10-K 0001093557-26-000027 (2026-02-12) vs 10-K 0001093557-25-000036 (2025-02-18)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 33,505 |
12.5% |
| MD&A | Item 7 | 4,614 |
15.3% |
| Legal Proceedings | Item 3 | 1,214 |
70.3% |
| Accounting Policies | 10-K text, Note 1 – Organization and Significant Accounting Policies | 5,324 |
14.0% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 480 words changed in this paragraph; it is 32% similar to last year's version.
In the United States and other countries, government and private sector access to health care products continues to be a subject of focus, and efforts to reduce health care costs are being made by third-party payors. Most of our customers rely on third-party payors, including government programs and private health insurance plans, to cover the cost of the G6, G7 G7, G-7 15 Day, Dexcom One, and Dexcom One. ONE+. We expect that these continuing cost reduction and containment measures could result in lower prices for these products and lower reimbursement rates, as well as could lead to patients being unable to obtain approval for coverage or payment from these third-party payors resulting in costs being shifted to patients for these products. Additionally, we may experience pricing pressure if our products are increasingly subject to competitive bidding processes, which include substantial costs and managerial time to prepare bids and proposals for contracts that may not be awarded to us or may be split among competitors. For example, in June 2025, the Centers for Medicare & Medicaid Services published a proposed rule that would subject continuous glucose monitors to the competitive bidding process, which could negatively impact our reimbursement and result in price decreases. In late 2025, CMS extended the DMEPOS competitive bidding program to include our CGMs and receivers, with contracting beginning in 2027 and payment changes taking effect in 2028. Under the program, DMEPOS suppliers compete to become Medicare contract suppliers by submitting bids to furnish certain items in CBAs. CMS anticipates that ten (10) contracts will be awarded for CGMs. However, while the competitive bidding program previously used CBAs for contract awards, CMS determined that for CGMs and certain other DME, a RID CBA was more appropriate. It remains to be seen whether CGMs will be covered under a single, nationwide RID CBA or whether regional RID CBAs will be established. In any event, the bid process is expected to result in lower Medicare reimbursement for CGM systems, particularly because CMS is changing the pricing under the RID CBA by setting a single payment amount for covered items at the 75th percentile of the winning bids, rather than using the maximum winning bid. Further, CMS has reclassified CGMs and insulin infusion pumps to items that require frequent and substantial servicing and will phase in monthly rental payments for these items. CMS will bundle the rental amount for the receiver device with payment for the supplies and accessories in the new payment amount. The bid limit will be monthly fee schedule amounts for the supplies plus the average purchase fee schedule amounts for the CGM receiver device divided by 60 (intended to capture the 5-year useful life of the device.) As a result, we expect that Medicare reimbursement for our CGM systems will decrease beginning in 2028. CMS is required by law to recompete these contracts at least once every three years and to roll out the competitive bidding process nationally or adjust prices in non-competitive bidding areas to match competitive bidding prices. The implementation of the competitive bidding program is expected to result in reduced Medicare payment for CGMs in both competitive bidding areas and non-competitive bidding areas. Additionally, the new bidding system will contain a “country of origin” question to obtain information on where products are manufactured; however, it is unclear how CMS intends to use this information. Given that we maintain offshore manufacturing facilities, country of origin reporting could have an impact on our business. Competitive bidding could negatively impact our reimbursement and result in price decreases. To the extent these
Source: Item 1A, 10-K 0001093557-26-000027 vs Item 1A, 10-K 0001093557-25-000036
MD&A 190 words changed in this paragraph; it is 39% similar to last year's version.
Twelve Months Ended December 31, 2025 Compared to Twelve Months Ended December 31, 2024 December 31, 2023 Operating Cash Flows $576.2 $260.1 million of increase in net income and $304.5 $196.5 million of increase in net non-cash adjustments, and a net increase of $108.8 million in changes of working capital balances $541.5 million of net adjustments primarily due to adjustments to deferred income and $203.8 million of net non-cash adjustments, and a net increase of $3.2 million in changes of working capital balances Net non-cash adjustments were primarily related to share-based compensation and depreciation and amortization. Net non-cash adjustments were primarily related to share-based compensation and depreciation and amortization. taxes, partially offset by gains on equity investments Investing Cash Flows $248.1 $670.0 million increase in net proceeds from marketable securities $253.0 due to the management of our liquidity $62.1 million in net purchases of marketable securities $358.8 million in capital expenditures $236.6 million in capital expenditures $81.3 million in purchases of non-marketable equity securities $19.5 million decrease in purchases of non-marketable equity securities Financing Cash Flows $28.2 $250.0 million decrease in proceeds from issuance of cash used to repurchase our common stock under $1.21 billion increase in cash used upon the maturity of our employee stock plans $1.23 billion in proceeds from issuance of senior convertible notes, net of issuance costs $750.0 million in purchases of treasury stock $26.6 million in proceeds from issuance of common stock under our employee stock plans $787.3 million in payments for conversions of senior convertible notes $688.7 million in purchases of treasury stock $101.3 million in purchases of capped call transactions 2025 Notes
Source: Item 7, 10-K 0001093557-26-000027 vs Item 7, 10-K 0001093557-25-000036
Legal Proceedings 140 words changed in this paragraph; it is 66% similar to last year's version.
Between August 21 and October 9, 2024, three substantially similar putative class action complaints were filed against us and certain of our executive officers in the United States District Court for the Southern District of California. On December 13, 2024, the court appointed lead plaintiff court and consolidated the three actions (now captioned In Re: re Dexcom, Inc. Class Action Securities Litigation, Lead Case No.: 24-cv-1485-RSH-VET). On January 27, 2025, lead plaintiff filed a consolidated complaint. The consolidated complaint alleges violations of the Securities Exchange Act against us and certain of our current and former executive officers for allegedly making false and misleading statements between April 28, 2023 and July 25, 2024, with respect to our expected revenue for fiscal 2024 and ability to capitalize on our growth potential. Our On March 13, 2025, we filed a motion to dismiss the consolidated complaint. On May 14, 2025, the court granted the motion to dismiss with leave to amend. On May 28, 2025, lead plaintiff filed an amended consolidated complaint. On June 11, 2025, we filed a motion to dismiss the amended consolidated complaint. On September 9, 2025, the court granted in part and denied in part the motion to dismiss. On October 7, 2025, defendants answered the amended consolidated complaint. On October 10, 2025, defendants filed a motion for judgment on the pleadings as to the two surviving challenged statements. On January 7, 2026, the court granted defendants’ motion for judgment on the pleadings with leave to amend. On February 6, 2026, lead plaintiff filed a second amended consolidated complaint. Defendants’ deadline to respond to the second amended consolidated complaint is March 13, 2025. February 20, 2026.
Source: Item 3, 10-K 0001093557-26-000027 vs Item 3, 10-K 0001093557-25-000036
Accounting Policies 64 words changed in this paragraph; it is 47% similar to last year's version.
Transaction price for the Components reflects the net consideration to which we expect to be entitled. Transaction price is typically based on the contracted rates less and may include an estimate of claim denials and historical reimbursement experience by payor, which include current and future expectations regarding reimbursement rates and payor mix. variable consideration. Variable consideration is included in the transaction price only to the extent a significant reversal in the amount of cumulative revenue recognized is not probable of occurring when the uncertainty associated with the variable consideration is subsequently resolved.
Source: 10-K text, Note 1 – Organization and Significant Accounting Policies, 10-K 0001093557-26-000027 vs 10-K text, Note 1 – Organization and Significant Accounting Policies, 10-K 0001093557-25-000036
Every change, by type
Sentences and paragraphs of DXCM's Risk Factors and MD&A, 10-K 2026-02-12 against 10-K 2025-02-18.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
In the United States and other countries, government and private sector access to health care products continues to be a subject of focus, and efforts to reduce health care costs are being made by third-party payors. Most of our customers rely on third-party payors, including government programs and private health insurance plans, to cover the cost of the G6, G7, G-7 15 Day, Dexcom One, and Dexcom ONE+. We expect that these continuing cost reduction and containment measures could result in lower prices for these products and lower reimbursement rates, as well as could lead to patients being unable to obtain approval for coverage or payment from these third-party payors resulting in costs being shifted to patients for these products. Additionally, we may experience pricing pressure if our products are increasingly subject to competitive bidding processes, which include substantial costs and managerial time to prepare bids and proposals for contracts that may not be awarded to us or may be split among competitors. For example, in June 2025, the Centers for Medicare & Medicaid Services published a proposed rule that would subject continuous glucose monitors to the competitive bidding process, which could negatively impact our reimbursement and result in price decreases. In late 2025, CMS extended the DMEPOS competitive bidding program to include our CGMs and receivers, with contracting beginning in 2027 and payment changes taking effect in 2028. Under the program, DMEPOS suppliers compete to become Medicare contract suppliers by submitting bids to furnish certain items in CBAs. CMS anticipates that ten (10) contracts will be awarded for CGMs. However, while the competitive bidding program previously used CBAs for contract awards, CMS determined that for CGMs and certain other DME, a RID CBA was more appropriate. It remains to be seen whether CGMs will be covered under a single, nationwide RID CBA or whether regional RID CBAs will be established. In any event, the bid process is expected to result in lower Medicare reimbursement for CGM systems, particularly because CMS is changing the pricing under the RID CBA by setting a single payment amount for covered items at the 75th percentile of the winning bids, rather than using the maximum winning bid. Further, CMS has reclassified CGMs and insulin infusion pumps to items that require frequent and substantial servicing and will phase in monthly rental payments for these items. CMS will bundle the rental amount for the receiver device with payment for the supplies and accessories in the new payment amount. The bid limit will be monthly fee schedule amounts for the supplies plus the average purchase fee schedule amounts for the CGM receiver device divided by 60 (intended to capture the 5-year useful life of the device.) As a result, we expect that Medicare reimbursement for our CGM systems will decrease beginning in 2028. CMS is required by law to recompete these contracts at least once every three years and to roll out the competitive bidding process nationally or adjust prices in non-competitive bidding areas to match competitive bidding prices. The implementation of the competitive bidding program is expected to result in reduced Medicare payment for CGMs in both competitive bidding areas and non-competitive bidding areas. Additionally, the new bidding system will contain a “country of origin” question to obtain information on where products are manufactured; however, it is unclear how CMS intends to use this information. Given that we maintain offshore manufacturing facilities, country of origin reporting could have an impact on our business. Competitive bidding could negatively impact our reimbursement and result in price decreases. To the extent these
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
On July 4, 2025, President Trump signed the budget reconciliation bill (entitled “One Big Beautiful Bill Act”, or the Bill) to meet spending targets aimed at funding the Administration’s domestic priorities that includes significant changes to the Medicaid program. Congressional Budget Office, or CBO, preliminary estimates show that the Medicaid provisions would reduce Medicaid spending by $1 trillion and will increase the number of people without health insurance by at least 11.8 million by 2034. Some key proposed changes to the Medicaid Program include, but are not limited to: work requirements; cost sharing of up to $35 per service on expansion adults who exceed the official poverty threshold; stricter eligibility requirements for non-U.S. citizens; requirements for states to conduct eligibility redeterminations at least every six months for Medicaid expansion adults; and prohibitions on states from establishing any new provider taxes or from increasing the rates of existing taxes, among other changes. Decreased federal funding and stricter eligibility requirements may result in more restrictive Medicaid programs at the state level and fewer individuals eligible for coverage, which could have an adverse impact on the number of individuals who seek to use our products and services.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
•loss or reduction of insurance coverage for individuals, resulting in higher cost obligations for users with respect to their purchase of our products;
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
We are also aware of companies outside the traditional medical device sector that are attempting to develop competitive products and services, including for the general health and wellness, or population health space. Some of the companies developing or marketing competing devices are large and well-known publicly traded companies. Such competitors may benefit from guidance issued on January 6, 2026 by the FDA’s Center for Devices and Radiological Health that effectively broadens the range of products that may be considered “general wellness devices,” including wearables that provide readings around bodily functions and vital signs such as heart rate, blood pressure, and blood glucose.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
If our CGM systems do not achieve and maintain an adequate level of acceptance by people with diabetes, those seeking to optimize metabolic health, healthcare professionals, including physicians, and third-party payors, our future revenue may be reduced and our business may be harmed.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
From time to time, the FDA conducts inspections of our facilities and may issue Form 483 findings related to our operations and may issue warning letters or take other administrative or enforcement actions asserting noncompliance with FDA laws and regulations. In March 2025, we received an FDA warning letter following inspections of our facilities in San Diego, California, and Mesa, Arizona. In the warning letter, the FDA cited deficiencies in the response letters sent by us to the FDA following the Form 483, List of Investigational Observations that was delivered to us in connection with the inspection of our San Diego, California facility that occurred from October 2024 through November 2024, and the inspection of our Mesa, Arizona facility that occurred in June 2024. The warning letter describes observed non-conformities in manufacturing processes and our quality management system. We take the matters identified in the warning letter seriously and have submitted responses to the Form 483 and to the FDA warning letter. While the warning letter does not restrict our ability to produce, market, manufacture or distribute products, require recall of any products, nor restrict our ability to seek FDA 510(k) clearance of new products, we may fail to satisfy these regulatory requirements to the FDA’s satisfaction, and any failure to do so could result in the foregoing occurring.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
While we intend to undertake certain corrective actions and provide regular updates to the FDA in order to meet the requirements set forth by FDA in the warning letter, we cannot give any assurances that the FDA will be satisfied with our response or as to the date we expect to resolve the matters included in the FDA warning letter. Until the issues cited in the warning letter are resolved to the FDA’s satisfaction, additional legal or regulatory action may be taken without further notice, including as described above.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
Notably, the new bidding system for Medicare competitive bidding will contain a “country of origin” question to obtain information about where products are manufactured. It is unclear how CMS intends to use this information and what impact this could have, if any, on our offshore manufacturing activities.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
information, limited ability to restore the systems in the event of a systems failure or interruption, greater risk of a security breach resulting in destruction, alteration or misuse of valuable information, including proprietary business information and personally identifiable information of individuals, all of which could expose us to risks of data or financial loss, litigation and liability.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
Moreover, 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. Integrating AI into our systems may also expand our cybersecurity attack surface, increasing exposure to data breaches, loss of intellectual property, or inadvertent disclosure of confidential data. Although we have taken steps intended to mitigate risks related to our use of AI, there can be no assurance that our use of AI will yield the anticipated benefits or that we will be able to effectively mitigate the associated risks. Externally, the rapid adoption of AI by competitors and malicious actors heightens risks as threat actors leverage AI to execute more sophisticated cyberattacks and social‑engineering campaigns, while competitor use of AI may accelerate innovation cycles and intensify competitive pressures. Any of these events could have a material adverse effect on our business, financial condition and results of operations.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
products and to promote use of our products, and which may in turn lead to decreased product sales and negatively impact our business, financial condition and results of operations.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedRisk Factors
We have been involved in various patent infringement actions in the past and in 2024, we entered into a settlement and license agreement with Abbott to settle all pending patent infringement legal proceedings brought by Abbott against us. We granted Abbott and its affiliates, and Abbott and its affiliates granted us and our affiliates, a worldwide, royalty-free, non-exclusive, fully paid-up license to certain patents and patent applications relating to analyte sensing, including to all the patents asserted in the settled litigation. As part of the agreement, each party, on behalf of itself and its affiliates, also entered into a covenant not to sue until December 20, 2034, and agreed on behalf of themselves and their affiliates to refrain from challenging the patents and patent applications licensed
Read it in 10-K 2026-02-12 at sec.gov ↗
RemovedRisk Factors
In the United States and other countries, government and private sector access to health care products continues to be a subject of focus, and efforts to reduce health care costs are being made by third-party payors. Most of our customers rely on third-party payors, including government programs and private health insurance plans, to cover the cost of the G6, G7 and Dexcom One. We expect that these continuing cost reduction and containment measures could result in lower prices for these products and lower reimbursement rates, as well as could lead to patients being unable to obtain approval for coverage or payment from these third-party payors resulting in costs being shifted to patients for these products.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
government insurance programs could significantly influence the purchase of healthcare services and products and may result in lower prices for our products or the exclusion of our products from reimbursement programs.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
Our ability to scale manufacturing capacity is subject to numerous risks and uncertainties, and may lead to variability in product quality or reliability, increased construction timelines, as well as resources required to design,
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
either party upon short notice. Our contract manufacturers may also rely on single- or sole-source suppliers to manufacture some of the components used in our products.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
For instance, in the European Union, increasingly stringent data protection and privacy rules that have and will continue to have substantial impact on the use of patient data across the healthcare industry became effective in
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
We rely on information technology and telephone networks and systems, including the Internet, to process and transmit sensitive electronic information and to manage or support a variety of business processes and activities,
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
such laws, and potentially be awarded a share of any damages or penalties ultimately awarded to the applicable government body.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
•interruption of production, partial suspension, or complete shutdown of production;
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedRisk Factors
reimbursement rates for our products and changes that may be proposed or implemented by the current or future laws or regulations.
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedRisk Factors
These cyber risks include, among other risks, increased phishing, malware, and other cybersecurity attacks, vulnerability to, or disruptions of, our information technology infrastructure and systems to support remote operations, increased risk of unauthorized access, use or dissemination of confidential information, limited ability to restore the systems in the event of a systems failure or interruption, greater risk of a security breach resulting in destruction, alteration or misuse of valuable information, including proprietary business information and personally identifiable information of individuals, all of which could expose us to risks of data or financial loss, litigation and liability.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Under the trade and cooperation agreement, U.K. service suppliers no longer benefit from automatic access to the entire E.U. EU single market, U.K. goods no longer benefit from the free movement of goods and there is no longer the free movement of people between the U.K. and the E.U. EU Depending on the application of the terms of the trade and cooperation agreement, we could face new regulatory costs and challenges which could have a material adverse effect on our business, results of operations, or financial condition.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Even if If we obtain regulatory approval to market and sell a product, the FDA or clearance of a product is granted, the approval or clearance foreign regulatory authority may be subject to limitations still impose significant restrictions on the indicated uses for which or how the product may be marketed marketed, or may contain requirements for costly post-marketing testing or surveillance to monitor the safety or effectiveness of the product.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Comprehensive healthcare legislation, signed into law in the United States in March 2010, titled the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act of 2010, collectively, the ACA, The ACA imposes certain stringent compliance, recordkeeping, and reporting requirements on companies in various sectors of the life sciences industry, and enhanced penalties for non-compliance.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Also, the trends toward managed healthcare in the United States, which we expect to continue in 2025 and beyond, continue, and legislative efforts intended to reduce the cost of government insurance programs could significantly influence the purchase of healthcare services and products and may result in lower prices for our products or the exclusion of our products from reimbursement programs.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
It is also possible that other federal, state or international enforcement authorities might take action if they consider promotional, marketing or other materials or activities to constitute improper promotion of an unapproved use, which could result in significant fines or penalties under other statutory authorities, such as laws prohibiting false claims for reimbursement.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
As a result, stockholders (including holders of our senior convertible notes who receive shares of our common stock, if any, upon conversion of their notes) may only receive a return on their investment in our common stock if the market price of our common stock increases.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
We continue to assess industry responses to the Special Fraud Alert and have and may continue to make modifications to certain aspects of our speaker programs, which may have a detrimental impact on our ability to educate healthcare providers about our products and to promote use of our products, and which may in turn lead to decreased product sales and negatively impact our business, financial condition and results of operations.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Despite our security measures and business controls, our information technology and infrastructure may be vulnerable to attacks by hackers (including nation states or state-sponsored organizations), viruses, malware, breaches due to employee, contractor or vendor error, or malfeasance or other disruptions or subject to the inadvertent or intentional unauthorized release of information.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
Medtronic (MiniMed) markets and sells one or more a standalone glucose monitoring products product called Guardian Connect, both internationally and in the United States. States, and a disposable CGM system called Simplera in the U.S. and international markets.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
On October 8, In 2021, the OECD announced the OECD/G20 Inclusive Framework on BEPS which agreed to a two-pillar solution to address tax challenges arising from digitalization of the economy. economy and released Pillar Two Model Rules defining the global minimum tax rules, which contemplate a 15% minimum tax rate.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedRisk Factors
In 2016, the European Union EU adopted the “Anti-Tax Avoidance Directive,” which requires European Union EU member states to implement measures to prohibit tax avoidance practices, and Germany published the European Union Anti-Tax Avoidance Directive Implementation Law on June 30, 2021. practices.
Read it in 10-K 2026-02-12 at sec.gov ↗
Quiet changesRisk Factors
Further, statements about our sustainability-related initiatives and any future sustainability-related goals, and progress against any future sustainability-related goals, may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change and audit in the future based on evolving standards, frameworks, and regulations.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedMD&A
We assess the value of our inventory on a quarterly basis and write down inventories to the lower of their cost or net realizable value based on quality control data, obsolescence, or excess relative to our forecasted demand. Significant judgment is applied in evaluating quality control testing data, assessing whether non-conforming inventory can be remediated, reworked, or otherwise partially recovered, and in some cases, estimating our forecasted demand.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedMD&A
Other income, net Other income, net, increased primarily due to $79.5 million in higher net gains on equity investments and $8.7 million in higher net foreign currency gains, offset by $21.5 million in lower interest and dividend income on our cash, cash equivalents, and marketable securities portfolio. The decrease in interest income was primarily related to a change in market interest rates, as well as a decrease in the average invested balances compared to the same period in 2024.
Read it in 10-K 2026-02-12 at sec.gov ↗
AddedMD&A
Twelve Months Ended December 31, (In millions) 2025 2024 $ Change Net cash provided by operating activities $ 1,440.7 $ 989.5 $ 451.2 Net cash provided by (used in) investing activities 536.0 (207.5) 743.5 Net cash used in financing activities (1,686.4) (734.8) (951.6) Effect of exchange rate changes on cash, cash equivalents and restricted cash 21.5 (7.4) 28.9 Increase in cash, cash equivalents and restricted cash $ 311.8 $ 39.8 $ 272.0
Read it in 10-K 2026-02-12 at sec.gov ↗
RemovedMD&A
Disposable sensor and other revenue comprised approximately 95% of total revenue and Reusable Hardware revenue comprised approximately 5% of total revenue for the twelve months ended December 31, 2024. Disposable sensor and other revenue comprised approximately 90% of total revenue and Reusable Hardware revenue comprised approximately 10% of total revenue for the twelve months ended December 31, 2023.
Read it in 10-K 2025-02-18 at sec.gov ↗
RemovedMD&A
The decrease in gross profit margin percentage in 2024 compared to 2023 was primarily driven by product and channel mix changes, higher freight costs, and non-cash charges including a $22.7 million inventory build charge, and $20.6 million in inventory damaged in transit and certain build configurations that lowered production yield.
Read it in 10-K 2025-02-18 at sec.gov ↗
RewordedMD&A
Selling, general and administrative expense Selling, general and administrative expense increased primarily due to $33.5 $83.7 million in advertising and marketing costs, $30.7 million in higher compensation and related costs due to higher headcount, $18.0 costs, $9.1 million in higher software and data costs, and $10.1 offset by $87.2 million in travel lower legal expense primarily related expenses. to a patent infringement lawsuit that was settled in December 2024.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
The decrease increase in our effective tax rate for the twelve months ended December 31, 2024 2025 compared to the same period in 2023 2024 is primarily attributable to impacts of the prior year tax restructuring and shortfalls on share-based compensation, a non-recurring benefit related to the Verily milestone payment. payment during 2024, offset by the tax benefit related to the commencement of our Malaysia tax holiday.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Income tax expense The income tax expense recorded for the twelve months ended December 31, 2024 2025 was primarily attributable to income tax expense from normal, recurring operations, partially offset operations increased by excess tax benefits shortfalls recognized for share-based compensation for employees, net of nondeductible executive compensation, offset by the Verily milestone payment, tax benefit related to the impacts commencement of certain foreign our Malaysia tax return filings and generation of research and development tax credits. holiday.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Revenue Gross Profit Operating Income Net Income Operating Cash Flow $4.03 $4.66 billion $2.44 $2.80 billion $600.0 $911.8 million $576.2 $836.3 million $989.5 million $1.44 billion up 11% 16% from 2023 2024 up 7% 15% from 2023 2024 up 0.4% 52.0% from 2023 2024 up 6% 45% from 2023 2024 up 32% 46% from 2023 2024
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Research and development expense Research and development expense increased primarily due to $20.5 $37.3 million in higher compensation and related costs due to higher headcount, $11.2 million in clinical trials, supplies and other support costs, and $5.9 million in software and data costs.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Although Prior to the 2025 Notes and maturity of the 2028 Notes mature in November 2025 and May 2028, respectively, they may be converted into cash and/or shares of our common stock prior to maturity if certain conditions are met.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Other income (expense), income, net consists primarily of interest and dividend income on our cash, cash equivalents and short-term marketable securities portfolio, foreign currency transaction gains and losses due to resulting from the effects of foreign currency fluctuations, realized and unrealized gains and losses on marketable and non-marketable equity investments, including changes in fair value, and interest expense related to our senior convertible notes.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Estimates associated with pharmacy Pharmacy rebates are the most significant component of our variable consideration estimates included in the calculation of the transaction price and most at risk for material adjustment because of the time delay between the recording of the pharmacy rebate and its ultimate settlement, an interval that generally ranges from 30 to 90 days, but can last up to one year.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
Twelve Months Ended December 31, 2025 Compared to Twelve Months Ended December 31, 2024 Revenue The revenue increase was primarily driven by increased sales volume of our disposable sensors due to the continued growth of our worldwide customer base.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
We received net proceeds of $1.19 billion in May 2020 from the 2025 Notes offering, and net proceeds of $1.23 billion in May 2023 from the 2028 Notes offering.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
We are party to various leasing arrangements, primarily for office, manufacturing and warehouse space that expire at various times through December 2030, excluding 2040, including any renewal options. options that we are reasonably certain to exercise.
Read it in 10-K 2026-02-12 at sec.gov ↗
RewordedMD&A
The following table sets tables set forth a summary of our cash flows and the primary changes in cash flows for the periods indicated. shown.
Read it in 10-K 2026-02-12 at sec.gov ↗
Quiet changesMD&A
If Conversely, if actual market conditions are more favorable than anticipated, inventory previously written down may be sold, resulting in lower cost of sales and higher income from operations than expected in that period.
Read it in 10-K 2026-02-12 at sec.gov ↗
