Zomedica (NYSEAMERICAN:ZOM) reported record first-quarter 2026 revenue and said it remains focused on reaching cash flow breakeven, while outlining its strategy for growth in the companion animal veterinary technology market.
Chief Executive Officer Larry Heaton said during the company’s Friday at Four webinar that Zomedica generated $8.8 million in revenue in the first quarter, up 35% from the prior year. He said the result marked the company’s 21st consecutive quarter of record revenue growth and the first time Zomedica surpassed $8 million in first-quarter revenue.
Margins Hold as Expenses Decline
Heaton said gross margins remained at 62%, while operating expenses fell by $2.7 million, or 21%. Adjusted non-GAAP EBITDA loss improved to $2.4 million from a loss of $5.7 million in the first quarter of 2025, excluding impairment charges, representing a 58% improvement. Cash burn improved by $1.1 million, or 15%, compared with the prior-year period.
Senior Vice President of Finance and Corporate Controller Mike Zuehlke said total operating expenses were $10.4 million in the quarter, down 21% from the prior year after excluding the impairment charge taken in the first quarter of 2025. Research and development expenses were $1.2 million, down 38%, while selling and marketing expenses fell to $3.8 million from $5 million. General and administrative expenses declined to $5.4 million from $6.3 million.
Zuehlke said Zomedica ended the quarter with $47.5 million in cash equivalents and available-for-sale securities. Cash used during the quarter was approximately $5.7 million, down 15% from the first quarter of 2025. He also said the company remains “essentially debt-free.”
“Continued top-line growth at healthy margins and the continued discipline that has resulted in reduced operating expenses will continue to show progress toward our goals of cash flow breakeven and GAAP profitability,” Zuehlke said.
Diagnostics Segment Leads Growth
Zuehlke said diagnostics segment revenue rose 73% year over year, reflecting continued adoption of TRUFORMA and utilization of the company’s expanded assay menu, particularly among equine veterinarians. Therapeutic device revenue was roughly flat, which he attributed to broader industry headwinds around capital device demand in the first quarter.
Consumables revenue in the therapeutic devices segment increased approximately 6% year over year, including Assisi products and PulseVet Shrouds. Zuehlke said first-quarter 2025 results included pull-ahead activity from certain international distributors due to tariff uncertainty that did not repeat in 2026. Adjusting for that activity, he said therapeutic devices consumables grew approximately 10%.
Across all segments, consumables revenue increased 22%, driven by TRUFORMA demand and sustained demand for PulseVet Shrouds. Zuehlke said the company expects consumables growth to compound as its installed base expands.
Company Emphasizes Companion Animal Opportunity
Heaton framed the company’s strategy around what he called the Zomedica Companion Animal Ecosystem, spanning diagnostics, therapeutics, monitoring and procedural tools. He said the U.S. veterinary services market is valued at $72.6 billion in 2026, with growth expected through 2030 and beyond.
Heaton said companion animal practices are seeing higher patient volumes, more complex cases and greater demand for advanced diagnostics and treatment tools. He said clinics are investing in diagnostics, therapeutics and patient monitoring, and that Zomedica is positioned in those areas.
The company described TRUFORMA as its anchor point-of-care diagnostics platform, using bulk acoustic wave technology for endocrine and biomarker testing. Heaton said TRUFORMA supports in-clinic testing for thyroid, adrenal, pancreatic and cardiac markers, allowing veterinarians to make decisions during the patient visit rather than waiting for external laboratory results.
Zomedica also highlighted TRUVIEW, its AI-enabled digital microscopy and telepathology platform. Heaton said TRUVIEW combines high-resolution digital microscopy, cloud connectivity and AI-assisted image analysis to support workflows including dermatology, cytology, parasites, ear infections and hematology.
On the therapeutic side, Heaton said PulseVet provides extracorporeal shockwave therapy for musculoskeletal conditions, while Assisi provides pulsed electromagnetic field therapy through wearable home-use devices. He also discussed Vetigel, a plant-based hemostatic agent designed for rapid bleeding control.
International Expansion and Development Services
Paul Tighe, who leads Zomedica’s international business outside North America, said the company is increasing its focus on international markets, including Europe, Latin America and Asia-Pacific. He said Europe is a key priority but requires a country-by-country approach because of differences in culture, language and market structure.
During the Q&A portion, Heaton said international sales have been growing and that Zomedica has active markets in countries including Uruguay, Paraguay, Brazil, Chile, Colombia, Peru and Mexico. He said the company is in about 60 countries with PulseVet and has recently added distribution partners in Canada and the United Kingdom.
Heaton said Canada and the U.K. are showing “very substantial growth,” while Turkey is showing “tremendous growth,” particularly with TRUFORMA. He said South America, Australia and Europe also represent areas where Zomedica expects to add products through existing distributors or new distribution relationships.
Heaton also discussed the company’s development services segment, which generated $2 million in revenue in the quarter. He said investors should monitor reported revenue to gauge whether the segment becomes a meaningful revenue driver, because the company cannot disclose confidential customers or biomarkers.
Breakeven, PIMS Integration and Capital Structure
In response to an investor question, Heaton said reaching cash flow breakeven by the end of 2026 remains a goal and said the company was meeting internal expectations in the first quarter and so far in the second quarter. He also reiterated that the company’s stated schedule is to achieve cash flow breakeven and GAAP profitability in 2027, while indicating management expects to reach cash flow breakeven by the end of 2026.
Heaton said Zomedica is working on practice information management system, or PIMS, connectivity through its myZomedica portal. He said PIMS integration should make the company’s products more convenient for veterinary practices and could improve close rates for TRUFORMA, while also helping TRUVIEW AI and VETGuardian PLUS.
On capital structure, Heaton said there is no immediate plan to reduce shares outstanding through a buyback because the company is not yet cash flow positive. He said a buyback or other capital structure actions could be considered after the company reaches cash flow positivity and profitability.
Heaton said institutional investors have expressed concerns about Zomedica’s share count, share price level and desire for direct investment structures. He said management’s current plan is first to prove the business financially by reaching cash flow breakeven and profitability.
Looking ahead, Heaton said the company plans to launch two new TRUFORMA assays in the third quarter and two more in the fourth quarter. He also said TRUVIEW AI is “performing well in the marketplace” and could be a meaningful contributor in the months and years ahead.
About Zomedica (NYSEAMERICAN:ZOM)
Zomedica Pharmaceuticals Corp. is a veterinary health company dedicated to improving the lives of companion animals through innovative diagnostic and therapeutic solutions. The company’s primary focus is on the development of point‐of‐care veterinary diagnostics and disease‐specific pharmaceuticals, aimed at empowering practitioners with timely information and treatment options for cats and dogs. Zomedica’s flagship offering is TRUFORMA, a bench‐top diagnostic platform designed to deliver rapid, accurate in‐clinic test results across a range of analytes including thyroid hormones, cortisol and infectious disease biomarkers.
Beyond diagnostics, Zomedica is advancing its therapeutic pipeline with products targeting unmet needs in feline and canine health.
