Nanalysis Scientific (NSCI) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was CAD 9.3 million, down 12% year-over-year, mainly due to discontinued business lines, lower product sales, and global macroeconomic uncertainty.

• Product sales declined, impacted by the exit from reselling third-party equipment and slow capital equipment demand.

• Security services revenue grew 10% year-over-year, driven by increased airport security maintenance project work.

• Gross margin for product sales declined to 44% from 52% in Q3 2024 due to lower manufacturing utilization and supply chain issues.

• Adjusted EBITDA loss was CAD 2,000, compared to a profit of CAD 545,000 in Q3 2024, mainly from lower scientific equipment sales.

Financial highlights

• Q3 2025 product sales: CAD 2.7 million (down 36% year-over-year); security services revenue: CAD 5.9 million (up 10%).

• Total Q3 2025 revenue: CAD 9.3 million (down 12% year-over-year).

• Gross margin for product sales was 44% in Q3 2025, down from 52% in Q3 2024.

• Security services gross margin was 14%, slightly down from 15% year-over-year.

• Net loss was CAD 1.5 million, an improvement of CAD 144,000 year-over-year, due to lower depreciation and no further losses from an impaired investment.

Outlook and guidance

• Management expects margin improvements in security services to continue, supported by operational enhancements and efficiency initiatives.

• Focus is shifting to proprietary products and advancing Benchtop NMR technologies, with anticipated positive impact on future results.

• Supply chain challenges, particularly with magnets, have been resolved, expected to strengthen future operations.

• Cost control and resource allocation are priorities, with restructuring of sales and distributor management underway.

• Sales funnel remains active, but capital equipment purchases are delayed by macro uncertainty.