Financial Analysis

ACQUISITIONS, ASSET PURCHASES AND INVESTMENTS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range, customer base, or existing product and service lines. From time to time, we acquire small reference laboratories or radiology practices that we account for as either asset purchases or business combinations, and we acquire noncontrolling minority interests in business entities, which we recognize as equity investments. We also acquire commercial rights to certain technology through licensing agreements. Asset Purchases and Investments During September 2025, we acquired a customer relationship intangible asset of a privately-owned reference laboratory in the U.S. for approximately $15.6 million, including an estimated contingent payment of $2.3 million at the time of acquisition. The customer relationship intangible has an estimated life of 10 years. The revenue associated with the acquired customer relationships has been included in our CAG segment since the acquisition date. During 2024, we acquired a perpetual intellectual property license for $10.0 million. The license has an estimated useful life of 10 years, and is included in our CAG segment. Business Combinations During the first quarter of 2024, we acquired the assets of a privately-owned software and data platform business based in the U.S. that extended our practice management system cloud-native workflow and delivers strategic data so …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Facility On October 20, 2022, pursuant to the terms of the Existing Credit Agreement (as defined below), the term lenders thereunder provided us, as borrower, an incremental term loan in an aggregate principal amount of $250.0 million (the Original Term Loan). On October 20, 2025, upon the maturity of our three-year Original Term Loan under the Existing Credit Agreement, we repaid the principal amount of $250.0 million. On November 12, 2025, we, the administrative agent and certain lenders and other parties entered into Amendment No. 2 to our fourth amended and restated credit agreement, as amended by that certain Amendment No. 1 dated as of October 20, 2022 (the Existing Credit Agreement, as amended by Amendment No. 2, the Credit Agreement). Under our Credit Agreement, there remains an unsecured revolving credit facility in the principal amount of $1.0 billion, which matures on November 12, 2030, a three-year unsecured Term Loan in the principal amount of $250.0 million, which expires on November 12, 2028, and flexibility to incur incremental revolving credit commitments and/or term loans in the aggregate principal amount of up to $250.0 million. Borrowings in U.S. Dollars under our Credit Agreement bear interest at a per annum rate, determined at our option, equal to either: (1) a base rate (determined as the greatest of (i) the prime rate, (ii) the NYFRB Rate plus 0.50% and (iii) the Adjusted Term SOFR Rate for a one-month Interest Period plus 1% (but not less …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenue by major product and service categories: (in thousands) For the Years Ended December 31, 2025 2024 2023 CAG segment revenue: CAG Diagnostics recurring revenue: $ 3,407,199 $ 3,129,492 $ 2,935,425 IDEXX VetLab consumables 1,496,752 1,303,250 1,188,261 Rapid assay products 348,950 359,754 344,494 Reference laboratory diagnostic and consulting services 1,424,073 1,336,121 1,278,617 CAG Diagnostics services and accessories 137,424 130,367 124,053 CAG Diagnostics capital - instruments 200,206 131,928 137,603 Veterinary software, services, and diagnostic imaging systems: 345,880 312,624 279,328 Recurring revenue 276,338 250,359 214,597 Systems and hardware 69,542 62,265 64,731 CAG segment revenue 3,953,285 3,574,044 3,352,356 Water segment revenue 201,149 185,112 168,149 LPD segment revenue 131,787 122,060 121,659 Other revenue 17,481 16,288 18,789 Total revenue $ 4,303,702 $ 3,897,504 $ 3,660,953

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SHARE-BASED COMPENSATION We provide for various forms of share-based compensation awards to our employees and non-employee directors. Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights, and other stock unit awards. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. For stock options, restricted stock units (RSUs), performance-based restricted stock units (PBRSUs), and deferred stock units (DSUs), share-based compensation expense is estimated based on awards ultimately expected to vest, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award. Stock options permit a holder to buy IDEXX stock upon vesting at the stock option exercise price set on the day of grant. An RSU is an agreement to issue shares of IDEXX stock at the time of vesting. A PBRSU is an agreement to issue shares of IDEXX stock at the time of vesting upon achievement of certain performance goals. DSUs are granted under our Executive Deferred Compensation Plan, which was suspended in February 2013 (the Suspended Executive Plan), our non-employee Director Deferred Compensation Plan (the Director Plan), and our Deferred Compensation Plan adopted in December …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Assets and liabilities measured at fair value are cl …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS, NET A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When the value of acquired intangible assets is significant, we typically utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued as the excess of the purchase price of a business combination over the fair value of acquired net assets recognized, and represents the future economic benefits arising from other assets acquired that are not separately identifiable, including expected synergies with our existing business. Our business combinations regularly include contingent consideration arrangements that r …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more-likely-than-not to be realized. In assessing the need for a valuation allowance, we consider future taxable income and ongoing prudent and feasible tax planning strategies. In the event that we determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. We record a liability for uncertain tax positions that do not meet the more-likely-than-not standard as prescribed by U.S. GAAP for income tax accounting. We record tax benefits for only those positions that we believe will more-likely-than-not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounti …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASE COMMITMENTS We determine if an arrangement is a lease at its inception. The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within one year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and equipment in the normal course of business. We determine the expected term of executed agreements using the non-cancelable lease term plus optional renewal terms that we are reasonably certain to exercise. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense for our operating leases. Rent escalations are considered in the calculation of minimum lease payments in our finance lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index, payments associated with non-lease components, and short-term rentals (leases with terms less than twelve months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based o …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

We adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that enhance income tax disclosures, primarily through standardization and disaggregation of income tax rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December 15, 2024, and we elected to adopt the disclosure requirement on a prospective basis. In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software which amends the existing standard related to accounting for internal-use software development costs. The amendments modernize the recognition and capitalization framework to better align with current software development practices by removing references to project stages and clarify the criteria for capitalization, which begins when (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the timing of adoption and the impact of this amendment on t …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

IDEXX RETIREMENT AND INCENTIVE SAVINGS PLAN We have established the IDEXX Retirement and Incentive Savings Plan (the 401(k) Plan). U.S. employees eligible to participate in the 401(k) Plan may contribute specified percentages of their salaries. We match a portion of these contributions, not to exceed 5% of participants eligible compensation. We contributed $33.1 million, $31.0 million, and $30.3 million for the years ended December 31, 2025, 2024, and 2023, respectively. In addition, we may make contributions to the 401(k) Plan at the discretion of the Board of Directors. There were no discretionary contributions in 2025, 2024, or 2023. We have also established defined contribution plans for regional employees in Europe and in Canada. With respect to these plans, our contributions over the past three years have not been material. Defined Benefit Pension Obligations Our Swiss defined benefit pension plans (Swiss Plans) are government-mandated retirement plans that provide employees with a minimum investment return. As of December 31, 2025, our Swiss Plans had a net unfunded pension obligation of $5.4 million, with a fair value of plan assets of $20.7 million. The investments of the plan assets are measured using a mix of Level 1, Level 2, and Level 3 inputs. For the year ended December 31, 2025, we recognized $1.8 million in expense related to the Swiss Plans. The expense was reflected in cost of revenue, sales & marketing expense, general and administrative expense, and r …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue Recognition We recognize revenue when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer, and it is probable that we will collect substantially all of the consideration to which we will be entitled, based on the customers intent and ability to pay the promised consideration. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To accurately present the consideration received in exchange for promised products or services, we apply the five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations 5. Recognition of revenue when, or as, we satisfy a performance obligation We enter into contracts where customers purchase combinations of IDEXX products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The timing of revenue recognition, billings, and cash collections result in accounts receivable, lease receivables, and contract assets arising when revenue is recognized in advance of bi …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING We have three reportable segments: Companion Animal Group (CAG), water quality products (Water), and Livestock, Poultry and Dairy (LPD). CAG provides products and services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides innovative testing solutions for the detection and quantification of various microbiological parameters in water. LPD provides diagnostic tests, services, and related instrumentation that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to measure the quality and safety of milk. Our Other operating segment combines and presents our human medical diagnostic business with our out-licensing arrangement because they do not meet the quantitative or qualitative thresholds for reportable segments. Our human medical diagnostic business develops, manufactures, and distributes human medical diagnostic products and services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (CODM) in assessing performance. The CODM, our president and Chief Executive Officer, evaluates the performance of operating segments based on revenues and gross profit. Our CODM reviews the budget and actual financial results of the operating segments and decides how to allocate resources to meet our strategic prioriti …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Estimates The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to allowances for credit losses for potentially uncollectable accounts receivable, customer contract assets and lease receivables; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, including product returns and customer contracts with multiple performance obligations; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements; and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates. ( b ) Cash and Cash Equivalents We consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

ACQUISITIONS, ASSET PURCHASES AND INVESTMENTS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range, customer base, or existing product and service lines. From time to time, we acquire businesses that we account for as either asset purchases or business combinations, and noncontrolling minority interests in business entities, which we recognize under either the equity or cost method, in accordance with our policy. Asset Purchase On September 8, 2025, we acquired a customer relationship intangible asset of a privately-owned reference laboratory in the U.S. for approximately $15.6 million, including an estimated contingent payment of $2.3 million. The customer relationship intangible has an estimated life of 10 years. The revenue associated with the acquired customer relationships has been included in our CAG segment since the acquisition date. Business Combinations During the first quarter of 2024, we acquired the assets of a privately-owned software and data platform business based in the U.S. that extended our practice management system cloud-native workflow and delivers strategic data solutions to our customers and their clients, for approximately $81.1 million, including a contingent payment valued at $4.4 million at the time of purchase. The fair values and the lives of the assets and liabilities acquired were as follows: completed technology of $17.1 million, with a life of 6 years; custom …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Facility At September 30, 2025, we had $455.0 million in outstanding borrowings under the Credit Facility, of which $250.0 million is under the Term Loan, and $205.0 million is under the revolving credit facility, with a weighted average effective interest rate for the nine months ended September 30, 2025, on the total outstanding borrowings of 5.3%, excluding any impact of our interest rate swap. At December 31, 2024, we had $250.0 million outstanding under the Credit Facility, all of which was under the $250.0 million Term Loan, with a full year weighted average effective interest rate of 6.2%, excluding any impact of our interest rate swap. At September 30, 2025, we had remaining borrowing availability of $793.2 million under our $1.25 billion Credit Facility. The funds available under the Credit Facility reflect a reduction due to the issuance of letters of credit, which were primarily in connection with our workers compensation insurance policy, for $1.8 million. The applicable interest rate for the Credit Facility is calculated at a per annum rate equal to either (at our option) (i) a prime rate plus a margin ranging from 0.0% to 0.375% based on our consolidated leverage ratio, (ii) an adjusted term SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio, or (iii) an adjusted daily simple SOFR rate, plus 0.10%, plus a margin ranging from 0.875% to 1.375% based on our consolidated leverage ratio. In March 20 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenue by major product and service categories: (in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 CAG segment revenue: CAG Diagnostics recurring revenue: $ 873,273 $ 783,443 $ 2,557,535 $ 2,372,041 IDEXX VetLab consumables 387,813 329,128 1,107,704 971,405 Rapid assay products 88,638 92,774 272,912 282,379 Reference laboratory diagnostic and consulting services 362,725 328,383 1,074,825 1,020,094 CAG Diagnostics services and accessories 34,097 33,158 102,094 98,163 CAG Diagnostics capital - instruments $ 51,479 $ 29,528 $ 142,073 $ 98,912 Veterinary software, services and diagnostic imaging systems: $ 87,782 $ 79,019 $ 255,205 $ 232,620 Recurring revenue 70,988 64,644 205,735 187,461 Systems and hardware 16,794 14,375 49,470 45,159 CAG segment revenue $ 1,012,534 $ 891,990 $ 2,954,813 $ 2,703,573 Water segment revenue 54,297 50,162 150,619 139,959 LPD segment revenue 33,944 28,992 94,302 87,503 Other segment revenue 4,464 4,399 13,389 12,181 Total revenue $ 1,105,239 $ 975,543 $ 3,213,123 $ 2,943,216

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SHARE-BASED COMPENSATION The fair value of options, restricted stock units, deferred stock units, performance-based restricted stock units, and employee stock purchase rights awarded during the three and nine months ended September 30, 2025, totaled $2.0 million and $70.2 million, respectively, compared to $1.2 million and $71.4 million for the three and nine months ended September 30, 2024, respectively. The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding as of September 30, 2025 , was $80.9 million, which will be recognized over a weighted average period of approximately 1.5 years. During the three and nine months ended September 30, 2025, we recognized share-based compensation expenses of $14.4 million and $43.9 million, respectively, compared to $15.9 million and $46.0 million for the three and nine months ended September 30, 2024, respectively. We determine the assumptions used in the valuation of option awards as of the date of grant. Differences in the expected stock price volatility, expected term, or risk-free interest rate may necessitate distinct valuation assumptions at each grant date. As such, we may use different assumptions for options granted throughout the year. Option awards are granted with an exercise price equal to or greater than the closing market price of our common stock at the date of grant. We have never paid any cash dividends on our common stock, and we have no intent …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measur …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Our effective income tax rates were 20.4% and 20.2% for the three and nine months ended September 30, 2025, respectively, compared to 22.1% and 21.3% for the three and nine months ended September 30, 2024, respectively. The decrease in our effective tax rate for the three months ended September 30, 2025, compared to the same period during the prior year, was primarily due to an increase in tax benefits related to share-based compensation, partially offset by a reduction in our U.S. tax benefit associated with Foreign-Derived Intangible Income as a result of accelerating our research and development deductions as allowed by recent U.S. tax law changes. The decrease in our effective tax rate for the nine months ended September 30, 2025, compared to the same period during the prior year, was primarily driven by the 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. The effective tax rate for the three and nine months ended September 30, 2025, was lower than the U.S. federal statutory tax rate of 21% primarily due to tax benefits from share-based compensation, partially offset by U.S. state taxes. Cash paid for income taxes, net of refunds, during the nine months ended September 30, 2025, and 2024, was $150.1 million and $233.1 million, respectively. The reduction in income taxes paid during the nine months ended September 30, 2025, compar …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASE COMMITMENTS Maturities of operating lease liabilities were as follows: (in thousands) September 30, 2025 2025 (remainder of year) $ 5,955 2026 34,203 2027 29,090 2028 22,846 2029 18,148 Thereafter 43,247 Total lease payments 153,489 Less imputed interest (20,348) Total operating lease liabilities (current and long-term) $ 133,141 Supplemental cash flow information for leases was as follows: (in thousands) For the Nine Months Ended September 30, 2025 2024 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,804 $ 21,398 Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations (1) $ 28,717 $ 22,331 (1) Additions for the nine months ended September 30, 2024, include $1.0 million of right-of-use assets obtained in connection with a business acquisition in the first quarter of 2024.

LesseeOperatingLeasesTextBlock

New Accounting Pronouncements Adopted We adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as of December 31, 2024. ASU 2023-07 is intended to improve reportable segment disclosures. The amendments require disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The adoption of ASU 2023-07 did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In September 2025, the FASB issued Accounting Standard Update (ASU) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software which amends the existing standard related to accounting for internal-use software development costs. The amendments modernize the recognition and capitalization framework to better align with current software development practices by removing references to project stages and clarify the criteria for capitalization, which begins when (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. We are currently e …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE Revenues by Product and Service Categories and by Principal Geographic Areas We present disaggregated revenue for our CAG segment based on major product and service categories. Our Water and LPD segments comprise a single major product category. The following table presents revenue by major product and service categories: (in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 CAG segment revenue: CAG Diagnostics recurring revenue: $ 873,273 $ 783,443 $ 2,557,535 $ 2,372,041 IDEXX VetLab consumables 387,813 329,128 1,107,704 971,405 Rapid assay products 88,638 92,774 272,912 282,379 Reference laboratory diagnostic and consulting services 362,725 328,383 1,074,825 1,020,094 CAG Diagnostics services and accessories 34,097 33,158 102,094 98,163 CAG Diagnostics capital - instruments $ 51,479 $ 29,528 $ 142,073 $ 98,912 Veterinary software, services and diagnostic imaging systems: $ 87,782 $ 79,019 $ 255,205 $ 232,620 Recurring revenue 70,988 64,644 205,735 187,461 Systems and hardware 16,794 14,375 49,470 45,159 CAG segment revenue $ 1,012,534 $ 891,990 $ 2,954,813 $ 2,703,573 Water segment revenue 54,297 50,162 150,619 139,959 LPD segment revenue 33,944 28,992 94,302 87,503 Other segment revenue 4,464 4,399 13,389 12,181 Total revenue $ 1,105,239 $ 975,543 $ 3,213,123 $ 2,943,216 The following table presents revenue by principal geographic area, based on customers domiciles: (in thousands) For the Three Months E …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING We have three reportable segments: Companion Animal Group (CAG), water quality products (Water), and Livestock, Poultry and Dairy (LPD). CAG provides products and services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides innovative testing solutions for the detection and quantification of various microbiological parameters in water. LPD provides diagnostic tests, services, and related instrumentation that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. Other information combines and presents our human medical diagnostic business (OPTI Medical) with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. OPTI Medical develops, manufactures, and distributes human medical diagnostic products and services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (CODM) in assessing performance. The CODM, our president and Chief Executive Officer, evaluates the performance of operating segments based on revenues and gross profit. Our CODM reviews budget and actual results of the operating segments and decides how to allocate resources to meet our strategic priorities, and he also meets with operati …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

ACCOUNTING POLICIES Significant Accounting Policies The significant accounting policies used in preparation of these unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2025, are consistent with those discussed in Note 2. Summary of Significant Accounting Policies to the consolidated financial statements in our 2024 Annual Report, and as updated below. New Accounting Pronouncements Adopted We adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, as of December 31, 2024. ASU 2023-07 is intended to improve reportable segment disclosures. The amendments require disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The adoption of ASU 2023-07 did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In September 2025, the FASB issued Accounting Standard Update (ASU) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software which amends the existing standard related to accounting for internal-use software development costs. The amendments modernize the recognition and capitalization framework to better align with current software development practices by removing references to project stages and clarify the criteria for capit …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing