What is the expected cadence for Nanox.ARC unit deployments for the balance of the year, specifically for Q2 and the second half?

Management mentioned 360 units under agreement with business partners over the next 2-3 years, with one partner estimating 60 units this year. They highlighted international deployments in Greece, Romania, Peru, Argentina, and Czech Republic. The RadNet collaboration is expected to expand to more systems. They also plan to install 21 Nanox Imaging Network sites, with one already scanning and two systems recently arrived. “We mentioned that right now we have in the business partners. This is, of course, in addition to the direct sales that our salespeople are doing. We mentioned that we have currently 360 units that we sign agreements in the next 2, 3 years.”

Given it's late June, should we expect Q2 revenue to be sequentially stronger than Q1?

Management indicated that Q2 revenue is expected to be better than Q1, but did not provide specific figures, stating that numbers would be shared soon. They reiterated confidence in the overall trajectory. “Yes. Maybe I would say that we expect that Q2 will be better than Q1, whether it's much or more or a little, this will be shared probably in the very near future.”

Will total operating expenses start to decline sequentially due to cost rationalization efforts?

Management confirmed that operating expenses and the burn rate are expected to decline sequentially. This is attributed to the reduction in Korean operations, other cost-cutting measures, and a reduction of 15 employees in Israel, with early June indications supporting this trend. “The answer is yes. First of all, the outcome of the reduction in the Korean operation and the fact that we are doing all the efforts in order to save. We cut some costs in other places. We have reduced the headcount in -- mainly in Israel by 15 employees and cut the scope of employment of others. So based on early indication that we have for June, we can expect a reduction in the burn rate.”

NNOX

Nano-X Imaging (NNOX) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Health Care· Jun 25, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 revenue target	Withdrawn high materiality	FY26	Low
Future annual revenue guidance	No longer provided high materiality	Ongoing	High
AI business gross profit breakeven	Early 2027 medium materiality	Early 2027 · FY27	Medium
Q2 FY26 revenue	Better than Q1 FY26 medium materiality	Q2 · FY26	Medium
Operating expenses / burn rate	Decline sequentially medium materiality	Q2 FY26 and beyond	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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

Deals & partnerships

Multiple U.S. medical equipment distributors Commercial agreements 2-3 years

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

Topmed SAC Distribution agreement

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

RadNet Strategic 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-Sinai Clinical trial partnership

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

PacSystems Health 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

Inability to continue as a going concern Next 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 recognition FY26

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 ownership Future

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 obligations Future

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 streams Future

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 efforts Future

Not quantified, but stated as a potential outcome.

Mitigation:Inability to raise additional funds when needed.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.