Dexcom Inc. operates in the medical technology sector, specializing in continuous glucose monitoring systems. The company generates revenue mainly through the sale of CGM devices, sensors, and related accessories, targeting individuals with diabetes and, more recently, consumers with prediabetes or a broader interest in health monitoring.

Dexcom follows a razor-and-blade business model. Initial hardware, such as transmitters and readers, acts as the entry point, while recurring revenue comes from disposable sensor replacements. This structure provides recurring cash flows and supports customer retention, since users need regular sensor replacements for continuous glucose monitoring.

The company’s flagship G7 CGM system represents one of its core products. It offers strong accuracy, compact design, and connectivity with mobile and wearable devices. Dexcom has also expanded beyond prescription-based diabetes care with Stelo, an over-the-counter glucose biosensor launched in 2024 for Type 2 diabetes users not taking insulin and health-conscious consumers.

The report values Dexcom at approximately $73 per share using a blended DCF approach. With a current share price around $67 at the time of the report, this implies modest upside of roughly 8%. The analysis concludes that Dexcom is close to fairly valued, with growth prospects largely reflected in the share price.