Nanalysis Announces Third Quarter 2025 Results

Rhea-AI Summary

Nanalysis Scientific Corp. (OTCQX: NSCIF) reported Q3 2025 consolidated revenue of $9,285K, down 12% year-over-year, and nine-month revenue of $29,455K, down 11% year-over-year. Product sales declined sharply: $2,719K in Q3 (-36% YoY) and $9,308K YTD (-33% YoY). Security services revenue grew: Q3 $5,943K (+10% YoY) and YTD $16,583K (+8% YoY). Q3 product gross margin fell to 44% from 52%, while nine-month product margin improved to 58% from 50%. Adjusted EBITDA was ($2K) for Q3 and ($284K) YTD. Net loss improved to ($1,500K) in Q3 and ($4,929K) YTD. The company executed a five-year OEM and licensing agreement with IMRIS, resolved magnet supply constraints, and is restructuring its sales organization to refocus on benchtop NMR sales.

Positive

• Security services revenue +10% in Q3
• Nine-month product gross margin +8 percentage points
• Signed five-year OEM/licensing agreement with IMRIS
• Resolved magnet supply constraints in mid-Q4 2025

Negative

• Product sales down 36% in Q3 and 33% YTD
• Total revenue down 12% in Q3 and 11% YTD
• Adjusted EBITDA swung from $545K to ($2K) in Q3
• Ongoing net loss: ($1,500K) Q3 and ($4,929K) YTD

CALGARY, AB, Nov. 24, 2025 /PRNewswire/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR spectrometers and MRI technology for industrial and research applications, announces third quarter results for the period ending on September 30, 2025. Chief Executive Officer Sean Krakiwsky and Chief Financial Officer Randall McRae will host a conference call at 4:15 P.M. Eastern Time today to discuss the results. All interested parties are invited to join the call through the details provided below. All dollar figures in this press release are in thousands of Canadian dollars, except per share amounts or unless otherwise stated.  

"The first nine months of 2025 reflect the broader challenges in the capital equipment market, where global tariff and trade uncertainty continued to delay customer purchasing decisions. While our product portfolio is stronger than last year because of R&D innovation, lower product sales in the third quarter had a direct impact on our financial results," said Sean Krakiwsky, Founder and CEO of Nanalysis. "On a year-to-date basis, product margins have remained strong, although they decreased in the third quarter due to periods of under-utilized manufacturing staff during Q3 as a result of supply chain constraints. In contrast, Security Services margins have improved sequentially since dropping to a low point of 6% in Q1 2025, and are expected to continue to rise in the fourth quarter. In this segment, the management and operational changes implemented earlier in the year are bearing fruit. The team's focus on scheduling, logistics, and cost management has led to continuous margin improvement and revenue growth, and we expect these trends in this business to continue in the coming quarters.

"We continue to build a vertically integrated scientific instrumentation company by advancing our Benchtop NMR products and magnetic resonance platform, alongside ongoing improvements in our service business. Operational execution and efficiency will remain central to how we deliver results as we work toward long-term profitable growth."

Financial highlights for the three months ended September 30, 2025:

		Three months ended September 30
($000's)		2025	2024	Change $	Change %
Product sales		2,719	4,242	(1,523)	-36 %
Security services revenue		5,943	5,420	523	10 %
Flow-through inventory revenue		623	908	(285)	-31 %
Total sales and revenue		9,285	10,570	(1,285)	-12 %
Gross margin percentage - product sales		44 %	52 %	-8 %
Gross margin percentage - service revenue		14 %	15 %	-1 %
Adjusted EBITDA		(2)	545	(547)
Normalized net loss (excludes impairment of assets)		(1,500)	(1,570)	70	4 %
Net loss		(1,500)	(1,644)	144	9 %

For the three months ending September 30, 2025, the Company reported consolidated revenue of $9,285, a decrease of $1,285 or 12% from the comparative period in 2024. Within the product sales segment, this decline was due to reduction of third-party equipment sales contracts as the Company refocuses on selling its own core products and overall macro-economic uncertainty as a result of tariffs and trade disputes globally. Sales of capital equipment remained slow, resulting in a decline in overall revenues. As previously noted, the Company is no longer selling Mediso equipment in France and is phasing out its third-party sales of Agilent equipment in Canada and the US, expecting that to be fully wound down by December 31.  This will also result in a commensurate cost reduction as well as a redeployment of sales resources to the Benchtop NMR sales organization.  Within the Security Services segment, revenue increased by 10% year-over-year as a result of increased project work related to the Airport Security Maintenance Business.

Gross margin percentage for product sales for the three-month period ended September 30, 2025, was 44%, versus 52% from the comparative period in 2024.  Gross margins for the three months ended September 30, 2025, were impacted negatively due to supply chain challenges that slowed manufacturing activity.  These particular challenges were resolved in mid-Q4 2025, so it is expected that margins will improve again beginning at that point. While gross margins for Q3 2025 were 8% lower compared to Q3 2024, mainly due to magnet related supply chain issues, gross margins for the nine-month period ended September 30, 2025, increased by 8% over the same period in the prior year due to continuous improvement programs within manufacturing.

Gross margin percentage for security services for the three-month period ended September 30, 2025, was consistent with the prior year at 14% versus 15% from the comparative period in 2024. The new management team in that business has initiated improvements, including better scheduling, enhanced logistics processes and more effective management of overtime and on-call hours, which have improved margins steadily from their Q1 2025 low point of 6%.  The Company expects to improve margins for the remainder of the year.

Adjusted EBITDA (loss) for the three months ended September 30, 2025, was ($2) versus Adjusted EBITDA of $545 from the comparative period in 2024. This was primarily the result of a drop in scientific equipment sales in the quarter.

Net loss was $1,500 for the three months ended September 30, 2025, which is an improvement of $144 from the comparative period in 2024. The decrease in net loss was due to lower depreciation as an acquired, depreciable, intangible asset was fully impaired in 2024, and the fact that losses from associate are no longer recorded in the consolidated statement of loss and comprehensive loss due to the impairment of the Quad investment in 2024. 

Financial highlights for the nine months ended September 30, 2025:

		Three months ended September 30
($000's)		2025	2024	Change $	Change %
Product sales		9,308	13,860	(4,552)	-33 %
Security services revenue		16,583	15,408	1,175	8 %
Flow-through inventory revenue		3,564	3,938	(374)	-9 %
Total sales and revenue		29,455	33,206	(3,751)	-11 %
Gross margin percentage - product sales		58 %	50 %	8 %
Gross margin percentage - service revenue		10 %	11 %	-1 %
Adjusted EBITDA		(284)	1,200	(1,484)
Normalized net loss (excludes impairment of assets)		(4,929)	(5,887)	958	16 %
Net loss		(4,929)	(6,161)	1,232	20 %

 

The Company reported consolidated revenue of $29,455, a decrease of $3,751 or 11% from the comparative period in 2024. This is primarily the result of a $4,552 decrease in product sales, offset by a $801 increase in security services revenue.

Gross margin percentage on product sales was 58% for the nine months ended September 30, 2025, up from 50% in the prior year. Continuous improvement programs have continued to support strong margin improvement over the nine months ended September 30, 2024.

Gross margin percentage on service revenue was 10% for the nine months ended September 30, 2025, compared to 11% in 2024. The Company has reversed its margin decline from Q4 2024 and Q1 2025 and expects to see margins continue to improve over the rest of 2025.

Adjusted EBITDA loss for the nine months ended September 30, 2025, was ($284) versus Adjusted EBITDA of $1,200 for the same period last year. The drop was primarily due to the $4,552 decrease in product sales, offset by improved gross margins on both product and service revenues.

Quarterly Trend: 

($000's)	Q3 2025	Q2 2025	Q1 2025	Q4 2024
Product sales	2,719	2,902	3,687	5,536
Security services revenue	5,943	5,617	5,023	5,602
Flow-through parts revenue	623	1,057	1,884	1,151
Total revenue	9,285	9,576	10,594	12,289
Adjusted EBITDA	(2)	(462)	180	1,904
Normalized net loss	(1,500)	(2,122)	(1,307)	(400)

 

In Q3 2025, product sales were down by $183 from Q2 2025 mainly due to normal seasonality. In 2025, global capital equipment markets have cooled and eliminated expected 2025 growth and, in fact, resulted in a decline in overall sales globally. This was offset by an increase in security service revenue of $326 due to increased labour hours as well as the realization of certain contractual service bonuses.  Further, security services margins have improved over Q2 2025 which has significantly reduced the Company's Adjusted EBITDA loss.

Recent strategic and operational highlights include:

• Strategic OEM Partnership with IMRIS: The Company has secured a five-year, non-exclusive OEM supplier and technology-licensing agreement with IMRIS, leveraging its core electronics and software platform to support IMRIS's intra-operative MRI systems.
• Continuous Improvement Initiatives: The Company continued to execute its multi-year cost-reduction and continuous improvement program, including headcount reductions, reduced R&D expenditures, and sales and general and administrative expenses, resulting in significantly reduced operating expenses and contributing to a reduced net loss for the nine-month period ended September 30, 2025. While the Company has established a continuous improvement culture, it will also continue with cost reduction initiatives until mid-2026.
• Resolution of Magnet Supply Constraints: The Company addressed earlier magnet shortages by replenishing inventory caused by US-China trade tension by diversifying supplier alternatives and strengthening its ability to meet customer demand and support growth in its benchtop NMR product lines.
• Announcement of the first regulated benchtop NMR assay for pharmaceutical quality control: acceptance of the Molar Substitution Determination in Hydroxypropyl β-Cyclodextrin by the United States Pharmacopeia (USP-NF) and the European Pharmacopoeia (Ph. Euro).
• Announcement of Nanalysis integration with Wiley's KnowItAll software and spectral libraries to support diverse analytical laboratory workflows and continue the democratization of NMR, now that instrument miniaturization is becoming the norm.

Outlook

"As we enter the final quarter of 2025, our sales funnel remains active, but the timing of capital equipment purchases continues to be influenced by macro uncertainty. Given these conditions, cost control and careful resource allocation remain priorities. With recent management changes at our K'Prime subsidiary and the exit from our Mediso and Agilent reseller businesses, we are undertaking a full restructuring of our direct sales and distributor management organizations. Beginning next quarter, I will provide shareholders with regular updates on the performance of our revitalized product revenue organization. This initiative is focused on three key objectives: (1) developing better-trained and more engaged international dealers, (2) expanding our direct sales presence in Europe and the United States. I recognize that this is not the first time we have restructured our sales organization, and that the prior initiative to centralize sales through K'Prime did not deliver the expected results. Our new structure is designed to correct those shortcomings with clearer accountability, stronger leadership, and a more focused go-to-market framework." said Mr. Krakiwsky.

"In the Security Services segment, the efficiency initiatives introduced earlier this year, particularly around scheduling, logistics, and cost management, are expected to support continued operational improvements. Marc Tomlinson and the new management is executing well."

"Across both segments, our focus remains on operating discipline, margin improvement, and advancing our Benchtop NMR technologies and service capabilities. Our teams remain committed to prudent execution, as we navigate the current economic conditions," added Mr. Krakiwsky.

Conference Call:

Investors interested in participating in the live call can join through Zoom. Details provided below.

https://us02web.zoom.us/j/84202060177

Meeting ID: 842 0206 0177

One tap mobile
+16469313860,,84202060177# US
+16694449171,,84202060177# US

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, this press release may make reference to certain non-IFRS measures including 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 Flow-through parts revenue, Security services revenue, Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA"), and Normalized net loss as non-IFRS measures, which may be calculated ‎differently by other companies. These non-IFRS measure are used to provide investors supplemental measures 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.

Flow through parts revenue and Security services revenue

		Three months ended September 30
($000's)		2025	2024	($) Change
Security services revenue		5,943	5,420	523
Flow-through inventory revenue		623	908	(285)
Total Service Revenue		6,566	6,328	238
Security services costs		5,121	4,627	494
Flow-through inventory costs		623	908	(285)
Total Cost of Services		5,744	5,535	209
		Nine months ended September 30
($000's)		2025	2024	($) Change
Security services revenue		16,583	15,408	1,175
Flow-through inventory revenue		3,564	3,938	(374)
Total Service Revenue		20,147	19,346	801
Security services costs		14,910	13,741	1,169
Flow-through inventory costs		3,564	3,938	(374)
Total Cost of Services		18,474	17,679	795

 

Adjusted EBITDA

		Three months ended September 30
($000's)		2025	2024	($) Change
Net loss		(1,500)	(1,644)	144
Depreciation and amortization expense		883	1,165	(282)
Finance expense		248	341	(93)
Stock-based compensation		70	181	(111)
Other (income) expenses		64	(94)	158
Amortization of deferred wages		217	214	3
Loss from associate		-	305	(305)
Impairment of assets		-	74	(74)
Current income tax expense (recovery)		29	(22)	51
Deferred income tax (recovery) expense		(13)	25	(38)
Adjusted EBITDA		(2)	545	(547)

 

		Nine months ended September 30
($000's)		2025	2024	($) Change
Net loss		(4,929)	(6,161)	1,232
Depreciation and amortization expense		2,858	3,471	(613)
Finance expense		934	1,052	(118)
Stock-based compensation		313	829	(516)
Other (income) expenses		(118)	310	(428)
Amortization of deferred wages		623	680	(57)
Loss from associate		-	740	(740)
Impairment of assets		-	274	(274)
Current income tax expense		66	12	54
Deferred income tax recovery		(31)	(7)	(24)
Adjusted EBITDA		(284)	1,200	(1,484)

 

Adjusted EBITDA by Quarter

($000's)	Q3 2025	Q2 2025	Q1 2025	Q4 2024
Net loss	(1,500)	(2,122)	(1,307)	(7,452)
Depreciation and amortization expense	883	1,051	924	1,155
Finance expense	248	359	327	293
Stock-based compensation	70	112	131	199
Other (income) expenses	64	(44)	(138)	124
Amortization of deferred wages	217	216	190	215
Loss from associate	-	-	-	345
Impairment of assets	-	-	-	7,052
Current income tax expense (recovery)	29	10	27	33
Deferred income tax (recovery) expense	(13)	(44)	26	(60)
Adjusted EBITDA	(2)	(462)	180	1,904

Normalized net loss

		Three months ended September 30
($000's)		2025	2024	($) Change
Net loss		(1,500)	(1,644)	144
Impairment of assets		-	74	(74)
Normalized net loss		(1,500)	(1,570)	70
		Nine months ended September 30
($000's)		2025	2024	($) Change
Net loss		(4,929)	(6,161)	1,232
Impairment of assets		-	274	(274)
Normalized net loss		(4,929)	(5,887)	958

 

Normalized net loss by Quarter

($000's)	Q3 2025	Q2 2025	Q1 2025	Q4 2024
Net loss	(1,500)	(2,122)	(1,307)	(7,452)
Impairment of assets	-	-	-	7,052
Normalized net loss	(1,500)	(2,122)	(1,307)	(400)

 

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 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, OTCQX: NSCIF, FRA:1N1)

Nanalysis Scientific Corp. develops and manufactures portable 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 $160 million long-term contract with the Canadian Air Transport Security Authority (CATSA) to maintain security scanners at more than 80 Canadian airports.

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.

FAQ

What were Nanalysis (NSCIF) Q3 2025 revenues and year-over-year change?

Nanalysis reported Q3 2025 revenue of $9,285K, a 12% decrease versus Q3 2024.

How did Nanalysis product sales perform in Q3 2025 and year-to-date?

Product sales were $2,719K in Q3 2025 (down 36% YoY) and $9,308K for the nine months (down 33% YoY).

What is Nanalysis's Adjusted EBITDA for Q3 and nine months 2025?

Adjusted EBITDA was ($2K) for Q3 2025 and ($284K) for the nine months ended September 30, 2025.

Did Nanalysis report any strategic partnerships in Q3 2025?

Yes; Nanalysis signed a five-year OEM supplier and technology-licensing agreement with IMRIS.

How did Nanalysis's security services segment perform in Q3 2025 (NSCIF)?

Security services revenue was $5,943K in Q3 2025, up 10% year-over-year with improving margins.

What operational issues affected Nanalysis (NSCIF) margins in Q3 2025?

Q3 product margins were pressured by magnet-related supply chain issues and under-utilized manufacturing staff.

What restructuring steps is Nanalysis taking to boost product sales (NSCIF)?

The company is exiting Mediso and Agilent reseller sales, redeploying sales resources to benchtop NMR, and reorganizing direct sales and distributor management.