v3.26.3
Business Segment and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Business Segment and Geographic Information
8. 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), our President and Chief Executive Officer, 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 reusable transmitters and receivers.
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 condensed consolidated balance sheets, and purchases of property and equipment, as reported on our condensed 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:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2026202520262025
Revenue$1,344.5 $1,209.3 $3,844.8 $3,402.4 
Less:
Cost of sales (1)
480.1 477.9 1,400.1 1,393.2 
Payroll related expenses240.8 233.2 697.0 675.4 
Stock-based compensation expense34.1 44.1 110.5 116.4 
Marketing expense96.4 75.7 272.8 224.9 
Travel related expenses17.3 15.2 56.5 49.1 
Supply expenses and clinical trials14.8 17.7 38.5 45.8 
Consulting & professional fees41.3 33.1 117.3 100.9 
Equipment, office & facility expenses30.8 22.8 85.2 66.8 
IT software and data43.7 36.8 122.0 107.9 
Depreciation and amortization17.2 9.6 41.4 28.1 
Other segment items (2)
0.8 0.7 2.7 5.1 
Operating income327.2 242.5 900.8 588.8 
Other income, net
7.5 109.8 20.9 158.9 
Income tax expense59.6 68.5 198.0 178.7 
Net income$275.1 $283.8 $723.7 $569.0 
(1) Includes amounts stated in other significant expense captions.
(2) Other segment items are primarily composed of bad debt expense and other miscellaneous operating expenses.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2026202520262025
Other segment disclosures
Depreciation and amortization (1)
$74.5 $63.6 $209.8 $186.6 
Expenditures for long-lived assets$52.9 $80.5 $214.2 $261.6 
Significant noncash items other than depreciation and amortization expense:
Deferred income tax expense (benefit)
$(0.9)$118.0 $(0.9)$103.3 
Net (gains) losses on equity investments$— $(82.7)$10.0 $(78.1)
(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 7 “Stockholders’ Equity—Share-Based Compensation” for information about our share-based compensation expense.
Revenue by Customer Sales Channel and Geographic Region
We sell our CGM systems direct and to distributors. We also disaggregate our revenue by our two primary geographical markets, the United States and International, based on the geographic location of delivery.
The following table presents our revenue disaggregated by major sales channel and geographic region:
Three Months Ended September 30,
20262025
(In millions)United StatesInternationalTotalUnited StatesInternationalTotal
Distributor$933.1 $214.9 $1,148.0 $818.1 $207.9 $1,026.0 
Direct36.7 159.8 196.5 33.8 149.5 183.3 
Total revenue$969.8 $374.7 $1,344.5 $851.9 $357.4 $1,209.3 
Nine Months Ended September 30,
20262025
(In millions)United StatesInternationalTotalUnited StatesInternationalTotal
Distributor$2,623.5 $637.2 $3,260.7 $2,338.7 $545.1 $2,883.8 
Direct112.0 472.1 584.1 104.7 413.9 518.6 
Total revenue$2,735.5 $1,109.3 $3,844.8 $2,443.4 $959.0 $3,402.4 
During the three and nine months ended September 30, 2026, and September 30, 2025, no individual country outside the United States generated revenue that represented more than 10% of our total revenue.