Zomedica Corp. Q2 FY26 Results

Delivering 37% growth and achieving record year-over-year revenue for the 22nd consecutive quarter reflects continued execution across the business. Growth in the quarter was driven by continued strength in our PulseVet® and Assisi® therapeutic device products, increasing adoption of our diagnostic offerings, particularly our TRUFORMA® platform, and contributions from our newly formed Development Services segment. As a result, we delivered the strongest second quarter in Zomedica’s history, surpassing the prior record of $7.0 million established in the second quarter of 2025. Commercial initiatives within our Diagnostics segment, including our collaboration with Boehringer Ingelheim Animal Health, assays that provide point-of-care diagnoses for the equine market, and expansion into additional international territories, continue to deliver encouraging results, as evidenced by 77% growth within the segment. We also continue to make meaningful progress within our Development Services segment, providing another opportunity to leverage our engineering, development, and manufacturing expertise while generating additional revenue and improving operating leverage over time. The Development Services business segment has generated revenue of $3.4 million through the second quarter of 2026, and $6.4 million since its introduction in the second half of 2025, demonstrating our ability to create new revenue streams by leveraging capabilities that already exist across our organization. Within our core commercial business, excluding Development Services, revenue increased 16% compared to prior year. This represents the strongest second quarter in the Company’s history for our existing product portfolio and demonstrates healthy organic demand across our business. Our international business also continues to perform exceptionally well, with revenue increasing 17% in the second quarter. This growth has been driven primarily by organic demand, and we anticipate that our expanding global business will continue to contribute to sustainable long-term growth. Gross margin was 64% for the quarter and 63% year-to-date. Margin performance reflected product mix and the expected lower margins associated with ramping production of new products. Our Therapeutic Devices segment, which represents approximately two-thirds of our revenue, continued to generate strong margins of 68% during the quarter. We expect overall gross margins to improve as the year progresses as seasonal dynamics normalize and operating efficiencies take effect. Disciplined cost management remains a priority. Operating expenses declined 20%, or $2.6 million. Selling and marketing expenses alone decreased 21% during the quarter despite 37% revenue growth, resulting in improved operating leverage while continuing to support commercial expansion. Cash burn declined to $3.4 million during the quarter, an improvement of 38%, or $2.1 million, compared to the second quarter of 2025. This represents our lowest non-year-end quarterly cash burn on record. Year-to-date cash burn has improved by $3.2 million, reflecting continued fiscal discipline while supporting top-line revenue growth. We believe our record second-quarter performance, expanding commercial partnerships, ongoing activity within our Development Services segment, and strong balance sheet all position us well for the remainder of 2026. We remain focused on executing our growth strategy, improving operating efficiency, and creating long-term shareholder value.