Zomedica (ZOM) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached a record $8.8 million, up 35% year-over-year, driven by contract manufacturing, TRUFORMA® products, consumables, and strong performance in Pulse Vet® and Assisi® therapeutic devices.

• Net loss narrowed significantly to $4.5 million from $63.8 million in Q1 2025, primarily due to the absence of impairment charges.

• Gross profit margin declined to 62% from 68% year-over-year, reflecting changes in product mix.

• Launched AI-enabled TRUVIEW® digital microscopy and telepathology platform and entered strategic collaborations to expand product reach.

Financial highlights

• Cost of revenue rose 58% to $3,315, in line with higher unit sales and manufacturing activity.

• General and administrative expenses decreased 14% to $5,413, while R&D and selling/marketing expenses fell 38% and 24%, respectively.

• Operating expenses, excluding prior year impairment, decreased 21% to $10.4 million.

• Cash and cash equivalents at March 31, 2026 were $9,369, up 6% from the prior year-end; total cash, equivalents, and available-for-sale securities were $47.5 million.

• Adjusted Non-GAAP EBITDA loss improved 58% year-over-year to $2.4 million.

Outlook and guidance

• Management expects continued revenue growth from recurring consumables, new device installations, and product expansion.

• Margins anticipated to improve as seasonal dynamics normalize and operational efficiencies are realized.

• Existing cash resources are considered sufficient for both short- and long-term operational needs, with projected reductions in quarterly cash burn.

• Ongoing business development and potential acquisitions may impact future capital requirements.