Idexx Laboratories Inc Investor Day 2026

Good morning. Good morning, everybody, and welcome to the 2026 IDEXX Investor Day. A very warm welcome to all of you who are here in the room with me at our global headquarters in Westbrook, Maine, and also to all of you who have joined virtually on the webcast. I am Mike Erickson, President and CEO of IDEXX, and I am delighted to be with you here, along with members of the IDEXX management team. We have a very full agenda for you today, and so let me just walk through what we have planned. I am going to get us started with an overview of our innovation-driven growth strategy and the very compelling opportunity that we see ahead of us. Following me, Julie Godon will come on stage, and she will share an update on veterinary sector trends and some of our latest insights across pets, practices, and owners.

After Julie, George Fennell will come on stage, and George will bring to life how our commercial team partners with customers and how we are executing on our global commercial expansion playbook. We will then have our first short break, and we will come back and we will go a little bit deeper into our IDEXX innovation drivers. Starting with Mike Lane. Mike will talk about our multi-modality diagnostics growth strategy across point of care and reference labs, and he will spotlight some really exciting innovations in the area of cancer diagnostics. After Mike, we will have Puja Pathak on stage. Puja is a newer member of the management team, and she will go even deeper into how we are advancing diagnostics at the point of care. After Puja, Tracy Byers will come on stage.

Tracy will talk about our software and imaging businesses powered by workflow and AI, and how they act as a force multiplier for diagnostics utilization. We will then have a second short break, and we will come back for a very special customer conversation. I am delighted to have Dr. Jo Malone with us this morning. Dr. Malone is the founder and CEO of VetPartners Europe, and she will sit down with Michael Schreck for a fireside chat on the state of the veterinary industry in Europe and how, as IDEXX, we partner with large multi-hospital networks like VetPartners. Dr. Malone is an extraordinary leader. Jo is passionate about high-quality care, high-performance team culture, and she is someone who really inspires me, and I know all of us here at IDEXX. So Jo, thank you so much for being here. We look forward to hearing what you have to say.

After that conversation, Andrew will come on stage, and he will bring us home with a review of the financials, and we will wrap with Q&A. Before we begin, I do want to share our safe harbor disclaimer, which you can also find on our website. So let us begin. I want to start here with our purpose, because as a growth company, it is our purpose that motivates us and inspires our growth mindset culture and connects on a deep personal level with all of us at IDEXX, all around the world. We know that we are making a difference with our customers when it comes to advancing the health and wellbeing of pets and their families, when it comes to safeguarding our quality and ensuring the safety of our protein and dairy food product supply.

Now, today I'm going to focus my comments on our Companion Animal Group or CAG area. That's the largest business area at IDEXX. When it comes to CAG, we have a direct line of sight to a very compelling opportunity ahead of us. We measure this in decades and as a $45 billion global testing opportunity that supports the expansion of care and wellbeing for pets as members of our families. We understand that realizing this opportunity requires a highly intentional time over target focused on sector development. This is the combination of deep partnership with our customers and relentless innovation. We are in the early stages of a broad-based innovation cycle here at IDEXX across diagnostics, software, and AI that's raising the bar for what's possible in the practice.

This is supported by a global commercial team that works side by side with our customers in their practices, helping them to incorporate these innovations into their everyday protocols. The net result of this is long-term, double-digit organic revenue growth with high ROIC, reflecting the differentiated value that we're bringing as IDEXX. Now, I stated that our purpose is personal for us at IDEXX here, and it's personal for me. This is a picture of me with my dog, Loki, and Loki has been a transformational force in my family, particularly for one of my daughters as she was going through some really challenging moments in her life. It's not an overstatement to say that Loki helped to save our family. That's what pets do. It's powerful. Like most pet parents, I want the very best for Loki. Here's the challenge. Loki, dogs, cats, they can't speak.

They can't tell us how they feel. They can't share how long it's hurt. It's diagnostics that give pets the voice into their healthcare. It's diagnostics. This opportunity to detect more disease through high-performing diagnostics, to give pets more birthdays is motivating for me and motivating for all of us here at IDEXX. We wake up every day focused on this mission and doing that in partnership with our customers. This singularity of focus that we have on innovations and diagnostics and software solutions, this is a very important part of our success formula here at IDEXX. We know that people all around the world love their pets. In these uncertain times that we're living in, that we're all experiencing, the unconditional love and stability of a pet in our lives and our families is more important than it's ever been.

We feel privileged to work in an industry and a sector with this at the core of long-term, durable, attractive tailwinds that are further propelled by the fact that pets are living longer, which is pretty profound when you think about that and the implications on their need for care and their need for diagnostics as part of that care. While we know our industry isn't immune to some of the macro pressures that we talk about, we do know that it's highly resilient, and we can look back and see this in the past. During prior periods of economic uncertainty, we can see things go down for a period, like pet replacements, but then they come back.

The reason why they come back is because the vast majority of pet owners self-identify as lifelong pet parents, committed to having a pet in their lives and committed to their pet's health. The key point is what I said earlier. Pets can't speak. It's diagnostics that give them a voice. When you test, you discover valuable insights across all the different age brackets here. This is even for dogs and cats that come into the practice seemingly perfectly well, with nothing that you could detect by eye or just observation that tells you that they're not well. We know that in one out of 4 cases, if you test blood work and urinalysis, you'll find clinically meaningful abnormalities that require action. We know that this rate of abnormalities increases dramatically as pets age, just like for people. It's the same thing for pets.

If we look beyond detecting disease, diagnostics also drives the entire care envelope in the rest of the practice. We can trace 80% of all the activity in the practice back to diagnostics. I'm talking about things like medical services, therapeutics, prescription diets, and so on. A good example of this is IDEXX SDMA. We know with IDEXX SDMA, you can detect kidney disease in cats as early as stage 1. If you get that cat onto a renal protective diet, you'll extend its life. That's the kind of outcome that we get really excited about here at IDEXX. Diagnostics we know also drives the economic health of the practice. It's the fastest-growing category in the practice, pound for pound the biggest driver of practice EBITDA. The headroom to grow diagnostics is very compelling.

Today, we see significant variation across the adoption and utilization of diagnostics for sick and well visits. In the U.S., on average, 13% of wellness visits get blood work today. We know that much higher standards of care, much higher rates of blood work inclusion are possible because we see that. We see that happening today. You can see it up here on this chart. There's significant headroom to grow diagnostics regardless of what's happening with visit trends. When we look outside the U.S., blood work inclusion today is even lower, so the headroom to grow is even that much higher. This is where we come in. Innovative software and diagnostics and a commercial team that helps customers to adopt these tools to advance the medicine in their practice.

Across the sector, we're driving on average each year around a 50-basis point increase in blood work inclusion sector-wide, that translates to about 150 basis points of incremental IDEXX CAG diagnostic recurring revenue each year. It's very important to appreciate that not all diagnostics are created equal. Customers that use more of our IDEXX innovations grow materially faster. They grow their diagnostic revenue faster, their clinical revenue, clinical visits. The question is why? Why is this happening? What's behind this? We know. We know that our diagnostics discover more, and they discover more earlier in the disease process and in differentiated testing categories that we've built through decades of investment. Moreover, the practice of medicine is fundamentally one of workflow. We take the time to lean out all the steps of the workflow.

We take the time to lean out the preparation of the sample with things like Load and Go technology on our instruments. We drive workflow efficiency through our software and through deep integrations. Our innovations enable our customers to see more and do more in their practices. This deep alignment that we have in objectives with our customer, advancing medicine, shared growth, this is a key driver of our own growth. When we grow our customers, we grow. Our innovations, our commercial investments, and our execution with our customers, all of this translates into highly durable, double-digit organic revenue growth with over 80% of company revenue driven by CAG Diagnostics recurring revenue. I want to go a little bit deeper into our strategic growth drivers, and I'm going to start with innovation.

Let's go back to that question that I asked earlier around how do we drive higher diagnostics adoption and utilization. For us, the answer begins with a multi-decade, large scale and expanding investment into R&D that's focused on solving the biggest challenges that our customers face in their practices. We're the only company in veterinary with a full stack innovation engine spanning leading edge biomarker discovery and assay development, purpose-built sophisticated instrument design and manufacturing, and enterprise class software, AI, data, and connectivity. It's very unusual for a company in any industry to be world-class in all three of these areas. At IDEXX, we've scaled and developed these capabilities over decades of investment. We're a company of builders, and we harness this stack to build integrated solutions across point-of-care reference labs and software.