Earnings

Dexcom Finished A $1 Billion Buyback In Nine Months, Then Approved Another

Third-quarter operating cash flow fell 51% from a year earlier as inventory climbed and a second $1.00 billion repurchase program followed.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Dexcom Finished A $1 Billion Buyback In Nine Months, Then Approved Another

Dexcom, which makes continuous glucose monitors for people with diabetes, has completed a $1.00 billion share buyback in nine months, its 10-Q shows, and its board has approved another program of the same size. Operating cash flow in the third quarter was $325.6 million, down 51% from a year earlier.

Thirteen million shares retired from the float

The 2026 program, authorized in May, was completed as of September 30. Dexcom bought 13.2 million shares for $1.00 billion over nine months, including 4.6 million shares for $400.0 million in the third quarter.

In the first six months, the company had bought 8.6 million shares for $600.0 million, according to the prior quarter's filing. Cash used to repurchase stock rose $816.4 million from the same nine months of 2025.

In October the board approved a 2027 program of up to $1.00 billion, running through December 31, 2027. It does not obligate Dexcom to buy any set amount, and the company can extend, modify, suspend or end it at any time. The company's own risk factor says there is no assurance the repurchases will lift the stock price or earnings per share.

Cash flow slows while inventory builds

Operating cash flow for the nine months was $1.12 billion, against $1.15 billion a year earlier. The 10-Q attributes a $205.6 million swing in working capital mainly to the timing of payables and a rise in inventory.

Inventory ended September at $770.7 million, up from $629.1 million at year-end, with finished goods at $462.9 million against $266.5 million. Inventory reserve charges were $33.0 million in the quarter, tied in part to the planned end of G6 manufacturing.

Accrued rebates, the largest piece of accounts payable and accrued liabilities, reached $1.62 billion, from $1.49 billion at year-end. Cash and short-term securities totaled $1.82 billion, down from $2.00 billion at year-end, and the $200.0 million credit line is undrawn.

Fewer shares, flat profit

Revenue rose 11% to $1.34 billion, and operating income climbed 35% to $327.2 million, the company reported. Net income slipped 3% to $275.1 million because the prior-year quarter held an $82.5 million gain on equity investments.

Diluted shares fell to 383.5 million from 407.4 million a year earlier, which helped diluted earnings per share rise to $0.72 from $0.70. Dexcom says it expects to put at least 50% of operating cash, net of planned capital spending, toward repurchases over its long-range plan.

The 2027 authorization is the next test: Dexcom has until December 31, 2027 to use it.

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