IDEXX Laboratories Inc.
11/03/2025 | Press release | Distributed by Public on 11/03/2025 05:34
▪ Achieves third quarter revenue growth of 13% as reported and 12% organic, and CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic (Form 8-K)
| ▪ | Achieves third quarter revenue growth of 13% as reported and 12% organic, and CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic. |
| ▪ | Strong organic revenue growth was supported by IDEXX execution and commercial performance, reflecting benefits from IDEXX's innovation, including over 1,700 IDEXX inVue Dx™ placements. |
| ▪ | Delivers EPS of $3.40, an increase of 21% as reported and 15% on a comparable basis, including operating margin expansion of 100 basis points as reported and 120 basis points on a comparable basis. |
| ▪ | Increases 2025 revenue guidance to $4,270 million - $4,300 million, an increase of $43 million or ~1% at midpoint, reflecting stronger CAG Diagnostics recurring revenue performance and outlook for higher IDEXX inVue Dx instrument placements and revenues. |
| ▪ | Updates outlook for 2025 reported revenue growth of 9.6% - 10.3% and CAG Diagnostics recurring revenue reported growth of 8.3% - 9.0%, with projected 2025 organic revenue growth of 8.8% - 9.5% and CAG Diagnostics recurring revenue organic growth of 7.5% - 8.2%. |
| ▪ | Raises 2025 EPS outlook to $12.81 - $13.01, reflecting $0.33 increase compared to prior guidance midpoint, supported by increased revenue and operating profit margin outlooks. |
WESTBROOK, Maine, November 3, 2025- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced third quarter results.
Third Quarter Results
The Company reports revenues of $1,105 million for the third quarter of 2025, an increase of 13% as reported and 12% organic, driven by Companion Animal Group ("CAG") growth of 14% as reported and 12% organic, and Livestock, Poultry and Dairy ("LPD") revenue growth of 17% as reported and 14% organic.
Third quarter earnings per diluted share ("EPS") were $3.40, an increase of 21% as reported and 15% on a comparable basis. Third quarter EPS included $0.17 per share in tax benefits from share-based compensation, $0.09 per share of increased tax expense related to impacts of recent U.S. tax law changes, and $0.02 per share benefit from currency changes.
IDEXX Announces Third Quarter Results
November 3, 2025
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"IDEXX made exceptional progress on our innovation-driven growth strategy with strong execution and global customer adoption," said Jay Mazelsky, President and Chief Executive Officer. "Building on the successful launch of IDEXX Cancer Dx™, new Catalyst specialty tests for Pancreatic Lipase and Cortisol, and the transformative impact of IDEXX inVue Dx, we are delivering powerful new diagnostic capabilities. These solutions elevate clinical insights, streamline workflows, and create meaningful value for veterinary teams. The enthusiastic response - as reflected in our strong growth profile -highlights the trust our customers place in IDEXX."
Third Quarter Performance Highlights
Companion Animal Group ("CAG")
CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic, including 18% reported and 14% organic gains in International regions, and 8% reported and organic growth in the U.S., outpacing sector growth levels. U.S. growth was aided by increased diagnostic frequency and an easing of clinical visit pressures.
Additional U.S. companion animal practice key metrics are available in the Q3 2025 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.
Sustained commercial execution - including net customer gains, growing benefits from IDEXX innovation, and expansion of the premium instrument installed base - drove double-digit CAG Diagnostics recurring revenue growth.
| ▪ | IDEXX VetLab™ consumables generated 18% reported and 16% organic revenue growth, supported by testing utilization gains, including increasing benefit from recent product launches, and 10% growth in IDEXX's global premium instrument installed base. |
| ▪ | Reference laboratory diagnostic and consulting services generated 10% reported and 9% organic revenue growth, with benefits from higher testing volumes, net new customer gains, and net price benefits. |
| ▪ | Rapid assay products revenues declined 4% as reported and 5% on an organic basis, with volumes continuing to be impacted from the late prior year launch of the Catalyst™ Pancreatic Lipase Test, which shifted some testing across modalities, offsetting net price benefits. |
CAG Diagnostics capital instrument revenues expanded 74% as reported and 71% on an organic basis, led by very strong quarterly instrument placements, including benefits from over 1,700 IDEXX inVue Dx placements.
Veterinary software, services and diagnostic imaging systems revenues grew 11% on a reported and organic basis for the quarter, led by cloud-native software growth and continued installed base expansion.
IDEXX Announces Third Quarter Results
November 3, 2025
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Water
Water revenues grew 8% as reported and 7% organic for the quarter, reflecting solid organic growth both in the U.S. and Internationally.
Livestock, Poultry and Dairy ("LPD")
LPD revenues increased 17% as reported and 14% organic for the quarter, led by strong growth across core product categories and major geographies.
Gross Profit and Operating Profit
Gross profits increased 15% as reported and 13% on a comparable basis. Gross margin of 61.8% increased 70 basis points as reported and 80 basis points on a comparable basis, supported by Reference Labs productivity initiatives and volume gains, strong growth of IDEXX VetLab consumables revenue, and benefits from net price realization helping to offset inflationary impacts.
Operating margin was 32.1% for the quarter, higher than the prior year period by 100 basis points as reported and by 120 basis points on a comparable basis. Operating margin results reflect a 12% operating expense increase as reported and 10% growth on a comparable basis. Operating expense growth was driven by investments in commercial resources, higher R&D spend related to advancing the Company's innovation agenda, and higher employee benefit and incentive costs.
2025Growth and Financial Performance Outlook
The Company is updating its full year revenue growth guidance range to $4,270 million - $4,300 million, or reported growth of 9.6% - 10.3%, an increase of $43 million at midpoint. This reflects a positive adjustment of ~1% at midpoint to full year estimates for reported revenue growth, reflecting strong CAG Diagnostics recurring revenue performance and outlook for higher IDEXX inVue Dx instrument placements and revenues. The Company is increasing its outlook for organic revenue growth to 8.8% - 9.5%, an increase of ~1% at midpoint, reflecting the operational performance benefits highlighted above.
The Company increased its full year reported operating margin outlook to 31.6% - 31.8%, bringing the projected full year operating profit margin expansion to 260 - 280 basis points as reported and 80 - 100 basis points on a comparable basis. This outlook benefits from strong third quarter operating performance, while advancing strategic investment priorities.
The Company updated its EPS outlook range to $12.81 - $13.01, incorporating a $0.33 increase at midpoint versus prior guidance, reflecting $0.22 benefit from operational performance, $0.04 benefit from lower effective tax rate, net of impacts related to recent U.S. tax law changes, and ~$0.07 combined benefit from updated estimates for interest expense, average shares outstanding, and foreign exchange impacts. The updated EPS growth outlook is 20% - 22% as reported and 12% - 14% on a comparable basis.
IDEXX Announces Third Quarter Results
November 3, 2025
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The following table provides the Company's updated outlook for annual key financial metrics in 2025 with a comparison to the prior outlook:
Amounts in millions except per share data and percentages
| 2025 Growth and Financial Performance Outlook | ||||||||
| Updated | Prior | |||||||
| Revenue | $4,270 | - | $4,300 | $4,205 | - | $4,280 | ||
| Reported growth | 9.6% | - | 10.3% | 7.7% | - | 9.7% | ||
| Organic growth | 8.8% | - | 9.5% | 7.0% | - | 9.0% | ||
| CAG Diagnostics Recurring Revenue Growth | ||||||||
| Reported growth | 8.3% | - | 9.0% | 6.5% | - | 8.7% | ||
| Organic growth | 7.5% | - | 8.2% | 5.8% | - | 8.0% | ||
| Operating Margin | 31.6% | - | 31.8% | 31.3% | - | 31.6% | ||
| Operating margin expansion | 260 bps | - | 280 bps | 240 bps | - | 270 bps | ||
| Comparable margin expansion | 80 bps | - | 100 bps | 50 bps | - | 80 bps | ||
| EPS | $12.81 | - | $13.01 | $12.40 | - | $12.76 | ||
| Reported growth | 20% | - | 22% | 16% | - | 20% | ||
| Comparable growth | 12% | - | 14% | 9% | - | 13% | ||
| Other Key Metrics | ||||||||
| Net interest expense | ~ $38.5 | ~ $42 | ||||||
| Share-based compensation tax benefit | ~ $23 | ~ $15 | ||||||
| Share-based compensation tax rate benefit | ~ 1.7% | ~ 1.2% | ||||||
| Effective tax rate | ~ 20.8% | ~ 21.0% | ||||||
| Share-based compensation EPS impact | ~ $0.28 | ~ $0.19 | ||||||
| Reduction in average shares outstanding | 2.5% | - | 3% | 2% | - | 3% | ||
| Operating Cash Flow (% of Net Income) | 105% | - | 115% | 95% | - | 105% | ||
| Free Cash Flow (% of Net Income) | 95% | - | 100% | 80% | - | 85% | ||
| Capital Expenditures | ~ $140 | ~ $160 | ||||||
IDEXX Announces Third Quarter Results
November 3, 2025
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The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2025.
| Estimated Foreign Currency Exchange Rate Impacts | 2025 | |
| Revenue growth rate impact | ~0.8% | |
| CAG Diagnostics recurring revenue growth rate impact | ~0.8% | |
| Operating margin growth impact | ~ 0 bps | |
| EPS impact | ~$0.11 | |
| EPS growth impact | ~1% |
| Go-Forward Foreign Currency Exchange Rate Assumptions | 2025 | |||
| In U.S. dollars | ||||
| euro | $ | 1.15 | ||
| British pound | $ | 1.34 | ||
| Canadian dollar | $ | 0.72 | ||
| Australian dollar | $ | 0.64 | ||
| Relative to the U.S. dollar | ||||
| Japanese yen | ¥ | 149 | ||
| Chinese renminbi | ¥ | 7.26 | ||
| Brazilian real | R$ | 5.55 | ||
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today at 8:30 a.m. (ET) to discuss its third quarter 2025 results and management's outlook. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (ET) via the same link and will remain available for one year. The live call also will be accessible by telephone. To listen to the live conference call, please dial 1-800-330-6730 or 1-213-279-1575 and reference passcode 300701.
IDEXX Announces Third Quarter Results
November 3, 2025
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About IDEXX Laboratories, Inc.
IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions-to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.
Contact:
John Ravis, Investor Relations
IDEXX Announces Third Quarter Results
November 3, 2025
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