iVET360 Releases 2026 Veterinary Industry Benchmark Report
Revenue Growth Continued, but a Declining Visit Volume Signals an Evolving Industry
iVET360, the leading marketing, analytics, and bookkeeping partner for veterinary practices, has released the 2026 Veterinary Industry Benchmark Report, a comprehensive annual analysis of financial and operational performance across veterinary hospitals throughout the United States. The report reveals an industry that remained financially resilient in 2025 — but one that is increasingly relying on the value generated within each visit rather than overall appointment volume to sustain growth.
Industry revenue grew 2.6% year over year in 2025, even as transaction volume declined 4.7% nationally and new client acquisition continued to trend below historical norms. The driving force behind continued revenue growth was a 7.5% rise in Average Transaction Charge (ATC), fueled by stronger diagnostic utilization, higher-value medical services, and a structural shift away from product-based revenue.
“Growth didn’t disappear in 2025, but it did become harder to earn,” said Oliver Roller, CTO & Co-Founder of iVET360. “Practices that performed well weren’t necessarily the ones seeing the most clients — they were the ones making the most of every visit. That means strong diagnostic communication, confident care presentation, and operational discipline across the entire team.”
Key Findings from the 2026 Veterinary Industry Benchmark Report Include:
- Revenue grew 2.6%, driven by higher-value care. Despite declining visit volume, total industry revenue increased year over year as practices captured more value within each appointment through diagnostics, professional services, and comprehensive treatment planning.
- Average Transaction Charge rose 7.5%. ATC was the primary growth lever for the industry in 2025, growing well above typical fee adjustment levels. The increase was driven by a shift toward medical services and diagnostics, as well as a reduction in lower-value visits and product transactions that had previously pulled the average down.
- Transaction volume declined 4.7% nationally. Visit frequency dropped across every region of the country, with the decline primarily attributed to changes in existing client behavior rather than new client acquisition alone. Sick and urgent visits climbed to nearly 37% of total exams by year-end, suggesting that pet owners are increasingly delaying routine and preventative care.
- Diagnostics posted the strongest category growth at +4.6%. Diagnostic testing — including bloodwork panels, imaging, and screening — was the fastest-growing revenue category, reflecting both pricing adjustments and stronger integration of diagnostics into standard care protocols.
- Service-based revenue continues to outpace product revenue. Online pharmacy competition and softening retail categories continued to shift hospital revenue mix toward medical services. Injectable medications showed growth as practices increasingly offered treatments that cannot be purchased through outside retailers.
- iVET360 analytics clients outperformed the industry by a significant margin. Practices using iVET360’s Analytics and Finance services averaged 6.7% revenue growth in 2025 — more than double the industry average of 2.6%. Smaller analytics-supported practices (under $2.5M annual revenue) grew 8.6% on average, while larger clients grew 5.3%.
- Cash reserves remain modest. The average veterinary hospital maintained approximately 1.3 months of cash on hand relative to monthly expenses, with smaller practices averaging closer to 1.0 months — highlighting the importance of financial visibility and operational discipline in a slower-growth environment.
About the Report
The 2026 Veterinary Industry Benchmark Report is based on iVET360’s proprietary dataset drawn from veterinary hospitals across the United States. The report analyzes revenue growth, transaction volume, Average Transaction Charge, new client trends, revenue mix by category, financial benchmarks, staffing dynamics, and regional breakdowns to provide a comprehensive view of industry performance in 2025.
“Veterinary medicine remains a resilient industry, but the path to growth is changing,” added Roller. “In a slower-growth environment, the practices that thrive won’t always be the ones with the most clients or the highest volume. They’ll be the ones who understand their numbers, invest in their teams, and make every visit count. That’s exactly what iVET360 is built to support.”
The full 2026 Veterinary Industry Benchmark Report is available at ivet360.com/vibr/
