Good morning. Welcome to the IDEXX Laboratories Second Quarter 2026 Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Mike Erickson, President and Chief Executive Officer, Andrew Emerson, Chief Financial Officer, and John Ravis, Vice President, Investor Relations. IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that our discussion during the call will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. Additional information regarding these risks and uncertainties is available under the forward-looking statements notice in our press release issued this morning, as well as in our periodic filings with the Securities and Exchange Commission, which can be obtained from the SEC or by visiting the investor relations section of our website, IDEXX.com. During this call, we will be discussing certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is provided in our earnings release, which may also be found by visiting the investor relations section of our website. In reviewing our second quarter 2026 results and updated 2026 guidance, please note all references to growth, organic growth, and comparable growth refer to growth compared to the equivalent prior year period, unless otherwise noted. To allow broad participation in the Q&A, we ask that each participant limit their questions to one with one follow-up as necessary. We appreciate you may have additional questions, so please feel free to get back into the queue, and if time permits, we'll take your additional questions. Today's prepared remarks will be posted to the investor relations section of our website after the earnings conference call concludes. I would now like to turn the call over to Andrew Emerson. Good morning. I'm pleased to take you through our second quarter results and provide an updated outlook for our full-year 2026 financial expectations. During the second quarter, IDEXX delivered excellent financial results, building on strong execution and expansion of IDEXX innovations in our companion animal business. Revenue increased approximately 10% as reported, and 9% organically, supported by over 10% organic growth in CAG Diagnostics reoccurring revenues, with double-digit gains in both the U.S. and international regions, and strong global growth in our water and LPD businesses. CAG Diagnostics reoccurring revenue growth was led by expanded volumes, while U.S. same-store clinical visits declined an estimated 1.3% in the quarter. Premium instrument placements reached over 5,200 units in the quarter, including approximately 1,600 IDEXX inVue Dx analyzers, on pace for our full-year inVue Dx placement goal of 5,500 units. IDEXX's operating performance was excellent, with comparable operating margin gains of 110 basis points, supported by gross margin expansion, with benefits from strong recurring revenue growth and favorable product costs in the quarter. Operating profit gains enabled earnings per share of $4.27 in the quarter, resulting in EPS growth of 15% on a comparable basis. Strong second quarter performance supports an increase to our full-year outlook while advancing incremental growth investments. We're updating our full-year revenue range to $4.7 billion-$4.745 billion, an increase of $5 million at midpoint, net of a $20 million increase in operational performance, offset by a $15 million headwind from updated foreign currency effects. Our updated full-year overall organic revenue growth outlook is 8.5%-9.7%, with organic CAG Diagnostics recurring revenue growth of 9.5%-10.7%. These organic growth ranges represent an increase of approximately 40 basis points at midpoint to our previous guidance, aided by global momentum in our CAG Diagnostics recurring revenues. We're also increasing our full-year EPS outlook to $14.69-$14.94 per share, an increase of $0.14 per share at midpoint, reflecting a 13%-15% comparable EPS growth range. We'll provide further details on our updated 2026 financial expectations later in my comments. Let's begin with a review of the second quarter results. Second quarter organic revenue growth of 9% was driven by nearly 9% CAG revenue gains, 13% growth in our water business, and 9% growth in LPD. Strong CAG results were supported by CAG Diagnostics recurring revenue growth of 10.3% organically, net of a 50 basis point negative impact related to equivalent days and average global net price improvement of approximately 4%. As expected, CAG Diagnostic instrument revenues declined 20% organically as we lapped the broad commercial availability of inVue Dx in the prior year period. U.S. organic CAG Diagnostics recurring revenues grew nearly 10% in Q2, including strong volume gains and net price realization aligned with our full-year expectations. U.S. same-store clinical visits declined 1.3% in the quarter, reflecting an IDEXX U.S. CAG Diagnostics recurring revenue growth premium to U.S. clinical visits of approximately 1,100 basis points. Pressure on wellness visits remains the primary constraint to clinical visits, with non-wellness visits showing modest growth. We continue to see growth in pets five years and older across both categories. IDEXX benefits from quality of clinical visits, with an increasing number including diagnostics and broader use of diagnostic testing menu. With the substantial majority of wellness visits today not including blood work, we see inclusion as a long-duration volume lever that does not depend on visit recovery. International CAG Diagnostics recurring revenues grew nearly 12% organically in Q2, sustaining double-digit gains led by volume growth. International performance continues to be driven by IDEXX execution, with volume gains from net new customers supported by expansion of our premium instrument install base and same-store utilization, including benefits from IDEXX innovations. IDEXX continued to deliver strong organic revenue gains across our major global testing modalities in the second quarter. IDEXX VetLab consumable revenues increased 14% on an organic basis, reflecting double-digit growth in both the U.S. and international regions. Consumable revenue growth included benefits from net new customer gains in our premium instrument install base and expanded testing utilization. IDEXX Innovations, including our expanded Catalyst menu and growing benefits from inVue Dx recurring revenue, continued to support utilization gains across our customer base. CAG premium instrument placements reached 5,265 units during the second quarter, resulting in an expected year-over-year decline as we lap the broad commercial availability of inVue Dx in the prior year. Instrument placements remained high quality. Globally, we placed 1,602 IDEXX inVue Dx instruments in Q2 and over 1,000 new and competitive Catalyst instruments globally, with nearly 300 in the U.S. IDEXX Global Reference Lab revenues increased over 10% organically in Q2, led by volume gains. Reference Lab carries a higher index to wellness visits, which declined 3.4% in the U.S. during the period. Performance was driven by net customer gains and increased same-store utilization as existing customers adopted broader testing menu, including IDEXX Cancer Dx. Global Rapid Assay revenues increased approximately 1% organically in Q2, returning to growth as the impact from customer shifting of pancreatic lipase testing to our Catalyst instrument platform eases. Veterinary software and diagnostic imaging organic revenues increased approximately 12%, driven by recurring revenue growth of approximately 10% during the quarter and continued strong placements of the DR50 Plus platform. Our cloud-native PIMS install base grew double digits, creating an expanded customer footprint to improve workflow and enhance diagnostic protocols in the clinic. Water revenues increased 13% organically in Q2, with strong double-digit growth in both the U.S. and international regions, including benefits from order recovery in the Middle East. Livestock, poultry, and dairy revenues increased 9% organically in the quarter, with solid gains across our regions. Turning to the P&L, strong recurring revenue growth and favorable product costs enabled 12% comparable operating profit gains in the quarter, with reported operating margins achieving 35%. Gross profit increased 12% in the quarter as reported and 11% on a comparable basis. Gross margins were 64%, up approximately 120 basis points on a comparable basis. These gains reflect benefits from strong recurring revenue growth in IDEXX VetLab consumables and reference lab volumes, operational productivity, and favorable business mix, including strong margin gains in our water and LPD businesses. Pricing benefits offset inflationary cost pressures, which eased in the quarter compared to our expectations. On a reported basis, operating expenses increased 10% year-over-year and 9% on a comparable basis. We expect to maintain growth in operating expenses through the remainder of the year as we advance investments in our innovation agenda and global commercial capabilities given strong revenue performance. Q2 EPS was $4.27 per share, an increase of 18% as reported and 15% on a comparable basis. EPS in the quarter included a $0.14 per share benefit related to share-based compensation activity, compared to a $0.10 benefit in the prior year period, and foreign exchange added $6 million to operating profit and $0.06 to EPS in Q2, net of hedge effects. Free cash flow was $323 million in Q2 and $557 million for the first half of 2026. On a trailing 12-month basis, our net income to free cash flow conversion rate was 110%. For the full year, we're increasing our outlook for free cash flow conversion to 90%-100% of net income, including full-year capital spending consistent at approximately $180 million. Our balance sheet remains strong, finishing the period with leverage ratios of 0.6x gross and 0.5x net of cash. We maintain deployment of excess capital towards share repurchases, allocating $332 million during the second quarter and $693 million year-to-date. Capital allocated to share repurchases supported approximately a 2% year-over-year reduction in diluted shares outstanding in Q2. Turning to our full-year 2026 outlook, as noted, we're increasing our outlook for overall revenue to $4.7 billion-$4.745 billion. At midpoint, this reflects a $20 million operational improvement from our prior guidance, building on strong second quarter performance, including CAG Diagnostics recurring revenue expansion. Our updated reported revenue outlook includes a $15 million headwind related to foreign currency changes compared to our prior estimates. This reflects a reported revenue growth of 9.1%-10.3%, including approximately a 60 basis point benefit to full year growth from foreign exchange at the rates outlined in our press release. As a sensitivity, a 1% strengthening of the U.S. dollar would reduce revenue by approximately $8 million and EPS by $0.03 per share for the remainder of the year. Our updated overall organic revenue growth outlook of 8.5%-9.7% includes organic growth range of 9.5%-10.7% for CAG Diagnostics recurring revenue, including approximately a 4% benefit for global net price realization. At midpoint, we're anticipating second half U.S. clinical visit declines of approximately 1.5%, reflecting similar Q2 trends. Business momentum, combined with recent and upcoming product launches, support our outlook for the second half and the full year. In terms of key financial metrics, we're updating our reported operating margin outlook to 32.3%-32.5% for 2026, reflecting an increased expectation of 70-90 basis points for full year comparable operating margin improvement, supported by gross margin gains from strong recurring revenue growth. We're advancing incremental investments in commercial and R&D during the second half, supporting our long-term growth agenda. Our updated full year EPS outlook is $14.69-$14.94 per share, an increase of $0.14 per share at midpoint, driven by operational performance compared to our prior guide. EPS also includes an increase of $0.05 per share related to share-based compensation benefits, offset by a $0.05 headwind from updated foreign exchange rates. For the third quarter, we're planning for organic revenue growth in line with the implied second half growth range and foreign currency impacts, creating a 70 basis point headwind to reported revenues at rates outlined in the press release. In the quarter, we're planning for modest comparable operating margin expansion of 20-50 basis points, with reported operating margins expected to be 32.5%-32.8%. That concludes our financial review. I'll now turn the call over to Mike for his comments. Thank you, Andrew, and good morning. IDEXX delivered an exceptional second quarter, with execution across all key growth drivers: expansion of diagnostic utilization, growth in our instrument and customer base, and continued advancement of our broad-based innovation pipeline. The structural importance of diagnostics in the veterinary practice supported increased diagnostic frequency and utilization, even as overall clinical visit growth remained a modest headwind. We continue to see tailwinds from the aging pet population, with pets aged five and older contributing positive growth across both well and non-well visits. Pets are living longer, and we know that pets, like humans, require more care, including diagnostics, as they age. Turning to commercial execution, instrument placements in both competitive conversions and greenfield accounts remain strong and our installed base grew 11% year-over-year. Each new placement is a long-term platform investment, with every menu expansion, the recurring value of that installed base grows. Customer retention globally remains in the high 90s for our CAG Diagnostics business. This is a metric that we work hard to earn every day, as it is a key part of our growth algorithm, reflecting the trust veterinarians place in IDEXX and the durable value of our integrated diagnostics and software solutions. We know from experience that diagnostics is a performance category. Practices on our platform, point of care, reference labs, software, and imaging see materially higher growth in both their diagnostics and overall practice revenue. We are also advancing investments in our global commercial capabilities. During the remainder of the year, we will expand our field presence across four international countries, as well as targeted additions in the U.S. This builds upon last year's international and domestic expansions and is a statement of our confidence in these geographies, our innovative diagnostic portfolio, and the opportunity to grow testing utilization. We have a well-proven operating playbook for these expansions. When we work closely with customers in the practice, helping them integrate innovations into their everyday protocols, we see higher adoption, higher utilization, and stronger long-term relationships. Turning to innovation, inVue Dx momentum continues to be strong. We placed 2,700 instruments through the first half and are on pace to achieve our full year placement goal. We're seeing a steady ramp internationally as our commercial teams support integration of inVue Dx into practice workflows and awareness builds across regions. Customer feedback is positive and consistent across geographies, with veterinarians highlighting the integrated slide-free workflow, the diagnostic confidence of objective AI-powered results, and the productivity gains of having cytology answers while the patient is in the clinic. We've also continued expanding the clinical value of inVue Dx through menu additions. In the second quarter, we added new pathologic red blood cell morphologies associated with underlying diseases of the liver, spleen, and kidneys. These updates push automatically to every connected inVue Dx instrument worldwide, with no action required by the practice. As blood and ear cytology capabilities expand, customers find more reasons to run samples on inVue Dx and utilization grows. In parallel, fine needle aspirate, or FNA, is progressing as expected through the controlled launch process, we've meaningfully expanded the base of customers entering Q3. With inVue Dx FNA, veterinarians can evaluate lumps and bumps for mast cell tumors during the patient visit with optional expert pathologist review available in a single click. Today, fewer than 10% of lumps and bumps ever get evaluated, largely due to the cost and workflow complexity of glass slides. We're seeing early indications that the slide-free workflow, real-time results, and affordable pricing of inVue Dx FNA are associated with an increased number of masses evaluated. Given the platform within a platform nature of FNA, we're providing clinical practice team training as part of the rollout process with planned broad availability by the end of the year. IDEXX Cancer Dx reached another milestone, surpassing 10,000 global clinics ordering since launch, a reflection of how this test is addressing the critical need for early cancer detection and becoming part of routine veterinary care. Cancer Dx is now available in North America, Europe, and Australia. Momentum in both screening and monitoring applications continues to build. Approximately 70% of Cancer Dx tests are run as part of a broader blood work panel, reflecting integration of cancer testing into everyday clinical protocols. Globally, over 20% of Cancer Dx orders come from practices using a competitive lab, an indication that clinicians are putting their patients first and breaking from their typical workflow to access this innovative test from IDEXX. As customers adopt Cancer Dx, they experience the broader value of our IDEXX reference lab ecosystem, contributing to strong new customer growth in the quarter. Cancer Dx will expand from a test to a panel in late Q3 with the addition of mast cell tumor detection. That means veterinarians will soon be able to screen at-risk dogs for one-third of all canine cancer types during a single routine wellness visit. Mast cell tumors are among the most common cancers in dogs, but also among the most frequently missed, as they can resemble benign lesions and go undetected, particularly in dogs with long coats. Importantly, this expansion comes at no increase in price to our customers. The full Cancer Dx panel, including mast cell tumor detection, will remain approximately $15 when run as part of a profile in our lab. We're committed to doing our part to support broadly available, affordable cancer screening that also inspires wellness blood work. Our Technology for Life strategy continues to create broad-based value for customers and for IDEXX, and Q2 delivered two meaningful expansions to our platform capabilities. In June, we enhanced our most common Catalyst chemistry profiles, known as CLIPs, to include IDEXX SDMA for all customers in North America. This built-in integration expands access to SDMA at the point of care, helping veterinarians identify kidney function loss earlier and detect up to a third more renal dysfunction in sick pets, all within a more streamlined workflow. Since introducing IDEXX SDMA in 2015, customers have run nearly 120 million patient tests globally, a reflection of its widely recognized clinical importance. Early response to the new Catalyst CLIPs is positive, with strong adoptions and favorable feedback on workflow and inventory management. Catalyst menu additions, such as these SDMA CLIPs, pancreatic lipase, and cortisol expand the value of our nearly 80,000 Catalysts around the world. We also expanded our reference laboratory Fecal Dx antigen testing platform, adding Taeniid tapeworm detection in late June for U.S. and Canadian customers at no additional cost. This is our third Fecal Dx menu expansion in four years, the platform now covers seven of the most clinically relevant intestinal parasite groups. Each expansion reinforces the clinical value of running this panel as part of every routine wellness visit, enabling detection of two times more infections than fecal flotations. Our software and imaging business delivered strong results in Q2. Independent practices and corporate groups choose IDEXX software to drive productivity through workflow efficiency, deep diagnostic integrations, and the ability to centrally manage operations across a large-scale network. Vello, our pet owner engagement platform, continues to expand, with double-digit sequential growth in active users. Vello brings personalized outreach, diagnostic-driven campaigns, and forward-booking capabilities that improve practice efficiency. Practices on ezyVet with Vello show higher wellness blood work inclusion rates than practices on competitive on-premise PIMS. A direct measurable impact from the conversions of software and diagnostics in support of expanded care. In diagnostic imaging, we saw our sixth straight record quarter of digital radiography system placements. These results reflect strong commercial execution and customer demand for the DR50 Plus, launched in January, which combines AI-powered imaging quality with up to 60% lower radiation dose than premium competitors. Radiation safety leadership is an important area of focus for us, given that 75% of veterinary technicians working in practices are women of childbearing age. As I reflect on IDEXX and the veterinary care industry we have the privilege to serve, I'm energized by the opportunity ahead. The long-term drivers of animal health remain sound. The bond between people and their pets continues to deepen. Pet owners remain committed to high-quality care and to being lifelong pet parents. The aging pet population supports durable, increasing demand for diagnostics across dogs and cats, expectations for quality care continue to rise, with high-performing diagnostics at the center of clinical decision-making. We're in the early stages of an innovation cycle that is broad-based and building. inVue Dx, Cancer Dx, Catalyst Menu, Fecal Dx expansions, DR50 Plus, software, and AI. Our innovations support higher standards of care, increased diagnostics intensity, and expanded access to diagnostic insights for more pets globally. We look forward to sharing more on all of this at our Investor Day on August 13th at our headquarters in Maine and live-stream for those unable to attend in person. Lastly, in my first few months as CEO, I've had the privilege of connecting with many IDEXXers around the world. Those conversations reinforce what I've long understood about the strength of our talent and our growth mindset culture. I want to thank our employees for their steadfast commitment to our customers and to advancing innovations that empower clinical teams to see more and do more in their practices. That singular focus, turning diagnostic, software, and AI innovations into everyday clinical value, is what will keep compounding into long-term, durable growth for our customers and IDEXX. With that, I'll open the line for Q&A. Thank you. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow the signal to reach our equipment. Again, press star one to ask a question. We'll pause for just a moment to assemble the queue. We will take our first question from Erin Wright with Morgan Stanley. Great. Thanks. Can you speak a little bit about the rollout of FNA and how that's progressing relative to your expectations? Is that helping to fuel some of the inVue Dx placements in the quarter? Can you remind us of just how the consumables flow through? Is tracking relative to your expectations for inVue Dx and the overall consumables number was solid in the quarter. Just can you remind us, I guess, in terms of potential upside even to the consumable targets that you have, especially as you kind of broadly launch FNA? Thanks. Hi, Erin. Good morning. Thanks for the question. The overall consumable revenue performance on inVue Dx is comfortably within the range that we discussed, around $3,500-$ 5,500 per instrument. We're really happy with what we're seeing. Just overall, the launch and progression of inVue Dx has been just outstanding. Really one of the most successful product rollouts that we've had at the company. As you heard, 2,700 placements in first half of the year, 9,000 overall. You asked about the progression of FNA. It's going well. It's on track with our controlled launch process that we've talked about in the past. This is the process that we follow to make sure that we really get all the details of the customer experience nailed. That's what our customers expect from us, it makes sense to do that because we know that these things have very long tails, we want to make sure we get the flywheel running well. We broadened the rollout, the controlled rollout of FNA as we headed into Q2. Based on the great feedback that we're getting from customers, we're broadening that again meaningfully as we go into Q3 with planned full availability by the end of the year. I think it's just worth mentioning, each of these applications on inVue Dx is really a platform within a platform. When we rolled out, we started with two large areas of testing with ear cytology and blood morphology, we continue to add menu to those. When we do that, we can just push that out to our customers. FNA is a whole new application, it's like a platform within the platform of inVue Dx. We're taking the time to train customers as we roll this out to make sure that they get the very best experience. As you heard me share in the comments, we're really excited to see that in the early results with FNA, we're seeing even more masses getting looked at, which just reflects the fact that we're addressing the real challenge in the practice around the cost and complexity of glass slides with this new application. Very excited, and as this continues to roll out, we do see upside in that consumable number over time. Okay. That's great. You hit double-digit growth in the reference lab for the first time since the beginning of 2023, if I have my numbers right. I guess, can you break down the components of that growth and the sustained market share gains that you're seeing there? We always seem to find that segment to be more correlated to vet office visits. Just on that front, there is this swirling narrative out there, as well as some supportive analysis from the former CEO and Chairman of IDEXX, calling out some sustained pressure in vet office visits over the next several years. I guess, how do you think about that in the context of the data that you are seeing and the pushes and pulls you see there from an underlying demand standpoint, given some of the metrics you shared in terms of aging pet population and other metrics as well? How does that fit into your long-term growth algo? Thanks. Great, Erin. I'll talk a little bit about the reference lab, then Andrew can talk more about visit trends. We're really happy with the growth in the lab. It really reflects a broad set of just execution and performance across the team, where we've added, obviously, to the lab offering with what I shared around Fecal Dx, adding Taeniid tapeworm, then Cancer Dx has just really hit the mark, this critical need for early cancer screening, monitoring, and diagnosis. As I shared, we're seeing 20% of the volume with Cancer Dx coming from practices that have been using a competitive lab. That means that they're putting their patients first, prioritizing their patients' needs over whatever existing workflows they have, and that's associated with record lab conversions. We're seeing that worldwide. The growth in the lab really reflects the investments that we're making in innovation, very strong commercial execution, customer conversions, and really overall, just strong volume growth. We're seeing that internationally, which we're very pleased to see. Erin, just on the sector. Certainly, I think we've continued to see declines in U.S. same-store clinical visits, 1.3% within the quarter. Largely on track with our expectations from our previous guidance. We are continuing to see pressure more on the discretionary areas, wellness visits being down below 3% compared to the prior year. We're seeing some positive benefits on the non-well side. Certainly, I think the economic pressure that consumers are facing, just on broad inflationary dynamics and challenges with things like gas prices and housing prices, put pressure on those discretionary categories. There's also certainly been a more muted puppy impact here, just given the pace of adoptions that we have seen. I think we've called that out in the past. During these times of economic pressure, we typically see consumers slower to add or replace pets within their household, and I think that's playing out to some degree. I think the foundation of the overall pet population continues to be positive, and I think we're paying close attention to that. Ultimately, we'll continue to provide updates from our longer-term growth algorithm at our Investor Day event here coming next week. We're excited to provide more details at that point. We will take our next question from Chris Schott with JP Morgan. Great. Thanks so much for the question. Just wanted to come back to vet visits, and just a little bit more color on the trends you're seeing. I guess, any big differences as you look at the trends that you're seeing from corporate versus independent practices or urban versus suburban locations? Maybe just a secondary question on that same topic, what do you think it's going to take to get wellness visits back to growth, given the continued erosion there? It seems like the non-wellness trend's going the right way, but that wellness piece of the business, just any directional outlook of how to think about that going forward. Thank you. Hey, good morning, Chris. We don't see differences looking across different parts of the country or across corporates or independents. In fact, what we hear from, in particular, talking to CEOs at some of our large corporate partners, is they're seeing exactly what Andrew talked about, this wave of older pets coming through COVID pets. By the way, that's driving growth not just in non-well, but in well and non-well within that particular age cohort. I think the key is, and what we really focus on, is visit quality. Andrew talked a little bit about that. That's the diagnostic frequency and utilization within the visit. We're focused on developing the sector to keep enhancing that quality, and that's what we're seeing happen. That's a combination of innovations that provide new opportunities, new episodes of testing, things like Cancer Dx, for example, and then also just commercial execution, working with our customers on education and really honing and optimizing their diagnostic protocols, including their well-testing protocols. There's massive headroom to keep growing this. I mean, we know, for example, in the U.S., only around one out of 10 wellness visits are getting blood work today. Outside the U.S., it's much less, around a third or even less than that in most countries. There's substantial headroom through innovation and commercial execution to continue to drive this kind of growth in wellness testing. That's really where we're focused, is driving that quality of visit. Great. Thanks so much. We will take our next question from Jon Block with Stifel. Great. Thanks, guys. Good morning. Mike, maybe you could talk a little bit more about these commercial investments that you called out. They've certainly yielded good returns in the past, but why now for the next tranche? I think you just did a recent tranche over the past four quarters or so. Are these different international markets? Maybe most importantly, does it mean anything from an innovation standpoint? In other words, beefing up the sales force in certain areas as maybe that innovation bucket could continue to grow when we look forward. Good morning, Jon. Thanks for the question. We're just really excited about the opportunity internationally. We know that there's a lot of headroom to grow placements, utilization to develop the sector for diagnostics, particularly around wellness, for example, where it's just a little less developed than in the U.S. We've been consistently making investments really across the board internationally to support that. This includes investing into expanding our field presence. That ties to a playbook that we have. We've seen a really reliable return on that. The bottom line is, when we're working more closely with customers, when we get our territory sizing dialed in right, we can help them adopt these new innovations into their protocols. We see higher adoption, we see higher flow through, stronger relationships, all the sort of positive things that really drive the flywheel for customers and for us. It's not just innovation on that front. We've also invested significantly to expand our lab network around the world and to make sure our service levels are outstanding. We've invested into software, for example, with VetConnect PLUS tuned for local geographies. We've invested into innovation specific to the needs around the world with SNAP 4Dx Leishmania, for example, or ProCyte One, which is successful globally, but really was developed in part to address specific kind of performance cost needs in different parts of the world. We're seeing things like inVue Dx also really pick up internationally with 40% of our placements coming abroad. As we step back and look at the international opportunity, we just see a lot of opportunity and we see a very reliable return on these investments. We're going to continue to make these investments to continue to develop the sector and help more pets globally. Fair enough. I'll pivot for the second question. Andrew, recurring theme here. The 2H 2026 two-year stacks would not have had to accelerate further if you did not raise the guidance, once again, you did. I guess I got to ask you the silly question that almost penalizes you for raising that guidance. When I look forward, it seems like visits are expected to be more of the same in the back part of the year as the first half. Price at 4 is pretty much the same in 2H versus 1H. What aids that premium on that stack basis? If the question's making sense, maybe I'll ask the question and maybe answer it. Do we think those customer wins, which have been solid, the growing recurring from inVue Dx, Cancer Dx broadening? I'm just looking for maybe some color on the drivers behind that really solid stacked two-year CAG Dx recurring in 2H. Thanks, guys. Yeah. Good morning, Jon. As you highlighted, we are planning for continued strong CAG Diagnostics recurring revenue growth over the balance of the year. We did raise our expectations from our prior guidance. Some of that was certainly the strong Q2 that we had. We're really continuing to build momentum here within the business, both in the U.S. and on the international region basis. As Mike highlighted, we continue to make investments and reaching our customers, being able to translate the value of these innovations to our customers and help them leverage the different diagnostic capabilities and software capabilities in their clinic to support overall pet health. I think when we think about the guidance, certainly it's a range that we've put out there. There is an increase at midpoint and it reflects the strong first half performance that we had. We also are really excited by some of the recent and upcoming product launches. Mike highlighted a few of them on the call here, both the new menu on SDMA within the CLIPs really simplifies some of the workflow in the clinic and helps with inventory management. We've also added to our Fecal Dx panel, which I think will be beneficial to our customers. We continue to broaden the rollout of FNA on inVue Dx, and we'll be adding mast cell tumor detection to Cancer Dx here. We have a number of continued innovations that I think will support the other back half, and we maintain high customer loyalty levels in the high 90s, really across our modalities. The combination of factors here builds a strong case for the second half, and we feel good about the guidance that we've set. Thanks, guys. We will take our next question from Ryan Daniels with William Blair. Sorry about that, guys. Can you hear me now? We can. Yep, we got you, Ryan. Great. Thanks so much. A quick question for you regarding the SDMA move to the Catalyst. Do you think that'll have any cannibalization on the reference lab? No. What we consistently see, Ryan, is whenever we invest into one modality, for example, at the point of care or vice versa, the reference labs, we actually see that testing begets testing. We drive overall more diagnostics. The types of things when you think about using SDMA at the point of care, certainly it can include well pet types of situations, but very often it's a more acute or sick pet kind of use case. With SDMA, combined with the CLIP, customers are able to see up to a third more true renal dysfunction than if they're just using creatinine alone. That's for a sick pet. It really is a really valuable medical application. What we've done is we've taken the SDMA slide on the Catalyst, which you could put manually into the CLIP, and we've just put it there for them. It takes out all the work of having, from a workflow standpoint, to do that, streamlines inventory management. We're getting a great response from customers to this innovation at the point of care, while at the same time, for many years, we've included SDMA in every single chemistry panel that's run at the reference labs. The bottom line with SDMA is that it really is an integral part of every type of chemistry that you'd want to run, whether it's at the point of care or in the reference labs. It's just best medicine. Okay, perfect. Very helpful. As a follow-up also on the lab, I think you mentioned 20% of Cancer Dx is coming from competitive labs, and I think that's helping you with some conversions. We've heard during our conversations that expanding the panel later this year could really be a big catalyst because it will identify more cancers and make it a more valuable panel. I'm curious if you could talk a little bit about your expectations for that, both in regards to helping lab growth and then maybe what that could do to market share gains for the lab in the future. Thanks. Yeah, thanks, Ryan. We're really excited about Cancer Dx moving from a test to really a multi-cancer panel with the addition of mast cell tumors. These are very common, amongst the most common canine cancers, mast cell tumors are. They often get missed, as I mentioned in my comments, because it can be hard to find them, particularly with dogs that have long coats. To be able to systemically detect those and to take early action when found, and then of course, pairing that with inVue Dx, because when you find a positive mast cell tumor, you want to know, okay, which of these masses is the one that I want to take action on and actually remove? That's where FNA on inVue Dx comes in. The pairing of those two is a particularly valuable kind of end-to-end solution tool set, if you will, for the general practice veterinarian. We do see this as a tipping point, if you will, from a cancer screening standpoint, having multi-cancer screening that's affordable as part of blood work for all at-risk dogs. That's all dogs over seven and at-risk breeds over four. We really see that as, over time, becoming the de facto standard. We're hearing this from customers as well. One of our large partners in Australia, for example, has on their own now added Cancer Dx to all of their senior dog premium wellness program participants and has seen just a fantastic uptake, both in terms of enrollments and just overall blood work. This is the type of thing that we think over time will really help to develop the sector further. Okay, perfect. Thanks for the color. See you guys shortly. Thanks. We will take our next question from Daniel Clark with Leerink Partners. Great, thanks. Good morning. Wanted to ask about your second half expectations. How are you kind of thinking about in CAG growth between the U.S. and the international segments, just given the strong run we've kind of seen ex-U.S.? Yeah, thanks for the question here, Dan. This is Andrew. I think we've seen really strong momentum in the regions, both the U.S. and international. Again, as Mike highlighted, I think we see a lot of opportunity internationally to continue to develop this sector. We've made investments both from a commercial perspective as well as within the infrastructure to support our customers more over time. I think internationally, I think we're now multiple quarters of double-digit growth and continue to see, again, strong momentum across the reach in areas like Europe and APAC in particular. Overall on the U.S. side, certainly the clinical visit challenges that we've seen have been the key constraining factor. From an overall IDEXX U.S. CAG diagnostic recurring revenue growth premium to those clinical visits, we've been actually ramping that up here in the last several quarters, and that has a lot to do with our ability to maintain customers with the high loyalty rates and continue to provide solutions for their everyday challenges with new innovations and continue to build out best practices alongside them in a partnership. No specific kind of direction we're giving on the makeup of growth ranges within those areas, but again, I think we feel confident really across the regions on a global basis. Okay, got it. Super helpful. Then just a quick follow-up on kind of the visit trends in pet age five plus. I believe you said they're contributing to both well and non-wellness visits positively. Have you seen any changes on a quarterly basis from that cohort, or is it just generally positive? Hey, Dan, this is Mike. It's generally positive, and we've now seen this trend for multiple quarters in a row. As I shared also, we're not just seeing it in our data, but we're hearing about it from our customers as well. We think it's a consistent trend. We will take our next question from Michael Ryskin with Bank of America. Great. Thanks for taking the question, guys. I want to touch on inVue Dx placements in the quarter, a little over 1,600. You reiterated the full-year guide, but it's still a really nice step up versus your 1Q instrument placement number for inVue Dx. Is this just normal lumpiness that we should expect in the business? Is there anything that you turned back on? Is this related to FNA lumps and bumps? Just what drove that momentum? Or should we just ignore it and just assume this is the normal noise quarter- to- quarter on placement numbers? Yeah, Mike, this is Andrew. Thanks for the question. For the inVue Dx placements, again, you could see there's been a level of variability here throughout the quarters. I think when it comes to placements, really it's about when the customer is ready to take on some new instruments and plan for that. We work, again, in partnership with them, so there's always some level of variability that you're highlighting on the placement metrics. From a year-to-date perspective, about 2,700 placements this year. That puts us essentially 50% of the way towards the full-year delivery. We didn't guide necessarily on Q3 or Q4 independently for the inVue Dx placements, but we still anticipate about 5,500 for the full year. Q4 tends to be a little bit stronger capital quarter in general for us. That's just one thing to keep in mind here as you think about the rest of the year, just in terms of the placement metrics themselves. But again, it's really about the partnership and the demand that we're seeing pull through on the inVue Dx analyzer. I think we continue to see a lot of momentum on that front, both in the U.S. and again, internationally. Michael, I think the overall feedback that we're getting is just really positive. Every practice does cytology. They're all challenged with the hands-on workflow complexity and technique sensitivity of slides and getting repeatable results for things like ear rechecks. inVue Dx, it's hitting the mark, and that's why we're seeing overall these very strong results. Ear cytology and blood morphology are very large categories of cytology that we're addressing as we come on and expand with FNA on inVue Dx. We think that just further expands excitement for this, and we keep adding even in our core applications. As I mentioned, we added two new red cell morphologies to our blood morphology offering. Each of these platforms within a platform just keeps expanding, and we're really, really happy with the overall performance. 9,000 placements since launch makes this one of the most successful launches we've ever had. Okay, that's great. Then maybe a quick follow-up. You talked about the Analyst Day a number of times. Looking forward to it as always. One thing you haven't touched on is MultiQ. It's something you announced a little while ago, but we haven't had a lot of updates. Maybe I'll just ask, conceptually, if you could talk about the bandwidth and the capacity to launch two platforms, to RAM two platforms. Obviously, you have things like FNA and lumps and bumps and Cancer Dx. So you're not unfamiliar with launching multiple solutions at the same time, but two instrument platforms would still be somewhat of a new venture. So, just talk about bandwidth and capacity to do that, if that was to come about. Thanks. Yeah, we're very comfortable with our capacity from a commercial standpoint. Of course, we keep investing internationally as we shared, which is really focused on sector development, not capacity constraints, if you will. It's really focused on opportunity and developing the sector. We also make targeted additions here domestically. I shared some of that on the call as well. Overall, we're really comfortable with our capacity to launch and bring forward the innovations that we are and to support customers as we do this and make sure that they've got the right information and data and workflow, and that they can incorporate these into their protocol so that they can be successful. Yeah, I would just highlight, Mike, we do this on a number of fronts today already. We have core analyzers with our Catalyst chemistry analyzer and hematology, as well as SediVue Dx and inVue Dx. That's on top of some broader platforms like Cancer Dx that continue to take sector development work. I think we've got a model here that we're highly focused on being able to do more than one thing at a time. Yeah, I think that's a key focus for us going forward. Awesome. Thanks again. We will take our next question from Daniel Grosslight with Citi. Hi, guys. Thanks for taking the question. Congrats on a strong quarter here. I wanted to double-click on the margin degradation in the second half of this year. Obviously, you've got investments which you've outlined here, you also have FX being a headwind in the second half. I was hoping you can provide a little bit more detail on the phasing of incremental investments in the second half. As we think about the split between 3Q and 4Q, how should we be modeling out the margin and investments you're making in the business? Hi, good morning, Dan. Just in terms of the margin outlook that we have, I think one of the things I would highlight is, we would continue to expect gross margins to really lead our overall operating margin profile here. I think if you look at the first half of the year, gross margins continue to benefit from strong reoccurring revenue growth. We see high incremental margins as we obtain the type of volume growth that we've seen, and we're really expecting that to continue in the second half. Gross margins will likely lead the operating profit flow-through. As we highlighted, we're going to continue to make incremental investments in the second half, really for the longer-term overall growth projections. Mike highlighted the different commercial investments we were talking about, and there's always some level of variability on project timing within areas like R&D. We have different dynamics around things like our information technology structure internally. How do we think about really enabling the base of the business and making the right investments in our IT infrastructure? Areas like AI continue to add into that as well. Not necessarily splitting out Q3 versus Q4 here. We did highlight on a comparable basis in Q3, we expect 20- 50 basis points of operating margin benefit in Q3. That gives you a sense for how we're thinking about it. We'll continue to make those investments throughout the second half of the year. Yeah, makes sense. You guys also raised your free cash flow conversion, which was great to see. How are you balancing buybacks against potential M&A opportunities? Are there any specific capability gaps for your geographic markets where an organic investment may be more efficient than growing organically? Thanks. Yeah, I think one of the things we are constantly doing is just making sure we are investing in our organic growth profile. That is the core that we focus on. We have active assessments associated with things outside of our four walls, business development continues to be an area that we look at opportunistically as we see assets that may make sense for us. We're highly focused on those core areas within diagnostics and software. We've seen more assets recently in the software space when I think back to the recent deals that we have done in the past. It's something we continue to pay attention to. Certainly, we're willing to leverage our capital against business development type of opportunities or in-licensing types of targets as well. Any of our excess cash, we really continue to see a conviction in the long-term orientation of the business, the best way that we've leveraged share buybacks to kind of deliver capital back to our shareholders, that's been the best way that we've seen so far going forward, it's something we constantly assess. Got it. Thanks for the color. Thank you for the questions. Thank you very much. I'll wrap up the call now. Thank everybody for the questions. We'll now conclude our Q&A portion of this morning's call. It's a pleasure to share IDEXX's continued strong execution against our organic growth strategy while delivering strong financial results in the second quarter. Thank you for your participation this morning, and now we'll conclude the call. Once again, this will conclude today's call. We thank you for your participation. You may now disconnect.