Nanalysis Scientific (NSCI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was CAD 9.6 million, down 16.5–17% year-over-year, mainly due to lower product sales amid global economic uncertainty and tariff risks.

• Security Services segment revenue grew 7–9.9% year-over-year, partially offsetting product sales weakness.

• Gross margin on product sales improved to 61% in Q2 2025 from 50% in Q2 2024, reflecting cost reduction and efficiency measures.

• Net loss increased to CAD 2.1 million in Q2 2025, up CAD 127,000 from Q2 2024, primarily due to lower Scientific Equipment sales.

• Adjusted EBITDA loss was CAD 462,000 in Q2 2025, compared to a profit of CAD 759,000 in Q2 2024.

Financial highlights

• Consolidated revenue for the six months ended June 30, 2025, was CAD 20.2 million, down 11% year-over-year, with product sales down 31% and security services revenue up 7%.

• Gross margin on product sales for the six months rose to 64% from 49% in the prior year.

• Adjusted EBITDA loss for the six months was CAD 282,000, versus a profit of CAD 655,000 in the prior year.

• Net loss for the six months was CAD 3.4 million, an improvement from a CAD 4.5 million loss in the prior year.

Outlook and guidance

• Management expects margin improvements to continue in the second half of 2025, driven by ongoing process and logistics enhancements.

• Business not closed in Q2 is expected to be realized later in 2025, with a positive outlook for proprietary product lines.

• Focus remains on operational efficiency, margin improvement, and advancing Benchtop NMR platforms.

• Anticipates further announcements in the MRI and High Field NMR business units.