Nanalysis Scientific (NSCI) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was CAD 10.7 million (USD 10.7 million), down 13% year-over-year, mainly due to lower Scientific Equipment sales and the exit from third-party resale businesses.

• Full year 2025 revenue was $40.1 million, down 12% from 2024.

• Adjusted EBITDA returned to positive in Q4 at CAD 1.2 million, though full year Adjusted EBITDA was $903 thousand, down 68% year-over-year.

• Management addressed challenges from past acquisitions and macroeconomic headwinds, focusing on proprietary products, operational improvements, and leadership changes.

• Sequential performance improved through 2025, with positive Adjusted EBITDA in Q4 reflecting early impact of strategic changes.

Financial highlights

• Product sales for 2025 were $13.4 million, down 31% year-over-year; security services revenue grew 5% to $22.1 million.

• Gross margin for product sales in Q4 2025 was 56%, down from 60% in Q4 2024, due to higher labor costs from supply chain issues.

• Gross margin for Security Services was 11% in Q4 2025, down from 16% in Q4 2024.

• Full year gross margin on product sales improved to 57% from 53% in 2024 due to manufacturing efficiencies.

• Normalized net loss for Q4 2025 was $729,000, compared to $400,000 in Q4 2024; full year normalized net loss was $5.7 million, improved from $6.3 million in 2024.

Outlook and guidance

• Management expects improved sustainability and profitability after shedding non-core businesses and resolving supply chain issues.

• Focus for 2026 includes improving service segment performance and renegotiating major contracts to enhance profitability.

• Ongoing discussions with key customers aim to secure higher gross margins and early contract renewals.