Zomedica (US:ZOM)2025-08-06 20:56Zomedica Announces Second Quarter 2025 Financial Results Executive Summary & Key Highlights Zomedica reported strong Q2 2025 results with record revenue growth for the 18th consecutive quarter, driven by therapeutic and diagnostic product adoption - Zomedica achieved its 18th consecutive quarter of record year-over-year revenue growth12 Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Change YoY | Source | | :----- | :------ | :--------- | :----- | | Revenue | $7.0 million | +14% | [1, 9] | | Gross Margin | 67% | N/A | [1, 6] | | Operating Expenses Reduction | $0.7 million | -5% (adjusted) | [7, 14] | | Liquidity (Cash, Equivalents, Securities) | $59.1 million | N/A | [1, 20] | Strategic Initiatives and Product Enhancements The company advanced its product portfolio and market presence through international expansion, a new Equine Asthma registry, and platform enhancements - International sales grew by 13% compared to Q2 2024, driven by organic growth and new distributor partnerships4 - Launched a national Equine Asthma registry which provides a low-cost way to accumulate data to support expanded usage of the PulseVet system4 - Introduced an enhanced TRUFORMA® T4 assay and a VetGuardian® onboarding app, with additional enhancements planned for VetGuardian and TRUVIEW® platforms in the upcoming quarter5 2025 Second Quarter Financial Performance Revenue Overview Total revenue increased 14% year-over-year to $7.0 million, propelled by strong growth in the Diagnostics segment and consumable sales Q2 2025 Revenue Performance | Metric | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change | Source | | :----- | :-------------- | :-------------- | :--------- | :----- | | Total Revenue | $7.0 million | $6.1 million | +14% | [9, 13] | Revenue by Product Segment The Diagnostics segment grew 86% year-over-year, driven by TRUFORMA platform adoption, while the Therapeutic Device segment grew 8% Q2 2025 Revenue by Product Segment | Segment | Q2 2025 Revenue | YoY Change | Primary Driver | Source | | :-------- | :-------------- | :--------- | :------------- | :----- | | Diagnostics | $0.8 million | +86% | TRUFORMA point-of-care diagnostic platform, expanded menu of assays | [3, 9, 10] | | Therapeutic Device | $6.2 million | +8% | PulseVet® and Assisi® products | [10, 11] | Revenue by Product Category Consumable revenues grew 21% year-over-year, led by TRUFORMA and PulseVet products, while capital revenues remained flat Q2 2025 Revenue by Product Category | Category | Q2 2025 Revenue | YoY Change | Primary Driver | Source | | :------- | :-------------- | :--------- | :------------- | :----- | | Consumables | $5.3 million | +21% | TRUFORMA products, PulseVet® trodes | [3, 21] | | Capital | $1.7 million | Flat | N/A | [21] | Gross Margin Zomedica maintained a strong gross margin of 67% for the second quarter of 2025 Q2 2025 Gross Margin | Metric | Q2 2025 | | :----- | :------ | | Gross Margin | 67% | Operating Expenses Total operating expenses decreased significantly due to the non-recurrence of a prior-year impairment charge, with a 5% adjusted reduction Q2 2025 Operating Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Total Operating Expenses | $12.7 million | $29.4 million | -56.8% | [14] | | Total Operating Expenses (Excl. Impairment) | $12.7 million | $13.4 million (adjusted) | -5% | [14] | | Impairment Charge (Q2 2024) | N/A | $16.0 million | N/A | [14] | Research and Development (R&D) Expenses R&D expenses increased by 25% year-over-year, reflecting continued investment in internal product development capabilities Q2 2025 R&D Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | R&D Expenses | $1.9 million | $1.5 million | +25% | [15] | - The increase was driven by costs related to building internal capabilities for developing next-generation therapeutic and diagnostic products15 Selling and Marketing (S&M) Expenses S&M expenses rose by 19% year-over-year due to increased sales headcount and higher commissions from sales growth Q2 2025 S&M Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | S&M Expenses | $4.6 million | $3.9 million | +19% | [16] | - The increase was primarily driven by a larger sales department headcount and higher commissions associated with sales growth16 General and Administrative (G&A) Expenses G&A expenses decreased by 23% year-over-year, mainly due to non-recurring prior-year fees and reduced salary costs Q2 2025 G&A Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | G&A Expenses | $6.2 million | $8.0 million | -23% | [17] | - The decrease was primarily driven by the non-recurrence of prior-year special meeting and impairment-related accounting fees, as well as lower salary and severance expenses17 Net Loss and Profitability The company significantly reduced its net loss to $7.4 million from $23.9 million in the prior-year quarter Q2 2025 Net Loss | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Net Loss | $7.4 million | $23.9 million | -69.1% | [18] | - The Q2 2024 net loss included a non-cash impairment charge of $16.0 million1418 Non-GAAP Financial Measures The Non-GAAP EBITDA loss improved significantly, while the Adjusted Non-GAAP EBITDA loss remained relatively stable year-over-year Q2 2025 Non-GAAP EBITDA Loss | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Non-GAAP EBITDA Loss | $5.8 million | $22.3 million (adjusted) | -74.0% | [18] | | Adjusted Non-GAAP EBITDA Loss | $5.5 million | $5.2 million | +5.8% | [19] | Liquidity and Capital Structure Cash and Securities Zomedica maintained a strong liquidity position with $59.1 million in cash, cash equivalents, and available-for-sale securities Liquidity as of June 30, 2025 | Metric | Amount | | :----- | :----- | | Cash, Cash Equivalents, and Available-for-Sale Securities | $59.1 million | Outstanding Share Capital As of June 30, 2025, the company had approximately 980 million common shares issued and outstanding Outstanding Common Shares as of June 30, 2025 | Metric | Amount | | :----- | :----- | | Common Shares Issued and Outstanding | 979,949,668 | Company Profile and Additional Information About Zomedica Zomedica is a veterinary health company providing innovative solutions for animals, targeting a U.S. market exceeding $2 billion - Zomedica is a leading equine and companion animal healthcare company dedicated to improving animal health by providing veterinarians innovative therapeutic and diagnostic solutions25 - Key products include PulseVet® shock wave system, Assisi® Loop, TRUFORMA® diagnostic platform, TRUVIEW® digital cytology system, VETGuardian® no-touch monitoring system, and VETIGEL® hemostatic gel25 - The total addressable market in the U.S. for Zomedica's products exceeds $2 billion25 - Strategic focus areas include advancing product offerings, leveraging strategic acquisitions, and expanding internationally25 Investor Relations & Communications The company will host a webinar to discuss its Q2 financial performance and has provided contact details for investor inquiries - Zomedica will host its 'Fourth Friday at Four Webinar' on Friday, August 22, 2025, at 4:00 PM ET, to review and discuss its second-quarter financial performance23 - Investor Relations contact: investors@zomedica.com, 1-734-369-255533 Cautionary Note Regarding Forward-Looking Statements This section disclaims that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking information is frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur27 - Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for products, and the company's ability to produce and sell its products28 - Readers are cautioned not to place undue reliance on forward-looking information, as actual events or results could differ materially due to various risks and uncertainties293132 Non-GAAP Measures Definitions and Reconciliations This section defines Non-GAAP EBITDA and Adjusted Non-GAAP EBITDA and provides detailed reconciliations to their closest U.S. GAAP equivalents - Non-GAAP EBITDA and Adjusted Non-GAAP EBITDA are not recognized terms under U.S. GAAP and are used by management to evaluate operating performance and assist investors in evaluating Zomedica's on-going operations34 - Non-GAAP EBITDA is defined as net loss and comprehensive loss excluding amortization, depreciation, non-cash stock compensation, and taxes while reversing out the benefits derived from net interest income35 - Adjusted Non-GAAP EBITDA is defined as Non-GAAP EBITDA, excluding impairment charges and non-recurring items such as specialized accounting, tax, and audit services, new facility integration/start-up costs, and other one-time items35 Reconciliation of Non-GAAP Financial Measures (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net loss and comprehensive loss | $(7,353) | $(23,980) | | Amortization expense | 1,412 | 1,626 | | Depreciation expense | 509 | 351 | | Stock-compensation expense | 260 | 858 | | Interest income | (629) | (1,038) | | Income tax benefit | 12 | (143) | | Non-GAAP EBITDA loss | $(5,789) | $(22,326) | | Impairment expense | - | 16,024 | | Proforma adjustments (1) | 279 | 1,083 | | Adjusted Non-GAAP EBITDA loss | $(5,510) | $(5,219) | (1) Proforma adjustments for the three months ended June 30, 2025 included $263 of one-time general and administrative expenses and $16 of one-time selling and marketing expenses. Reconciliation of Non-GAAP Financial Measures (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net loss and comprehensive loss | $(71,118) | $(33,203) | | Amortization expense | 3,105 | 3,223 | | Depreciation expense | 1,030 | 685 | | Stock-compensation expense | 878 | 1,959 | | Interest income | (1,359) | (2,131) | | Income tax benefit | (45) | (309) | | Non-GAAP EBITDA loss | $(67,509) | $(29,776) | | Impairment expense | 55,833 | 16,024 | | (1) Proforma adjustments | 422 | 3,276 | | Adjusted Non-GAAP EBITDA loss | $(11,254) | $(10,476) | (1) Proforma adjustments for the six months ended June 30, 2025 included $417 of one-time general and administrative expenses and $5 of one-time selling and marketing expenses.