Nano-X Imaging Q3 2025 Earnings Report

Nano-X Imaging EPS Results

• Actual EPS: -$0.65
• Consensus EPS: -$0.18
• Beat/Miss: Missed by -$0.48
• One Year Ago EPS: N/A

Nano-X Imaging Revenue Results

• Actual Revenue: $3.45 million
• Expected Revenue: $3.51 million
• Beat/Miss: Missed by -$58.00 thousand
• YoY Revenue Growth: N/A

Nano-X Imaging Announcement Details

• Quarter: Q3 2025
• Date: 11/20/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, November 20, 2025
• Conference Call Time: 8:30AM ET

Nano-X Imaging (NASDAQ:NNOX) is a medical technology company developing and commercializing a digital X-ray imaging platform designed to lower the cost and increase the accessibility of diagnostic imaging. Its flagship product, the Nanox.ARC, leverages a proprietary micro-electromechanical system (MEMS) based digital X-ray source and advanced image processing software to provide 2D and 3D imaging capabilities on a compact footprint. The system aims to streamline radiology workflows and facilitate point-of-care diagnostics in hospitals, clinics and outpatient settings.

The Nanox.ARC platform integrates a novel cold cathode X-ray source, which enables multiple emission points without the need for rotating anode tubes. This architecture is intended to reduce manufacturing complexity and maintenance requirements compared with conventional X-ray devices. The company’s software suite offers tools for image enhancement, storage and remote review, supporting tele-radiology applications and cloud-based archiving of patient scans.

Founded in 2018 and headquartered in Israel, Nano-X Imaging completed a business combination via a special purpose acquisition company (SPAC) that resulted in its Nasdaq listing under the ticker NNOX in 2021. The company was co-founded by industry entrepreneur Ran Poliakine, who serves as chairman, and has attracted strategic partnerships to support clinical evaluation and regulatory submissions. Nano-X has secured CE marking for head and extremity imaging and has received Breakthrough Device designation from the U.S. Food and Drug Administration for its imaging system.

Nano-X Imaging is pursuing global commercialization through master distributor agreements and direct sales channels across Europe, the Middle East and Asia-Pacific regions. Initial distribution partnerships include territories such as Japan, Saudi Arabia, Italy and Spain, with further expansion plans targeting North America and other emerging markets. The company continues to engage healthcare providers and regulatory authorities to complete clinical validations and obtain market approvals.

Nano-X Imaging Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Company guided to more than $35 million in revenue for 2026, forecasting the AI segment to reach quarterly EBITDA break-even in 2026 and company-wide EBITDA break-even in 2027, signaling a path to profitability.
• Positive Sentiment: Nano‑X completed the acquisition of VasoHealthcare IT (up to $800k consideration), which management says immediately expands IT/integration capabilities, U.S. customer access and recurring revenue potential for Nano‑X AI.
• Neutral Sentiment: Commercial deployment and product roadmap progress includes partnerships in Greece, Romania, Czech Republic and France, a push to have ~100 ARC systems in various deployment stages by end-2025, and the upcoming RSNA unveil of the AI‑ready, smaller-footprint ARC X system.
• Negative Sentiment: Financials remain challenged: Q3 GAAP net loss was $13.7 million on just $3.4 million revenue, non-GAAP net loss widened to $9.9 million, and the company still reports gross losses on imaging system and AI revenues.

Presentation

[Operator]

Today, and thank you for standing by. Welcome to Nanox Third Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear automated message advising your hand is raised. Please note, today's conference is being recorded. I will now hand the conference over to your speaker host, Mike Cavanaugh, of Investor Relations. Please go ahead.

[Mike Cavanaugh, Head of Investor Relations at Nano-X Imaging]

Good morning and welcome to the Nano-X Imaging Third Quarter 2025 Investor Call. Earlier today, Nano-X Imaging released financial results for the quarter ending September 30, 2025. The release is currently available on the Investor section of the company's website. With me today are Erez Meltzer, Chief Executive Officer and Acting Chairman, and Ron Daniel, Chief Financial Officer. Before we get started, I would like to remind everyone that management will be making statements during this call that include forward-looking statements regarding the company's financial results, research and development, manufacturing and commercialization activities, regulatory process, and clinical activities, and other matters. These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today and may not be updated in the future. Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date.

[Mike Cavanaugh, Head of Investor Relations at Nano-X Imaging]

Factors that may cause such a difference include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission. We will also refer to certain non-GAAP financial measures to provide additional information to investors. A reconciliation of the non-GAAP to GAAP measures is provided with our press release, with the primary differences being non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general administrative expenses, and non-GAAP gross loss per share. With that, I'd now like to turn the call over to Erez Meltzer.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Good morning, everyone, and thank you for joining Nanox Third Quarter 2025 earnings call. While many companies talk about global expansion, Nanox is delivering on it. It is important for us to share not only where we stand today, but also the path we are shaping for 2026 as we work to fulfill our mission and strengthen Nanox as a leading company in the medical imaging industry. We are building a comprehensive medical imaging portfolio focused on increasing revenues and accelerating our path to profitability. Our strategy includes reinforcing our position in the medical AI sector, deepening our foothold in the U.S. healthcare system, and driving meaningful change in the standard of care for medical imaging. We are entering into our second execution phase.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We plan to further expand the ARC deployment and pipeline, grow our AI presence through the acquisition of VasoHealthcare IT that is being contemplated, and explore further opportunities in imaging equipment with potential acquisitions and collaborations. While not every element is fully within our control, we believe it is the right time to share our growth roadmap. For 2026, we are guiding for more than $35 million in revenues. Coming back to 2025, the third quarter brought progress across the organization, including our technology expansion, market scaling, AI infrastructure, and operational efficiency. Today, I'm excited to share with you the progress we are making across our strategic three pillars, where we are demonstrating real momentum in moving from innovation to commercial scale with measurable results. Our first pillar focuses on technology expansion and market scaling, where we see momentum in our commercial deployment efforts.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Nanox.ARC is now entering a growth phase in the retail imaging segment, expanding access to advanced imaging in community and outpatient settings where patients need it most. We recently signed two new agreements in the Czech Republic and in France that represent an important milestone in Nanox European strategy and follow recent distribution agreements in Greece and Romania, demonstrating the rising demand for Nano-X imaging ecosystem and strengthening its presence across Europe. We are progressing toward our goal of deploying 100 systems worldwide in various stages for clinical demo and commercial purposes by the end of 2025. A number of systems are pending final regulatory approval and site preparations. As we scale our current ARC deployment, we are simultaneously working on unlocking even greater market potential through the regulatory advancement.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

In the U.S., we continue to work with the FDA to remove the adjunctive use limitation, which will allow us to market the Nanox.ARC as a standalone modality. Building on both our deployment momentum and anticipated regulatory progress, we are preparing to launch our next-generation platform that will further accelerate market penetration. The new Nanox.ARC X system, which is to be unveiled at the RSNA annual meeting in less than two weeks, will extend our commercial reach even further with its smaller footprint and simplified installation process. Importantly, it has the flexibility to support additional clinical indication in the future. This enhanced platform is designed specifically to meet the diverse needs of our growing customer base and expand our addressable market significantly. I'd like to highlight another example of how we are working to expand the market for Nanox.ARC.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

The Nanox.ARC X is AI-ready, which means it is compatible with future AI solutions that are currently under development to interpret the ARC images. Ultimately, the clinical output will be an AI-enhanced 3D digital tomosynthesis series with annotated pulmonary nodules, which may be an innovative new tool in the arsenal of lung cancer detection. Our second pillar, AI infrastructure and integration, represents the technological heart of our strategy, connecting all the pieces of our ecosystem and driving new revenue opportunities. Artificial intelligence is part of our core value proposition, transforming us from a hardware company into a comprehensive imaging platform. In a key move to advance our AI business, we recently reached an agreement to acquire VasoHealthcare IT, or VHCIT, a wholly owned subsidiary of Vaso Corporation, which provides best-of-breed healthcare IT solutions from various technology partners, specifically imaging information technology solutions which support imaging workflow for providers.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Nanox and VHCIT together create a powerful synergy that connects Nanox.AI's FDA-cleared imaging AI solution with VHCIT's deep expertise in IT integration, implementation, and customer operation. This will potentially help us deliver improved customer service to our growing U.S. customer base. This acquisition will align with our ongoing progress on multiple fronts as we expand our network and collaborations with prominent organizations such as Cedars-Sinai, 3DR Labs, Covera Health, and others. More details are included in my remarks below. Now, for an update on our third strategic pillar, which focuses on operational efficiency and sustainable growth. We are building a leaner, more focused organization to support long-term success. Our workers' compensation and retail imaging initiatives continue to grow, creating scan-based revenue opportunities that strengthen our financial foundation.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Additionally, we are strengthening our production capabilities through our partnership with Fabrinet, preparing to manufacture hundreds of systems, and in parallel, we continue to enhance our tube manufacturing infrastructure as well. Nanox remains dedicated to accelerating and development of a highly efficient manufacturing operation. Let's now review the progress we made during the quarter in our U.S. deployment progress, which demonstrates the strong commercial traction we are building across multiple channels. Currently, we have a growing number of ARC systems actively scanning, showing consistent utilization and clinical adoption. One of the most active sites is an imaging center in California. During the third quarter, it achieved above-average scanning levels, and the feedback from them has been very positive. Our installation plan provides us with a solid foundation for revenue generation and market presence.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Another example is our recent collaboration with Keiser University, where the Nanox.ARC has been integrated into their radiological technology graduate program. This flagship training and demonstration site is already actively scanning, giving future imaging professionals hands-on experience with Nanox.ARC early in their careers. The full engagement of our business partners and the upcoming retail infrastructure reinforces our confidence in the next year's guidance. I also want to let you know that Nanox will have a strong presence at the Radiological Society of North America, or in short, RSNA, annual meeting, which begins on November 30 in Chicago. There, we will provide more detailed insights into our commercial progress and future strategy. We welcome you to visit our booth if you are attending the event.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

In a recently announced partnership, we enter into a distribution agreement with X-ray s.r.o., a leading Czech distributor of medical imaging systems, to introduce Nanox advanced imaging solutions to healthcare providers across the Czech Republic. Under the terms of this agreement, X-ray s.r.o. will lead the market introduction, sale, and service of Nanox medical imaging solutions, the Nanox.ARC. Founded in 2013, X-ray s.r.o. is recognized as the number one supplier of digital radiography systems in the Czech Republic, with installations in more than half of the country's 200 healthcare facilities and nationwide sales and service coverage. Additionally, this week, we signed off a distribution agreement in France with Altea France SARL, part of Altea Group, one of Europe's largest independent providers of managed medical technology services.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

As part of the agreement, Altea France will lead the introduction, distribution, installation, and service of Nanox medical imaging solutions, the Nanox.ARC, across France's public and private healthcare sector. We have stated before that our initial foray into the many European countries will be best served by commercial partnerships such as this, and rest assured, we are working on others. These partnerships are just some of the steps we took in the third quarter to better position us to scale globally and redefine the standard of care through innovation that makes imaging more accessible and efficient. As we scale our current ARC deployment, we are simultaneously working to unlock even greater market potential through regulatory advancement. In the U.S., the company has submitted the TAP2D software module to the FDA through the 510(k) program.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

TAP2D is a 2D view image output for the Nanox.ARC systems, a practical tool for radiologists to enhance their diagnostic confidence as they become more experienced evaluating digital tomosynthesis images. TAP2D, once cleared, will be part of a wider vision held by Nanox to alleviate adjunctive use limitations in the future. For perspective, adjunctive use limitations do not apply for the CE-mark Nanox.ARC in the European market. This remains one of our top priorities, and we believe that removing adjunctive use limitations will be a critical milestone that may unlock significant new market opportunities for the Nanox.ARC platform. This regulatory advancement represents a potential key catalyst for accelerated adoption across healthcare systems. Outside of the U.S., our regulatory efforts continue, but it is worth noting that these efforts will not be as streamlined as those in the U.S., where FDA clearances allow distribution in the entire country.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

The rest of the world, by nature, is very fragmented, and we are working with many different countries, which have their own processes and regulations. In some instances, regulatory progress is slower than we would like. Nevertheless, we have not stopped pushing ahead with our regulatory efforts, which continue to be of paramount importance to Nanox. Now, I'd like to discuss some of the extensive clinical work we are undertaking that supports all of our commercial efforts by generating robust data supporting the use of our solution across multiple clinical applications. I'm happy to report that Cedars-Sinai Medical Center is joining a trial of Nanox.AI for a new AI model for aortic valve calcification measurement solution that is under development. The solution is intended to quantify the level of aortic valve calcium, which is an important measure of risk for aortic valve disease.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We are very pleased to be partnering with Cedars-Sinai, one of the nation's premier medical institutions. We also have begun a collaboration with NDS Wellness, an independent provider of wellness screening programs located in Michigan, with whom we are engaging in clinical trials to further assess the clinical value of Nanox.ARC in the context of lung cancer detection, management, and screening. Last month, we attended the Early Lung Cancer Action Program, the ECLIP 40th Conference in New York, focused on lung cancer screening and early detection. Among several presentations about the advantages of digital tomosynthesis in the lung cancer screening, Dr. Lawrence Tenenbaum delivered an inspiring talk about how he believes that Nanox.ARC can be utilized in lung cancer screening and disease management protocols.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Outside the U.S., we are excited about recent collaboration with All-Up Imagery, which is a group of independent radiologists who practice at several sites in La Défense, utilizing high-performance technical facilities. Through this collaboration, the Nanox.ARC system has been deployed at Hôpital Privé Jacques Cartier at Massy, one of the leading private hospital groups in the Paris metropolitan area, for a clinical trial designed to further assess the value of the Nanox.ARC in supporting lung cancer detection, management, and screening. This collaboration advances our clinical evaluation effort in the second-largest country in the EU. The data derived from this trial is intended to demonstrate the ARC's potential to improve patient outcomes through early screening for lung cancer, which is the deadliest cancer worldwide. We continue to engage with research partners globally to execute a comprehensive clinical evidence generation strategy.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

I mentioned we will have a large presence at RSNA this year, and I encourage you to visit our booth. All details regarding our participation were published last week. As I mentioned in my opening remarks, we are acquiring VasoHealthcare IT, or VHCIT, a wholly-owned subsidiary of Vaso Corporation, which provides best-of-breed healthcare IT solutions from various technology partners, specifically imaging information technology solutions which support imaging workflows for providers. Nanox and VHCIT together create a powerful synergy that connects Nanox FDA clear imaging AI solutions with VHCIT's deep expertise in IT integration, implementation, and customer operation.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Under the terms of the proposed transaction, Nano will acquire VCHIT for a total consideration of up to $800,000, consisting of a $200,000 cash payment at closing and up to $600,000 in performance-based earnout payments over a period of up to two years, contingent upon revenue retention targets with respect to existing customers. This transaction is intended to accelerate the deployment of Nanox.AI solutions across U.S. healthcare facilities and is expected to be executed and completed within a couple of weeks. Given the rapidly evolving nature of medical imaging technology, it is a challenge to keep up with these changes, and Informatics and VasoHealthcare IT serve as a trusted advisor to address and solve these issues. We expect this partnership to accelerate the commercialization of Nanox.AI solutions and help generate scalable recurring revenues.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Key synergies include cross-leveraging our organizational shared expertise, active accounts, sales funnels, and product offerings. We believe this acquisition immediately expands the value we deliver to customers and shareholders. We recently entered a commercial partnership with 3DR Labs, one of the largest and most trusted providers of 3D medical imaging post-processing services in the U.S. 3DR Labs offers Nanox.AI FDA cleared imaging solutions to its network of more than 1,800 hospitals and imaging centers across the U.S. The partnership enables 3DR Labs to market and distribute Nanox.AI software solutions to its client-based network of more than 1,800 hospitals and imaging centers across the U.S. The agreement positions Nanox.AI technology to support initiatives to drive early disease detection and improving clinical outcomes at a scale across the United States.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We are also expanding direct-to-clinician access to Nanox.AI solutions and launching new AI applications that have the potential to improve diagnostic accuracy, early detection, and patient management. I'm happy to report that we have closed our first deal under this new direct-to-clinician business model. This approach enables AI at the clinic level, equipping clinicians with value-added tools on-site and eliminating the need to send patients to other locations for CT scans. I'm particularly excited about our current lineup of advanced AI solutions that analyze routine medical CT scans for any clinical indications to help identify patients with asymptomatic or undetected findings correlated with chronic conditions in cardiac, liver, and bone, promoting preventive care management where AI assists clinicians in generating numerical indications for further decision support.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We are in the process of developing more innovations to add to our offering, and I look forward to announcing new AI developments as they become available. In other AI-related news, we have successfully expanded our existing agreement with Covera Health. This new agreement builds upon our initial collaboration, which focuses on retrospective analysis to identify care gaps and support their platform. Our expanded agreement now includes prospective use cases such as opportunistic screening for improved care outcomes. We've also expanded our AI footprint to India, having recently signed a distribution agreement with an Indian commercial partner, and we're already running two pilot projects, with several more in the pipeline. A key element of the third pillar is the creation of a sustainable and efficient supply chain to ensure we can meet anticipated future demand.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

With that in mind, we continue to engage with third-party manufacturers and suppliers for the commercial production of our digital X-ray tubes and other components for the use in the Nanox.ARC, based on, among other things, cost-effectiveness, etc. We are currently developing glass-based digital X-ray tubes for use in the Nanox.ARC. As previously disclosed, we are working with third parties such as CIA and Varex to build tubes and systems at a chipmaker located in Switzerland for our chips. Our work with our manufacturing partners is a key component of the third pillar of future success. We will continue close collaboration with our technology suppliers to secure the supply of components needed as our ARC deployment continues. As of today's call, we have fabricated enough emitters and begun scaling tube production to support the initial launch of our next-generation ARC kit.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Specifically, to Varex, we are well underway with performing all the necessary tubes and ARC-level testing to add them as an approved supplier early next year. We have additionally received from them multiple MBX multi-source demonstrations to advance our testing and development of stationary digital tomosynthesis and stationary CT-type solutions. Varex's MBX, or multi-beam X-ray, combines the precision of traditional X-ray with the detailed insight of CT imaging and enables faster, higher-quality scans with reduced radiation exposure, offering clearer images and better patient outcomes. Varex personnel will visit our lab in Israel soon to support these efforts. We're also working in partnership with a novel imaging technology company to explore the utilization of our emitter with their specialty detectors. These efforts toward low-dose single-exposure dual-energy capabilities significantly enhance visualization for medical security and inspection applications.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

On the OEM business development front, in response to requests from the security materials analyst analysis and high-resolution inspection market, we are in the process of fabricating several novel emitter layouts, each with unique functionality, to specifically address pain points or add requested capabilities as compared to their current offering. We have also recently delivered two of our developer kits. One is a leading U.S. academic institute for medical solution development for medical application development, and another to one of the largest global providers of industrial X-ray NDT inspection to assist developing their next-generation system. Regarding our project with Oak Ridge National Laboratory, we are now working towards material acquisition and fabrication of the second-generation prototype to be utilized in their novel and compact mobile X-ray technology development.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

As previously reported, we have entered into a multi-year volume supply agreement with Fabrinet, a leading global electronics manufacturing services provider, to support the scalable manufacturing of Nanox.ARC systems. We believe this collaboration will drive down our manufacturing costs over time, which will, in turn, support our mission to expand access to innovative, affordable imaging technology worldwide. Looking ahead, Nanox is dedicated to accelerating the development of a highly efficient and scalable manufacturing infrastructure. We will always be looking for ways to extract more efficiencies and may include future strategic collaborations. As we look ahead, we would like to provide our investors with some financial guidance for the coming year. Given our current business trajectory, sales funnel, new partnership, and the Vaso acquisition, we expect to generate a minimum of $35 million in revenue in 2026.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Furthermore, we project the AI business segment, with the addition of VHCIT, will achieve EBITDA break-even on a quarterly basis sometime in 2026. We expect Nanox, as a whole, to reach EBITDA break-even on a quarterly basis in 2027. These projections reflect our belief in an achievable path to sustainable profitability driven by our expanding commercial deployments and recurring revenue streams. We are executing a clear and consistent strategy across all three pillars, moving forward with confidence while systematically expanding our market presence and strengthening our foundation for long-term success. With that, I would like to hand the call to Ran Daniel for review of our financials. Ran, over to you.

[Ran Daniel, CFO at Nano-X Imaging]

Thank you, Erez.

[Ran Daniel, CFO at Nano-X Imaging]

We reported a GAAP net loss for the third quarter of 2025 of $13.7 million, which is the reported period, compared with a net loss of $13.6 million in the third quarter of 2024, which is the comparable period. Revenue for the reported period was $3.4 million, and gross loss was $2.9 million on a GAAP basis. Revenue for the comparable period was $3.0 million, and gross loss was $2.8 million on a GAAP basis. The increase of $0.4 million in the revenue stems from an increase of $0.6 million in our revenue from our teleradiology services, a decrease of $0.3 million in our revenue from our AI solutions, and an increase of $0.1 million in our revenue from the sales and deployment of its imaging systems and OEM services.

[Ran Daniel, CFO at Nano-X Imaging]

Non-GAAP gross loss for the reported period was $0.3 million, as compared to a gross loss of $0.2 million in the comparable period, which represents a gross loss margin of approximately 8% on a non-GAAP basis for the reported period, as compared to a gross loss margin of 6% on a non-GAAP basis in the comparable period. Revenue from the teleradiology services for the reported period was $3.1 million, with a gross profit of $0.1 million on a GAAP basis, as compared to revenue of $2.6 million with a gross profit of $0.3 million on a GAAP basis in the comparable period, which represents a gross profit margin of approximately 25% on a GAAP basis for the reported period, as compared to 13% on a GAAP basis in the comparable period.

[Ran Daniel, CFO at Nano-X Imaging]

Non-GAAP gross profit of the company's teleradiology services for the reported period was $1.3 million, as compared to $0.9 million in the comparable period, which represents a gross profit margin of approximately 43% on a non-GAAP basis for the reported period, as compared to 35% on a non-GAAP basis in the comparable period. The increase in the company's revenue and gross profit margins from the teleradiology services was mainly attributable to customer retention, increased rates, and increased volume of the company's reading services during the weekends and weekdays.

[Ran Daniel, CFO at Nano-X Imaging]

During the reported period, the company generated revenue through the sale and deployment of its imaging systems and OEM services, which amounted to $175,000 for the reported period, with a gross loss of $1.7 million on a GAAP basis and a non-GAAP basis, compared to a revenue of $29,000 with a gross loss of $1.5 million on a GAAP basis and a non-GAAP basis in the comparable period. The company's revenue from its AI solution for the reported period was $0.1 million, with a gross loss of $1.9 million on a GAAP basis, compared to revenue of $0.4 million with a gross loss of $1.6 million in the comparable period. Non-GAAP gross profit of the company's AI solution for the reported period was $75,000, compared to a gross profit of $370,000 in the comparable period.

[Ran Daniel, CFO at Nano-X Imaging]

Research and development expenses net for the reported period were $4.6 million compared to $4.7 million in the comparable period, which represents a decrease of $0.1 million. The decrease was mainly due to a decrease of $0.4 million in share-based compensation and $0.5 million in expenses related to our development activities, which were mitigated by an increase of $0.5 million in salaries and wages and a decrease of $0.3 million in grants received. Sales and marketing expenses for the reported period were $1.5 million, compared to $0.9 million in the comparable period, which represents an increase of $0.6 million, mainly due to an increase of $0.5 million in salaries and wages, $0.5 million in marketing activities with connection to the commercializations in the U.S. market, which were mitigated by a decrease of $0.1 million in share-based compensation.

[Ran Daniel, CFO at Nano-X Imaging]

General and administrative expenses for the reported period were $5.3 million, compared to $5.7 million in the comparable period. The decrease of $0.4 million was mainly due to a decrease of $0.6 million in share-based compensation, a decrease of $0.2 million in the company's legal expenses, and a decrease of $0.2 million in D&O insurance expenses, which were mitigated by an increase of $0.5 million in salaries and wages and recruiting fees. Non-GAAP net loss attributable to ordinary shares for the reported period was $9.9 million, compared to $8.7 million in the comparable period. The increase of $1.2 million in the non-GAAP net loss attributable to ordinary shares was mainly due to an increase of $0.1 million in the non-GAAP gross loss and an increase of $1.1 million in the non-GAAP operating expenses.

[Ran Daniel, CFO at Nano-X Imaging]

Turning to our balance sheet, as of September 30, 2025, we had cash, cash equivalents, and marketable securities of approximately $55.5 million and had $3.2 million short-term loans from a bank. We ended the quarter with the property and equipment net of $46.7 million. As of September 30, 2025, and December 31, 2024, we had approximately 65.4 and 63.8 million shares outstanding, respectively. With that, I will end the call back over to Erez. Thank you, Ran. The third quarter of 2025 was transformative for Nanox as we evolved from a hardware company into a comprehensive imaging platform. With our acquisition of VasoHealthcare IT, new partnerships with 3DR Labs, Altea in X-ray, and the upcoming launch of our AI-ready ARC X system at RSNA, we are building the infrastructure for sustainable recurring revenue streams that will define our future growth.

[Ran Daniel, CFO at Nano-X Imaging]

Together, we are a recent collaboration in Greece, Romania, the Czech Republic, and France, where strengthening our European footprint. In parallel, our collaborations with Cytosine and our ongoing clinical trials in France continue to advance the clinical validation of our technology and contribute to the global momentum behind our platform. Through our three strategic pillars, we are executing a comprehensive commercial strategy that combines innovative technology with robust clinical evidence generation and systematic market deployment. Although some elements are beyond our dire control, we believe this is the right moment to present our growth roadmap, and for 2026, we are guiding to revenues of $35 million. Our purpose remains unchanged: to redefine medical imaging by uniting innovation, intelligence, and accessibility, creating meaningful impact for patients, clinicians, and healthcare systems worldwide.

[Ran Daniel, CFO at Nano-X Imaging]

The momentum we are building across our commercial deployments and clinical evidence generation positions us well for continued growth and market leadership. Thank you for your continued support. Operator, please open the call for questions.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Operator, just before the question, it's Erez. One comment regarding what actually was said, that last night we have actually closed the VasoHealthcare IT acquisition, so actually it's done. With that, you can go ahead and open for the Q&A.

[Operator]

Thank you. Ladies and gentlemen, to ask a question at this time, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 11 again. Please stand by while we compile the Q&A roster. Now, first question coming from the line of Ross Osborn with Cantor Fitzgerald your line is now open.

[Ros Osborn, Analyst at Cantor Fitzgerald]

Hi, good morning. Thanks for taking our questions.

[Ros Osborn, Analyst at Cantor Fitzgerald]

Congrats on the progress. Starting with the quarter, would you walk through how many systems were in the field and performing scans that resulted in your revenue of $175,000?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

A few dozens out of all the together. A few of them are being installed as we speak, and a few will be installed in the next few weeks. As mentioned, we are counting on the expansion of the retail, expansion of the business partners, expansion of the salespeople that are closing deals right now. We have a few, as mentioned, some of them are waiting for regulatory approvals, for physics approvals, for site preparation, but altogether, this has been a moment.

[Ros Osborn, Analyst at Cantor Fitzgerald]

Okay. Yeah, sorry if I wasn't clear. Looking back during the three Q, your reported revenue, how did you generate $175,000? Not for the rest of this year, but during the quarter.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

It was a combination of revenue from scans and our OEM services. I assume that we are regarding to the paragraph in the script and the PR that describes the revenue from deployed systems and OEM services, correct?

[Ros Osborn, Analyst at Cantor Fitzgerald]

Yes. Just curious how many systems were deployed.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

I'll refer you to this paragraph, and I don't think in general we're saying that the answer is changing with regards to the system.

[Ros Osborn, Analyst at Cantor Fitzgerald]

Okay. Looking to the balance of 2025 and meeting 100 units in various stages of deployment, what types of agreements should we be thinking about in terms of those being lease versus capital sales?

[Ran Daniel, CFO at Nano-X Imaging]

Most, I would say the majority of the majority are MSES. Okay. Thanks for the question.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We still see we can see an increased activity in the CapEx sales arena. Okay?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

We do expect to have some CapEx sales over here. And the retail.

[Ros Osborn, Analyst at Cantor Fitzgerald]

Okay. Got it. I'll jump back in queue. Thank you.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

No problem.

[Ran Daniel, CFO at Nano-X Imaging]

Thank you.

[Operator]

Our next question coming from the line of Jeffrey Cohen with Ladenburg Thalmann, your line is now open.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Hi, Erez and Ran, thanks for taking our questions, and nice to see the company and our Medica this week. A few for them, and it seems like we got a good sense of the top line from what you're talking about for the balance of this year and certainly for 2026 with the many partnerships and activities.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Jeff, I'm sorry. Can you raise your voice, please? Because you are a little bit far away from the screen.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Could you talk about how OpEx could look over the next four to six quarters as you talk about achieving these 2026 targets versus currently?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Generally saying, what you would expect to see is that our investment in the deployment efforts, namely the sales and marketing expenses, will increase, of course, because we need to invest in all the activities that are related to the deployment of the systems and the sales. On the other hand, you should see more tamed R&D expenses as the focus is going towards commercializations and less on development activities. We're trying our best to be more, as you know, to be as efficient as we can be, and you should see the same level of G&A with some fluctuations.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Okay. Got it. Could you talk about?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Don't forget that a major portion of our G&A expenses are related to us being a public company, and sometimes those expenses increase.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Got it. Could you talk about Vaso? I saw in the press release there's a mention of approximately 100 customers. Could you talk about what types of customers that they currently have and the opportunity for those customers into the Nanox family?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

The 100 customers of Vaso, all of them are medical-related, and they are actually serving hospitals, imaging centers across the United States. From our point of view, we have a lot of cross-selling that can be achieved. The majority of the, I would say, the main purpose of the Vaso acquisition will be to serve the operational and the customer base, the growing customer base of Nanox.AI.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

The more we go into the details, what we see right now, what's in the PMI and the post-merger integration, is that they will be able to expand our sales force to the ARC systems, to those institutions, to expand the services of the IT services that they are providing because many of those customers are modality-related customers. In addition, what we see is that a few of the customers already mentioned an interest that USARAD, the teleradiology business, will be provided by our teleradiology services. In addition, those customers are saying that they can actually refer a few of their customers to teleradiology services to be obtained. I would say that this will actually strengthen our IT and software, which is one of the major pillars of our growth. We definitely can see their network and their customer base as a way to grow our existing business.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Got it. And one more, if I may. I did hear you mentioned break-even 2027 EBITDA levels, but just prior to that, you mentioned something about '26. Could you reiterate that?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Yeah. We mentioned this is already the second time that we say that what we are aiming that on a runway basis on 2026, the AI business will be break-even. In fact, this was even before Vaso acquisition. So right now, we believe probably that it will accelerate the probability of this to be break-even sometimes at the end of 2026. And the other thing that we said that the ARC hardware business will shoot for a break-even in 2027. This is something that we already mentioned in the past.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

What you can see right now, based on the wide and what you see here is that we are making progress in all the fronts in technology and the regulation and the commercialization of the business. We strongly believe that the retail business, the business partners, and our facility would actually enable us to be there. Ran, would you like to add anything?

[Ran Daniel, CFO at Nano-X Imaging]

Yes. Let me fine-tune it. What we have said in the past is that the AI business will be break-even on a quarterly break-even sometime during 2026. We did not specify any quarter. We do emphasize the growth of the AI division by the expansions of their B2B to C models, entering into new geographics, and of course, with the acquisition of Vaso, which expands their operations and the potential for growth and achieving the quarterly break-even on a quarterly run rate.

[Ran Daniel, CFO at Nano-X Imaging]

While we also have said that we expect that sometime during 2027, we may be break-even in the ARC division. All in total, it will bring us sometime in 2027, we may be break-even on a wide company range, just to be more accurate.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Okay. That's perfect. Thank you for taking our questions. No problem.

[Ran Daniel, CFO at Nano-X Imaging]

Thank you, Jeff. Hopefully, you enjoyed the Medica conference.

[Jeffrey Cohen, Managing Directir at Ladenburg Thalmann]

Yeah.

[Operator]

Thank you. Our next question coming from the line of Scott Henry with AGP, your line is now open.

[Scott Henry, Analyst at AGP]

Thank you. And good morning or afternoon, depending on your location. I want to talk a little bit about the 2026 number. $35 million, that's a pretty big number. My question is, how should you think about the cadence of the year? Do you expect that to start in Q1 and ramp up, or should we think about that in the second part?

[Scott Henry, Analyst at AGP]

Do you have any pre-orders or any just trying to gauge your confidence in that number? Thank you.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

First of all, I would start with a second comment. Most of what we say, we are based on, not most, but I would say major part, we are based on pre-order and the outcome of what we are doing right now, including those three elements: the business partners, the retail, which is a major part, and the sales force that we currently have, not to mention the new acquisition. Second, I would say that it will start slowly from Q1 and ramp up over the quarters and achieve the number at the fourth quarter. If I have to say something about mathematics, I would say that probably the line will be kind of an exponential one and not a linear.

[Scott Henry, Analyst at AGP]

Okay. Okay. Great.

[Scott Henry, Analyst at AGP]

Thank you for that color. In terms of levers,

[Ran Daniel, CFO at Nano-X Imaging]

just to add for your question is that we do see some more activities. I am going to refer to the article, just what I said in the last questions for Jeffrey. Do not forget that the current census and your estimates are based without the Vaso acquisition. When you add the Vaso acquisitions, you are already going to have to account for the $4 million in revenues that approximately that Vaso have. Other than this, the growth may come probably organic and in-house.

[Scott Henry, Analyst at AGP]

Okay. I think, Ran, did you say that Vaso would contribute $4 million in revenues?

[Ran Daniel, CFO at Nano-X Imaging]

Approximately.

[Scott Henry, Analyst at AGP]

You broke up a little.

[Ran Daniel, CFO at Nano-X Imaging]

Yes. Approximately.

[Scott Henry, Analyst at AGP]

Okay. As far as the levers in 2026, what about teleradiology? It reported a strong growth rate in third quarter. Is that growth increasing?

[Scott Henry, Analyst at AGP]

I mean, historically, it's been kind of a 10% grower. Are you looking for kind of a breakout in that category?

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

Certainly, it was strong in Q3. The answer is if you look at the numbers that we gave as guidance, the numbers are not based on a major quantum leap growth on the teleradiology. We hope that it will grow, but based on the indication that we gave, it's based on sort of the existing plus-minus numbers. All the growth will come from the other business that we have, namely the ARC business and especially the deployment of the ARC X, and especially hopefully the elimination of the adjunct device of the FDA and the other business that we said, and the AI business that we're talking.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

I think that OEM also will grow slowly, and we will see a major growth from 2027 based on the indication that we currently have from our existing customers and potential customers of the OEM business.

[Scott Henry, Analyst at AGP]

Okay. Yeah.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

The thought will be the AI and the ARC, okay, and the hardware and the products.

[Scott Henry, Analyst at AGP]

Okay. Great. Thank you for taking the questions, and I look forward to seeing you down at the RSNA conference.

[Erez Meltzer, CEO and Acting Chairman at Nano-X Imaging]

See you there.

[Scott Henry, Analyst at AGP]

See you. Thank you very much.

[Operator]

Thank you. That is the end of our Q&A session. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

Participants

Executives

• Mike Cavanaugh, Head of Investor Relations
• Ran Daniel, CFO
• Erez Meltzer, CEO and Acting Chairman

Analysts

• Ros Osborn, Analyst at Cantor Fitzgerald
• Scott Henry, Analyst at AGP
• Jeffrey Cohen, Managing Directir at Ladenburg Thalmann