IDEXX Laboratories, Inc. stock research
FY2025 Q3
IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was stable compared to the prior quarter, but gross profit decreased, leading to a lower gross margin. Year over year, both revenue and gross profit increased, resulting in a slight improvement in gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was stable compared to the prior quarter, but gross profit decreased, leading to a lower gross margin. Year over year, both revenue and gross profit increased, resulting in a slight improvement in gross margin.
- The primary observable driver of margin change was the relationship between cost of revenue and revenue. Sequentially, cost of revenue increased while revenue remained similar, compressing the margin. Year over year, cost of revenue grew less than revenue, supporting margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was largely unchanged. Versus the same quarter one year earlier, gross margin improved, driven by stronger revenue growth relative to cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.8%
Gross profit
$683.4M
Revenue
$1.1B
Cost of revenue
$421.9M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $954.3M | $570.7M | $383.6M | 59.8% |
| Mar 31, 2025 | $998.4M | $623.4M | $375.0M | 62.4% |
| Jun 30, 2025 | $1.1B | $694.7M | $414.7M | 62.6% |
| Sep 30, 2025 | $1.1B | $683.4M | $421.9M | 61.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.8 pts
Year-over-year change
Sep 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin change was the relationship between cost of revenue and revenue. Sequentially, cost of revenue increased while revenue remained similar, compressing the margin. Year over year, cost of revenue grew less than revenue, supporting margin expansion.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue was largely unchanged. Versus the same quarter one year earlier, gross margin improved, driven by stronger revenue growth relative to cost growth.
Monitor whether cost of revenue continues to grow relative to revenue in upcoming quarters.