DexCom, Inc. stock research
FY2025 Q2
DexCom (DXCM) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue increased at a slower rate, resulting in an improved gross margin. Versus the same quarter last year, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both rose compared to the prior quarter, while cost of revenue increased at a slower rate, resulting in an improved gross margin. Versus the same quarter last year, gross margin weakened as cost of revenue grew faster than revenue.
- The sequential improvement in gross margin was driven by a favorable relationship between revenue growth and cost of revenue, with the latter increasing less than revenue. No specific driver attribution is provided in the filing context.
- Compared to the prior quarter, gross margin improved as revenue and gross profit increased while cost of revenue rose at a lower relative rate. Compared to the same quarter one year earlier, gross margin declined because cost of revenue increased proportionally more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$688.8M
Revenue
$1.2B
Cost of revenue
$468.3M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
-2.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $1.2B | $688.8M | $468.3M | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.7 pts
Year-over-year change
Jun 30, 2024
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a favorable relationship between revenue growth and cost of revenue, with the latter increasing less than revenue. No specific driver attribution is provided in the filing context.
Compared to the prior quarter, gross margin improved as revenue and gross profit increased while cost of revenue rose at a lower relative rate. Compared to the same quarter one year earlier, gross margin declined because cost of revenue increased proportionally more than revenue.
Monitor the trend in cost of revenue relative to revenue, as the year-over-year divergence was the primary factor behind the margin decline.