Zomedica Announces First Quarter 2025 Financial Results: Revenue of $6.5 Million; 68% Gross Margin, and $65 Million in Liquidity to Support Growth
Rhea-AI Summary
- Therapeutics revenue reached $5.9M (+8% YoY) - Consumables revenue grew to $4.5M (+13% YoY) - International sales increased 32% YoY - Cash position of $64.6M as of March 31, 2025
However, the company recorded a significant net loss of $63.8M, primarily due to a non-cash impairment charge of $55.8M triggered by market capitalization decline. Excluding this charge, adjusted operating expenses were $13.2M, down 9% YoY. The diagnostics segment saw a 25% revenue decline to $0.6M, mainly due to non-recurring initial distribution orders from the previous year.
Positive
- Revenue growth of 4% YoY to $6.5M, marking 17th straight quarter of record growth
- Strong gross margin improvement to 68% from 66% YoY
- Consumables revenue up 13% YoY to $4.5M, showing strong recurring revenue growth
- International sales increased 32% YoY
- Substantial cash position of $64.6M to support growth
- 9% reduction in adjusted operating expenses YoY
Negative
- Net loss increased significantly to $63.8M due to $55.8M non-cash impairment charge
- Diagnostics segment revenue declined 25% to $0.6M
- Capital revenues decreased 12% YoY
- Cash position decreased from $71.4M to $64.6M quarter-over-quarter
News Market Reaction – ZOMDF
On the day this news was published, ZOMDF declined 17.80%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ANN ARBOR, MI / ACCESS Newswire / May 15, 2025 / Zomedica Corp. (OTCQB:ZOMDF) ("Zomedica" or the "Company"), a veterinary health company offering point-of-care diagnostic and therapeutic products for equine and companion animals, today reported consolidated financial results for the first quarter ended March 31, 2025.
"We are pleased with our performance in the first quarter as we posted record year over year revenue for the 17th straight quarter," said Larry Heaton, President and Chief Executive Officer of Zomedica. "Bolstered by continued and robust usage of our consumable PulseVet® products, and the continued growth and adoption of our TRUFORMA® products, we were able to deliver the strongest first quarter in company history.
"Through further expansion of our portfolio, highlighted by the introduction of our new VETIGEL® product line, and the continued optimization of our commercial organization, we are seeing the positive impact in both placements and consumable usage, further supporting a foundation for recurring sales revenue in the future.
"International sales continue to grow, with sales up
"Based on the momentum we have created through the first quarter of the year, supported by the strength of our balance sheet, we believe that we are well positioned to aggressively execute on our strategy to drive the accelerated adoption of our innovative portfolio on a global scale," concluded Mr. Heaton.
2025 First Quarter Financial Highlights
Revenue for the first quarter of 2025 grew by
Revenue by Product Segment:
Therapeutic Device segment revenue, comprised of our PulseVet and Assisi® products, was
$5.9 million , up8% from first quarter 2024 revenues.Diagnostics segment revenue, comprised of our TRUFORMA®, TRUVIEW®, and VETGuardian® products, was
$0.6 million , down25% over first quarter 2024 revenues, primarily driven by large, initial distribution orders of VetGuardian products upon launching in the first quarter of last year, which did not repeat this year.
Revenue by Product Category:
Consumable revenues grew to
$4.5 million , up13% over first quarter 2024 revenues.Capital revenues were
$2.0 million , down12% from first quarter 2024 revenues, primarily impacted by the initial distribution orders for VETGuardian products placed last year as mentioned above.
Gross margin was
*Reported financial metrics, including year-over-year and sequential percentage changes, are calculated using actual results, which may not match calculations done using the figures shown in this press release due to rounding. Please refer to the Company's Form 10-Q for additional detail.
2025 First Quarter Results Review
Revenue for the three months ended March 31, 2025, was
Cost of revenue was
Operating expenses for the first quarter of 2025 include a non-cash impairment charge of
Total operating expenses including this non-cash impairment charge were
Research and development expenses were
Selling and marketing expenses were
General and administrative expenses were
Net loss for the three months ended March 31, 2025, includes a non-cash impairment expense of
*Non-GAAP EBITDA loss (which includes adjustments for stock compensation) for the three months ended March 31, 2025, was
When adjusting for the non-recurring items noted above and other non-cash items, **Adjusted Non-GAAP EBITDA loss was
Liquidity and Outstanding Share Capital
Zomedica had cash, cash equivalents, and available-for-sale securities of
As of March 31, 2025, Zomedica had 979,949,668 common shares issued and outstanding.
For complete financial results, please see Zomedica's filings on EDGAR and SEDAR+ or visit the Zomedica website at www.zomedica.com.
For percentage calculations please refer to the financial statements filed with the SEC on Thursday, May 15, 2025, along with other public filings.
Conference Call Details
Zomedica will host a conference call on Thursday, May 15, 2025, at 4:30 p.m. ET to discuss the Company's operational and financial highlights for its first quarter ended March 31, 2025. A question-and-answer session will follow management's prepared remarks.
Event: Zomedica Corp. Q1 2025 Financial Results Conference Call
Date: Thursday, May 15, 2025
Time: 4:30 p.m. Eastern Time
Live Call: +1-800-717-1738 (U.S. Toll-Free) or +1-646-307-1865 (International)
Webcast: LINK
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Thursday, May 29, 2025, at 11:59 PM ET and can be accessed by dialing +1-844-512-2921 (U.S. Toll-Free) or +1-412-317-6671 (International) and entering replay pin number: 1148151.
About Zomedica
Zomedica is a leading equine and companion animal healthcare company dedicated to improving animal health by providing veterinarians innovative therapeutic and diagnostic solutions. Our gold standard PulseVet® shock wave system, which accelerates healing in musculoskeletal conditions, has transformed veterinary therapeutics. Our suite of products also includes the Assisi® Loop line of therapeutic devices, along with the TRUFORMA® diagnostic platform, TRUVIEW® digital cytology system, VETGuardian® no-touch monitoring system, and VETIGEL® hemostatic gel, all designed to empower veterinarians to provide top-tier care. In the aggregate, their total addressable market in the U.S. exceeds
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Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. 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" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
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 the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements and our ability to realize upon our business plans and cost control efforts.
Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: the outcome of clinical studies; the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and verification and validation studies; uncertainty as to the timing and results of commercialization efforts, including international efforts, as well as the cost of commercialization efforts, including the cost to develop an internal sales force and manage our growth; uncertainty as to our ability to realize the anticipated growth opportunities from our acquisitions; uncertainty as to our ability to supply products in response to customer demand; supply chain risks associated with tariff changes; uncertainty as to the likelihood and timing of any required regulatory approvals, and the availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products and purchase of consumables following adoption of our capital equipment; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; performance by our strategic partners of their obligations under our commercial agreements, including product manufacturing obligations; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to any required clinical trials and regulatory approvals, risks relating to the safety and efficacy of our products, the use of our products, intellectual property protection, risks related to the COVID-19 pandemic and its impact upon our business operations generally, including our ability to develop and commercialize our products, and the other risk factors disclosed in our filings with the SEC and under our profile on SEDAR+ at www.sedarplus.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Investor Relations Contact:
Zomedica Investor Relations
investors@zomedica.com
1-734-369-2555
Non-GAAP Measures
Non-GAAP EBITDA, Adjusted Non-GAAP EBITDA, and other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies. Management uses the identified non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Zomedica's on-going operations and provide important supplemental information to management and investors regarding financial and business trends relating to Zomedica's financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented below.
* 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 income.
** Non-GAAP Adjusted EBITDA is defined as Non-GAAP EBITDA, as defined above, excluding impairment charges and non-recurring items; including but not limited to specialized accounting, tax, and audit services, new facility integration / start-up costs, and other one-time items.
ZOMEDICA CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)
Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Net loss and comprehensive loss | $ | (63,765 | ) | $ | (9,223 | ) | ||
Amortization expense | 1,692 | 1,597 | ||||||
Depreciation expense | 521 | 334 | ||||||
Stock-compensation expense | 618 | 1,101 | ||||||
Interest income | (730 | ) | (1,093 | ) | ||||
Income tax benefit | (57 | ) | (166 | ) | ||||
Non-GAAP EBITDA loss | $ | (61,721 | ) | $ | (7,450 | ) | ||
Impairment expense | 55,833 | - | ||||||
Proforma adjustments (1) | 143 | 2,193 | ||||||
Adjusted Non-GAAP EBITDA loss | $ | (5,745 | ) | $ | (5,257 | ) | ||
(1) Proforma adjustments for the three months ended March 31, 2025 included
SOURCE: Zomedica Corp.
View the original press release on ACCESS Newswire
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