Nanalysis Scientific (NSCI) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue reached CAD 10.67 million (or $10.7 million), up 1% year-over-year, driven by growth in security services despite lower product sales and the end of third-party equipment contracts.

• Adjusted EBITDA was CAD 292,000 (or $292 thousand), up 62% from Q1 2025, reflecting improved service margins and lower operating expenses.

• Net loss narrowed to CAD 1.28 million (or $1.28 million), an improvement of CAD 26,000 year-over-year due to better business margins.

Financial highlights

• Product sales declined 41% year-over-year to $2.18 million, mainly from lower NMR benchtop demand and contract terminations, while security services revenue rose 18% to $5.9 million, driven by increased airport security maintenance projects.

• Flow-through inventory revenue increased 37% to $2.58 million.

• Product sales gross margin was 58%, down from 66% in Q1 2025; security services gross margin improved to 19% from 6% year-over-year.

• Adjusted EBITDA rose to CAD 292,000, up from CAD 180,000 in Q1 2025.

Outlook and guidance

• Management expects continued margin improvement in security services throughout 2026 due to operational efficiencies and investments in customer and distributor relationships.

• Macroeconomic conditions are lengthening sales cycles in scientific equipment, but focus remains on long-term value creation.

• Anticipates future revenue growth from changes in direct sales and dealer network management.

• Committed to expanding benchtop NMR applications into quality control and manufacturing, with new initiatives underway.