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, TRUFORMA diagnostics, and 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 was 62% for the quarter, down from 68% in Q1 2025, reflecting changes in product mix.

• Cash burn reduced by 15% year-over-year, ending the quarter with $47.5 million in cash equivalents and securities.

• Strategic focus on expanding recurring revenue, global adoption, and achieving cash flow breakeven and profitability by 2027.

Financial highlights

• Q1 2026 revenue reached $8.8 million, a 35% increase from Q1 2025.

• Diagnostics segment revenue up 73% year-over-year to $1.0 million, led by TRUFORMA adoption.

• Therapeutic Device segment revenue was $5.8 million, flat year-over-year, with consumables up 22%.

• Development Services contributed $2 million in revenue.

• Operating expenses were $10.4 million, down 21% year-over-year, with R&D down 38%, and selling/marketing and G&A each down 24%.

• Adjusted non-GAAP EBITDA loss improved to $2.4 million from $5.7 million in Q1 2025.

Outlook and guidance

• Targeting cash flow breakeven by end of 2026 and GAAP profitability in 2027.

• Expecting continued growth in consumables and recurring revenue as installed base expands.

• New TRUFORMA assays planned for Q3 and Q4 2026; TRUVIEW AI and VETGuardian PLUS expected to drive future growth.

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

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