DexCom, Inc. 2026 Q3 Earnings Call

Sean, you may begin. Thank you, operator, and welcome to Dexcom's Third Quarter 2026 earnings call.

Our agenda begins with Jake Leach, Dexcom's President and CEO, who will summarize our recent highlights and ongoing strategic initiatives, followed by a financial review and outlook from Jereme Sylvain, our Chief Operating Officer and Chief Financial Officer. Following our prepared remarks, we will open the call up for your questions. At that time, we ask analysts to limit themselves to one question each so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our third quarter 2026 performance on the Dexcom Investor Relations website on the Events and Presentations page. With that, let's review our safe harbor statement. Some statements on today's call may constitute forward-looking statements. These statements reflect management's intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance.

These statements are made as of the date hereof, based on information currently available to Dexcom, are subject to various risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please see Dexcom's annual report on Form 10-K, most recent quarterly report on Form 10-Q, and other filings with the Securities and Exchange Commission. Except as required by law, we assume no obligation to update any forward-looking statement or to conform any forward-looking statement to actual results. Additionally, during the call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all financial measures discussed on this call are presented on a non-GAAP basis. Non-GAAP measures should not be considered in isolation or as a substitute for or superior to GAAP results.

Please refer to the tables in our earnings release and the slides accompanying our third quarter 2026 earnings call for reconciliations to the most directly comparable GAAP measure. Now, I will turn it over to Jake.

Thank you, Sean, and thank you everyone for joining us. Today, we reported third-quarter revenue growth of 11% compared to the third quarter of 2025 on both a reported and organic basis. Underlying our third-quarter results are four key areas that advance our long-term vision we provided earlier this year. First, we continue to see strong momentum across the CGM category, driving our stable low double-digit revenue growth with active base growth above those levels. We once again gained share in the quarter, supported by prescriber and customer preference for Dexcom CGM, positioning us well as we prepare for significant access expansion. Second, our clinical evidence continues to strengthen the case for broader access to CGM. Third, our product portfolio continues to advance, helping us deliver a more personalized and valuable experience for each customer.

Fourth, our operational execution has given us upward momentum throughout the year, strengthening our scale and financial position while also driving strong product performance in the field. In the U.S., we again delivered strong revenue growth of 14% and captured share across the market. This extended a multi-quarter trend of share gains in the U.S., with our largest increase coming from customers with type 2 diabetes, including those not on insulin. We continue to see greater physician awareness of the role Dexcom CGM can play across the spectrum of diabetes. This is contributing to growth today and preparing the market for a significantly broader coverage environment in the future. Along those lines, we continue to expect CMS to announce a type 2 non-insulin coverage decision this year as the case for reimbursement is strengthening.

Much of this confidence is driven by CONNECT, our type 2 randomized control trial, which is now widely recognized as the landmark CGM study for this population. As a reminder, we announced the results of CONNECT this summer at the 2026 ADA Scientific Sessions and could not have been happier with the results. Over a six-month study period, we saw a 1.6% A1C improvement for the Dexcom CGM group, which equated to a 0.9% difference in A1C between the CGM arm and the control group. These are the strongest A1C results we have generated across our historic randomized controlled trials, which have helped shape standards of care and establish broad reimbursement. We now expect CONNECT to do the same thing for the type 2 non-insulin population. Earlier this month, CONNECT was published in the New England Journal of Medicine.

This provides an important level of independent validation and gives the study a prominent platform among clinicians, advocacy organizations, and reimbursement bodies around the world. This marks the first time in nearly two decades that the New England Journal of Medicine published clinical data on the standalone use of CGM. While we believe our results speak for themselves, this publication reinforces both the quality of the data and its potential to reshape clinical practice. As a next step towards broader coverage, we provided this publication update directly to the medical directors evaluating the submission for Medicare coverage expansion. We also look forward to seeing this evidence included in upcoming clinical standards, including the ADA Standards of Care, which is expected to be updated in the coming weeks.

CONNECT further strengthens the growing body of evidence supporting the broader benefits of CGM across metabolic health. This includes significant improvements across multiple studies in 10-year cardiovascular disease risk, blood pressure, cholesterol, triglycerides, and kidney disease progression. Our expanding clinical evidence is supported by a product portfolio designed around the distinct needs of each customer. During the third quarter, we launched a fully redesigned Stelo app. The new Stelo app experience is more intuitive and personalized, with enhanced glucose insights, simplified meal logging, and more detailed nutritional information. This is especially important because many Stelo customers are engaging with their glucose data for the first time. Helping them understand how food and lifestyle choices affect their glucose can make the information more useful and actionable. Just as importantly, the redesigned app establishes a new software foundation for which our broader product experience can evolve.

Stelo gives us a platform to introduce new capabilities, learn from customer engagement, and ultimately bring the most valuable innovations across our broader product portfolio. This supports the goal we outlined at Investor Day to deliver greater personalization and engagement across every stage of the customer journey. During the quarter, we also continued to advance the rollout of our G7 15 Day system. With broad pump connectivity available as of this summer, customer adoption steadily built throughout the quarter. This leaves us on track to convert nearly 50% of our U.S. customer base to G7 15 Day by year-end. Importantly, feedback from physicians and customers continues to be positive, particularly around the extended wear time, sensor performance, and updated patch design. In fact, as the updated adhesive is rolling out into the field, we've already seen a 4-5 point improvement in 15 Day survivability.

We are now preparing to bring these benefits to customers outside the United States. Earlier this year, Health Canada became the first international regulator to clear G7 15 Day. Beginning in November, we will officially launch this product in Canada, marking the first of several planned international introductions in the coming quarters. We also received clearance in the third quarter in Japan, positioning us for a launch in that market in early 2027. I'm encouraged by the level of execution we've delivered in 2026, including the third quarter. During the quarter, we delivered further manufacturing efficiencies, improved freight costs, and saw strong product performance in the field. We also reached an important milestone at our Ireland facility, which recently initiated commercial production on schedule. Ireland expands our manufacturing capacity and strengthens the resilience of our global supply network.

With large-scale manufacturing plants now in the U.S., Europe, and Asia Pacific, we have the capacity to support our ambitious growth plans ahead. We are also expanding our digital customer support ecosystem into select international markets, including MyDexcom Account. Building on the strong adoption we've seen in the U.S., these tools help simplify the support experience, improve efficiency, and save time for our customers. This is another example of our commitment to setting the standard for customer experience. This continued progress reflects our team's focus and discipline throughout the year. Across the business, we have advanced several important strategic initiatives while continuing to deliver strong growth, margin expansion, and cash flow generation. As we look toward Dexcom's next chapter, it is critical that we have the right leadership and operating structure to scale with that same discipline.

In line with that goal, we recently promoted Jereme Sylvain to Chief Operating Officer, in addition to his responsibilities as Chief Financial Officer. Jeremy is an exceptional leader and trusted partner with a deep understanding of every part of our business. Expanding his role to include operations, quality, and customer success brings these functions even closer to our financial and strategic priorities as we work to reach millions more people around the world. With that, I will turn it over to Jeremy.