Zomedica Corp. (ZOMDF)·Q3 2025 Earnings Summary

Executive Summary

• Zomedica delivered record quarterly revenue of $8.10M (+16% YoY) with 67% gross margin; Diagnostics grew 51% YoY and a new Development Services stream contributed $0.7M, driving the strongest quarter in company history .
• Operating leverage improved: total OPEX fell to $12.0M (−$0.5M YoY), net loss narrowed to $(6.1)M (−9% YoY), and Adjusted Non‑GAAP EBITDA loss improved to $(3.7)M (vs. $(4.3)M) .
• Strategic execution advanced: international expansion (UK distribution with Pioneer; partnerships strengthened in NL and Canada), portfolio enhancements (new TRUFORMA feline assays; four U.S. patents), and plans to launch TRUVIEW AI next quarter .
• No formal quantitative guidance issued; management reiterated a “clear line of sight to cash flow breakeven and profitability” and scheduled a Q3 business review webinar with Q&A for Nov 21, 2025 (potential near‑term catalyst) .

What Went Well and What Went Wrong

• What Went Well

  • Record performance: “Crossing $8 million in quarterly sales for the first time is a proud moment… and a clear indicator that our long-term strategy is working” — CEO Larry Heaton .
  • Mix and recurring model: Diagnostics revenue +51% YoY; Consumables +14% YoY; gross margin sustained at 67% .
  • Cost discipline: OPEX down $0.5M YoY; Adjusted Non‑GAAP EBITDA loss improved to $(3.7)M from $(4.3)M .

• What Went Wrong

  • Profitability still negative: net loss of $(6.1)M; OPEX ($12.0M) still exceeds revenue despite reductions .
  • Diagnostics scale remains modest at $0.7M this quarter; growth is strong but from a small base .
  • No formal numeric guidance; Street comparison limited as S&P Global showed no active consensus for revenue or EPS this quarter, constraining beat/miss assessment (see Estimates Context) (S&P Global data — see Estimates Context section).

Financial Results

Overall P&L trend (oldest → newest)

YoY comparison (Q3)

Segment revenue (oldest → newest)

Revenue by product category (oldest → newest)

Liquidity and share count

Context versus estimates

• S&P Global showed no active Wall Street consensus for Q3 2025 revenue or EPS; therefore, a beat/miss assessment vs. Street is not available at this time (S&P Global).*

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Delivering 16% growth and achieving record year-over-year revenue for the 19th straight quarter… a clear indicator that our long-term strategy is working.” — Larry Heaton, CEO .
• “Fueled by robust demand for… PulseVet and Assisi… continued accelerated growth and adoption of… TRUFORMA… and the successful introduction of our new Development Services revenue stream, we delivered the strongest quarter in company history.” .
• “Our disciplined execution of cost-reduction initiatives continues to pay off… reducing cash burn… positioning us for stronger, more sustainable growth.” .
• “We… look forward to… launching our TRUVIEW AI platform in the coming quarter.” .
• “We believe we are well positioned… providing us with a clear line of sight to cash flow breakeven and profitability.” .

Q&A Highlights

• An earnings call transcript was not filed/found for Q3 2025; instead, the company scheduled a special “Friday at Four” investor webinar with Q&A for Nov 21, 2025 to provide a strategic overview and third‑quarter business review .
• As a result, there are no Q&A takeaways yet for the period; Q&A insights should be available following the Nov 21 webinar replay .

Estimates Context

• S&P Global consensus for Q3 2025 was not available for revenue or EPS; GetEstimates returned actual revenue only, with no consensus or estimate counts, preventing a beat/miss determination (S&P Global).*
• Given limited sell‑side coverage, we expect estimates to adjust primarily through company‑driven disclosures (e.g., webinar commentary), rather than model revisions tied to Street numbers .

Key Takeaways for Investors

• Revenue momentum is building across the year ($6.5M → $7.0M → $8.1M), with sustained 67–68% gross margins — a constructive setup for operating leverage as scale improves .
• Diagnostics growth (+51% YoY) and Consumables (+14% YoY) support a recurring revenue mix; continued assay/menu expansion should underpin utilization trends .
• New Development Services revenue ($0.7M) introduces a lever with attractive incremental margin potential over time (engineering/contract manufacturing/licensing) .
• Cost controls are taking hold; OPEX down YoY and Adjusted Non‑GAAP EBITDA loss improved to $(3.7)M, but profitability still requires additional scale and execution .
• International distribution (UK Pioneer) and strengthened EU/Canada partners broaden the funnel; near‑term catalysts include the Nov 21 webinar and the planned TRUVIEW AI launch next quarter .
• With no formal guidance and limited Street coverage, narrative and execution milestones (product launches, distribution traction, consumable utilization) are likely to drive stock reactions near term .
• Watch for sustained Diagnostics and Consumables growth, Dev Services visibility, and OPEX control to close the gap to breakeven over the next several quarters .

Footnotes

• Non‑GAAP definitions and reconciliations are provided by the company (see exhibits); Adjusted Non‑GAAP EBITDA excludes impairment and other non‑recurring items .
• Additional prior‑quarter detail: Q2 2025 revenue +14% YoY to $7.0M with 67% GM; Q1 2025 revenue +4% YoY to $6.5M with 68% GM .
• UK distribution with Pioneer was announced Sept 3, 2025 (Q3), aligning with the international growth commentary in the Q3 release .

Citations to primary documents

• Q3 2025 8‑K and Exhibit 99.1 press release:
• Q2 2025 8‑K and Exhibit 99.1 press release:
• Q1 2025 8‑K and Exhibit 99.1 press release:
• Supporting distribution & webinar press releases (republished): .

*Values retrieved from S&P Global.