DexCom, Inc. stock research
FY2025 Q1
DexCom (DXCM) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both decreased from the prior quarter and increased compared to the same quarter last year, while cost of revenue fell sequentially but rose year over year. As a result, gross margin weakened versus both the immediate prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both decreased from the prior quarter and increased compared to the same quarter last year, while cost of revenue fell sequentially but rose year over year. As a result, gross margin weakened versus both the immediate prior quarter and the same quarter one year earlier.
- The gross margin decline was driven by a proportionally larger decrease in gross profit relative to revenue when compared sequentially, and by a faster increase in cost of revenue relative to revenue on a year-over-year basis.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin decreased. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.9%
Gross profit
$589.0M
Revenue
$1.0B
Cost of revenue
$447.0M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-4.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $1.0B | $626.7M | $377.6M | 62.4% |
| Sep 30, 2024 | $994.2M | $593.8M | $400.4M | 59.7% |
| Dec 31, 2024 | $1.1B | $655.8M | $457.7M | 58.9% |
| Mar 31, 2025 | $1.0B | $589.0M | $447.0M | 56.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.0 pts
Year-over-year change
Mar 31, 2024
-4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a proportionally larger decrease in gross profit relative to revenue when compared sequentially, and by a faster increase in cost of revenue relative to revenue on a year-over-year basis.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin decreased. Compared to the same quarter last year, revenue and gross profit were higher, but gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as cost growth outpaced revenue growth year over year, contributing to margin compression.