Zomedica Q3 Revenue Hits Record $9.9M, Net Loss Down 48%

Zomedica Corp. (OTCQB: ZOMDF) reported record third quarter 2026 revenue of $9.9 million on November 4, 2026, up 22% from $8.1 million a year earlier, while net loss narrowed 48% to $3.2 million from $6.1 million. The Ann Arbor, Michigan-based animal health company ended the quarter with $40.9 million in cash, cash equivalents and available-for-sale securities, and said diagnostics revenue climbed 113% year-over-year.

The company said it has now posted 23 consecutive quarters of year-over-year revenue growth.

Context — Why Zomedica's Q3 Print Matters Now

The quarter extends a multi-year expansion for a company whose revenue base remains small relative to its share count. Zomedica reported full-year 2025 revenue of $32 million, representing 17% growth, and has now grown 31% through the first three quarters of 2026 to $28.2 million.

That acceleration matters because the company's cost structure has been the central investor concern. In the first nine months of 2025, operating expenses reached $93.7 million, a figure inflated by $55.8 million in non-cash impairment charges tied to a decline in market capitalization. No comparable impairment has been recorded in 2026.

Stripping out those charges, adjusted operating expenses for the nine months fell to $30.0 million from $37.9 million, a reduction of $7.9 million, or 21%. The company frames that as fiscal discipline rather than a pullback in commercial investment.

Chief Executive Officer Larry Heaton said the results reflect "sustained demand" for the PulseVet and Assisi therapeutic device lines, growing adoption of diagnostic products, and contributions from the newer Development Services segment. The report does not disclose the terms of the Veterinary Study Groups agreement referenced by Heaton, nor the financial value of the Boehringer Ingelheim Animal Health collaboration.

The catalyst chain is straightforward: revenue growth plus cost reduction plus a stable liquidity position. Whether that combination is enough to move the stock depends on a market that has historically valued Zomedica on cash burn and dilution risk rather than revenue alone.

Data — What the Numbers Show

The headline comparison is stark. Revenue rose $1.8 million year-over-year in the quarter and $6.6 million over nine months. Operating expenses fell $2.5 million in the quarter and, on an adjusted basis, $7.9 million year to date.

Cash burn — a key metric for a pre-profitability company — improved 32%, or $1.5 million, to $3.2 million in the quarter. Zomedica said this was its lowest third-quarter cash burn since commercialization and its second consecutive quarter below a historical run-rate of roughly $4 million, adjusted for one-time events and acquisitions. Year-to-date cash burn improved by $4.6 million.

Metric	Q3 2026	Q3 2025
Revenue	$9.9M	$8.1M
Net loss	$3.2M	$6.1M
Operating expenses	$9.5M	$12.0M
Cash burn	$3.2M	$4.7M

Segment detail shows where growth is concentrated. Diagnostics revenue reached $1.6 million, up 113% year-over-year, and up 89% to a cumulative figure over nine months. Therapeutic Devices, roughly two-thirds of revenue, grew 7% to $7.2 million in the quarter. Development Services contributed $1.1 million in the quarter and $4.5 million year to date.

Consumables revenue rose 26% to $6.8 million, while Capital revenue was $2.0 million. Consolidated gross margin was 61% for the quarter, down from the Therapeutic Devices segment's 64%, a gap the company attributes to product mix, new product ramp-up, and inflation.

Non-GAAP EBITDA loss narrowed to $1.8 million from $3.9 million. Adjusted Non-GAAP EBITDA loss was $1.6 million, versus $3.9 million a year earlier. Share count stood at 979,949,668 common shares outstanding as of September 30, 2026.

Analysis — What It Means for Markets and Tickers

The diagnostics growth rate is the standout. A 113% year-over-year increase in a segment that includes the TRUFORMA, VETGuardian and TRUVIEW platforms suggests Zomedica is converting installed therapeutic-device customers into recurring diagnostic revenue. That is a higher-margin, stickier business model than capital equipment sales if the trend holds.

The counter-argument is margin mix. Consolidated gross margin of 61% trails the 64% the Therapeutic Devices segment alone delivered, and the company attributes the drag to product mix and inflation. If diagnostics and Development Services continue to outgrow the higher-margin therapeutic segment, blended margin could compress further even as revenue rises.

For sector exposure, Zomedica sits in a niche of veterinary diagnostics and therapeutics, a market the company estimates exceeds $2 billion in the U.S. alone. That is a small addressable pool relative to human-health diagnostics, which limits the size of any single winner but also insulates the space from the pricing pressure that has hit human-health peers.

Positioning is difficult to read from the report alone. The company did not disclose institutional ownership, short interest, or any buyback or capital-raise plans. With nearly 980 million shares outstanding, dilution remains a structural overhang that investors will weigh against the improving cash-burn trajectory.

Outlook — What to Watch Next

Zomedica said it believes it is well positioned to close the year strong, citing record third-quarter revenue, expanding commercial reach and disciplined spending. The company did not provide specific full-year revenue or earnings guidance in the report.

The next scheduled disclosure point is the company's Third Friday at Four webinar on November 20, 2026, at 4:00 PM ET, where management said it will discuss third-quarter performance. That event is the nearest catalyst for incremental detail on segment trends and any updated commentary on the fourth quarter.

Investors watching the name should track three things: whether diagnostics growth sustains at triple-digit rates, whether gross margin stabilizes near 61%, and whether quarterly cash burn stays below the roughly $4 million historical run-rate. A reversal on any of those would undercut the cost-discipline narrative that drove the improved net loss.

Frequently Asked Questions

What does Zomedica's Q3 2026 result mean for retail investors?

For retail holders, the print shifts the story from cash preservation to growth execution. Net loss fell to $3.2 million from $6.1 million, and cash burn hit a record low for a third quarter at $3.2 million. With $40.9 million in liquidity, the company has runway, but the report does not state how many quarters that covers or whether a capital raise remains possible.

Why did Zomedica's diagnostics revenue jump 113%?

The company attributes the increase to commercial initiatives, its collaboration with Boehringer Ingelheim Animal Health, and expansion into additional international markets. Diagnostics revenue reached $1.6 million in the quarter, driven by adoption of the TRUFORMA, VETGuardian and TRUVIEW platforms. The report does not break out revenue by individual product or disclose the financial terms of the Boehringer partnership.

What happens next for Zomedica stock?

The nearest scheduled event is the November 20, 2026 investor webinar, where management will discuss third-quarter performance. The report offers no guidance on fourth-quarter revenue, no buyback authorization, and no update on share count beyond the 979.9 million shares outstanding as of September 30. Absent new disclosure, the stock's direction likely hinges on whether the cash-burn trend holds.

Bottom Line

Zomedica's record quarter pairs 22% revenue growth with a 48% smaller net loss, but margin mix and dilution risk remain unresolved.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.