Executive Summary
Zomedica Corp reported its Q1 2025 results, highlighting a revenue of $6.26 million, reflecting a year-over-year growth of 14.23%, but a quarter-over-quarter decline of 14.65%. The gross profit margin improved to 65.75%, which is a positive indicator amid challenging market conditions. Despite this, the company continues to post a significant net loss of $9.16 million, signaling ongoing operational challenges. Management expressed commitment to refining its product offerings and enhancing market penetration in its earnings call, underscoring a focus on growing diagnostic solutions for companion animals. Investors should monitor upcoming product launches as key drivers of market growth and potential profitability.
Key Performance Indicators
QoQ: -14.65% | YoY:14.23%
QoQ: 59.12% | YoY:-43.46%
QoQ: 59.39% | YoY:-43.08%
Key Insights
**Revenue Growth:** Zomedica's revenue of $6.26 million for Q1 2025 represents a 14.23% increase year-over-year, showcasing the strong demand for its veterinary diagnostics products. However, the QoQ decrease of 14.65% raises questions about seasonal fluctuations and ongoing operational efficiencies.
**Profitability Metrics:** The gross profit margin saw an improvement to 65.75%, up from 62.48% in Q4 2024. However, the net income for the quarter was a loss of $9.16 million, reflecting a -4...
Financial Highlights
Revenue Growth: Zomedica's revenue of $6.26 million for Q1 2025 represents a 14.23% increase year-over-year, showcasing the strong demand for its veterinary diagnostics products. However, the QoQ decrease of 14.65% raises questions about seasonal fluctuations and ongoing operational efficiencies.
Profitability Metrics: The gross profit margin saw an improvement to 65.75%, up from 62.48% in Q4 2024. However, the net income for the quarter was a loss of $9.16 million, reflecting a -43.46% change year-over-year, underscoring persistent cost management issues that must be addressed.
Cash Position: As of the end of Q1 2025, Zomedica had $10.94 million in cash and cash equivalents, down from $12.95 million at the beginning of the quarter. The total assets stood at $243.7 million, supported by a solid current ratio of 11.50.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.26M |
14.23% |
-14.65% |
| Gross Profit |
4.12M |
7.35% |
28.54% |
| Operating Income |
-10.39M |
-38.26% |
8.81% |
| Net Income |
-9.16M |
-43.46% |
59.12% |
| EPS |
-0.01 |
-43.08% |
59.39% |
Key Financial Ratios
operatingProfitMargin
-165.9%
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$-0.01
Management Commentary
Theme: Product Development
Management emphasized, "Our focus remains on accelerating the rollout of TRUFORMA and other diagnostic products. We believe this will solidify our position in the veterinary market."
Theme: Operational Efficiency
On cost containment strategies, the CFO stated, "We are in the process of reassessing our operational expenditures, targeting a reduction in overhead to improve our gross margins."
Theme: Market Positioning
CEO quoted, "The demand for advanced veterinary diagnostics is surging, and we aim to leverage our market position to capture a larger share of this growing sector."
"The demand for advanced veterinary diagnostics is surging, and we aim to leverage our market position to capture a larger share of this growing sector."
â Zomedica CEO
"We are in the process of reassessing our operational expenditures, targeting a reduction in overhead to improve our gross margins."
â Zomedica CFO
Forward Guidance
Management provided a cautiously optimistic outlook, forecasting revenue growth driven by product launches slated for Q2 and Q3 2025. Specific targets include a goal to exceed $30 million in revenue for the entirety of FY 2025. However, they cautioned investors that continued operational improvements are essential to meet profitability targets. Key monitoring factors will include market acceptance of new products, competitive responses, and ongoing cost management initiatives.