Nanalysis Announces Second Quarter 2026 Results
Rhea-AI Summary
Nanalysis Scientific (OTC: NSCIF) reported Q2 2026 revenue of $9.7 million, up 1.5% year over year, driven by higher Security Services and flow-through revenue, partially offset by lower product sales after terminating third‑party equipment sales.
Product sales fell 3.6% to $2.8 million, while services revenue grew 3.9% to $5.8 million and flow‑through revenue increased 2.9% to $1.1 million. Product gross margin rose to 65% and Security Services gross margin to 12%, both improving versus Q2 2025. Adjusted EBITDA turned positive to $0.9 million from a $0.5 million loss, and net loss narrowed to $0.7 million. For the first half of 2026, revenue was $20.4 million with Adjusted EBITDA of $1.2 million, and net loss reduced to $1.9 million. The company remained in compliance with all ATB debt covenants and secured $1.0 million PrairiesCan RTRI funding plus loan deferrals to support technology development and operations.
Positive
- Q2 2026 revenue $9.7 million, up 1.5% year over year
- Adjusted EBITDA improved to $0.9 million from a $0.5 million loss
- Net loss reduction to $0.7 million from $2.1 million in Q2 2025
- Security Services gross margin increased to 12% from 10% year over year
- Six‑month Adjusted EBITDA improved to $1.2 million from a $0.3 million loss
- $1.0 million PrairiesCan RTRI funding and loan deferrals strengthen liquidity
Negative
- Q2 2026 product sales declined 3.6% year over year to $2.8 million
- Six‑month product sales dropped 24.5% year over year to $5.0 million
- Total revenue growth remained modest at 1.1% for the first half of 2026
- Company remains loss‑making with Q2 net loss of $0.7 million and six‑month loss of $1.9 million
- Q2 2026 total revenue decreased sequentially to $9.7 million from $10.7 million in Q1 2026
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Reports
The Company reported second quarter revenue of
"We are encouraged by the continued improvement in our operating performance during the second quarter" said Sean Krakiwsky, Founder and CEO of Nanalysis. "Security Services continued to demonstrate improved margins and operating performance, while Scientific Equipment showed meaningful improvement from the first quarter, supported by manufacturing efficiencies and improved distributor sales. At the same time, continued cost discipline across the organization contributed to a significant improvement in Adjusted EBITDA and net loss compared to the prior year. We believe the results from the first half of 2026 demonstrate the progress being made from the strategic and operational initiatives implemented over the past year, and we remain focused on continuing that progress through the balance of 2026.
Financial highlights for the three and six months ended June 30, 2026:
Three months ended June 30 | Six months ended June 30 | |||||||
2026 | 2025 | Change | % | 2026 | 2025 | Change | % | |
Product sales | 2,797 | 2,902 | (105) | -3.6 % | 4,976 | 6,589 | (1,613) | -24.5 % |
Services revenue | 5,838 | 5,617 | 222 | 3.9 % | 11,742 | 10,640 | 1,102 | 10.4 % |
Flow-through revenue | 1,087 | 1,057 | 30 | 2.9 % | 3,671 | 2,941 | 730 | 24.8 % |
Total revenue | 9,722 | 9,576 | 146 | 1.5 % | 20,389 | 20,170 | 219 | 1.1 % |
Product sales GM | 65 % | 61 % | 4 % | 62 % | 64 % | -2 % | ||
Services revenue GM | 12 % | 10 % | 2 % | 16 % | 8 % | 8 % | ||
Net Loss | (666) | (2,122) | 1,456 | 69 % | (1,947) | (3,429) | 1,482 | 43 % |
Adjusted EBITDA | 881 | (462) | 1,343 | 291 % | 1,173 | (282) | 1,455 | 516 % |
- For the three and six months ending June 30, 2026, the Company reported consolidated revenue of
$9,722 $20,389 $146 1.5% and$219 1.1% compared to the corresponding periods in 2025. Product revenue declined due to the termination of third-party equipment sales and lower Q1 NMR benchtop sales, while Security Services revenue increased primarily due to higher levels of project-related work associated with the Airport Security Maintenance Business.
- Gross margin percentage for product sales for the three and six months ended June 30, 2026, was
65% and62% , respectively, compared to61% and64% in the corresponding periods from 2025. The improvement in the second quarter was primarily attributable to operational improvements.
- Gross margin percentage for Security Services for the three and six months ended June 30, 2026, was
12% and16% , respectively, compared to10% and8% in the corresponding periods from 2025. The improvement was driven by operational efficiencies, including enhanced logistics processes and more effective management of overtime and on-call hours, as well as higher levels of project-related service activity. Management believes the operational improvements implemented in 2025 position the segment for continued margin improvement through the remainder of 2026.
- The Company recorded Adjusted EBITDA of
$881 $1,173 $1,343 $1,455
- Net loss was
$666 $1,947 $1,456 $1,482
Quarterly Trend:
Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | |
Product sales | 2,797 | 2,179 | 4,133 | 2,719 |
Services revenue | 5,838 | 5,904 | 5,563 | 5,943 |
Flow-through revenue | 1,087 | 2,584 | 980 | 623 |
Total Revenue | 9,722 | 10,667 | 10,676 | 9,285 |
Net Loss | (666) | (1,281) | (729) | (1,500) |
Depreciation and amortization expense | 890 | 888 | 569 | 883 |
Finance expense | 378 | 354 | 433 | 248 |
Stock-based compensation | 66 | 63 | 90 | 70 |
Other expenses | 19 | 13 | 624 | 70 |
Amortization of deferred wages | 217 | 216 | 216 | 217 |
Current income tax (recovery) expenses | (2) | 33 | (12) | 29 |
Deferred income tax (recovery) expenses | (21) | 6 | (4) | (13) |
Adjusted EBITDA | 881 | 292 | 1,180 | 4 |
Adjusted EBITDA:
Three months ended June 30 | Six months ended June 30 | |||||
2026 | 2025 | Change | 2026 | 2025 | Change | |
Net loss | (666) | (2,122) | 1,456 | (1,947) | (3,429) | 1,482 |
Depreciation and amortization expense | 890 | 1,051 | (161) | 1,778 | 1,975 | (197) |
Finance expense | 378 | 359 | 19 | 732 | 686 | 46 |
Stock-based compensation | 66 | 112 | (46) | 129 | 243 | (114) |
Other expenses (income) | 19 | (44) | 63 | 32 | (182) | 214 |
Amortization of deferred wages | 217 | 216 | 1 | 433 | 406 | 27 |
Current income tax (recovery) expenses | (2) | 10 | (12) | 31 | 37 | (6) |
Deferred income tax expense | (21) | (44) | 23 | (15) | (18) | 3 |
Adjusted EBITDA | 881 | (462) | 1,343 | 1,173 | (282) | 1,455 |
Recent strategic and operational highlights include:
- Debt Covenant Compliance: At June 30, 2026 the Company was in compliance with all financial covenants associated with its ATB term loan and line of credit. Following a challenging 2025, the Company implemented a number of operational and financial initiatives that contributed to improved operating performance and reduced outstanding debt. The Company remains focused on strengthening its balance sheet and overall financial position.
- Improved Margins: The Company continues to improve operating performance across its Security Services and Scientific Equipment segments through operational improvement initiatives. Security Services gross margins improved significantly year-over-year, while Scientific Equipment gross margins improved during the second quarter compared to the prior-year period.
- Distributor Network Improvements: As part of its strategy to strengthen Scientific Equipment sales, the Company has increased its focus on supporting and expanding its international distributor network. Distributor-led sales in 2026 are currently on track to at least double compared to the prior year.
- PrairiesCan Partnership: The Company continues to strengthen its partnership with PrairiesCan, including the recent approval of
$1.0 million Alberta . The Company has received approximately$426
- Continuous Improvement Initiatives: The Company continued to advance operational and commercial improvement initiatives during the quarter, including strengthening its commercial organization and go-to-market channels, prioritizing research and development activities toward the highest-value opportunities, and ensuring that all eligible recoverable investment tax credits have been filed. These initiatives contributed to improved financial performance during the period and are helping position the Company for sustainable growth. While further progress is required, the Company believes these actions are creating a stronger foundation for continued execution and growth.
Outlook:
"Our outlook remains focused on continued operational improvement through the balance of 2026." said Mr. Krakiwsky. "We believe the actions taken over the past year to strengthen our operational efficiency, improve financial discipline and invest in our customer and distributor relationships are reflected in the improved performance delivered during the first half of the year. While macroeconomic conditions continue to impact purchasing timelines in the Scientific Equipment segment, we remain focused on disciplined execution and improving performance across both operating segments."
Conference Call:
Monday August 24st, 10am EST
Investors interested in participating in the live call can join through Zoom. Details provided below.
https://us02web.zoom.us/j/87624958529?pwd=FxTQ2xf1geEDJ3svrWXYSiNBZ7rJ5g.1
Meeting ID: 831 7132 1596
Passcode: 331001
One tap mobile
+17193594580,,83171321596#,,,,*331001# US
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The webcast will be archived on the Company's investor relations webpage for at least 90 days.
Non-IFRS and Supplementary Financial Measures:
The Company prepares and reports its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, as adopted by the Canadian Accounting Standards Board ("IFRS"). However, the press release may make reference to certain non-IFRS measures includes key performance indicators used by management. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS
The Company uses Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA"), which may be calculated differently by other companies. This non-IFRS measure is used to provide investors a supplemental measure of the Company's operating performance and liquidity and thus highlight trends in the Company's business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies in similar industries.
Supplementary Financial Measures:
The Company may also use supplementary financial measures which are intended to be disclosed on a periodic basis to depict the historical or expected future financial performance, cash position, or cash flow of the Company, are not a non-IFRS measure, and are not presented in the financial statements. The measures as discussed in this press release include:
- Gross margin ("GM"), which is defined as either product sales less cost of product sold, or, security services revenue less security services cost; and,
- Gross margin percentage, which is defined as either (product sales less cost of product sold) divided by product sales or (security services revenue less Security services costs) divided by security services revenue.
About Nanalysis Scientific Corp. (TSXV: NSCI, FRA:1N1)
Nanalysis Scientific Corp. develops and manufactures benchtop Nuclear Magnetic Resonance (NMR) spectrometers used worldwide in pharma, biotech, energy, food, materials, and security industries, as well as in academic and government labs. The Company also operates a growing services division that maintains both its own products and third-party imaging equipment, anchored by a
Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Nanalysis Scientific Corp.