DexCom, Inc.

Economic and market conditions · Economic recession and downturns

A recession, depression or other sustained adverse market event could materially and adversely affect our business and the value of our common stock.

Economic and market conditions · Consumer spending and confidence

These conditions have made and may continue to make it difficult for our customers and potential customers to afford our products, and could cause our customers to stop using our products or to use them less frequently.

Geopolitical and trade · Political instability and government changes

In response to perceived increases in health care costs in recent years, there have been and continue to be proposals by the federal government, state governments, regulators, and third-party payors to control these costs and reform the U.S. health care system.

Natural and catastrophic events · Pandemic and public health crises

We are subject to risks associated with public health issues, such as the previous COVID-19 pandemic, and other events beyond our control. Public health issues and crises may adversely impact our operations, supply chain and logistics network.

Natural and catastrophic events · Natural disasters and extreme weather

Earthquakes are of particular significance since our headquarters and limited manufacturing facilities in California are located in an earthquake-prone area. Wildfires are also increasingly common in southern California.

Geopolitical and trade · Government funding and budget changes

On July 4, 2025, President Trump signed the budget reconciliation bill which includes significant changes to the Medicaid program. Congressional Budget Office preliminary estimates show that the Medicaid provisions would reduce Medicaid spending by $1 trillion.

Core operations · Facility damage and equipment failure

A natural or man-made disaster, such as fire, flood, earthquake, act of terrorism, cyber-attack or other disruptive event, such as a public health emergency, could cause substantial delays in our operations, damage, destroy or limit our manufacturing equipment, inventory, or records.

Core operations · Capacity utilization and efficiency

Our existing manufacturing facilities are designed to manufacture current and next-generation CGM systems, but may not be scaled quickly enough to permit us to manufacture one or more of our CGM systems in quantities sufficient to meet market demand.

Human capital and workforce · Talent acquisition and retention

Our success will depend on our ability to retain our senior management and to attract and retain qualified personnel in the future, including salespersons, scientists, clinicians, engineers and other highly skilled personnel. Competition for senior management personnel is intense.

Supply chain and procurement · Raw material availability and cost volatility

In addition to decreased pricing, we may be unable to reduce our expenses, including the cost of sourcing materials, logistics and the cost to manufacture our products.

Customer and revenue · Reimbursement and pricing pressure healthcare or insurance

We have experienced, and anticipate that we will continue to experience, decreasing prices for our products due to future reimbursement changes under Medicare and pricing pressure from managed care organizations and other third-party payors.

Innovation and product development · Clinical trial and regulatory approval risks

If we are unable to successfully complete the pre-clinical studies or clinical trials necessary to support additional PMA, de novo, or 510(k) applications or supplements, we may be unable to commercialize our CGM systems under development.

Strategic execution · Merger acquisition and divestiture risks

If we are presented with appropriate opportunities, we could acquire or make other investments in complementary companies, products or technologies. We may not realize the anticipated benefit of our acquisitions.

Customer and revenue · Changing customer preferences and behavior

We are also aware of the increasing use of GLP-1 products for the treatment of obesity and Type 2 diabetes. While we believe that GLP-1s are a companion product and used in conjunction with our CGM systems, these treatments could potentially compete with our CGM systems and reduce sales of our products.

Tax and financial reporting · Tax compliance and changes in tax law

We are subject to taxes in the United States and numerous international jurisdictions. The tax laws in the United States and in other countries in which we and our subsidiaries do business could change on a prospective or retroactive basis.

Legal and litigation · Litigation and legal proceedings

We could become the subject of governmental investigations, claims and litigation. Healthcare companies are subject to numerous investigations and inquiries by various governmental agencies.

Digital transformation and innovation · Artificial intelligence and automation

We are subject to various operational, compliance, and reputational risks associated with our adoption and utilization of AI technologies, including inaccurate or unpredictable outputs, such as errors or hallucinations, that may impair decision-making, disrupt operations, or expose sensitive information.

Reputation and brand · Brand damage and negative publicity

Recalls of our products could divert the attention of our management and have an adverse effect on our reputation, financial condition, and operating results.

Credit and liquidity · Liquidity and cash flow constraints

Our operations have consumed substantial amounts of cash since inception. We expect to continue to spend substantial amounts on commercialization of our products, including growth of our manufacturing capacity, on research and development, and conducting clinical trials.

International and currency · International operations and emerging markets

Our operations in countries outside the United States, which accounted for approximately 28% of our revenue for the twelve months ended December 31, 2025, are accompanied by certain financial and other risks.