Financial Trends -- 8/10
IDXX is a high-quality compounder that endured a meaningful organic growth deceleration through
2024 (organic growth fell from ~10% in 2023 to 5.8% by Q4 2024) but has inflected sharply higher
through 2025, exiting the year at 12% organic growth. Margins expanded consistently, FCF conversion
hit 100% of net income, and EPS compounded at +23% in 2025. The deceleration-then-reacceleration
pattern, combined with persistent same-store clinic visit headwinds (-1.9% in 2025), warrants a
slight penalty versus a pure-play compounder that never stumbled, but the magnitude of the recovery
and the breadth of acceleration across segments is impressive.
Weight: 25%
FY25 Revenue
$4.3B
+10.4% reported | 9.6% organic
FY25 Operating Income
$1,360M
31.6% margin | +260bps YoY
FY25 EPS (Diluted)
$13.08
+22.6% YoY | 14.3% 5yr CAGR
FY25 Free Cash Flow
$1,057M
100% of net income | 14.3% 5yr CAGR
Annual Financial Summary ($M, FY ends December)
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Total Revenue | $2,707M | $3,215M | $3,367M | $3,661M | $3,898M | $4,304M |
| Rev YoY | — | +18.8% | +4.7% | +8.7% | +6.5% | +10.4% |
| Organic Growth | 12.0% | 16.4% | 7.4% | 8.8% | 6.4% | 9.6% |
| Gross Profit | $1,571M | $1,889M | $2,004M | $2,190M | $2,379M | $2,660M |
| Gross Margin | 58.0% | 58.8% | 59.5% | 59.8% | 61.0% | 61.8% |
| Operating Income | $695M | $932M | $899M | $1,097M | $1,128M | $1,360M |
| Op Margin | 25.7% | 29.0% | 26.7% | 30.0% | 29.0% | 31.6% |
| Adj. EBITDA | $825M | $1,084M | $1,062M | $1,279M | $1,332M | $1,569M |
| Net Income | $582M | $745M | $679M | $845M | $888M | $1,059M |
| Diluted EPS | $6.71 | $8.60 | $8.03 | $10.06 | $10.67 | $13.08 |
| EPS YoY | — | +28.2% | -6.6% | +25.3% | +6.1% | +22.6% |
| Diluted Shares (M) | 86.7M | 86.6M | 84.6M | 84.0M | 83.2M | 81.0M |
| Operating Cash Flow | $648M | $756M | $543M | $907M | $929M | $1,182M |
| CapEx | ($107M) | ($120M) | ($149M) | ($134M) | ($121M) | ($125M) |
| Free Cash Flow | $541M | $636M | $394M | $773M | $808M | $1,057M |
| FCF / Net Income | 93% | 85% | 58% | 91% | 91% | 100% |
| Buybacks | ($183M) | ($747M) | ($820M) | ($72M) | ($837M) | ($1,217M) |
Note: IDXX reports under U.S. GAAP in USD. Fiscal year ends December 31. Revenue and
segment data in thousands rounded to millions. FCF = company definition (OCF less CapEx).
Organic growth, clinic visit growth from company transcripts.
Five-year revenue CAGR of ~9.7% with consistent margin expansion.
Gross margin expanded +380bps over 5 years
(58.0% to
61.8%), driven by mix shift toward
higher-margin consumables and reference lab. Operating margin reached
31.6% in FY2025 (+260bps YoY).
EPS compounded at ~14.3% CAGR (2020-2025) while share count declined -6.6%.
Segment Revenue ($M, Annual)
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| CAG | $2,386M | $2,890M | $3,059M | $3,352M | $3,574M | $3,953M |
| CAG Organic Growth | 11.9% | 18.7% | 8.4% | 9.8% | 6.4% | 9.8% |
| Water | $129M | $147M | $156M | $168M | $185M | $201M |
| Water Organic Growth | -1.6% | 11.7% | 9.7% | 7.2% | 10.6% | 8.0% |
| LPD | $146M | $136M | $123M | $122M | $122M | $132M |
| LPD Organic Growth | 11.0% | -9.2% | -4.0% | -0.8% | 1.2% | 6.1% |
| Other | $46M | $43M | $30M | $19M | $16M | $17M |
| Total Revenue | $2,707M | $3,215M | $3,367M | $3,661M | $3,898M | $4,304M |
| Total Organic Growth | 12.0% | 16.4% | 7.4% | 8.8% | 6.4% | 9.6% |
CAG Sub-Segment Revenue ($M, Annual)
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| VetLab Consumables | $824M | $1,007M | $1,057M | $1,188M | $1,303M | $1,497M |
| Reference Lab | $946M | $1,124M | $1,178M | $1,279M | $1,336M | $1,424M |
| Rapid Assay | $253M | $297M | $314M | $344M | $360M | $349M |
| Vet Software/Imaging | $163M | $206M | $251M | $279M | $313M | $346M |
| CAG Diag Recurring | $2,114M | $2,535M | $2,660M | $2,935M | $3,130M | $3,407M |
| CAG Diag Recurring Organic | 14.8% | 18.1% | 8.2% | 10.5% | 6.8% | 8.1% |
Quarterly Organic Growth Tracker (Q1 2023 through Q4 2025)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Organic | 9.8% | 10.1% | 7.6% | 7.8% | 6.8% | 6.7% | 6.1% | 5.8% | 4.7% | 9.3% | 12.0% | 12.2% |
| Clinic Visit Growth | -1.1% | -2.1% | -2.6% | -1.2% | -2.7% | -2.4% | -2.3% | -2.9% | -2.6% | -3.6% | -2.4% | -2.8% |
| Revenue ($M) | $900M | $944M | $916M | $902M | $964M | $1,004M | $976M | $954M | $998M | $1,109M | $1,105M | $1,091M |
| Gross Margin | 60.3% | 60.7% | 59.9% | 58.4% | 61.5% | 61.7% | 61.1% | 59.8% | 62.4% | 62.6% | 61.8% | 60.3% |
| Op Margin | 31.1% | 31.4% | 30.1% | 27.2% | 31.0% | 26.3% | 31.2% | 27.4% | 31.7% | 33.6% | 32.1% | 28.9% |
| EPS | $2.55 | $2.67 | $2.53 | $2.32 | $2.81 | $2.44 | $2.80 | $2.62 | $2.96 | $3.63 | $3.40 | $3.08 |
Violent reacceleration: organic growth troughed at 4.7% in Q1 2025,
then surged to 12.2% by Q4 2025 (+750bps swing). The acceleration was partly driven by
InVue Dx instrument revenue (~200bps contribution) and improving CAG recurring trends. CAG
Diagnostics recurring organic growth re-accelerated from 4.5% in Q1 to 10.2% in Q4 -- a +570bps
swing. Meanwhile, same-store clinic visits remained negative throughout (-1.9% for FY2025), meaning
the diagnostic revenue premium over visit growth was ~1,100bps in Q4 2025.
Q1 2025 organic growth of 4.7% was partially depressed by ~150bps
equivalent-days headwind. Still, the four consecutive quarters of deceleration from Q1 2024
through Q4 2024 (6.8% to 5.8%) represented an unusual stumble for this compounder.
Quarterly Profitability ($M, Q1 2023 through Q4 2025)
| Metric | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Income | $280M | $296M | $275M | $245M | $299M | $264M | $304M | $262M | $317M | $373M | $355M | $316M |
| Op Margin | 31.1% | 31.4% | 30.1% | 27.2% | 31.0% | 26.3% | 31.2% | 27.4% | 31.7% | 33.6% | 32.1% | 28.9% |
| Gross Margin | 60.3% | 60.7% | 59.9% | 58.4% | 61.5% | 61.7% | 61.1% | 59.8% | 62.4% | 62.6% | 61.8% | 60.3% |
| EPS | $2.55 | $2.67 | $2.53 | $2.32 | $2.81 | $2.44 | $2.80 | $2.62 | $2.96 | $3.63 | $3.40 | $3.08 |
Cash Flow and Capital Allocation ($M, Annual)
| Metric | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Operating Cash Flow | $648M | $756M | $543M | $907M | $929M | $1,182M |
| CapEx | ($107M) | ($120M) | ($149M) | ($134M) | ($121M) | ($125M) |
| Free Cash Flow | $541M | $636M | $394M | $773M | $808M | $1,057M |
| FCF / Net Income | 93% | 85% | 58% | 91% | 91% | 100% |
| Buybacks | ($183M) | ($747M) | ($820M) | ($72M) | ($837M) | ($1,217M) |
| Diluted Shares (M) | 86.7M | 86.6M | 84.6M | 84.0M | 83.2M | 81.0M |
FCF conversion improved to 100% of net income in FY2025 -- best
in 5 years. Free cash flow reached
$1,057M (highest ever). Capital spending
is disciplined at ~3% of revenue. Buyback program accelerated in 2025:
$1,217M repurchased (-2.6% share count),
while leverage remains very low (0.5x gross, 0.4x net).
Instrument Installed Base (Premium, 000s)
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Catalyst | 188K | 214K | 243K | 267K | 289K | n/a |
| Prem. Hematology | 133K | 146K | 165K | 183K | 201K | n/a |
| SediVue | 40K | 49K | 59K | 69K | 80K | n/a |
| New+Comp Catalyst (US, cumul.) | 49.6K | 56.5K | 63.1K | 69.1K | 74.1K | 77.9K |
InVue Dx is a significant new growth catalyst. In 2025, IDEXX placed ~22,500
premium instruments (+42% in Q4 alone), including ~6,400 InVue Dx units (brand new urinalysis
platform launched mid-2024). Record Q4 placements of 6,567 instruments. InVue Dx contributed
>$75M in instrument revenue in its first full year, adding ~200bps to company revenue growth.
This is a classic razor/blade play -- placements today drive years of consumable pull-through.
Acceleration / Deceleration Analysis
| Signal | Detail | Direction |
|---|---|---|
| Organic Growth Reacceleration | +750bps from Q1 2025 trough (4.7%) to Q4 2025 (12.2%) | Accelerating |
| CAG Diag Recurring Organic | +570bps swing: 4.5% (Q1 25) to 10.2% (Q4 25) | Accelerating |
| Gross Margin | 5 consecutive years of expansion (+380bps cumulative) | Accelerating |
| EPS Growth | Reaccelerated from +6.1% in 2024 to +22.6% in 2025 | Accelerating |
| LPD Segment | Inflected positive (+6.1% organic) after years of decline | Accelerating |
| Same-Store Clinic Visits | US visits -1.9% FY2025; wellness visits -3.6% in Q4 | Negative |
| Rapid Assay Revenue | Declined -3% organically in FY2025 | Decelerating |
| 2026 Organic Guidance | 7-9% (midpoint below 9.6% achieved in 2025) | Stable |
2026 Guidance and Outlook
| Metric | FY2025 Actual | 2026 Guidance | Key Driver |
|---|---|---|---|
| Revenue | $4.3B | $4.63B-$4.72B | +7.6% to +9.6% reported |
| Organic Growth | 9.6% | 7% to 9% | CAG Diag recurring 8%-10% |
| Net Price Realization | ~4% global | ~4% global / ~3.5% US | Modestly lower but still strong |
| US Clinical Visits | -1.9% | ~-2% assumed | No visibility on inflection |
| Operating Margin | 31.6% | Expansion expected | Comparable margin expansion guided |
Penalty / Modifier Assessment
| Factor | Impact | Detail |
|---|---|---|
| 2024 deceleration trough | -0.50 | Four consecutive quarters of decelerating organic growth (Q1-Q4 2024) |
| Persistent negative clinic visits | -0.50 | -2% visits assumed in 2026 guidance; no visibility on inflection |
| Rapid Assay weakness | -0.25 | Declining revenue; partly self-inflicted (Catalyst cannibalization) |
| Strong 2025 reacceleration | +0.50 | Organic growth recovery from 4.7% to 12%+, supported by innovation |
| Margin consistency | +0.50 | 5 consecutive years of gross margin expansion; 31.6% op margin near-record |
| FCF inflection | +0.25 | 100% FCF conversion, $1.1B FCF -- highest ever |
| InVue Dx launch success | +0.50 | New platform creating incremental growth vector; record placements |
Net modifier impact: +0.50 pts. The strong 2025
reacceleration, consistent margin expansion, FCF improvement, and InVue Dx launch success
(+1.75) more than offset the 2024 deceleration, persistent clinic visit headwinds, and Rapid
Assay weakness (-1.25). IDXX earns an 8.0 as a top-tier financial compounder that experienced
a notable but temporary deceleration, then reaccelerated impressively.
Transcript Context (Q3 2024 through Q4 2025)
Same-store clinic visits remain negative: U.S. visits declined -1.9% in FY2025,
with wellness visits particularly soft (-3.6% in Q4). This is a macro/sector headwind, not
IDXX-specific. IDXX diagnostic revenue premium over visit growth was ~1,100bps in Q4 2025,
showing strong execution.
Pricing power intact: Global net price realization of ~4% in 2025. For 2026,
guidance embeds ~4% global, ~3.5% U.S. -- modestly lower but still strong for a diagnostics
compounder.
InVue Dx is a significant growth catalyst: The new urinalysis analyzer drove
record instrument placements and >$75M in first-year instrument revenue. Classic IDXX
razor/blade play -- placements today will drive years of consumable pull-through.
2026 Guidance: Revenue $4.63B-$4.72B (+7.6% to +9.6% reported, +7% to +9%
organic). CAG Diagnostics recurring organic growth 8%-10% (midpoint +100bps vs. 2025). EPS
guidance and comparable operating margin expansion expected. Assumes ~2% US clinical visit
declines persist.
Daloopa (company_id: 429) and IDXX earnings call transcripts (Q3 2024 through Q4 2025)