IDEXX Laboratories reported a robust QQ2 2025, with revenue of $1.109 billion, up 10.6% year over year and 11.1% quarter over quarter. The company delivered strong profitability, with gross margin of 62.6% and operating margin of 33.6%, supported by a healthy EBITDA of $409.4 million and net income of $294.0 million (EPS diluted $3.63). The performance reflects continued demand for companion-animal diagnostics, instrument and consumables adoption, and solid services revenue across reference laboratories and software offerings.
Free cash flow remained substantial at $151.6 million, underpinning a prudent capital allocation approach despite a meaningful net debt position. IDEXX ended the period with cash of $164.6 million and total debt of roughly $1.24 billion, yielding a net debt of about $1.07 billion and a net debt to EBITDA around the low-to-mid 2x range. The balance sheet remains resilient, with strong liquidity and ongoing investments in R&D and product development to sustain competitive advantages in the high-margin veterinary diagnostics ecosystem. While management did not provide explicit forward guidance in the dataset, the quarter reinforces IDEXX’s premium margin profile, cash generation, and potential for continued top-line growth driven by international expansion, instrument cycles, and consumables adoption. Investors should monitor leverage trajectory, currency exposures, and any shifts in pet-owner health care spending.