IDEXX Laboratories (IDXX) Q3 2025 Financial Results Summary
November 3, 2025—IDEXX Laboratories, Inc. (NASDAQ: IDXX) announced its financial results for the third quarter of 2025. The company achieved substantial growth in both revenue and earnings per share, reflecting effective execution and innovation in their product offerings.
Financial Highlights
- Total Revenue: $1,105 million
- Increase: 13% (as reported) and 12% (organic) year-over-year
- Companion Animal Group (CAG): Revenue Growth of 14% (as reported) and 12% (organic)
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Livestock, Poultry, and Dairy (LPD): Revenue Growth of 17% (as reported) and 14% (organic)
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Earnings per Diluted Share (EPS): $3.40
- Increase: 21% (as reported) and 15% (comparable) over prior year
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Factors impacting EPS:
- $0.17 benefits from share-based compensation tax
- $0.09 increase in tax expense due to recent U.S. tax law changes
- $0.02 benefit from currency changes
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Gross Profit: $683 million
- Increase: 15% (as reported) and 13% (comparable)
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Gross Margin: 61.8%, up 70 basis points (as reported) and 80 basis points (comparable)
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Operating Margin: 32.1%
- Increase: 100 basis points (as reported) and 120 basis points (comparable)
Segment Performance
- Companion Animal Group (CAG):
- CAG Diagnostics recurring revenue increased by 11% (as reported) and 10% (organic); international segments grew by 18% (reported) and 14% (organic).
- CAG VetLab Consumables: 18% growth in reported revenue and 16% organic growth.
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Reference Laboratory Diagnostic and Consulting Services: 10% growth reported, 9% on an organic basis, driven by higher testing volumes.
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Livestock, Poultry and Dairy (LPD):
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Overall growth of 17% (reported) and 14% (organic) for the quarter.
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Water:
- 8% reported growth and 7% organic growth for the quarter.
Outlook for 2025
- Revenue Guidance: Increased to $4,270 million – $4,300 million
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New Growth Expectations:
- Reported revenue growth of 9.6% – 10.3%
- CAG diagnostics recurring revenue growth of 8.3% – 9.0%
- Projected organic revenue growth of 8.8% – 9.5%
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Earnings Guidance: Increased to $12.81 – $13.01, reflecting a $0.33 increase compared to prior guidance.
- EPS Growth Outlook: 20% – 22% (reported) and 12% – 14% (comparable).
Share Repurchase Program
- IDEXX repurchased a total of 411 shares in the quarter, at a cost of approximately $241.7 million in the open market.
Key Metrics in Summary
- Gross profit increased by 15%, gross margin improved to 61.8%, and operating profit saw a growth of 17%.
- Total cash provided by operating activities for the nine months ended September 30, 2025, was $826 million, an increase from $667 million in 2024.
- Free cash flow trends positively with $730.8 million over nine months, compared to $575.3 million in the prior year.
Conclusion
IDEXX Laboratories has shown robust financial performance in Q3 2025, marked by substantial revenue growth across its segments, increased profitability metrics, and a positive revision in its forecast for the upcoming year. The company’s strategic focus on innovation and operational efficiency continues to drive its growth narrative.
Condensed Consolidated Statement of Operations
Amounts in thousands except per share data (Unaudited)
| Three Months | Nine Months | |||||
|---|---|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||
| Revenue: | ||||||
| Revenue | $1,105,239 | $975,543 | $3,213,123 | $2,943,216 | ||
| Expenses | ||||||
| Cost of revenue | 421,885 | 379,505 | 1,211,658 | 1,134,949 | ||
| Gross profit | 683,354 | 596,038 | 2,001,465 | 1,808,267 | ||
| Sales and marketing | 159,157 | 146,281 | 476,487 | 438,399 | ||
| General and administrative | 105,936 | 91,887 | 296,178 | 341,154 | ||
| Research and development | 63,415 | 53,978 | 184,374 | 162,063 | ||
| Total operating expense | 328,508 | 292,146 | 957,039 | 941,616 | ||
| Income from operations | 354,846 | 303,892 | 1,044,426 | 866,651 | ||
| Interest expense, net | (10,075) | (4,983) | (27,219) | (13,207) | ||
| Income before provision for income taxes | 344,771 | 298,909 | 1,017,207 | 853,444 | ||
| Provision for income taxes | 70,161 | 66,068 | 205,931 | 181,726 | ||
| Net income | ||||||
| Net Income attributable to stockholders | $274,610 | $232,841 | $811,276 | $671,718 | ||
| Earnings per share: Basic | $3.43 | $2.83 | $10.06 | $8.12 | ||
| Earnings per share: Diluted | $3.40 | $2.80 | $9.99 | $8.05 | ||
| Shares outstanding: Basic | 80,096 | 82,304 | 80,605 | 82,675 | ||
| Shares outstanding: Diluted | 80,675 | 83,056 | 81,207 | 83,478 |
Condensed Consolidated Balance Sheet
Amounts in thousands (Unaudited)
| Assets: | ||
|---|---|---|
| Current Assets: | September 30, 2025 | December 31, 2024 |
| Cash and cash equivalents | $208,166 | $288,266 |
| Accounts receivable, net | 566,881 | 473,575 |
| Inventories | 391,564 | 381,877 |
| Other current assets | 310,444 | 256,179 |
| Total current assets | 1,477,055 | 1,399,897 |
| Property and equipment, net | 739,437 | 713,123 |
| Other long-term assets, net | 1,170,220 | 1,180,423 |
| Total assets | $3,386,712 | $3,293,443 |
| Liabilities and Stockholders’ Equity: | ||
|---|---|---|
| Current Liabilities: | ||
| Accounts payable | $122,265 | $114,211 |
| Accrued liabilities | 488,856 | 502,119 |
| Line of credit | 455,000 | 250,000 |
| Current portion of long-term debt | 149,997 | 167,787 |
| Deferred revenue | 35,693 | 33,799 |
| Total current liabilities | 1,251,811 | 1,067,916 |
| Long-term debt, net of current portion | 374,825 | 449,786 |
| Other long-term liabilities, net | 198,890 | 180,428 |
| Total long-term liabilities | 573,715 | 630,214 |
| Total stockholders’ equity | 1,561,186 | 1,595,313 |
| Total liabilities and stockholders’ equity | $3,386,712 | $3,293,443 |
