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    NNOX
    Earnings call· Mar 2026(Q1 FY26)

    Nano-X Imaging Q1 FY26 earnings call NNOX

    Jun 25, 2026 Source

    Executive summary

    Nano-X Imaging Ltd. Q1 FY26 — Strategic Shifts Amidst Revenue Guidance Withdrawal and Going Concern Warning

    Nano-X Imaging is undergoing a significant strategic shift, moving towards a CapEx-driven commercial model and restructuring operations to optimize costs. While early signs of revenue from Nanox.ARC and growth in teleradiology and AI solutions are positive, the company has withdrawn its 2026 revenue guidance due to deployment delays. The firm faces substantial financial uncertainty, including a going concern warning, as it seeks additional funding to support its long-term vision of expanding medical imaging access.

    Highlights

    5

    • Total revenue increased to $4.3 million in Q1 FY26, up from $2.8 million in Q1 FY25.

    • Teleradiology services revenue grew to $3.1 million, up from $2.6 million, with a GAAP gross profit margin of 24%.

    • AI and software solutions revenue significantly increased to $1 million, up from $0.2 million, driven by Nanox Health IT consolidation.

    • Secured multiple U.S. commercial agreements representing potential for approximately 360 CapEx system sales over 2-3 years.

    • Nanox.ARC system successfully deployed and in commercial use at RadNet, the largest outpatient imaging center operator in the U.S.

    Concerns

    5

    • Withdrew previously issued 2026 revenue targets due to longer-than-anticipated timelines for revenue recognition.

    • GAAP net loss increased to $14.3 million in Q1 FY26, up from $13.2 million in Q1 FY25.

    • Non-GAAP net loss attributable to ordinary shares increased to $11.1 million, up from $9.4 million.

    • Cash and cash equivalents, short-term deposits, and long-term restricted deposits decreased to $44.2 million as of March 31, 2026, from $60 million as of December 31, 2025.

    • Management expects current cash is not sufficient to support operations for at least one year, raising substantial doubt about the company's ability to continue as a going concern.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 revenue target
    Withdrawn
    high materiality
    Low
    Future annual revenue guidance
    No longer provided
    high materiality
    High
    AI business gross profit breakeven
    Early 2027
    medium materiality
    Medium
    Q2 FY26 revenue
    Better than Q1 FY26
    medium materiality
    Medium
    Operating expenses / burn rate
    Decline sequentially
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Teleradiology Services
    Revenue increased from $2.6 million in the comparable period, driven by customer retention and increased volume of reading services. Non-GAAP gross profit margin was 36% compared to 39% in the prior year.
    GAAP Gross Profit Margin: 24%Non-GAAP Gross Profit: $1.1 millionNon-GAAP Gross Profit Margin: 36%
    		$3.1 million——$0.7 million
    AI and Software Solutions
    Revenue increased significantly from $0.2 million in the comparable period, with $0.9 million generated by Nanox Health IT. Non-GAAP gross profit was $0.3 million compared to $81,000 in the prior year.
    GAAP Gross Loss: $1.7 millionNon-GAAP Gross Profit: $0.3 million
    		$1 million——-$1.7 million
    Imaging Systems (Nanox.ARC)
    Revenue from sales and deployment of imaging systems was $1,067, compared to $3,000 in the comparable period. This includes $1,018 from Nanox Connex units, $11,000 from imaging system deployment, and $38,000 from OEM services.
    		$1,067———
    Total Company
    Total revenue increased from $2.8 million in the comparable period, largely due to the consolidation of Nanox Health IT ($0.9 million increase) and an increase in teleradiology services revenue ($0.5 million increase). GAAP gross loss was $2.6 million, and non-GAAP gross loss was $0.2 million.
    Comparable Revenue (Q1 FY25): $2.8 millionGAAP Gross Loss: $2.6 millionNon-GAAP Gross Loss: $0.2 million
    		$4.3 million——-$2.6 million

    Operational metrics

    18
    Total Revenue
    $2.8 million
    Q1 FY25

    Comparable period revenue for Q1 FY25.

    Teleradiology Services Revenue Increase
    $0.5 millionYoY
    Q1 FY26

    Increase in revenue from teleradiology services compared to the comparable period, contributing to overall revenue growth.

    Research and Development Expenses (Net)
    $4.8 millionvs $5 million in Q1 FY25
    Q1 FY26

    Net R&D expenses for the reported period.

    Sales and Marketing Expenses
    $2.2 millionvs $0.9 million in Q1 FY25
    Q1 FY26

    Sales and marketing expenses for the reported period.

    Sales and Marketing Salaries and Wages Increase
    $0.8 millionYoY
    Q1 FY26

    Increase in salaries and wages contributing to higher sales and marketing expenses.

    General and Administrative Expenses
    $5.2 millionvs $5.1 million in Q1 FY25
    Q1 FY26

    General and administrative expenses for the reported period.

    General and Administrative Expenses (Comparable)
    $5.1 million
    Q1 FY25

    Comparable period G&A expenses for Q1 FY25.

    Non-GAAP Operating Expenses Increase
    $1.4 millionYoY
    Q1 FY26

    Increase in non-GAAP operating expenses, contributing to the higher non-GAAP net loss.

    Cash and Cash Equivalents, Short-term Deposits, Long-term Restricted Deposits
    $44.2 millionvs $60 million as of December 31, 2025
    March 31, 2026

    Total cash and cash equivalents, short-term deposits, and long-term restricted deposits at the end of the quarter.

    Purchasing Property and Equipment
    $1.8 million
    Q1 FY26

    Amount spent on purchasing property and equipment, mainly for the building of ARCX.

    Preliminary Annual Cash and Cash Equivalent (Net of Short-term Bank Loan)
    $27 million
    As of June 25, 2026

    Estimated cash balance as of the date of the press release, indicating a significant reduction from the quarter-end balance.

    Property and Equipment Net
    $30.6 millionvs December 31, 2025
    March 31, 2026

    Net property and equipment at the end of the quarter, reflecting the $1.8 million purchase.

    Shares Outstanding
    69.6 millionvs December 31, 2025
    March 31, 2026

    Number of ordinary shares outstanding.

    RSUs Granted
    1 million
    Q1 FY26

    Total RSUs granted to officers, employees, and consultants during the first quarter.

    Headcount Reduction (Israel)
    15
    Q2 FY26

    Number of employees reduced in Israel as part of restructuring efforts.

    AI Cardio Solution ROI (Cedar-Sinai)
    $3.8 million
    First year

    Projected revenue generation from the AI cardio solution at Cedar-Sinai based on a retrospective pilot.

    AI Bone Solution Identified Fractures Increase
    14-foldvs radiologists with no solution
    N/A

    Improvement in identifying vertical fractures using the AI bone solution compared to radiologists without the solution, as presented in a paper.

    AI Bone Solution Identified Fractures Improvement (Endocrinologists)
    Nearly 5-foldvs endocrinologists without solution
    N/A

    Improvement in identifying vertical fractures using the AI bone solution compared to endocrinologists utilizing the solution to evaluate images.

    Industry KPIs

    3
    MetricValueDetails
    Client retention new winsFew hundredcustomers
    Pharmacy scripts specialtyIncreasedvolume
    Adjusted EPS EBITDA leverage guidance-$11.1 millionUSD

    Deals & partnerships

    5
    Multiple U.S. medical equipment distributorsCommercial agreements2-3 years

    Agreements secured in Q1 FY26 with established distributors to supplement direct sales efforts and provide broader market coverage.

    Topmed SACDistribution agreement

    Distribution agreement signed in Peru in late May, advancing partnerships in Latin America.

    RadNetStrategic deployment and collaboration

    Nanox.ARC system deployed and in commercial use at a RadNet facility, exploring expanded deployment across additional outpatient imaging centers and for clinical research.

    Cedar-SinaiClinical trial partnership

    Strategic health system partnership supporting clinical validation efforts for the AI cardio solution.

    PacSystemsHealth IT integration and customer demo

    Completed integration and performed a customer demo utilizing a non-algorithm with the health IT partner, demonstrating synergies.

    Risks & headwinds

    6
    Inability to continue as a going concernNext 12 months

    Cash and cash equivalents of $44.2 million as of March 31, 2026, are not sufficient to support operations for at least one year. Preliminary annual cash is approximately $27 million as of June 25, 2026.

    Mitigation: Seeking to raise funds in private equity and capital markets; exploring collaborations, strategic partnerships, or licensing arrangements; evaluating mitigation actions such as 'spostolic' expenses not based on firm commitment.

    Longer-than-anticipated timelines for revenue recognitionFY26

    Previously issued 2026 revenue targets withdrawn.

    Mitigation: Restructuring U.S. commercial model, prioritizing high-visibility deployments, creating Nanox Imaging Network, focusing on operational, commercial, and strategic milestones instead of annual revenue guidance.

    Dilution of ordinary shareholder ownershipFuture

    Not quantified, but stated as a potential outcome.

    Mitigation: Seeking to raise funds through sales of securities or issuance of indebtedness.

    Restrictive covenants and increased fixed payment obligationsFuture

    Not quantified, but stated as a potential outcome.

    Mitigation: Terms of financing may adversely affect rights of ordinary shareholders.

    Relinquishing valuable rights to technologies or future revenue streamsFuture

    Not quantified, but stated as a potential outcome.

    Mitigation: Raising funds through collaborations, strategic partnerships, or licensing arrangements.

    Delay, reduction, or elimination of product development or commercialization effortsFuture

    Not quantified, but stated as a potential outcome.

    Mitigation: Inability to raise additional funds when needed.

    Q&A highlights

    6

    Can you elaborate on the rates, customer numbers, volumes, and utilization driving the teleradiology business growth?

    Management stated that since the acquisition of U.S. Arad, teleradiology sales have more than doubled due to an increase in hundreds of customers. They are actively changing the mix towards higher-priced MRI and CT readings, which has impacted revenue growth. They also highlighted cross-selling opportunities, where deployed ARC systems generate demand for reading services from the teleradiology division.

    “So as you can see, since the acquisition of U.S. [ Arad ], we have managed to more than double the sales the revenues that comes from the teleradiology. This is mainly due to increase of the number of customers. Right now, it's a few hundred customers.”

    asked by Jeffrey Cohen · answered by Erez Meltzer

    2 min read6 chapters

    Detailed Narrative

    01

    Commercial Model Restructuring and Partnerships

    Nano-X has restructured its U.S. commercial model to emphasize partnerships, adopting a multichannel approach to supplement direct sales. This strategy aims for broader market coverage and efficiency. In Q1 FY26, the company secured multiple commercial agreements with established medical equipment distributors, collectively representing a potential for approximately 360 CapEx system sales over the next 2-3 years. The focus in Q2 was on onboarding and training these partners, with initial leads and commercial activities now emerging.

    02

    Strategic Deployments and Imaging Network Expansion

    The company is prioritizing deployments at high-visibility reference sites, such as RadNet, the largest outpatient imaging center operator in the U.S., where a Nanox.ARC system has been operational for several months and integrated into routine clinical workflows. This collaboration is exploring expanded deployments and clinical research opportunities. Additionally, Nano-X initiated the Nanox Imaging Network, targeting segments like workers' compensation and concierge medicine, with 21 sites planned for installation, including one retail site already scanning.

    03

    AI Business Milestones and Integrations

    The AI business achieved significant milestones, including a revenue-generating commercial deployment at the 259 General Air Force Hospital in Greece for its AI bone solution, following a successful prospective pilot. A clinical trial partnership with Cedar-Sinai demonstrated that the AI cardio solution could generate $3.8 million in the first year from downstream follow-ups for severe cases. The company is also realizing synergies between Health IT, Nanox.AI, Nanox.ARC, and U.S. Arad, with growing cross-division lead generation and successful customer solution implementations for Health IT.

    04

    Operational Efficiency and South Korean Operations

    Nano-X initiated a restructuring process to optimize its cost structure, improve capital efficiency, and reduce burn rates. This includes evaluating additional alternatives for its South Korean operations, such as a potential sale or orderly wind-down, to maximize value. The company has already reduced headcount by 15 employees in Israel and cut the scope of employment for others, expecting a reduction in the burn rate based on early June indications.

    05

    OEM Relationships and Technology Development

    Varex tubes are undergoing final integration to become the main X-ray tube source for Nanox.ARC systems. Prototypes for Oak Ridge National Laboratory have begun assembly, with testing and delivery anticipated in early Q3. The company is also conducting technology assessments with multiple global industry leaders in security and inspection, indicating strong interest in the Nanox chip source technology across various sectors.

    06

    Challenges in Revenue Recognition and Future Focus

    Despite progress in commercialization, the company experienced longer-than-anticipated timelines between commercial agreements, system deployment, activation, and revenue recognition, leading to the withdrawal of its 2026 revenue target. Management will no longer provide annual revenue guidance, instead focusing on operational, commercial, and strategic milestones such as deployments, activations, utilization growth, and customer adoption. The company remains confident in the long-term opportunity across its diverse businesses.

    AI-generated summary of the company’s earnings call. Not investment advice.