Company Performance - atai Life Sciences N.V. has returned 58.7% year-to-date, significantly outperforming the Medical sector, which has returned an average of -3.9% [4] - The Zacks Consensus Estimate for atai Life Sciences N.V.'s full-year earnings has increased by 22.9% over the past 90 days, indicating improved analyst sentiment and a more positive earnings outlook [4] - atai Life Sciences N.V. holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3] Industry Comparison - atai Life Sciences N.V. is part of the Medical - Outpatient and Home Healthcare industry, which includes 17 companies and currently ranks 33 in the Zacks Industry Rank [6] - The average return for stocks in the Medical - Outpatient and Home Healthcare industry is 5.2% year-to-date, indicating that atai Life Sciences N.V. is performing better than its industry peers [6] - In contrast, Idexx Laboratories, another Medical stock, belongs to the Medical - Instruments industry, which has seen a decline of -9.8% this year and is ranked 175 [7]

Core Insights - IDEXX Laboratories, Inc. has launched the Catalyst® Cortisol Test, which provides real-time quantitative cortisol measurements to assist in diagnosing Addison's disease and managing Cushing's syndrome in dogs [1][4][5] Group 1: Product Launch and Features - The Catalyst Cortisol Test is the third expansion of the Catalyst platform within a year, enhancing diagnostic capabilities for veterinary practices [1][4] - This test allows for immediate diagnosis or ruling out of Addison's disease and Cushing's syndrome during patient visits, facilitating timely treatment [4][6] - The test will be available in the U.S. and Canada by the end of July 2025, with a global rollout expected to start in Q3 2025 [6] Group 2: Importance of the Test - Addison's disease is challenging to diagnose due to its nonspecific symptoms, making early detection crucial for effective treatment [3] - Cushing's syndrome, prevalent in older dogs, requires long-term management, and untreated cases can severely impact quality of life [3] - The Catalyst Cortisol Test improves long-term care for dogs with Cushing's syndrome by enabling tailored treatment adjustments [4] Group 3: Company Vision and Commitment - IDEXX emphasizes its commitment to advancing veterinary care through innovative solutions that enhance clinical insights and care delivery [5][7] - The test integrates with existing IDEXX systems, providing real-time interpretive guidance to streamline workflows for veterinary teams [8]

Core Viewpoint - IDEXX Laboratories, Inc. (NASDAQ: IDXX) has seen a stock price increase of over 22% since being upgraded to a Buy rating in March 2025, despite a decline in U.S. clinical visits [1]. Company Performance - The company delivered strong quarterly results, indicating resilience in its operations despite external challenges [1]. Investment Strategy - The investment approach focuses on fundamental, bottom-up analysis with an emphasis on long-term quality growth, targeting companies in niche markets with strong growth potential and reasonable valuations [1]. - The portfolio typically consists of 15-20 stocks, emphasizing diversification, risk management, macro-driven sector weights, and disciplined trading [1].

Company Performance - Idexx Laboratories (IDXX) has returned approximately 23.2% since the beginning of the calendar year, significantly outperforming the Medical sector, which has an average return of -6.7% year-to-date [4] - The Zacks Consensus Estimate for IDXX's full-year earnings has increased by 1.9% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] Industry Context - Idexx Laboratories is part of the Medical - Instruments industry, which consists of 85 individual companies and currently ranks 78 in the Zacks Industry Rank. This industry has experienced a loss of about 6.9% so far this year, highlighting IDXX's superior performance within this group [6] - Another stock in the Medical sector, AngioDynamics (ANGO), has also outperformed the sector with a year-to-date return of 2.6% and a consensus EPS estimate increase of 22.5% over the past three months, earning a Zacks Rank of 1 (Strong Buy) [4][5] Sector Ranking - The Medical sector, which includes 1001 individual stocks, ranks 4 in the Zacks Sector Rank, indicating a relatively strong position compared to other sectors [2] - Idexx Laboratories currently holds a Zacks Rank of 2 (Buy), suggesting it is well-positioned for potential growth in the near term [3] Investment Outlook - Investors interested in Medical stocks should continue to monitor Idexx Laboratories and AngioDynamics, as both companies are expected to maintain their solid performance [7]

```markdown PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the three months ended March 31, 2025, show a 3.6% increase in total revenue to $998.4 million compared to the prior year, with net income rising to $242.7 million and diluted EPS increasing to $2.96 from $2.81, while the balance sheet indicates a decrease in cash and cash equivalents and total assets, an increase in total liabilities, and cash flow from operations increasing to $238.0 million with a significant rise in cash used in financing activities due to increased stock repurchases [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $3.21 billion, a slight decrease from $3.29 billion at year-end 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities increased to $1.77 billion from $1.70 billion, driven by higher borrowings under the credit facility, consequently decreasing total stockholders' equity to $1.45 billion from $1.60 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,317,613 | $1,399,897 | | Cash and cash equivalents | $163,970 | $288,266 | | **Total Assets** | **$3,213,689** | **$3,293,443** | | **Total Current Liabilities** | $1,136,213 | $1,067,916 | | Credit facility | $319,500 | $250,000 | | **Total Liabilities** | **$1,765,676** | **$1,698,130** | | **Total Stockholders' Equity** | **$1,448,013** | **$1,595,313** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, total revenue increased by 3.6% year-over-year to $998.4 million, gross profit grew by 5.1% to $623.4 million, indicating margin expansion, and net income rose to $242.7 million from $235.6 million in the prior-year period, resulting in a diluted EPS of $2.96, up from $2.81 Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $998,427 | $964,095 | 3.6% | | Gross Profit | $623,379 | $593,070 | 5.1% | | Income from Operations | $316,534 | $298,958 | 5.9% | | Net Income | $242,677 | $235,579 | 3.0% | | Diluted EPS | $2.96 | $2.81 | 5.3% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash from operating activities increased to $238.0 million from $198.6 million in the prior year, net cash used in investing activities decreased significantly to $29.6 million from $106.9 million primarily due to a business acquisition in the 2024 period, and net cash used in financing activities increased substantially to $330.3 million from $144.1 million, driven by a significant increase in common stock repurchases Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $237,962 | $198,585 | | Net cash used by investing activities | $(29,610) | $(106,944) | | Net cash used by financing activities | $(330,321) | $(144,074) | | **Net decrease in cash** | **$(124,296)** | **$(56,499)** | - The increase in cash used for financing was primarily due to a significant rise in common stock repurchases, which totaled **$400.9 million in Q1 2025** compared to **$154.8 million in Q1 2024**[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures supporting the financial statements, including revenue disaggregation by segment and geography, specifics on customer commitment arrangements and contract assets, information on a 2024 business acquisition, debt structure and covenants, a significant increase in stock repurchases, segment performance breakdowns, and hedging activities - Estimated future revenues from multi-year customer commitment arrangements are approximately **$4.7 billion**[44](index=44&type=chunk) - In Q1 2024, the company acquired a software and data platform business for approximately **$81.1 million**, which included **$45.8 million of goodwill**[52](index=52&type=chunk) - The company paid a legal judgment of approximately **$80 million** on April 17, 2025, which was fully accrued as of March 31, 2025[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported total company organic revenue growth of 4.7% for Q1 2025, driven by the Companion Animal Group (CAG) segment, which saw 4.4% organic growth, with gross profit margin improving by 90 basis points to 62.4% due to favorable business mix and price realization, while the company significantly increased its stock repurchases, maintaining strong liquidity with $928.6 million available under the credit facility and compliance with all debt covenants at a low leverage ratio [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total company organic revenue grew 4.7%, led by CAG Diagnostics recurring revenue and the Water business, with gross profit margin expanding to 62.4% from 61.5% due to favorable mix and pricing, and operating income increasing 5.9% to $316.5 million, while the CAG segment's organic revenue grew 4.4% with strong performance in IDEXX VetLab consumables (10.5% organic growth), and the Water segment grew 7.3% organically, with LPD growing 4.2% Q1 2025 Organic Revenue Growth by Segment | Segment | Organic Revenue Growth (%) | | :--- | :--- | | **Total Company** | **4.7%** | | Companion Animal Group (CAG) | 4.4% | | Water | 7.3% | | Livestock, Poultry and Dairy (LPD) | 4.2% | | Other | 32.2% | - Gross profit margin increased by **90 basis points**, primarily due to favorable business mix, benefiting from IDEXX VetLab consumable growth, and net price realization which offset inflationary cost impacts[142](index=142&type=chunk) - Within the CAG segment, IDEXX VetLab consumables revenue showed strong **10.5% organic growth**, supported by a **9% growth** in the active installed base of instruments[146](index=146&type=chunk)[148](index=148&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position remains solid, with $164.0 million in cash and $928.6 million available under its credit facility as of March 31, 2025, despite working capital decreasing to $181.4 million from $332.0 million at year-end 2024, with strong cash from operations at $238.0 million, and financing activities using $330.3 million, largely for stock repurchases of $400.9 million, while remaining in compliance with its financial covenants, maintaining a gross debt to Adjusted EBITDA ratio of 0.70-to-1, well below the 3.5-to-1 limit - As of March 31, 2025, the company had **$164.0 million in cash and cash equivalents** and **$928.6 million of remaining borrowing availability** under its **$1.25 billion Credit Facility**[169](index=169&type=chunk) - Cash used in financing activities increased significantly year-over-year, primarily due to **$400.9 million in common stock repurchases in Q1 2025** compared to **$154.8 million in Q1 2024**[179](index=179&type=chunk) Financial Covenant Compliance (in thousands, as of March 31, 2025) | Metric | Value | | :--- | :--- | | Trailing 12 Months Adjusted EBITDA | $1,350,001 thousand | | Gross Debt | $943,027 thousand | | **Gross Debt to Adjusted EBITDA Ratio** | **0.70** | | Covenant Limit | 3.50 | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency exchange rates and interest rates, with a strengthening U.S. dollar negatively impacting Q1 2025 revenues by $12.3 million and operating profit by $4.1 million compared to the prior year, and continued currency headwinds expected to decrease revenues by approximately $26 million and diluted EPS by $0.06 for the remainder of 2025, while interest rate risk on $250 million of debt is managed through an interest rate swap, effectively fixing the rate - A strengthening U.S. dollar negatively impacted Q1 2025 results, **decreasing revenue by $12.3 million** and **operating profit by $4.1 million** compared to the prior-year period[192](index=192&type=chunk) - For the remainder of 2025, the company anticipates that foreign exchange rates will **decrease revenues by approximately $26 million** and **reduce diluted EPS by approximately $0.06 per share**[192](index=192&type=chunk) - Interest rate risk is partially mitigated by an interest rate swap that effectively fixes the rate on **$250.0 million of borrowings** under the Credit Facility at **3.9%** plus the applicable credit spread through October 20, 2025[194](index=194&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2025, with no material changes in the company's internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective at the reasonable assurance level**[195](index=195&type=chunk) - **No changes occurred in internal control over financial reporting** during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[196](index=196&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal actions in the ordinary course of business, and management believes that the resolution of any currently pending matters will not have a material effect on the company's financial condition or results of operations - Management does not expect any currently pending or threatened legal matters to **not have a material effect** on the company's results of operations, financial condition, or cash flows[199](index=199&type=chunk) [Item 1A. Risk Factors](index=45&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** have occurred from the risk factors previously disclosed in the 2024 Annual Report[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased a total of 944,576 shares of its common stock, with 930,800 shares repurchased as part of the publicly announced program, and as of March 31, 2025, 5,202,746 shares remained authorized for repurchase under the program Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 177,300 | $428.42 | | Feb 2025 | 338,369 | $460.01 | | Mar 2025 | 428,907 | $428.36 | | **Total** | **944,576** | **N/A** | - As of March 31, 2025, a maximum of **5,202,746 shares** may yet be purchased under the company's share repurchase program[203](index=203&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) During the three months ended March 31, 2025, none of the company's directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - **No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans** during the first quarter of 2025[204](index=204&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act, and the interactive data files (iXBRL) - Exhibits filed include **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906, and **iXBRL data files**[205](index=205&type=chunk) ```

Q1 2025 Financial Performance - Revenue reached $998 million, with a reported growth of +4% and organic growth of +5%[1] - Operating profit was $317 million, representing 31.7% of revenue[1] - Diluted earnings per share (EPS) grew by +5% to $2.96[1] Segment Performance - CAG (Companion Animal Group) revenue totaled $920 million, with reported growth of +3% and organic growth of +4%[1] - Water revenue was $45 million, showing reported growth of +5% and organic growth of +7%[1] - LPD (Livestock, Poultry and Dairy) revenue reached $29 million, with reported growth of +1% and organic growth of +4%[1] - Within CAG Diagnostics Recurring revenue, IDEXX VetLab® Consumables grew by +9% reported and +10% organically, reaching $345 million[1] - Reference Laboratory Dx and Consulting Services revenue was $344 million, with 0% reported growth and +1% organic growth[1] Premium Instrument Placements - Catalyst® placements totaled 1,469 worldwide, with 530 in the U S and 939 internationally[1] - Premium Hematology placements reached 1,597 worldwide, with 441 in the U S and 1,156 internationally[1] - SediVue® Dx placements were 795 worldwide, with 288 in the U S and 507 internationally[1] 2025 Outlook - Revenue is projected to be between $4,095 million and $4,210 million, with reported growth of 5 0% to 8 0% and organic growth of 6 0% to 9 0%[6] - EPS is expected to be between $11 93 and $12 43, with reported growth of 12% to 17%[6] - Capital expenditures are estimated at approximately $160 million[6] U.S. Companion Animal Practice Growth - As of March 31, 2025, U S companion animal practice revenue showed a year-over-year growth of +2 3% per practice[9] - Total visits experienced a year-over-year decline of -2 6% per practice[9] - Clinical visits decreased by -2 3%, while non-wellness visits showed a decline of -2 6%[9]

Group 1 - Idexx Laboratories reported quarterly earnings of $2.96 per share, exceeding the Zacks Consensus Estimate of $2.92 per share, and showing an increase from $2.81 per share a year ago, representing an earnings surprise of 1.37% [1] - The company posted revenues of $998.43 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.77%, but an increase from $964.1 million year-over-year [2] - Idexx has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has gained approximately 4.7% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $3.26 on revenues of $1.06 billion, and for the current fiscal year, it is $11.96 on revenues of $4.09 billion [7] - The Medical - Instruments industry, to which Idexx belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][17] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [15][17] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [14] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [12] Market Data and Key Metrics Changes - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, reflecting a solid growth premium compared to a 2.6% decline in U.S. clinical visits [8][9] - International CAG Diagnostic recurring revenue organic growth was 8.5%, with strong volume gains building on 2024 momentum [8] - IDEXX VetLab consumable revenues increased by 10% organically, supported by a 9% year-over-year growth in the global premium instrument installed base [10] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and the rollout of IDEXX InVue DX, a new cellular analyzer [24][26] - IDEXX aims to maintain solid organic revenue growth and comparable operating margin improvement, with updated guidance reflecting positive changes from foreign exchange [18][19] - The company is well-positioned to navigate the changing tariff landscape, with 65% of consolidated revenues from the U.S. and less than 1% from China [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, despite macroeconomic pressures affecting clinical visits [6][38] - The estimated pet population remained stable, supporting strong tailwinds for the business and confidence in delivering solid organic revenue growth [39] - Management noted that while clinical visit metrics are under pressure, diagnostic frequency and utilization remain strong drivers for the business [62] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [19] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [17] - Share repurchases during the first quarter totaled $415 million, supporting a 2.4% reduction in diluted shares outstanding [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and the macro environment? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism that clinical visit moderation has stabilized [46][48] Question: What feedback have you received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results [52][56] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans to mitigate tariff impacts [65][68] Question: Can you provide insights on the uptake of CancerDx? - Over a thousand unique practices have ordered the test, indicating strong initial interest and awareness [73][75] Question: What gives you confidence in the guidance for CAG recurring revenue? - Management expects clinical visits to decline similarly to 2024 levels, with ongoing innovations supporting growth [78][80]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][18] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [16][18] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [15] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [13] Market Data and Key Metrics Changes - International CAG Diagnostic recurring revenue organic growth was 8.5%, reflecting strong volume gains and net price realization [9] - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, net of days headwind, compared to a 2.6% decline in U.S. clinical visits [10][9] - The estimated pet population sustained in 2024 at similar levels to the prior year, supporting strong tailwinds for the business [40] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and IDEXX InVue DX, a new cellular analyzer [26][34] - The strategy includes expanding the oncology menu to address the majority of canine cancer cases within three years [33] - The company aims to maintain a strong commercial model grounded in partnership, flexibility, and execution excellence to drive innovation-led growth [31] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain dynamic, but there are strong demand signals and continued willingness by clinics to invest in diagnostics [31][39] - The company is well-positioned to navigate the changing tariff landscape, with 65% of revenues based in the U.S. and minimal exposure to China [38][63] - Management expressed optimism about the stabilization of clinical visit moderation and the potential for growth in diagnostic frequency and utilization [47][61] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [21] - The updated full-year EPS outlook is $11.93 to $12.43 per share, driven by foreign exchange and favorable adjustments [23] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and macroeconomic conditions? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism about stabilization despite macro headwinds [46][47] Question: What feedback has been received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results, leading to a significant ramp-up in placements [50][52] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans in place to mitigate tariff impacts [63][64]

Revenue and Growth - IDEXX reported first quarter revenue of $998 million, reflecting a 4% increase as reported and 5% organic growth, driven by Companion Animal Group (CAG) growth of 3% as reported and 4% organic [5]. - IDEXX updated its 2025 revenue guidance to a range of $4,095 million to $4,210 million, indicating a reported growth of 5% to 8% [14]. - The company anticipates CAG Diagnostics recurring revenue growth of 4% to 7% for 2025, with organic growth projected at 5% to 8% [14]. - IDEXX's veterinary software, services, and diagnostic imaging systems revenues grew by 9% as reported and 7% organic, driven by cloud-based software placements [9]. - The company experienced a 5% increase in Water revenues as reported and 7% organic for the quarter, indicating solid growth across regions [10]. - IDEXX's Companion Animal Group Diagnostics recurring revenue growth was supported by 5% reported and 8.5% organic gains in international regions [7]. - Revenue for the first quarter of 2025 was $998,427 thousand, representing a 3.6% increase from $964,095 thousand in the first quarter of 2024 [44]. - CAG revenue for Q1 2025 was $919,836 thousand, showing a 3.4% increase from $889,285 thousand in Q1 2024 [46]. - The company’s international revenue grew by 3.1% year-over-year, with a notable 6.7% organic growth in international markets [47]. Earnings and Profitability - The company achieved earnings per diluted share (EPS) of $2.96, marking a 5% increase as reported and 7% on a comparable basis, excluding a $0.08 per share benefit from a litigation expense accrual adjustment [6]. - The updated EPS outlook for 2025 is projected to be between $11.93 and $12.43, reflecting a 12% to 17% growth as reported [16]. - Comparable EPS growth for Q1 2025 was 7%, with comparable EPS at $2.91 compared to $2.71 in Q1 2024 [35]. - Net income attributable to stockholders for Q1 2025 was $242,677 thousand, compared to $235,579 thousand in Q1 2024, reflecting a growth of 3.0% [44]. - The company reported a basic earnings per share of $2.98 for Q1 2025, an increase from $2.84 in Q1 2024 [44]. Margins and Expenses - Gross margin for the first quarter was 62.4%, an increase of 90 basis points as reported, supported by strong growth in IDEXX VetLab consumables revenue [12]. - Operating margin was reported at 31.7%, reflecting a 70 basis point increase year-over-year, despite a 4% growth in operating expenses [13]. - Operating expenses for Q1 2025 were reported at $306,845,000, a 4% increase from $294,112,000 in Q1 2024 [30]. - The operating margin for Q1 2025 was 31.7%, up from 31.0% in Q1 2024, reflecting a 70 basis points improvement [30]. - Comparable operating profit growth for Q1 2025 was 4%, with comparable operating profit at $312,022,000 compared to $298,958,000 in Q1 2024 [30]. Cash Flow and Financial Position - Free cash flow for the first quarter of 2025 is projected to be approximately $708 million after deducting capital expenditures of $160 million [40]. - Free cash flow for the first quarter of 2025 was $207,936,000, compared to $168,312,000 in the first quarter of 2024, reflecting a 23.6% increase [54]. - The company reported a net cash provided by operating activities of $237,962,000 for Q1 2025, compared to $198,585,000 in Q1 2024 [53]. - Total current assets decreased to $1,317,613,000 as of March 31, 2025, down from $1,399,897,000 at the end of 2024 [50]. - Total stockholders' equity decreased to $1,448,013,000 as of March 31, 2025, compared to $1,595,313,000 at the end of 2024 [50]. - Cash and cash equivalents decreased to $163,970,000 at the end of Q1 2025, down from $288,266,000 at the end of 2024 [53]. Research and Development - Research and development expenses increased to $59,061 thousand, representing 5.9% of total revenue, compared to 5.5% in the previous year [44]. Shareholder Activities - The company repurchased a total of 945 shares in the first quarter of 2025, at a total cost of $415,339,000 [55]. Other Financial Metrics - Days sales outstanding improved to 45.7 days in Q1 2025 from 47.1 days in Q4 2024, indicating better collection efficiency [51]. - Inventory turns remained stable at 1.3 for Q1 2025, consistent with previous quarters [51]. - Adjusted EBITDA for the twelve months ended March 31, 2025, was calculated based on net cash provided from operating activities of approximately $968 million [41]. - The impact of foreign currency exchange rates decreased gross profit growth by 1.2% and decreased EPS growth by 1.4% in Q1 2025 [26]. - The company reduced its litigation expense accrual from $89 million to $80 million during the first quarter of 2025 [42].