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SEGMENT REPORTING
 6 Months Ended
Jun. 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 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 six months ended June 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 June 30, 2025, and 2024:

(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 consolidated revenue1,109,457 
Cost of revenue380,341 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 losses(568)
Interest expense(11,321)
Interest income627 
Income before provision for income taxes$362,352 

(in thousands)For the Three Months Ended June 30, 2024
CAGWaterLPDTotal
Total revenues from reportable segments$922,298 $46,726 $30,306 $999,330 
Reconciliation of revenue
Other revenues4,248 
Total consolidated revenue1,003,578 
Cost of revenue353,227 14,652 14,748 
Segment gross profit$569,071 $32,074 $15,558 $616,703 
Reconciliation of operating profit (segment profit)
Segment gross profit$616,703 
Segment operating expenses(353,150)
Other operating profit (excluding unallocated amounts)1,249 
Unallocated amounts
Foreign currency transaction losses(1,001)
Interest expense(8,099)
Interest income3,354 
Income before provision for income taxes$259,056 
The following tables are a summary of reportable segment performance with Other to reconcile to the total consolidated for the six months ended June 30, 2025, and 2024:

(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 revenues$8,925 
Total consolidated revenue2,107,884 
Cost of revenue725,354 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 losses(1,239)
Interest expense(18,987)
Interest income1,843 
Income before provision for income taxes$672,436 

(in thousands)For the Six Months Ended June 30, 2024
CAGWaterLPDTotal
Total revenues from reportable segments$1,811,583 $89,797 $58,511 $1,959,891 
Reconciliation of revenue
Other revenues7,782
Total consolidated revenue1,967,673 
Cost of revenue696,276 27,226 27,719 
Segment gross profit$1,115,307 $62,571 $30,792 $1,208,670 
Reconciliation of operating profit (segment profit)
Segment gross profit$1,208,670 
Segment operating expenses(645,125)
Other operating profit (excluding unallocated amounts)1,148 
Unallocated amounts
Foreign currency transaction losses(1,934)
Interest expense(16,010)
Interest income7,786 
Income before provision for income taxes$554,535 

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 six months ended June 30, 2025, and 2024.