Zomedica Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenue grew 35% year-over-year to $8.8 million, driven by strong diagnostics and recurring consumables, with gross margin at 62% and operating expenses down 21%. The company targets cash flow breakeven by end of 2026 and profitability in 2027, supported by new product launches and international expansion.
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R&D and product innovation remain central, with TRUFORMA, VetGuardian, and TRUVIEW platforms driving growth and market expansion. Financial performance is improving, with profitability targeted for 2027 and breakeven possible by end of 2026. Human health entry will focus on partnerships and contract manufacturing.
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Digital innovation and AI are driving growth, with recurring consumable revenue at 70-73% and break-even targeted at $55M annualized revenue by 2027. TRUVIEW AI and PIMS integration are key product milestones, and new TRUFORMA assays will expand market reach in 2026.
Fiscal Year 2025
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Record Q3 2025 revenue was driven by strong diagnostics and recurring consumables growth, with operating expenses and cash burn significantly reduced. The company is on track for another record quarter, expects to reach cash flow break-even at $55 million revenue, and is launching new products soon.
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A diverse portfolio of proprietary veterinary technologies is driving recurring revenue and high margins, with strong growth in both U.S. and international markets. New AI-enabled diagnostics and expanded product indications are set to accelerate growth, supported by scalable operations and robust liquidity.
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Q1 2025 saw record revenue of $6.5M, up 4% year-over-year, led by therapeutic devices and consumables. Gross margin improved to 68%, but a $55.8M non-cash impairment drove a net loss of $63.8M. Focus remains on cost reduction, equine and international growth, and new product launches.
Fiscal Year 2024
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Delivered record 2024 revenue with 8% year-over-year growth and strong gross margins, despite delisting from NYSE American. Expanded product portfolio, international reach, and infrastructure, while maintaining over $71 million in liquidity and no debt.
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Q3 revenue grew 10% year-over-year to $7M, with record highs for the 14th straight quarter, strong gross margins of 72.3%, and international sales up 12%. Profitability is now targeted for 2026, with cash flow break-even expected at $50M annualized revenue.
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Q2 revenue grew 2% year-over-year to $6.1M, led by diagnostics, but capital sales lagged due to sales force absences and macro headwinds. International expansion and new product launches set the stage for stronger H2 growth, while gross margin reached 71%.
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Strong growth in the veterinary health market is fueled by innovative therapeutic and diagnostic products, recurring revenue streams, and a robust financial position. Expansion into new markets, product launches, and operational efficiencies support guidance for 23%–39% revenue growth in 2024.