A recent study by the American Veterinary Medical Association (AVMA) indicates that while veterinary practices are generating more revenue, they are also facing significant productivity challenges. The report shared at the 2026 AVMA Veterinary Business and Economic Forum shows the average U.S. veterinary practice earned nearly $1.6 million in revenue in 2025, marking a slight increase from about $1.5 million in 2024. However, this uptick is largely offset by inflation, with inflation-adjusted revenue rising only by 0.3%.
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Frederic B. Ouedraogo, PhD, an economist with the AVMA, noted that the increased revenue does not necessarily reflect improved business health. Key signs of concern include stagnating patient visits and a drop in revenue generated per square foot, which fell from $528 in 2024 to $513 in 2025. These declining figures suggest that practices may be expanding their facilities without achieving proportional revenue growth.
The average practice surveyed occupied approximately 4,000 square feet and had 3.6 examination rooms, generating an average revenue of $503,988 per examination room. While practices are increasing their space and staffing, these changes have not resulted in an increase in patient visits, which has remained stable or declined in several categories.
Interestingly, the number of active clients per practice rose from 3,741 in 2024 to 4,087 in 2025, yet visits per veterinarian did not follow suit. This discrepancy indicates changing dynamics in client engagement and spending habits, possibly influenced by economic pressures.
The report also highlights a significant uptick in the use of artificial intelligence among veterinary practices, with adoption rates nearly doubling from 18% in 2024 to 35% in 2025. This shift signifies that practices are exploring new technologies to streamline operations and enhance client interaction.
As businesses adapt to competition and changing client demands, the adoption of online pharmacies is becoming increasingly common. This strategy allows practices to offer convenience while retaining medication sales amid rising consumer expectations for easy access and home delivery options.
Ouedraogo emphasized that practice owners should focus on a range of performance metrics, including revenue per examination room and patient visit counts, rather than relying solely on gross revenue figures. The findings underscore the complexity of veterinary practice management in an evolving economic landscape. The complete study results are set to be released in the first quarter of 2027.