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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
We have three reportable segments: Companion Animal Group (“CAG”), water quality products (“Water”), and Livestock, Poultry and Dairy (“LPD”). CAG provides products and services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides innovative testing solutions 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 ensure the quality and safety of milk. Other information combines and presents our human medical diagnostic business (“OPTI Medical”) with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. OPTI Medical develops, manufactures, and distributes human medical diagnostic products and services.

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 budget and actual results of the operating segments and decides how to allocate resources to meet our strategic priorities, and he also meets with operating segment leaders on a periodic basis to determine 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 nine months ended September 30, 2025, and 2024. 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 table below.
The following tables are a summary of reportable segment performance with Other to reconcile to the total consolidated for the three months ended September 30, 2025, and 2024:

(in thousands)For the Three Months Ended September 30, 2025
CAGWaterLPDTotal
Total revenues from reportable segments$1,012,534 $54,297 $33,944 $1,100,775 
Reconciliation of revenue
Other revenues4,464 
Total consolidated revenue1,105,239 
Cost of revenue385,078 16,240 17,999 
Segment gross profit$627,456 $38,057 $15,945 $681,458 
Reconciliation of operating profit (segment profit)
Segment gross profit$681,458 
Segment operating expenses(326,101)
Other operating profit (excluding unallocated amounts)1,076 
Unallocated amounts
Foreign currency transaction gains (losses)(1,587)
Interest expense(10,655)
Interest income580 
Income before provision for income taxes$344,771 

(in thousands)For the Three Months Ended September 30, 2024
CAGWaterLPDTotal
Total revenues from reportable segments$891,990 $50,162 $28,992 $971,144 
Reconciliation of revenue
Other revenues4,399 
Total consolidated revenue975,543 
Cost of revenue347,529 15,407 14,365 
Segment gross profit$544,461 $34,755 $14,627 $593,843 
Reconciliation of operating profit (segment profit)
Segment gross profit$593,843 
Segment operating expenses(292,264)
Other operating profit (excluding unallocated amounts)932 
Unallocated amounts
Foreign currency transaction gains (losses)1,381 
Interest expense(7,697)
Interest income2,714 
Income before provision for income taxes$298,909 
The following tables are a summary of reportable segment performance with Other to reconcile to the total consolidated for the nine months ended September 30, 2025, and 2024:

(in thousands)For the Nine Months Ended September 30, 2025
CAGWaterLPDTotal
Total revenues from reportable segments$2,954,813 $150,619 $94,302 $3,199,734 
Reconciliation of revenue
Other revenues$13,389 
Total consolidated revenue3,213,123 
Cost of revenue1,110,432 44,978 49,063 
Segment gross profit$1,844,381 $105,641 $45,239 $1,995,261 
Reconciliation of operating profit (segment profit)
Segment gross profit$1,995,261 
Segment operating expenses(951,193)
Other operating profit (excluding unallocated amounts)3,184 
Unallocated amounts
Foreign currency transaction gains (losses)(2,826)
Interest expense(29,642)
Interest income2,423 
Income before provision for income taxes$1,017,207 

(in thousands)For the Nine Months Ended September 30, 2024
CAGWaterLPDTotal
Total revenues from reportable segments$2,703,573 $139,959 $87,503 $2,931,035 
Reconciliation of revenue
Other revenues12,181 
Total consolidated revenue2,943,216 
Cost of revenue1,043,805 42,633 42,084 
Segment gross profit$1,659,768 $97,326 $45,419 $1,802,513 
Reconciliation of operating profit (segment profit)
Segment gross profit$1,802,513 
Segment operating expenses(937,389)
Other operating profit (excluding unallocated amounts)2,080 
Unallocated amounts
Foreign currency transaction gains (losses)(553)
Interest expense(23,707)
Interest income10,500 
Income before provision for income taxes$853,444 

Refer to “Note 3. Revenue” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three and nine months ended September 30, 2025, and 2024.