Detailed narrative
Commercialization Strategy and U.S. Expansion
Nanox is refining its commercialization strategy by increasingly leveraging commercial partners with established relationships in the imaging space, particularly in the U.S. The company has secured 10 commercial distribution partnerships, including Associated X-Ray Imaging Corp., to supplement its direct sales force and broaden market coverage. This approach aims to address initial friction points related to permitting, shielding, and integration, which had slowed earlier deployment efforts. The first Nanox Imaging Network installation in Philadelphia has begun scanning patients, demonstrating early validation of the commercial opportunity.
International Deployment and Expansion
Beyond the U.S., Nanox-Arc deployment activities are advancing across Europe and Latin America. The company completed end-user deployments in the Czech Republic and advanced system deliveries in Romania and Greece. New distribution partners were appointed in Costa Rica (Solme RCSA), and opportunities are being developed in Slovenia and Ecuador, with systems prepared for shipment to Argentina. This global expansion is critical for extending the reach of the Nanox-Arc system.
Nanox AI Developments and Reimbursement
Nanox AI is advancing on both commercial and clinical fronts, with 5 new AI installations/pilots launched across the U.S. and India. A significant development is the establishment of a new CMS Healthcare Common Procedure Coding System (HCPCS) code G0680, effective April 1, 2026, for algorithmic analysis of coronary artery calcium and aortic valve calcification from chest CT scans. This creates a potential reimbursement pathway for the Nanox AI cardiac solution, expanding its addressable market and supporting commercial adoption by enabling providers to incorporate AI-driven analysis into existing imaging workflows.
Teleradiology Services and Health IT
The Teleradiology Services Division (USARad) continued to deliver strong and consistent revenues, growing 14% year-over-year in the first half of 2026, driven by an expanding client base. USARad also renewed its engagement with a leading multinational aerospace organization. The Nanox Health IT business, acquired at the end of 2025, contributed $0.9 million in revenue in Q2 FY26 and has more than 20 new projects going live, proving to be a valuable addition with significant growth potential through synergies with Nanox AI, Nanox-Arc, and USARad.
South Korea Operations Restructuring and Cost Optimization
Following a strategic review, Nanox is undergoing a structural transformation of its South Korea operations. This includes idling the chip production line, reducing the workforce by two-thirds (approximately 67%), and transitioning volume production activities to qualified third-party manufacturing partners. The company has initiated processes for the sale of the manufacturing facility. These actions are expected to streamline the operating model, reduce fixed costs and burn rate, and result in estimated annualized cost savings of $2 million beginning in 2027.
Strategic Collaborations and Clinical Evidence
Nanox continues to broaden its U.S. footprint through strategic collaborations, including ongoing work with RadNet, the largest outpatient imaging center operator, where a Nanox-Arc system is in commercial use. A CapEx sale to an internationally recognized orthopedic center in Florida has led to a collaboration aimed at broadening clinical use in orthopedics. The company is committed to generating real-world evidence and evaluating clinical applications, including early lung nodule detection and exploring rheumatology applications with Meir Medical Center and Rabin Medical Center.