DEXCOM INCDXCM
DEXCOM INC Segments Disclosure
9. Business Segment and Geographic Information | ||||||||||||||
We manage our business on a global consolidated basis within one operating and one reportable segment, which is consistent with how our chief operating decision maker (CODM) reviews our business, makes investment and resource allocation decisions, and assesses operating performance. The majority of our revenue is generated in the United States. Our reportable segment derives revenues from the sale of disposable sensors and our Reusable Hardware. Effective September 14, 2025 through December 31, 2025, our President and Chief Operating Officer, assumed the role of interim principal executive officer and CODM. This did not result in a change to our segments.
The measures of segment profit or loss that are most consistent with U.S. GAAP used by the CODM to assess performance and allocate resources are operating income and net income. Our CODM also reviews total assets, as reported on our consolidated balance sheets, and purchases of property and equipment, as reported on our consolidated statements of cash flows.
Our CODM uses operating income and net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Company, monitor budget versus actual results, acquire companies, or invest in other companies.
The following table sets forth our segment information for revenue, measures of segment profit or loss, and significant expenses:
| Twelve Months Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenue | $ | 4,662.0 | $ | 4,033.0 | $ | 3,622.3 | ||||||||||||||
| Less: | ||||||||||||||||||||
Cost of sales (1) | 1,860.1 | 1,594.8 | 1,333.4 | |||||||||||||||||
| Payroll related expenses | 885.0 | 767.1 | 726.9 | |||||||||||||||||
| Stock-based compensation expense | 148.7 | 156.0 | 136.2 | |||||||||||||||||
| Marketing expense | 310.3 | 298.7 | 264.6 | |||||||||||||||||
| Travel related expenses | 64.4 | 64.8 | 55.3 | |||||||||||||||||
| Supply expenses and clinical trials | 61.6 | 64.5 | 46.5 | |||||||||||||||||
| Consulting & professional fees | 139.0 | 227.8 | 222.2 | |||||||||||||||||
| Equipment, office & facility expenses | 92.2 | 83.8 | 84.7 | |||||||||||||||||
| IT software and data | 144.3 | 130.6 | 106.6 | |||||||||||||||||
| Depreciation and amortization | 39.5 | 39.9 | 41.9 | |||||||||||||||||
Other segment items (2) | 5.1 | 5.0 | 6.3 | |||||||||||||||||
| Operating income | 911.8 | 600.0 | 597.7 | |||||||||||||||||
Other income, net | 176.6 | 109.0 | 112.7 | |||||||||||||||||
| Income tax expense | 252.1 | 132.8 | 168.9 | |||||||||||||||||
| Net income | $ | 836.3 | $ | 576.2 | $ | 541.5 | ||||||||||||||
(1) Includes amounts stated in other significant expense captions. | ||||||||||||||||||||
(2) Other segment items are primarily composed of impairment of assets and bad debt expense. | ||||||||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Other segment disclosures | ||||||||||||||||||||
Depreciation and amortization (1) | $ | 251.8 | $ | 217.7 | $ | 186.0 | ||||||||||||||
| Expenditures for long-lived assets | $ | 363.5 | $ | 358.8 | $ | 236.6 | ||||||||||||||
| Significant noncash items other than depreciation and amortization expense: | ||||||||||||||||||||
| Deferred income tax expense (benefit) | $ | 182.2 | $ | (43.8) | $ | (55.0) | ||||||||||||||
| Net (gains) losses on equity investments | $ | (78.1) | $ | 1.4 | $ | (1.9) | ||||||||||||||
(1) Includes depreciation and amortization recorded in both cost of sales and operating expenses. | ||||||||||||||||||||
See Note 3 “Balance Sheet Details and Other Financial Information—Other Income, Net” for information about our interest income and interest expense.
See Note 8 “Employee Benefit Plans and Stockholders’ Equity—Share-Based Compensation” for information about our share-based compensation expense.
Disaggregation of Revenue
We disaggregate revenue by major sales channel and by geographic region. We have determined that disaggregating revenue into these categories achieves the ASC Topic 606 disclosure objectives of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
See Note 1 “Organization and Significant Accounting Policies—Concentration of Credit Risk and Significant Customers” for information about our major customers that represent 10% or more of our total revenue.
Revenue by Customer Sales Channel and Geographic Region
We sell our CGM systems through a direct sales organization and through distribution arrangements that allow distributors to sell our products. We also disaggregate our revenue by our two primary geographical markets, the United States and International, based on the geographic location to which we deliver the components.
The following table presents our revenue disaggregated by major sales channel and geographic region:
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | United States | International | Total | United States | International | Total | United States | International | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Distributor | $ | 3,195.7 | $ | 763.3 | $ | 3,959.0 | $ | 2,824.4 | $ | 605.7 | $ | 3,430.1 | $ | 2,587.2 | $ | 508.4 | $ | 3,095.6 | |||||||||||||||||||||||||||||||||||
| Direct | 139.2 | 563.8 | 703.0 | 65.4 | 537.5 | 602.9 | 38.1 | 488.6 | 526.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 3,334.9 | $ | 1,327.1 | $ | 4,662.0 | $ | 2,889.8 | $ | 1,143.2 | $ | 4,033.0 | $ | 2,625.3 | $ | 997.0 | $ | 3,622.3 | |||||||||||||||||||||||||||||||||||
During the twelve months ended December 31, 2025, 2024 and 2023, no individual country outside the United States generated revenue that represented more than 10% of our total revenue.
Long-Lived Assets by Geographic Region
The following table presents our long-lived assets, which consists of property and equipment, net, and operating lease right-of-use assets by geographic region:
| December 31, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
Ireland | $ | 438.8 | $ | 185.7 | |||||||
| Malaysia | 684.4 | 632.1 | |||||||||
| United States | 406.1 | 464.6 | |||||||||
Other countries | 108.0 | 120.3 | |||||||||
| Total long-lived assets | $ | 1,637.3 | $ | 1,402.7 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 21, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.