Zomedica (ZOM) Investor update summary

International expansion strategy

• Asset-light distribution model enables global reach across six continents, leveraging established partners to drive growth without heavy capital investment.

• Distribution agreements are structured for long-term growth, with partners starting with anchor products and expanding portfolios as relationships mature.

• Clinical credibility and regulatory milestones, such as CE certifications, have facilitated entry and expansion in Europe and other key markets.

• International sales integration with the broader commercial organization ensures alignment and knowledge transfer between domestic and global teams.

• The installed base and direct sales in new markets build clinical trust, which is then scaled through formal distribution partnerships.

Financial performance and growth outlook

• Second quarter 2026 revenue reached $9.5 million, up 37% year-over-year, marking the 22nd consecutive quarter of record revenue.

• International sales grew 17% year-over-year in Q2 2026, with international revenue now representing about 20% of total sales.

• Gross margins remained strong at 64%, while operating expenses decreased by 20%, and cash burn improved by 38% compared to the prior year.

• Adjusted non-GAAP EBITDA loss improved by 59% year-over-year, with the company targeting cash flow breakeven in Q4 2026 and full-year profitability in 2027.

• Consumables and recurring revenue streams are expanding, supporting predictable long-term growth.

Product portfolio and clinical validation

• PulseVet and TRUFORMA are leading international products, with PulseVet established in equine markets and TRUFORMA showing rapid growth, especially in Europe.

• The TRUFORMA platform enables unique diagnostic capabilities, such as precise eACTH measurement, and is unaffected by reagent shortages impacting competitors.

• Assisi therapeutic devices and VETGuardian monitors are expanding internationally, supported by regulatory approvals and clinical adoption.

• Clinical feedback highlights strong efficacy and adoption of PulseVet and TRUFORMA in both equine and companion animal practices globally.

• The land and expand model increases revenue per partner as more products are added to each distribution relationship.