Zomedica — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the three months ended September 30, 2026, reached $9.9 million, a 22% increase year-over-year (YoY) from $8.1 million; revenue for the nine months ended September 30, 2026, was $28.2 million, a 31% YoY increase from $21.6 million.
• Net loss for the quarter was $3.2 million, a 48% reduction from $6.1 million in the prior year period; net loss for the nine months was $11.5 million, significantly lower than $77.3 million in the prior year period which included $55.8 million in non-cash impairment charges.
• Gross margin was 61% for the quarter and 62% for the nine-month period; the Therapeutic Devices segment specifically maintained a 64% gross margin.
• Operating expenses declined 21% ($2.5 million) to $9.5 million in the quarter and 21% ($7.9 million excluding impairment charges) to $30.0 million for the nine months compared to the prior year.
• Cash burn improved 32% ($1.5 million) to $3.2 million in the third quarter, marking the lowest third-quarter cash burn on record; year-to-date cash burn improved by $4.6 million.
• Liquidity totaled $40.9 million as of September 30, 2026.
• Non-GAAP EBITDA loss for the quarter was $1.8 million compared to $3.9 million in the prior year; Adjusted Non-GAAP EBITDA loss was $1.6 million compared to $3.9 million.

Guidance and Future Outlook:

• Management expressed confidence in closing the year strong based on record revenue, expanded commercial reach, and disciplined spending.
• The company anticipates continued growth in consumable revenue as the installed base of capital equipment grows.
• Long-term priorities include executing the growth strategy, improving operating efficiency, and creating long-term shareholder value.

Business Segments and Product Lines:

• Diagnostic revenue surged 113% YoY to $1.6 million in the quarter, driven by commercial initiatives, a collaboration with Boehringer Ingelheim Animal Health, and international expansion.
• Therapeutic Devices revenue increased 7% YoY to $7.2 million, representing approximately two-thirds of total revenue.
• Consumables revenue grew 26% YoY to $6.8 million, supported by the TRUFORMA platform and PulseVet trode sales.
• Development Services generated $1.1 million in revenue for the quarter and $4.5 million year-to-date.
• Capital revenue (PulseVet and VETGuardian sales) was $2.0 million for the quarter and $5.8 million for the nine months.
• Engineering Services revenue was $1.0 million for the quarter and $3.2 million for the nine months.
• The company entered an agreement with Veterinary Study Groups (VMG) to expand access to over 2,000 independent veterinary practices.

Market and Competitive Landscape:

• The core commercial business (excluding Development Services) grew 18% YoY in the quarter and 14% year-to-date.
• International business revenue increased 20% YoY in the quarter and 11% for the first three quarters of the year.
• The total addressable market for Zomedica's products in the U.S. exceeds $2 billion.
• The company has extended its record of consecutive year-over-year revenue growth to 23 quarters.

Risks and Challenges:

• Risks include uncertainty regarding the continued revenue generation of the new Development Services segment, outcomes of clinical studies, and regulatory approvals.
• Potential challenges involve supply chain risks associated with tariff changes, ability to supply products to meet demand, and veterinary acceptance of products and consumables.
• Competition from related products and risks related to intellectual property infringement, safety, and efficacy are noted.
• Uncertainty exists regarding the timing and results of commercialization efforts, including international expansion and internal sales force development.

Management Commentary and Tone:

• CEO Larry Heaton highlighted record third-quarter revenue, sustained demand for PulseVet and Assisi products, and progress in managing operating costs and cash consumption.
• Management emphasized a disciplined approach to cost and cash management, noting that operating expenses declined while supporting top-line growth.
• The tone was confident, citing a strong foundation for long-term growth through expanding global footprint and commercial partnerships.

Other Key Points:

• Zomedica reported 979,949,668 common shares issued and outstanding as of September 30, 2026.
• The company hosted a "Fourth Friday @ Four" webinar on November 20, 2026, to discuss the third-quarter performance and company personnel.
• The prior year's nine-month operating expenses included a $55.8 million non-cash impairment charge triggered by a decline in market capitalization, which did not occur in 2026.
• The company employs approximately 150 people and manufactures products from facilities in Georgia and Minnesota.