10-Q – 2025-11-03 – idxx-20250930.htm

The increase in reference laboratory diagnostic and consulting services revenue was due to higher testing volumes in the U.S., Europe, and Asia Pacific, and higher realized prices. The change in foreign currency exchange rates in creased revenue growth by 0.4%.

The increase in CAG Diagnostics services and accessories revenue was primarily a result of growth in our installed base of premium instruments. The change in foreign currency exchange rates in creased revenue growth by 0.6% .
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CAG Diagnostics Capital – Instrument Revenue . The increase in instrument revenue was primarily due to placements of our new IDEXX inVue Dx Analyzer, partially offset by lower placements of other premium instruments. The change in foreign currency exchange rates increased revenue growth by 1.2%.

Veterinary Software, Services and Diagnostic Imaging Systems Revenue . The increase in recurring revenue was primarily due to higher subscription and support services volume from our expanded SaaS installed base and from higher realized prices. The increase in our systems and hardware revenue was primarily due to higher diagnostic imaging system sales . Acquisitions increased revenue growth by 0.6%.

The following table presents the CAG segment results of operations:

For the Nine Months Ended September 30, Change
Results of Operations
(dollars in thousands)
2025 Percent of Revenue 2024 Percent of Revenue Amount Percentage

Revenues $ 2,954,813  $ 2,703,573  $ 251,240  9.3 %
Cost of revenue 1,110,432  1,043,805  66,627  6.4 %
Gross profit 1,844,381  62.4 % 1,659,768  61.4 % 184,613  11.1 %

Segment operating expenses:
Sales and marketing 434,416  14.7 % 399,186  14.8 % 35,230  8.8 %
General and administrative 267,110  9.0 % 313,442  11.6 % (46,332) (14.8 %)
Research and development 170,752  5.8 % 148,812  5.5 % 21,940  14.7 %
Total segment operating expenses 872,278  29.5 % 861,440  31.9 % 10,838  1.3 %
Segment income from operations $ 972,103  32.9 % $ 798,328  29.5 % $ 173,775  21.8 %

Gross Profit . Gross profit increased due to higher revenue and a 100 basis point increase in the gross profit margin. The increases in the gross profit margin reflected benefits from recurring revenue growth in IDEXX VetLab consumable and Reference Lab volumes, along with operational productivity and pricing benefits, which offset inflationary cost effects. These increases in the gross profit margin were reduced by the business mix impact from higher instrument revenue. The change in foreign currency exchange rates on the gross profit margin was not significant, including the impact of lower hedge gains during the current period compared to the prior period.

Segment Operating Expenses . Sales and marketing expense increased primarily due to higher personnel-related and commercial costs. General and administrative expense decreased primarily due to a $61.5 million expense in the prior year and a reduction in accrued expense of approximately $9 million in the first quarter of the current period related to a now-concluded litigation matter, partially offset by higher personnel-related and information technology costs. Research and development expense increased primarily due to higher personnel-related costs, as well as higher project costs. The change in foreign currency exchange rates was not significant to operating expense growth.
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Water

The following table presents the Water segment results of operations:

For the Nine Months Ended September 30, Change
Results of Operations
(dollars in thousands)
2025 Percent of Revenue 2024 Percent of Revenue Amount Percentage

Revenues $ 150,619  $ 139,959  $ 10,660  7.6 %
Cost of revenue 44,978  42,633  2,345  5.5 %
Gross profit 105,641  70.1 % 97,326  69.5 % 8,315  8.5 %

Segment operating expenses:
Sales and marketing 18,538  12.3 % 17,423  12.4 % 1,115  6.4 %
General and administrative 10,964  7.3 % 12,534  9.0 % (1,570) (12.5 %)
Research and development 4,265  2.8 % 3,827  2.7 % 438  11.4 %
Total segment operating expenses 33,767  22.4 % 33,784  24.1 % (17) (0.1 %)
Segment income from operations $ 71,874  47.7 % $ 63,542  45.4 % $ 8,332  13.1 %

Revenue . The increase in revenue was due to higher realized prices and higher volumes. The increase in volumes was due to higher testing volumes, primarily in Latin America and Europe, as well as placements of instruments and accessories. The change in foreign currency exchange rates decreased revenue growth by 0.1%.

Gross Profit . Gross profit increased due to higher revenue as well as a 60 basis point increase in the gross profit margin. The net increase in the gross profit margin was due to higher realized prices, reduced by the impact of higher product and distribution costs. The change in foreign currency exchange rates decreased the gross profit margin by approximately 10 basis points, including the impact of lower hedge gains during the current period compared to the prior period .

Segment Operating Expenses . Sales and marketing expense increased p rimarily due to higher personnel-related and travel and meeting costs. General and administrative expense decreased primarily due to lower bad debt expense and lower personnel-related costs. Research and development expense increased primarily due to higher personnel-related costs. The change in foreign currency exchange rates was not significant to operating expense growth.

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Livestock, Poultry and Dairy  

The following table presents the LPD segment results of operations:

For the Nine Months Ended September 30, Change
Results of Operations
(dollars in thousands)
2025 Percent of Revenue 2024 Percent of Revenue Amount Percentage

Revenues $ 94,302  $ 87,503  $ 6,799  7.8 %
Cost of revenue 49,063  42,084  6,979  16.6 %
Gross profit 45,239  48.0 % 45,419  51.9 % (180) (0.4 %)

Segment operating expenses:
Sales and marketing 22,756  24.1 % 20,937  23.9 % 1,819  8.7 %
General and administrative 13,410  14.2 % 12,420  14.2 % 990  8.0 %
Research and development 8,982  9.5 % 8,808  10.1 % 174  2.0 %
Total segment operating expenses 45,148  47.9 % 42,165  48.2 % 2,983  7.1 %
Segment income from operations $ 91  0.1 % $ 3,254  3.7 % $ (3,163) (97.2 %)

Reve nue . The increase in revenue was primarily due to higher test volumes in the Americas and Asia Pacific, and higher realized prices. The change in foreign currency exchange rates decreased revenue growth by 0.8%.

Gross Profit .  The decrease in gross profit was primarily due to a 390 basis point decrease in the gross profit margin, partially offset by higher revenue. T he net decrease in the gross profit margin was primarily due to higher product costs, reduced by the impact from higher realized prices. The change in foreign currency exchange rates decreased the gross profit margin by approximately 60 basis points, including the impact of lower hedge gains during the current period compared to the prior period.

Segment Operating Expens es . Sales and marketing expense increased primarily due to higher personnel-related and travel costs. General and administrative expense increased primarily due to higher personnel-related costs and bad debt expense. R esearch and development expense increased primarily due to higher personnel-related costs. The change in foreign currency exchange rates increased operating expense growth by approximately 1%.
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Other

Other information combines and presents our OPTI Medical with our out-licensing arrangements and consolidated foreign currency transaction gains and losses for all operating segments. The following table presents the Other results of operations:

For the Nine Months Ended September 30, Change
Results of Operations
(dollars in thousands)
2025 Percent of Revenue 2024 Percent of Revenue Amount Percentage

Revenues $ 13,389  $ 12,181  $ 1,208  9.9 %
Cost of revenue 7,185  6,427  758  11.8 %
Gross profit 6,204  46.3 % 5,754  47.2 % 450  7.8 %

Other operating expenses:
Sales and marketing 777  5.8 % 853  7.0 % (76) (8.9 %)
General and administrative 4,694  35.1 % 2,758  22.6 % 1,936  70.2 %
Research and development 375  2.8 % 616  5.1 % (241) (39.1 %)
Total Other operating expenses 5,846  43.7 % 4,227  34.7 % 1,619  38.3 %
Other income from operations $ 358  2.7 % $ 1,527  12.5 % $ (1,169) (76.6 %)

Revenue .   The increase in revenue was primarily due to higher sales volumes of our OPTI Medical consumables and instruments.

Gross Profit . Gross profit increased due to higher revenues, partially offset by a 90 basis point decrease in the gross profit margin. The decrease in the gross profit margin was largely due to higher product costs, partially offset by higher realized prices. The change in foreign currency exchange rates did not have a significant impact on the gross profit margin.

Operating Expenses . Sales and marketing expense decreased due to lower personnel-related costs. General and administrative expense increased primarily due to higher foreign currency transaction losses compared to the prior period. Research and development expense decreased due to lower activities that were not attributable to our three reportable segments.

Non-Operating Items

Interest Expense and Income . Interest expense was $29.6 million for the nine months ended September 30, 2025, compared to $23.7 million for the same period during the prior year. The increase in interest expense was primarily due to higher average debt levels and higher interest rates. Interest income was $2.4 million for the nine months ended September 30, 2025, compared to $10.5 million for the same period during the prior year, primarily due to a decrease in money market investments.

Provision for Income Taxes . Our effective income tax rate was 20.2% for the nine months ended September 30, 2025, compared to 21.3% for the nine months ended September 30, 2024. The decrease in our effective tax rate was primarily driven by an increase in tax benefits related to share-based compensation and the resolution of international tax audits, partially offset by the impacts related to recent U.S. tax law changes.

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Liquidity and Capital Resources

We fund the capital needs of our business through cash on hand, funds generated from operations, proceeds from long-term senior note financings, and amounts available under our Credit Facility. We generate cash primarily through the payments made by customers for our companion animal veterinary, livestock, poultry, dairy, and water products and services, consulting services, and other various systems and services. Our cash disbursements are primarily related to compensation and benefits for our employees, inventory and supplies, repurchases of our common stock, taxes, research and development, capital expenditures, rents, occupancy-related charges, interest expense, and business acquisitions. Working capital totaled $225.2 million as of September 30, 2025, compared to $332.0 million as of December 31, 2024. The change in working capital is primarily due to lower cash balances and higher borrowings outstanding on our Credit Facility in the current year. As of September 30, 2025, we had $208.2 million of cash and cash equivalents, compared to $288.3 million as of December 31, 2024. As of September 30, 2025, we had a remaining borrowing availability of $793.2 million under our $1.25 billion Credit Facility, with $455.0 million in outstanding borrowings under our Credit Facility. As of December 31, 2024, we had $250.0 million in outstanding borrowings under our Credit Facility. The general availability of funds under our Credit Facility is reduced by $1.8 million for outstanding letters of credit. We believe that, if necessary, we could obtain additional borrowings to fund our growth objectives. We further believe that current cash and cash equivalents, funds generated from operations, and committed borrowing availability will be sufficient to fund our operations, capital purchase requirements, and anticipated growth needs for the next twelve months. We believe that these resources, coupled with our ability, as needed, to obtain additional financing, will also be sufficient to fund our business as currently conducted for the foreseeable future. We may enter into new financing arrangements or refinance or retire existing debt in the future depending on market conditions. Should we require more capital in the U.S. than is generated by our operations, for example, to fund significant discretionary activities, we could elect to raise capital in the U.S. through the incurrence of debt or equity issuances, which we may not be able to complete on favorable terms or at all. In addition, these alternatives could result in increased interest expense or other dilution of our earnings.

We manage our worldwide cash requirements considering available funds among all of our subsidiaries. Our foreign cash and cash equivalents are generally available without restrictions to fund ordinary business operations outside the U.S. 
The following table presents cash and cash equivalents held domestically and by our foreign subsidiaries:

Cash and cash equivalents

(dollars in thousands)
September 30, 2025 December 31, 2024
   
U.S. $ 13,838  $ 145,118 
Foreign 194,328  143,148 
Total $ 208,166  $ 288,266 
   
Total cash and cash equivalents held in U.S. dollars by our foreign subsidiaries
$ 39,009  $ 10,623 

As of September 30, 2025, of the $208.2 million of cash and cash equivalents held, $202.7 million was held as bank deposits and $5.5 million was held in a U.S. government money market fund. As of December 31, 2024, of the $288.3 million of cash and cash equivalents held, $148.7 million was held as bank deposits and $139.6 million was held in a U.S. government money market fund. Our bank deposits are held at a diversified group of institutions, primarily systemically important banks. Cash and cash equivalents as of September 30, 2025, included approximately $1.0 million in cash denominated in a non-U.S. currency held in a country with currency control restrictions, which limits our ability to transfer funds outside of the country in which they are held without incurring costs.

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The following table presents additional key information concerning working capital:

For the Three Months Ended
September 30,
2025 June 30,
2025 March 31,
2025 December 31,
2024 September 30, 2024

Days sales outstanding (1)
46.5  44.7  45.7  47.1  48.9 
Inventory turns (2)
1.5  1.5  1.3  1.3  1.3 

(1)      Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days.
(2)      Inventory turns are calculated as the ratio of our inventory-related cost of revenue for the quarter multiplied by four, divided by the average inventory balances at the beginning and end of each quarter.

Sources and Uses of Cash 

The following table presents cash provided (used):

For the Nine Months Ended September 30,
(dollars in thousands) 2025 2024 Change
     
Net cash provided by operating activities $ 826,045  $ 666,976  $ 159,069 
Net cash used by investing activities (108,109) (167,219) 59,110 
Net cash used by financing activities (809,262) (645,291) (163,971)
Net effect of changes in exchange rates on cash 11,226  238  10,988 
Net change in cash and cash equivalents $ (80,100) $ (145,296) $ 65,196 

Operating Activities . Cash provided by operating activities during the nine months ended September 30, 2025, was $826.0 million, which was a net increase in operating cash flows of $159.1 million, compared to the same period during the prior year. Cash was provided from net income of $811.3 million, adjusted for net non-cash items of $259.3 million, partially offset by a net decrease from changes in operating assets and liabilities of $244.5 million. The following table presents cash flow impacts from changes in operating assets and liabilities, excluding the effects of foreign exchange rate fluctuations: 

For the Nine Months Ended September 30,
(dollars in thousands) 2025 2024 Change
     
Accounts receivable $ (82,586) $ (56,087) $ (26,499)
Inventories (2,202) (24,756) 22,554 
Other assets and liabilities (160,944) (45,272) (115,672)
Accounts payable (4,977) 2,347  (7,324)
Deferred revenue 6,216  (735) 6,951 
Total change in cash due to changes in operating assets and liabilities $ (244,493) $ (124,503) $ (119,990)

Cash used by changes in operating assets and liabilities during the nine months ended September 30, 2025, increased $120.0 million, compared to the same period during the prior year. During the current period, we paid approximately $80 million, which was accrued in prior years, to conclude a litigation matter and the payment is included within the cash flow impacts from changes in other assets and liabilities. The increase in contract assets arising from customer commitment arrangements, partially offset by lower tax payments and lower annual employee incentive program payments in the current period, also contributed to the increase in cash used for other assets and liabilities, compared to the same period in the prior year.

We have historically experienced proportionately lower net cash flows from operating activities during the first quarter and proportionately higher cash flows from operating activities for the remainder of the year driven primarily by payments related to annual employee incentive programs in the first quarter following the year for which the bonuses were earned.

Investing Activities . Cash used by investing activities was $108.1 million during the nine months ended September 30, 2025, compared to $167.2 million for the same period during the prior year. The decrease in cash used by investing activities was primarily due to the acquisition of a software business during the prior-year period, compared to smaller asset acquisitions in the current-year period.
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Our total capital expenditure plan for 2025 is estimated to be approximately $140.0 million, which includes capital investments in manufacturing and operations facilities and technology infrastructure to support growth and efficiencies, as well as investments in customer-facing software development.

Financing Activities .   Cash used by financing activities was $809.3 million during the nine months ended September 30, 2025, compared to $645.3 million used for the same period during the prior year. The increase in cash used was primarily due to $979.2 million of repurchases of our common stock during the current year, compared to $591.0 million of repurchases during the prior year, as well as a payment upon the maturity of our 2025 Series C Notes equivalent to $103.4 million. This increase in cash used by financing activities was partially offset by $205.0 million in net borrowings under our Credit Facility during the current year, compared to no activity under our Credit Facility during the prior-year period. We also remitted approximately $8.4 million of excise tax related to the repurchase of our common stock on April 15, 2025, which is included in the repurchases of common stock on our cash flow statement.

We believe that the repurchase of our common stock is a favorable means of returning value to our stockholders, and we also repurchase our stock to offset the dilutive effect of our share-based compensation programs. Repurchases of our common stock may vary depending upon the level of other investing and deployment activities, as well as share price and prevailing interest rates, and are subject to market conditions. Refer to Note 12 to the unaudited condensed consolidated financial statements in “Part I. Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for additional information about our share repurchases.

As of September 30, 2025, we had $455.0 million in outstanding borrowings under our Credit Facility, of which $250.0 million is outstanding borrowings under our term loan that matures on October 20, 2025. On October 20, 2025, we paid our $250.0 million term loan with a combination of borrowings under our revolving line of credit and available cash on hand. The obligations under our Credit Facility may be accelerated upon the occurrence of an event of default under our Credit Facility, which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative, and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency-related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974 (“ERISA”), the failure to pay specified indebtedness, cross-acceleration to specified indebtedness, and a change of control default. Our Credit Facility contains affirmative, negative, and financial covenants customary for financings of this type. The negative covenants include restrictions on liens, indebtedness of subsidiaries of the Company, fundamental changes, investments, transactions with affiliates, certain restrictive agreements, and violations of sanctions laws and regulations. The sole financial covenant is a consolidated leverage ratio test as described below.

The aggregate principal amounts of our 2025 Series B Notes will become due and payable on December 11, 2025. We anticipate paying off our 2025 Series B Notes for $75.0 million when due in December 2025, with available cash on hand, borrowings under our Credit Facility, or proceeds from the issuance of new notes, or a combination thereof.

The aggregate principal amounts of our 2026 Series Notes will become due and payable on September 9, 2026. We anticipate paying off our 2026 Series Notes for $75.0 million when due in September 2026, with available cash on hand, borrowings under our Credit Facility, or proceeds from the issuance of new notes, or a combination thereof.

Should we elect to prepay any of our senior notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Senior Note Agreements. Additionally, in the event of a change in control of the Company or upon the disposition of certain assets of the Company, the proceeds of which are not reinvested (as defined in the Senior Note Agreements), we may be required to prepay all or a portion of the senior notes. The obligations under the senior notes may be accelerated upon the occurrence of an event of default under the applicable Senior Note Agreements, each of which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative, and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency-related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under ERISA, the failure to pay specified indebtedness, cross-acceleration to specified indebtedness, and a change of control default. The Senior Note Agreements contain affirmative, negative, and financial covenants customary for agreements of this type. The negative covenants include restrictions on liens, indebtedness of our subsidiaries, priority indebtedness, fundamental changes, investments, transactions with affiliates, certain restrictive agreements, and violations of sanctions laws and regulations. The sole financial covenant is a consolidated leverage ratio test as described below.

Effect of Currency Translation on Cash . The net effect of changes in foreign currency exchange rates is related to changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. These changes will fluctuate for each period presented as the value of the U.S. dollar relative to the value of foreign currencies changes. A
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currency’s value depends on many factors, including interest rates and the issuing governments’ debt levels and strength of economy.

Off-Balance Sheet Arrangements . We have no off-balance sheet arrangements or variable interest entities, except for letters of credit and third-party guarantees.

Financial Covenant . The sole financial covenant of our Credit Facility and Senior Note Agreements is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation and amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges (“Adjusted EBITDA”), as defined in the Senior Note Agreement and Credit Facility, not to exceed 3.5-to-1. As of September 30, 2025, we were in compliance with such covenant. The following details our consolidated leverage ratio calculation:

(dollars in thousands) Twelve Months Ended
Trailing 12 Months Adjusted EBITDA: September 30, 2025
 
Net income attributable to stockholders $ 1,027,425 
Interest expense 37,140 
Provision for income taxes 246,169 
Depreciation and amortization 140,168 
Acquisition-related expense 73 
Share-based compensation expense 58,160 
Extraordinary and other non-recurring non-cash charges 160 
Adjusted EBITDA $ 1,509,295 
 
Debt to Adjusted EBITDA Ratio: September 30, 2025
 
Line of Credit $ 455,000 
Current and long-term portions of long-term debt 524,822 
Total debt 979,822 
Acquisition-related contingent consideration payable 4,087 
Deferred financing costs 178 
Gross debt $ 984,087 
Gross debt to Adjusted EBITDA ratio 0.65 

Less: Cash and cash equivalents
$ 208,166 
Net debt $ 775,921 
Net debt to Adjusted EBITDA ratio 0.51

Adjusted EBITDA, gross debt, net debt, gross debt to Adjusted EBITDA ratio, and net debt to Adjusted EBITDA ratio are non-GAAP financial measures which should be considered in addition to, and not as a replacement for, financial measures presented according to U.S. GAAP. Management believes that reporting these non-GAAP financial measures provides supplemental analysis to help investors further evaluate our business performance and available borrowing capacity under our Credit Facility. 

Other Commitments, Contingencies and Guarantees 

Significant commitments, contingencies, and guarantees as of September 30, 2025, are described in Note 16 to the unaudited condensed consolidated financial statements in “Part I. Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk 
 
For quantitative and qualitative disclosures about market risk affecting us, refer to the section under the heading “Part II. Item 7A. Quantitative and Qualitative Disclosure About Market Risk” of our 2024 Annual Report. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the market risks described in our 2024 Annual Report, except for the impact of foreign exchange rates, as discussed below. 

Foreign Currency Exchange Impact s . Our foreign currency exchange impacts on operating results are comprised of three components: 1) local currency revenues and expenses; 2) the impact of foreign currency exchange hedge contracts; and 3) intercompany and monetary balances for our subsidiaries that are denominated in a currency that is different from the functional currency used by each subsidiary.

Approximately 23% and 22% of our consolidated revenue was derived from products manufactured in the U.S. and sold internationally in local currencies for the three and nine months ended September 30, 2025, respectively, compared to approximately 22% and 21% for the three and nine months ended September 30, 2024, respectively. Strengthening of the U.S. dollar exchange rate relative to other currencies has a negative impact on our revenues derived in currencies other than the U.S. dollar and on profits of products manufactured in the U.S. and sold internationally, and a weakening of the U.S. dollar has the opposite effect. Similarly, to the extent that the U.S. dollar is stronger in current or future periods relative to the exchange rates in effect in the corresponding prior periods, our growth rate will be negatively affected. The impacts of foreign currency denominated costs and expenses and foreign currency denominated supply contracts partially offset this exposure. Additionally, our designated hedges of intercompany inventory purchases and sales help delay the impact of certain exchange rate fluctuations on non-U.S. dollar denominated revenues.

The following table presents the estimated foreign currency exchange impact on our revenues, operating profit, and diluted earnings per share (net of tax) for the current periods compared to the respective prior-year periods:

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
(in thousands, except per share amounts) 2025 2024 2025 2024
   
Revenue increase (decrease) $ 13,034   $ 643   $ 13,235   $ (6,219)

Operating profit (decrease) increase, excluding hedge activity and exchange impacts of foreign currency transactions $ 7,349  $ (810) $ 5,554  $ (4,448)
Hedge gains (losses) - current period (1,965) 512  600  3,043 
Foreign currency transactions gains (losses) - current period (1,587) 1,381  (2,826) (553)
Operating profit increase (decrease) - current period $ 3,797   $ 1,083   $ 3,328   $ (1,958)

Hedge (gains) losses - prior period (512) (1,273) (3,043) (1,723)
Foreign currency transaction (gains) losses - prior period (1,381) 1,396  553  2,071 
Operating profit increase (decrease) - compared to prior period $ 1,904   $ 1,206   $ 838   $ (1,610)

Diluted earnings per share increase (decrease) - compared to prior period $ 0.02   $ 0.01   $ 0.01   $ (0.01)

The impacts on diluted earnings per share presented may not recalculate due to rounding.

At our current foreign exchange rate assumptions, we anticipate year-over-year changes for the remainder of the year will increase our revenues by approximately $18 million and increase operating profit and diluted earnings per share by approximately $11 million and $0.10 per share, respectively. These favorable currency impacts to our operating profit and diluted earnings per share include net year-over-year impacts of foreign currency hedging activity, which is expected to decrease our total operating profit by approximately $4 million and $0.04 per share for the remainder of the year ending December 31, 2025. These estimates assume that the value of the U.S. dollar will reflect the euro at $1.15, the British pound at $1.34, the Canadian dollar at $0.72, and the Australian dollar at $0.64; and the Japanese yen at ¥149, the Chinese renminbi at RMB 7.26, and the Brazilian real at R$5.55 relative to the U.S. dollar for the remainder of 2025. The actual impact of changes in the value of the U.S. dollar against foreign currencies in which we transact may materially differ from our expectations.
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Based on projected revenues and expenses for the remainder of 2025, excluding the impact of intercompany and trade balances denominated in currencies other than the functional subsidiary currencies, we project a 1% strengthening of the U.S. dollar would reduce revenue by approximately $4 million and operating income by approximately $1 million, net of hedge positions.

Interest Rate Risk . We entered into an interest rate swap to manage the effect of variable interest obligations on amounts borrowed under the terms of our Credit Facility. Beginning on March 31, 2023, the variable interest rate associated with $250.0 million of borrowings outstanding under our Credit Facility became effectively fixed at 3.9%, plus the applicable credit spread, through October 20, 2025. Borrowings outstanding under our Credit Facility at September 30, 2025, were $455.0 million. We have designated the interest rate swap as a cash flow hedge. For more information regarding our interest rate swap, refer to “Part I, Item 1. Financial Statements, Note 19. Hedging Instruments.”

Effects of Inflation . We expect to continue to face higher costs for labor, commodities, energy, and transportation, as well as increased prices from suppliers, due to inflationary pressures and changes in tariff and trade policies. We may not be able to offset these higher costs through productivity initiatives and price increases, which may materially and adversely affect our business, results of operations, and financial condition. Any price increases we may impose may lead to declines in sales volume or loss of business, if competitors do not similarly adjust their prices, or customers refuse to purchase at the higher prices.

Item 4. Controls and Procedures 
 
Disclosure Controls and Procedures 
 
Our management is responsible for establishing and maintaining disclosure controls and procedures, as defined by the SEC in its Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as amended (the “Exchange Act”). The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2025, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level. 
 
Changes in Internal Control Over Financial Reporting 
 
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 30, 2025, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

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PART II — OTHER INFORMATION 
 

Item 1. Legal Proceedings

Due to the nature of our activities, we are at times subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such currently pending or threatened matters is not expected to have a material effect on our results of operations, financial condition, or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that our results of operations, financial condition, or cash flows could be materially adversely affected in any particular period by the unfavorable resolution of one or more legal actions.

Item 1A. Risk Factors 
 
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in “Part I. Item 1A. Risk Factors” in our 2024 Annual Report, which could materially affect our business, financial condition, or future results. There have been no material changes from the risk factors previously disclosed in the 2024 Annual Report. The risks described in our 2024 Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 
 
During the three months ended September 30, 2025, we repurchased shares of common stock as described below:

Period Total Number of Shares Purchased
(a)  Average Price Paid per Share (3)
(b)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs  (1)
(c)
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs  (1)
(d)

       
July 1 to July 31, 2025 237,380  $ 546.39  237,380  4,251,730 
August 1 to August 31, 2025 103,519  $ 642.03  103,500  4,148,230 
September 1 to September 30, 2025 70,413  $ 646.03  70,300  4,077,930 
Total 411,312  (2)
411,180  4,077,930 

(1) As of December 31, 2024, our Board of Directors had approved the repurchase of up to 78 million shares of our common stock in the open market or in negotiated transactions pursuant to the Company’s share repurchase program, which amount includes the approval of an additional 5 million shares on December 3, 2024. The initial program was approved and announced on August 13, 1999, and the maximum number of shares that may be purchased under the program has been increased by the Board of Directors on numerous occasions. There is no specified expiration date for this repurchase program and it may be suspended or discontinued at any time. There were no other repurchase programs outstanding during the three months ended September 30, 2025, and no share repurchase programs expired during the period.

(2) During the three months ended September 30, 2025, we received 132 shares of our common stock that were surrendered by employees in payment for the minimum required withholding taxes due on the vesting of restricted stock units. In the above table, these shares are included in columns (a) and (b), but excluded from columns (c) and (d). These shares do not reduce the number of shares that may yet be purchased under the share repurchase program.

(3) Includes the 1% excise tax for shares repurchased in the open market.

Refer to Note 12 to the unaudited condensed consolidated financial statements in “Part I. Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for additional information about our share repurchases.

Item 5. Other Information

Rule 10b5-1 Trading Plan Elections

During the three months ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted , modified, or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408(a) of Regulation S-K of the Securities Act of 1933).
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Item 6. Exhibits  

Incorporated by Reference
Exhibit No. Exhibit Description Form Exhibit Filing Date / Period End Date Filed / Furnished Herewith

Rule 13a-14(a)/15-14(a) certifications

31.1
Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
X

31.2
Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
X

32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
X

32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
X

Interactive data file

101 The following financial and related information from IDEXX Laboratories, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline eXtensible Business Reportable Language (iXBRL) includes: (i) the Condensed Consolidated Balance Sheet; (ii) the Condensed Consolidated Statement of Income; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statement of Changes in Stockholders' Equity; (v) the Condensed Consolidated Statement of Cash Flows; and, (vi) Notes to Consolidated Financial Statements.

104 The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline XBRL, and contained in Exhibit 101.

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SIGNATURES  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

IDEXX LABORATORIES, INC.

/s/ Andrew Emerson
Date: November 3, 2025 Andrew Emerson
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)

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