If you’ve followed veterinary medicine stocks—or hung out in a few investing forums—there’s a good chance you’ve seen Zomedica’s name pop up. Some are convinced its days are numbered. Others think it’ll turn the corner. So, is Zomedica actually going out of business? Here’s a straightforward update on where things stand, why the skepticism is growing, and what might come next.
Zomedica’s Recent Money Moves: The Good and the Bad
Let’s start with the numbers, because that’s the quickest way to get real about the situation. In the third quarter of 2025, Zomedica pulled in $8.1 million in revenue. On paper, their gross margins look surprisingly solid—about 67%. This tells us they still make decent money on what they sell.
But keep reading those financials and trouble shows up fast. Zomedica’s operating margin for Q3 2025 was a jaw-dropping -106.3%. Basically, that means they spent way more running the business than they took in. And their return on equity? That was sitting at -26.8%. So if you’re a shareholder, you haven’t seen anything close to a profit.
It’s a classic problem for young public companies: they show hopeful topline growth but struggle to actually make money. In Zomedica’s case, the hole is pretty deep. They’re burning through cash every quarter.
Still, the balance sheet isn’t quite out of gas yet. At the end of Q3 2025, Zomedica reported $54 million in liquidity—enough to keep the lights on for now and fund product development.
Trying to Fix Things: The Move to Michigan and Other Changes
Zomedica’s management knows it can’t keep running at a loss forever. Over the past year, they set out to cut overhead costs. One headline that got some attention: Zomedica moved its headquarters from Texas to Ann Arbor, Michigan. Why move? Simple—office costs are lower in Ann Arbor and staff have access to more regional talent pools for veterinary diagnostics and biotech.
According to company estimates, this relocation should shave over $200,000 off their yearly overhead. That isn’t enough to fix hundred-million-dollar gaps, but every little bit counts when you’re running lean.
Meanwhile, Zomedica is chasing new business through partnerships. In Q3 2025, they signed an exclusive license agreement with Cresilon, Inc. This gives Zomedica the U.S. rights to market Vetigel®, a unique gel for stopping bleeding in animals (veterinary hemostatic wound care). This kind of deal can be a shot in the arm for any small animal health company.
They’ve also been working to upgrade their flagship diagnostic tools. Zomedica is best known for its TRUFORMA biosensor platform, and in 2025, they launched a new assay to measure equine (horse) adrenocorticotropic hormone—or eACTH. Basically, this makes the system more useful for vets who work with horses, broadening the platform’s target audience beyond companion animals.
These steps add up to a clear message: Zomedica isn’t just sitting still. They’re hustling to bring in new revenue and trim costs where possible.
The Stock Market Twist: Delisting from NYSE and a Shift to OTC
Just when things seemed steady enough, Zomedica got hit by a pretty serious setback in early 2025. The New York Stock Exchange American (NYSE American) delisted Zomedica’s stock. That’s stock market-speak for “we no longer think your stock meets our minimum standards.” Usually, this means the share price fell below a certain threshold for too long. Zomedica had been trading dangerously close to the cutoff for months.
As of March 5, 2025, Zomedica switched over to the OTCQB market, trading under the ticker “ZOMDF.” OTCQB stands for “over-the-counter,” which is basically the minor leagues for stocks that don’t meet the requirements of a major exchange.
While this doesn’t mean Zomedica is doomed, delisting scares off a lot of institutional investors. Most big funds and retirement accounts can’t buy or hold delisted stocks. That dries up potential new money for the company and often makes it a lot harder to sell your shares. Trading on the OTC also means less attention from Wall Street analysts, less daily trading volume, and more risk for anyone still holding the stock.
For investors, it’s a gut-check moment. Do you hang in and hope for a turnaround, or do you sell and move on?
Recent Revenue: Growth Isn’t the Same as Success
Let’s get back to the core question: how’s Zomedica actually performing recently? Fast-forward to Q1 2026. Zomedica brought in $6.5 million in revenue. That’s a 3.8% increase compared to the same quarter a year ago—not bad, considering the economic backdrop.
But context matters. That $6.5 million is actually down 17.67% compared to the previous quarter. So, even as the company manages slow year-over-year growth, things are not improving quarter to quarter. That sort of trend makes investors jittery, and it’s not exactly the confidence boost you need when your stock just got bumped off the NYSE.
Revenues are often where you look first—but in Zomedica’s case, it’s not growth alone that matters. They need real, sustained profitability, especially after years of losses.
What Are Analysts Saying? Are Investors Hopeful or Just Speculating?
So, how do analysts and investors feel about all of this? Honestly, there aren’t many consistent voices covering Zomedica right now—that’s typical for OTC stocks. But among the small group that still watches, the consensus is cautiously optimistic, at least publicly.
Wall Street price targets are one snapshot. Right now, two analysts maintain a bullish stance, with a median price target sitting at $0.25 per share. Keep in mind, these targets are often more wishful thinking than precise forecasts when the numbers look rough. The business is still losing money, there’s no timeline for profit, and the operating losses are deep.
Most of the hope among small investors and some analysts seems tied to Zomedica’s product pipeline. “Maybe the next big assay wins a big share of vet clinics.” “Maybe Vetigel® gets traction.” They’re looking for one breakout win.
At the same time, other investors see the delisting and continued losses as warning signs: momentum is against them, and without a major turnaround, cash will eventually run short.
For folks who hang out in finance circles or check news sites like AroundBusiness, you know these kinds of pivots don’t get resolved overnight—and they’re high-risk bets either way.
Zomedica’s Strengths: Why It’s Not Filing for Bankruptcy (Yet)
Even with all those warning flags, Zomedica isn’t going out of business right now. The company still has $54 million in liquidity—more than enough to fund daily operations, pay staff, and keep research projects moving for a while.
Their main products, like the TRUFORMA diagnostic platform, have real usage in the field, even if market adoption has been slower than hoped. They’re also still putting out new features and finding new commercial touchpoints (like their equine assay). Companies that are just weeks away from closing up shop usually stop investing in new tech or licensing new products.
And the cost-cutting from the Michigan move and other overhead reductions mean Zomedica is tightening its belt, not throwing in the towel. It’s the kind of move you make when you’re in survival mode, but not quite on the brink.
So if you’re hoping for a recap: Zomedica still has some breathing room. But the longer operating losses continue, and the longer revenue stagnates or drops, the harder it’ll be to keep that buffer.
So, Should Anyone Still Care?
At this point, Zomedica is what investors call a “show me” story. Management has made some meaningful moves—saving money, expanding the product lineup, and chasing new technologies in animal health. They’re fighting to stay relevant in a crowded, cutthroat market where big names throw their weight around.
But the struggles aren’t hidden. Revenues haven’t exploded. Profit seems a long way off. The stock leaving the NYSE American is a clear red flag. There’s very real risk that Zomedica could run out of cash unless something big changes—either a major sales boost, new product traction, or a strategic partnership.
If you work in animal health or are just fascinated by small-cap biotech, Zomedica will be a company to track. If you’re thinking of investing? Go in with your eyes wide open. You’re betting on a turnaround, and those don’t always pan out—but they sometimes do.
For now, Zomedica is still standing. But it’s not out of the woods, not by a long shot. Let’s see what happens in the next couple of quarters—watch the cash, watch the new products, and keep an eye on quarterly reports. Real turnaround, if it’s coming, will show up in numbers before it shows up in headlines.
