Executive Summary
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 IDEXXβs 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.
Key Performance Indicators
Key Insights
Revenue: $1.109B; YoY +10.6%, QoQ +11.1% | Gross Profit: $694.7M; Gross Margin 62.6%; YoY +11.9%, QoQ +11.5% | Operating Income: $373.0M; Margin 33.6%; YoY +41.4%, QoQ +17.9% | EBITDA: $409.4M; Margin 36.9% | Net Income: $294.0M; Margin 26.5%; YoY +44.6%, QoQ +21.1% | EPS (diluted): $3.63; YoY +48.8%, QoQ +22.8% | EBITDA/Revenue: 0.369 | Free Cash Flow: $151.6M; FCF per share $1.89 | Operating Cash Flow: $185.7M; CapEx: -$34.1M; FCF Yield approximates to a double-digit percentage on a per-share ...
Financial Highlights
Revenue: $1.109B; YoY +10.6%, QoQ +11.1% | Gross Profit: $694.7M; Gross Margin 62.6%; YoY +11.9%, QoQ +11.5% | Operating Income: $373.0M; Margin 33.6%; YoY +41.4%, QoQ +17.9% | EBITDA: $409.4M; Margin 36.9% | Net Income: $294.0M; Margin 26.5%; YoY +44.6%, QoQ +21.1% | EPS (diluted): $3.63; YoY +48.8%, QoQ +22.8% | EBITDA/Revenue: 0.369 | Free Cash Flow: $151.6M; FCF per share $1.89 | Operating Cash Flow: $185.7M; CapEx: -$34.1M; FCF Yield approximates to a double-digit percentage on a per-share basis | Balance Sheet: Cash $164.6M; Total Debt $1.237B; Net Debt $1.073B; Total Assets $3.331B; Total Liabilities $1.872B; Equity $1.459B | Liquidity/Leverage: Current ratio 1.113; Quick ratio 0.792; Debt/Capitalization 0.459; Debt/Equity 0.848; ROE 20.2%; ROA 8.83%; Asset Turnover 0.333; Receivables Turnover 1.672; DSO 53.8 days; Inventory Days 85.2; Cash Conversion Cycle 113.7 days | Valuation Metrics (selected): P/E ~36.7, P/B ~29.6, P/S ~38.9; Enterprise Value to EBITDA ~108x; Dividend Payout: none.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.11B |
10.55% |
11.12% |
| Gross Profit |
694.73M |
11.89% |
11.45% |
| Operating Income |
373.05M |
41.41% |
17.85% |
| Net Income |
293.99M |
44.61% |
21.14% |
| EPS |
3.66 |
48.78% |
22.82% |
Key Financial Ratios
operatingProfitMargin
33.6%
operatingCashFlowPerShare
$2.31
freeCashFlowPerShare
$1.89
Management Commentary
No earnings call transcript data available in the provided dataset. Consequently, no management quotes or thematic highlights from an earnings call could be extracted.
Forward Guidance
No explicit numeric guidance was provided in the dataset for QQ3/2025 or beyond. Given IDEXXβs operating model, drivers of continued outperformance would likely include: (1) sustained demand for companion-animal diagnostics and reference-lab services; (2) strength in instrument/consumables cycles and software offerings; (3) ongoing international expansion and higher-margin product mix; (4) steady free cash flow generation to support deleveraging and potential opportunistic investments. Investors should monitor: currency exposure given international revenue recognition, capital allocation toward R&D and product development, cycle timing for instrument refresh, and any shifts in pet-owner healthcare spending that could influence volume mix and pricing power.