DexCom, Inc. (DXCM) - Stock Analysis
Last updated: Jan 12, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Robust Q2 2025 growth with 15% organic revenue increase; launch of Stelo OTC continuous glucose monitor; strong operating cash flow and liquidity (~$2.9B cash); bullish technical momentum with recent 8% price gain and price near $71-$72 resistance; upcoming earnings on October 30 an important catalyst.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High margins ⢠Strong liquidity ⢠High leverage DexCom's quarter shows materially higher profitability and cash (60% gross margin, ~34% EBITDA margin, ~$579m FCF) with compressed market multiples, but meaningful leverage and concentrated working capital pose execution risk.
Price Behavior
Key Price Behavior Insights: ⢠Mild uptrend ⢠70.10 resistance ⢠66.00 support Support Level: $66.00 Resistance Level: $70.10 Over the last month DXCM has posted a mild uptrend, holding support near $66.00 but stalling at about $70.10 resistance, signaling cautious upside unless a breakout or support breakdown occurs.
Sentiment & News
Key News Insights: ⢠CGM expansion ⢠$750M buyback ⢠Ongoing litigation DexCom shows strong CGM-driven growth, solid cash and buyback capacity, and international upside but faces extensive class-action securities litigation and mixed institutional flows.
AI Summary
DXCM has shifted from a pure growth story to a marginâled, cashâgenerative medicalâdevice investment where the thesis now hinges on execution (postâscrap margin recovery) and orderly convertibles settlement rather than accelerating unit growth. Monitor quarterly grossâmargin progress toward 63â64%, convertibles settlement timing/impact on net leverage, and any material litigation developmentsâmisses on these three would likely trigger a negative reârating, while clear wins would justify a more constructive view.
Description
DexCom, Inc. develops, manufactures and sells continuous glucose monitoring systems for people with diabetes and for use by healthcare providers worldwide. Its product portfolio includes current and next-generation wearable CGM devices and software that enable real-time glucose data sharing and integration with third-party digital health tools; the company also maintains a collaboration with Verily on glucose-monitoring technologies. Founded in 1999, DexCom is headquartered in San Diego, California and sells its products directly to clinicians and patients.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Oct 27 | Nov 3 | DXCM | DexCom, Inc. | Robust Q2 2025 growth with 15% organic revenue increase; launch of Stelo OTC continuous glucose monitor; strong operating cash flow and liquidity (~$2.9B cash); bullish technical momentum with recent 8% price gain and price near $71-$72 resistance; upcoming earnings on October 30 an important catalyst. | Closed | -14.4% |