v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
We operate primarily through three reportable segments: Companion Animal Group (“CAG”), Water quality products (“Water”), and Livestock, Poultry and Dairy (“LPD”). CAG provides diagnostics and information management products and services for the companion animal veterinary industry and the biomedical research community. Water provides testing solutions and related instrumentation 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 non-reportable segment results combine and present our human medical diagnostic business with our out-licensing arrangement because they do not meet the quantitative or qualitative thresholds for reportable segments.

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, decides how to allocate resources to meet our strategic priorities, and meets with operating segment leaders on a periodic basis to determine the allocation of resources.

The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements. Intersegment revenues, which are not included in the tables below, were not material for the three and six months ended June 30, 2026 and 2025. Refer to “Note 3. Revenue” for a summary of disaggregated revenue by segment and by major product and service category for the three and six months ended June 30, 2026 and 2025. Assets are not allocated to segments for internal reporting purposes and are not included in the review performed by the CODM for purposes of assessing segment performance and allocation of resources. Certain corporate expenses are allocated to the segments, including depreciation and amortization. Foreign currency transaction gains and losses for all operating segments are reported within Other and are reconciled in the tables below.
The following tables are a summary of reportable segment performance with Other to reconcile to our consolidated results for the three months ended June 30, 2026 and 2025:

(in thousands)For the Three Months Ended June 30, 2026
CAGWaterLPDTotal
Total revenues from reportable segments$1,118,236 $58,564 $35,181 $1,211,981 
Reconciliation of revenue
Other revenues4,604 
Total revenue$1,216,585 
Cost of revenue from reportable segments402,449 14,966 16,530 
Segment gross profit$715,787 $43,598 $18,651 $778,036 
Reconciliation of operating profit (segment profit)
Segment gross profit$778,036 
Segment operating expenses(352,068)
Other operating profit (excluding unallocated amounts)(156)
Unallocated amounts
Foreign currency transaction gains (losses)(246)
Non-operating income (expense)(8,342)
Income before provision for income taxes$417,224 

(in thousands)For the Three Months Ended June 30, 2025
CAGWaterLPDTotal
Total revenues from reportable segments$1,022,443 $51,001 $31,762 $1,105,206 
Reconciliation of revenue
Other revenues4,251 
Total revenue$1,109,457 
Cost of revenue from reportable segments380,341 15,490 16,833 
Segment gross profit$642,102 $35,511 $14,929 $692,542 
Reconciliation of operating profit (segment profit)
Segment gross profit$692,542 
Segment operating expenses(319,928)
Other operating profit (excluding unallocated amounts)1,000 
Unallocated amounts
Foreign currency transaction gains (losses)(568)
Non-operating income (expense)(10,694)
Income before provision for income taxes$362,352 
The following tables are a summary of reportable segment performance with Other to reconcile to our consolidated results for the six months ended June 30, 2026 and 2025:

(in thousands)For the Six Months Ended June 30, 2026
CAGWaterLPDTotal
Total revenues from reportable segments$2,172,288 $108,829 $67,664 $2,348,781 
Reconciliation of revenue
Other revenues8,624 
Total revenue$2,357,405 
Cost of revenue from reportable segments788,992 28,694 32,103 
Segment gross profit$1,383,296 $80,135 $35,561 $1,498,992 
Reconciliation of operating profit (segment profit)
Segment gross profit$1,498,992 
Segment operating expenses(710,510)
Other operating profit (excluding unallocated amounts)360 
Unallocated amounts
Foreign currency transaction gains (losses)(690)
Non-operating income (expense)(15,486)
Income before provision for income taxes$772,666 

(in thousands)For the Six Months Ended June 30, 2025
CAGWaterLPDTotal
Total revenues from reportable segments$1,942,279 $96,322 $60,358 $2,098,959 
Reconciliation of revenue
Other revenues8,925 
Total revenue$2,107,884 
Cost of revenue from reportable segments725,354 28,738 31,064 
Segment gross profit$1,216,925 $67,584 $29,294 $1,313,803 
Reconciliation of operating profit (segment profit)
Segment gross profit$1,313,803 
Segment operating expenses(625,092)
Other operating profit (excluding unallocated amounts)2,108 
Unallocated amounts
Foreign currency transaction gains (losses)(1,239)
Non-operating income (expense)(17,144)
Income before provision for income taxes$672,436