Zomedica Corp.

What they do

Zomedica develops and markets products for dogs, cats, and horses. Its portfolio includes the PulseVet and Assisi therapeutic devices and the TRUFORMA diagnostic platform. The company also operates a Development Services segment that leverages its engineering and manufacturing capabilities for third-party revenue.

Revenue drivers

• Therapeutic Devices — Approximately two-thirds of revenue, grew 9% in Q2 2026, with 68% gross margins. Includes PulseVet and Assisi products.
• Diagnostics — Grew 77% in Q2 2026, driven by the TRUFORMA platform, Boehringer Ingelheim Animal Health collaboration, and equine point-of-care assays.
• Development Services — New segment introduced in H2 2025; generated $3.4M through Q2 2026 and $6.4M since inception, leveraging existing engineering and manufacturing capabilities.

Recent performance

Q2 2026 revenue was $9.5M, up 37% year-over-year, a record for the quarter. Net loss narrowed 49% to $3.8M from $7.4M. Gross margin was 64%, and operating expenses fell 20%. Cash burn improved 38% to $3.4M, the lowest non-year-end quarterly burn on record. Revenue has grown year-over-year for 22 consecutive quarters.

Strategy

Management is focused on driving growth in Diagnostics through the Boehringer collaboration and international expansion. The company is leveraging its existing infrastructure to grow the Development Services segment, which it sees as a new revenue stream. Cost discipline remains a priority, with operating expenses and cash burn reduced despite revenue growth.

Risks

• Delisting and low share price — Shares were delisted from NYSE American in March 2025 and now trade on OTCQB, which may reduce liquidity and investor access.
• Ongoing net losses and cash burn — The company reported a net loss of $8.3M in H1 2026 and negative operating cash flow in every year covered; cash and securities totaled $44.1M, but burn continues.
• Limited cash runway — Cash and cash equivalents were $7.2M at June 30, 2026, with additional available-for-sale securities of $36.9M; continued losses may require future capital raises.
• Acquisition and integration risk — The company has made several acquisitions since 2021, and the 2025 10-K included $55.8M in impairment expense in H1 2025, indicating integration and valuation risks.

Outlook

Management expects continued revenue growth from Diagnostics and Development Services, with overall gross margins improving as the year progresses. The company anticipates its expanding global business to aid long-term growth. They also expect seasonal normalization and operating efficiencies to support margin and cash flow improvement.