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ZC

Zomedica Corp. (ZOMDF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue grew 14% year over year to $7.0M, marking the 18th consecutive quarter of record YoY revenue; gross margin was 67% and adjusted Non-GAAP EBITDA loss was $5.5M .
  • Diagnostics segment revenue rose 86% YoY to $0.8M on accelerating TRUFORMA adoption; consumables revenue increased 21% YoY to $5.3M, supporting a recurring revenue foundation .
  • Operating expenses fell to $12.7M (vs. adjusted $13.4M in Q2 2024), with management highlighting internal cost reductions; net loss improved to $7.35M vs. $23.98M in Q2 2024 (which included impairment last year) .
  • No formal quantitative guidance or Street consensus estimates were provided or available; management cited momentum, product enhancements (TRUFORMA T4 assay, VetGuardian onboarding app), and international growth (+13% YoY) as drivers into H2 . S&P Global consensus was unavailable this quarter (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

  • Diagnostics revenue +86% YoY to $0.8M, driven by accelerating adoption of TRUFORMA and an expanding assay menu .
  • Consumables revenue +21% YoY to $5.3M, reflecting strong PulseVet trode sales and growing installed base, reinforcing recurring revenue potential .
  • Gross margin sustained at 67% and Opex decreased versus adjusted prior year, evidencing cost control progress . Management: “We are very pleased with the 14% growth… strongest second quarter in company history” .

What Went Wrong

  • Adjusted Non-GAAP EBITDA loss modestly increased YoY to $5.5M (vs. $5.2M in Q2 2024), despite revenue growth .
  • Selling & marketing expense rose 19% YoY to $4.6M due to sales headcount and higher commissions; R&D rose 25% YoY to $1.9M to support next-gen products .
  • Street consensus estimates unavailable; lack of formal guidance limits external benchmarkings and may reduce near-term visibility (S&P Global consensus unavailable).

Financial Results

Headline P&L (YoY, sequential)

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$6.1 $6.5 $7.0
Gross Margin (%)—68% 67%
Net Loss ($USD Millions)$23.98 $63.77 $7.35
Adjusted Non-GAAP EBITDA Loss ($USD Millions)$5.22 $5.75 $5.51

Note: Company press release states Q2 2025 revenue of $7.0M, while S&P Global shows $6.964M; variance reflects rounding. Use company-reported figures for comparability (values retrieved from S&P Global).

EPS (S&P Global; no Street consensus available)

MetricQ1 2025Q2 2025
Diluted EPS - Continuing Operations (USD)-$0.0651*-$0.00755*

*Values retrieved from S&P Global.

Segment Revenue Breakdown (Q2 2025)

SegmentQ2 2025 Revenue ($USD Millions)YoY Change
Diagnostics (TRUFORMA, TRUVIEW, VetGuardian)$0.8 +86%
Therapeutic Devices (PulseVet, Assisi)$6.2 +8%

Product Category Breakdown (Q2 2025)

CategoryQ2 2025 Revenue ($USD Millions)YoY Change
Consumables$5.3 +21%
Capital$1.7 Flat

Operating KPIs

KPIQ1 2025Q2 2025
Gross Margin (%)68% 67%
Adjusted Operating Expenses ($USD Millions)$13.2 $12.7
R&D Expense ($USD Millions)$1.9 $1.9
Selling & Marketing Expense ($USD Millions)$5.0 $4.6
G&A Expense ($USD Millions)$6.3 $6.2
Cash, Cash Equivalents & AFS Securities ($USD Millions)$64.6 $59.1
Shares Outstanding979,949,668 979,949,668
International Sales YoY Growth (%)32% 13%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Not provided Not provided; management cites momentum and product enhancements Maintained (no formal guidance)
Gross MarginFY 2025Not provided Not provided; Q2 gross margin 67% reported Maintained (no formal guidance)
Operating ExpensesFY 2025Not provided Cost reduction initiatives underway; no numeric guidance N/A
DividendsFY 2025Not mentioned Not mentioned N/A

Management did not issue formal quantitative guidance ranges; commentary emphasized recurring revenue model, portfolio expansions, and cost optimization .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was found; company scheduled a “Fourth Friday at Four” webinar for Aug 22, 2025 to review Q2 .

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2025)Trend
TRUFORMA adoption & assay expansionQ1: Diagnostics revenue -25% YoY due to non-repeating distributor orders; focus on TRUFORMA growth ahead Diagnostics +86% YoY; enhanced TRUFORMA T4 assay launched Improving
Consumables & recurring revenueQ1: Consumables +13% YoY; recurring revenue foundation noted Consumables +21% YoY; recurring model reinforced Strengthening
International expansionQ1: +32% YoY, new distributors +13% YoY; continued organic growth and new distributor orders Expanding, variable growth
Cost control & marginQ1: 68% gross margin; adjusted Opex down vs prior year 67% gross margin; Opex $12.7M; internal cost reduction initiatives noted Sustained margin; improving cost discipline
Product enhancementsQ1: Introduction of VETIGEL product line VetGuardian onboarding app; TRUFORMA T4 assay upgrades; planned VetGuardian/TruView enhancements Active pipeline
Leadership changesQ1: CFO resigned April 25, 2025; Controller assuming responsibilities until replacement No update in Q2 release; operations ongoing Transition ongoing

Management Commentary

  • “We are very pleased with the 14% growth attained in the second quarter as we posted record year-over-year revenue for the 18th straight quarter… strongest second quarter in company history.” — Larry Heaton, CEO .
  • “Through further expansion of our portfolio and… optimization of our commercial organization… 86% growth in our Diagnostic segment and 21% growth in total Consumable sales… supports a foundation for recurring sales revenue.” .
  • “Gross margin… came in at 67%. Internal cost reduction initiatives are well underway… $0.7 million reduction in OPEX for the quarter… $2.1 million reduction for the six months…” .
  • “We launched a national Equine Asthma registry… enhanced TRUFORMA T4 assay and a VetGuardian onboarding app… We expect to roll out additional enhancements… in the upcoming quarter.” .

Q&A Highlights

  • No public Q2 2025 earnings call transcript was located; management scheduled a “Fourth Friday at Four” webinar on Aug 22, 2025 to review the quarter .
  • As no transcript is available, there were no accessible Q&A clarifications on guidance or segment dynamics beyond press release commentary .

Estimates Context

  • S&P Global consensus estimates for revenue and EPS were unavailable for ZOMDF in Q2 2025; therefore, a formal beat/miss determination vs Street cannot be made (values retrieved from S&P Global).
  • Company-reported actuals: Revenue $7.0M and adjusted Non-GAAP EBITDA loss $5.5M; EPS per S&P Global was -$0.00755* (values retrieved from S&P Global). The absence of consensus likely reflects limited coverage at current scale .
MetricQ2 2025 ActualS&P Global ConsensusBeat/Miss
Revenue ($USD Millions)$7.0 N/AN/A
Diluted EPS (USD)-$0.00755*N/AN/A

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Diagnostics acceleration is real: +86% YoY in Q2 on TRUFORMA adoption, with assay expansion and platform upgrades likely to sustain growth into H2 .
  • Recurring revenue engine is building: Consumables +21% YoY and strong PulseVet trode reorders underpin improved revenue durability .
  • Margins are resilient (67% in Q2); cost actions are visible in lower adjusted Opex vs prior year, supporting path toward improved profitability as scale increases .
  • Liquidity remains strong at $59.1M, providing runway to invest in portfolio enhancements and international expansion despite ongoing EBITDA losses .
  • Leadership transition (CFO resignation in April) introduces execution risk; Controller is covering finance until a replacement is hired—monitor for further updates .
  • Limited external estimates and no formal guidance reduce visibility; near-term stock narrative likely tied to Diagnostics adoption, consumables growth, and tangible cost discipline .
  • Upcoming webinar (Aug 22) may provide incremental detail on H2 initiatives (VetGuardian/TruView enhancements, registry impact) and refine investor expectations—potential catalyst for sentiment .