IDEXX's 2025 Outlook: Contradictions in InVue Placements, Cancer Dx Growth, and Market Dynamics

Revenue Growth and Instrument Placements:
- IDEXX Laboratories reported 11% revenue growth as reported and 9% organically for Q2 2025, driven by premium instrument placements.
- The increase in revenue was supported by nearly 7.5% organic growth in CAG Diagnostic Recurring Revenues, including a 62% increase in CAG Diagnostic instrument revenues.
- This growth was attributed to record premium instrument placements, including nearly 2,400 IDEXX inVue DX instruments.

Operating Performance and Margin Expansion:
- IDEXX's operating profit grew by 14% on a comparable basis, benefited by approximately 27% from lapping a discrete litigation expense.
- The growth was supported by solid revenue growth and operating margin gains, led by gross margin expansion.
- This was enabled by strong revenue performance and operational improvements, despite macroeconomic pressures.

International Market Expansion:
- International regions achieved 11% organic growth in CAG Diagnostic Recurring Revenues, marking the tenth consecutive quarter of double-digit installed base growth.
- The expansion in international markets was driven by solid volume gains and a double-digit increase in the premium instrument installed base.
- IDEXX's execution and tailored commercial strategies, along with strong product-market fit, contributed to the growth in these regions.

Innovation and Diagnostic Recurring Revenue:
- IDEXX's innovation agenda, including IDEXX Cancer Dx and inVue Dx, contributed to a 14% increase in VetLab consumables on an organic basis.
- The adoption of these innovations led to a 10% year-over-year growth in premium instrument placements, with 2,388 inVue Dx placements.
- This was supported by high customer retention and the expansion of IDEXX's premium instrument installed base.