsaq:DXCM) shares rose after hours today on first-quarter results that came in mixed compared to the consensus forecast.
Shares of DXCM ticked up 3% to $72.30 apiece in post-market trading on Thursday. However, before hours on Friday, shares fell 1.6% to $70.26 apiece.
The San Diego-based continuous glucose monitor (CGM) maker reported profits of $105.4 million. That equals 27¢ per share on sales of $1.036 billion for the three months ended March 31, 2025.
Dexcom recorded a 28% bottom-line slide on a sales increase of 12.5%.
Adjusted to exclude one-time items, earnings per share came in at 32¢. That landed 1¢ short of expectations on Wall Street. Sales topped estimates as experts forecast $1.02 billion in revenue.
Highlights in the quarter included the securing of broader U.S. coverage for its CGM platforms. Dexcom says it now has two of the three largest pharmacy benefit managers (PBMs) in the country covering its CGM for anyone with diabetes.
Additionally, the company expanded the distribution footprint of its Stelo CGM by launching it on the Amazon storefront.
With the results, Dexcom also announced a $750 million share repurchase program.
“To start the year, Dexcom delivered a quarter of strong revenue results and unlocked significant new type 2 coverage,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “As we progress through 2025, we will advance our product portfolio with the launch of our Dexcom G7 15-day system and continue to advocate for expanded global access to our glucose biosensors.”
Dexcom projects $4.6 billion in sales for the full year. It reduced its non-GAAP gross profit margin projection to 62%, primarily due to incremental costs related to near-term supply dynamics previously disclosed as the company reestablishes optimal finished goods inventory levels.
The analysts’ view on the quarterly performance from Dexcom
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang came out of Dexcom’s quarterly results with optimism.
“Dexcom is getting back to its old self,” the analysts wrote.
The analysts cite U.S. revenue ($750.5 million) coming in well ahead of the consensus forecast ($710 milli0n) as a key takeaway. They said that, given that this segment experienced hiccups last year, the latest results should increase investor confidence. Additionally, management cited record new customers in the quarter, including in the Stelo population of type 2 diabetes without insulin.
“More wins are coming in non-insulin, with the third major Pharmacy Benefit Manager (PBM) set to start covering CGMs for these patients this summer,” the analysts said. The U.S. salesforce has found its footing and as expected, the revenue headwinds related to channel mix and rebates moderated during the quarter.”
Despite margin misses, higher shipping costs and some tariff impact around raw materials, the analysts said Dexcom expects to control operating spend and isn’t changing its guidance.
They maintained a “Buy” rating for Dexcom.
“With positive commentary on volume growth and patient demand, a $750M share repurchase program, and what we perceive to be conservative sales guidance in light of more tailwinds coming (15-day G7, non-insulin adoption) we remain bullish on DXCM,” the analysts concluded.
