IDEXX Laboratories reported a solid start to 2025, with QQ1 revenue of US$998.4 million, up 3.56% year-over-year and 4.63% quarter-over-quarter. The company delivered a robust gross margin of 62.4% and an operating margin of 31.7%, translating into EBITDA of US$351.8 million and net income of US$242.7 million (EPS US$2.98 basic; US$2.96 diluted). Profitability benefited from favorable product mix and operating leverage as volumes rose across core segments, including companion-animal diagnostics, veterinary reference laboratory services, and water testing products. Free cash flow reached US$207.9 million, supported by operating cash flow of US$238.0 million and modest capital expenditure of US$30.0 million. The quarter featured a material capital return action, with common stock repurchase of US$400.9 million, contributing to a net cash outflow in financing activity and a closing cash balance of US$164.0 million. On the balance sheet, IDEXX remains financially disciplined with total assets of US$3.21 billion and net debt of US$895 million, underpinned by an extremely favorable interest coverage of ~41x. While management did not publish new full-year guidance in the data provided, the QQ1 results reinforce the company’s disciplined operating model and the durable, high-margin nature of its recurring consumables and services-based revenue streams. Investors should monitor the ongoing mix between high-margin consumables/services and instrumentation, international growth initiatives, capital allocation decisions, and potential macro-driven demand shifts in the animal health and water testing markets.