IDEXX Laboratories Announces Second Quarter Results
IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results.
“Our innovation-driven strategy delivered robust global growth in the second quarter,” said Jay Mazelsky, President and Chief Executive Officer. "We saw exceptional momentum with IDEXX InVue Dx™ placements, exceeding expectations as veterinarians adopted this slide-free technology to streamline workflows and gain faster, more accurate clinical insights. This growth builds on the successful launch of IDEXX Cancer Dx™ in North America. Our focus on helping veterinarians gain deeper diagnostic insights to inform patient care continues to drive customer loyalty and sets a solid foundation for sustained long-term growth."
Second Quarter Results
The Company reports revenues of $1,109 million for the second quarter of 2025, an increase of 11% as reported and 9% organic, driven by Companion Animal Group ("CAG") growth of 11% as reported and 10% organic, and Water revenue growth of 9% as reported and 8% organic.
Second quarter earnings per diluted share (“EPS”) were $3.63, an increase of 49% as reported and 17% on a comparable basis, net of $0.56 EPS growth benefit from comparison to a prior year period discrete litigation expense accrual. Second quarter EPS included $0.03 per share benefit from currency changes and $0.10 per share in tax benefits from share-based compensation. Second quarter EPS also benefited by $0.07 per share from a discrete tax reserve release.
Second Quarter Performance Highlights
Companion Animal Group (“CAG”)
CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 9% as reported and 7% organic, including 15% reported and 11% organic gains in International regions, and 6% reported and organic growth in the U.S., outpacing sector growth levels.
Additional U.S. companion animal practice key metrics are available in the Q2 2025 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.
Continued strong IDEXX commercial execution drove net customer gains and solid price realization while enabling our veterinary customers to increase diagnostic utilization, including benefits from recently launched IDEXX innovations, aiding expansion of CAG Diagnostics recurring revenues.
- IDEXX VetLab® consumables generated 15% reported and 14% organic revenue growth, with testing utilization gains across regions, benefits from recent product launches, and 10% growth in IDEXX's global premium instrument installed base.
- Reference laboratory diagnostic and consulting services generated 6% reported and 5% organic revenue growth, including benefits from higher testing volumes and net price gains.
- Rapid assay products revenues declined 3% on a reported and organic basis, with volumes impacted from the recent launch of the Catalyst® Pancreatic Lipase Test, which shifted some testing across modalities, offsetting net price benefits.
CAG Diagnostics capital instrument revenues expanded 66% as reported and 62% on an organic basis led by record quarterly instrument placements. Veterinary software, services and diagnostic imaging systems recurring and total revenues grew 9% on a reported and organic basis, led by continued momentum in cloud-based software attachments and installed base.
Water
Water revenues grew 9% as reported and 8% organic for the quarter, reflecting solid organic growth across major regions, with double-digit International growth.
Livestock, Poultry and Dairy (“LPD”)
LPD revenues increased 5% as reported and 3% organic for the quarter, led by commercial execution in North America and Asia Pacific.
Gross Profit and Operating Profit
Gross profits increased 12% as reported and 11% on a comparable basis. Gross margin of 62.6% increased 90 basis points as reported and 110 basis points on a comparable basis, supported by strong growth in IDEXX VetLab consumables revenue, Reference Labs productivity initiatives, and benefits from net price realization helping to offset inflationary impacts.
Operating margin was 33.6% for the quarter, higher than the prior year period by 730 basis points as reported and by 130 basis points on a comparable basis, net of ~600 basis points impact from lapping the prior year period $61.5 million discrete litigation expense accrual. Operating margin results reflect 9% operating expense decline as reported and 9% growth on a comparable basis, net of a 19% growth benefit from comparisons to the prior year period discrete litigation expense accrual. Comparable operating expense growth was driven by higher R&D spend related to advancing the Company's innovation agenda and higher sales and marketing expense aligned with commercial activities to enable new product launches and sector development.
2025 Growth and Financial Performance Outlook
The Company is updating its full year revenue growth guidance range to $4,205 million - $4,280 million, or reported growth of 7.7% - 9.7%, an increase of $90 million at midpoint. This reflects a positive adjustment of ~2% at midpoint to full year estimates for reported revenue growth, reflecting solid CAG Diagnostics recurring revenue performance, outlook for higher IDEXX inVue Dx instrument placements and revenues, and the recent weakening of the U.S. dollar aligned with the foreign currency exchange rate assumptions set forth in this earnings release. The Company is increasing its outlook for organic revenue growth to 7% - 9%, an increase of 50 basis points at midpoint, reflecting the noted operational performance benefits.
The Company updated its full year reported operating margin outlook of 31.3% - 31.6%, bringing the projected full year comparable operating profit margin expansion to 50 - 80 basis points. This outlook incorporates planned commercial expansions in select international regions in the second half, while advancing a modest commercial expansion in the U.S., to manage our growing portfolio of diagnostic solutions.
The Company updated its EPS outlook range to $12.40 - $12.76, incorporating a $0.40 increase at midpoint versus prior guidance, reflecting $0.11 benefit from operational performance, $0.09 from higher share-based compensation benefits, $0.02 net unfavorable adjustment to effective tax rate excluding share-based compensation benefits and including the release of a discrete tax reserve, and $0.22 in favorable adjustments to foreign exchange estimates. The updated EPS growth outlook is 16% - 20% as reported and 9% - 13% growth on a comparable basis.
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will be hosting a conference call today at 8:30 a.m. (EDT) to discuss its second 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. (EDT) on that day 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 1-800-289-0462 or 1-323-794-2442 and reference passcode 595638.
2025 Investor Day
IDEXX Laboratories, Inc. will host its 2025 Investor Day on Thursday, August 14, 2025 from 8:00 am to approximately 12:00 pm (EDT). A live webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information, contact investorrelations@idexx.com.
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.
Source: www.idexx.com
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