DexCom, Inc. stock research
FY2025 Q3
DexCom (DXCM) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both rose compared with the immediately preceding quarter and the same quarter one year earlier. The gross margin improved sequentially but remained near the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both rose compared with the immediately preceding quarter and the same quarter one year earlier. The gross margin improved sequentially but remained near the year-ago level.
- The gross margin improvement versus the prior quarter was driven by a larger increase in gross profit relative to the increase in cost of revenue.
- Compared with the prior quarter, revenue was stable while gross profit was higher and cost of revenue was slightly higher, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was mixed—slightly higher than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.5%
Gross profit
$731.4M
Revenue
$1.2B
Cost of revenue
$477.9M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $1.2B | $731.4M | $477.9M | 60.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.0 pts
Year-over-year change
Sep 30, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement versus the prior quarter was driven by a larger increase in gross profit relative to the increase in cost of revenue.
Compared with the prior quarter, revenue was stable while gross profit was higher and cost of revenue was slightly higher, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin was mixed—slightly higher than the year-ago level.
Monitor the trajectory of cost of revenue relative to revenue, as the cost increase rate differed between comparisons.