Zomedica (ZOM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $8.8 million, up 35% year-over-year, marking the 21st consecutive quarter of record growth, driven by PulseVet, Assisi therapeutic devices, TRUFORMA diagnostics, and $2 million from development services.

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

• Gross margin held at 62%, with operating expenses down 21% and adjusted non-GAAP EBITDA loss improving 58% to $2.4 million.

• Launched TRUVIEW AI-enabled digital microscopy and telepathology platform, and entered strategic collaborations with Moichor, Rahm, and Boehringer Ingelheim Animal Health.

• Cash and equivalents totaled $47.5 million at quarter end, with cash burn reduced by 15% year-over-year.

Financial highlights

• Q1 2026 revenue: $8.8 million (+35% YoY); diagnostics segment up 73% to $1.0 million, therapeutic devices $5.8 million, development services $2.0 million, and consumables up 22%.

• Gross margin: 62% overall; Therapeutic Device segment at 70%.

• Operating expenses: $10.4 million (-21% YoY); R&D down 38%, selling/marketing down 24%, G&A down 14%.

• Adjusted non-GAAP EBITDA loss: $2.4 million (58% improvement YoY); cash burn: $5.7 million (-15% YoY).

• Company remains essentially debt-free.

Outlook and guidance

• Targeting cash flow breakeven by end of 2026 and GAAP profitability by 2027, with confidence in reaching these goals.

• Expecting continued growth in consumables, new TRUFORMA assays in Q3 and Q4, and further traction for TRUVIEW AI and VETGuardian PLUS.

• International sales expected to grow, with catalysts including expanded distribution and product launches in Canada, UK, Turkey, and South America.

• Existing cash resources are considered sufficient for both short- and long-term operational needs.

• Ongoing focus on disciplined cost management and leveraging operating scale.