Nexalin Technology (NXL) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $12,161, down 83% year-over-year, with a net loss of $2.24 million, a 42% increase in loss compared to Q2 2025.

• The company initiated an FDA-cleared clinical trial for its Gen-3 HALO device for insomnia and completed the acquisition of PONM, Inc., expanding its digital health platform.

• The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows.

Financial highlights

• Q2 2026 revenue: $12,161 (Q2 2025: $70,588); six-month revenue: $27,111 (2025: $111,603).

• Q2 2026 net loss: $2,239,170 (Q2 2025: $1,580,987); six-month net loss: $4,336,007 (2025: $3,569,324).

• Gross margin improved to 75% in Q2 2026 (Q2 2025: 68%) and 81% for the six months (2025: 67%).

• Operating expenses rose 35% year-over-year in Q2, driven by R&D and professional fees.

• Cash and cash equivalents at June 30, 2026: $1,004,958; working capital: $377,350.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as clinical and regulatory initiatives progress.

• Additional capital will be required to fund planned operations; future funding depends on capital market conditions and Nasdaq listing status.