Nanalysis Announces Third Quarter 2025 Results

Core Insights - Nanalysis Scientific Corp reported third quarter results for the period ending September 30, 2025, highlighting challenges in the capital equipment market due to global tariff and trade uncertainties, which have delayed customer purchasing decisions [1][2] - The company is focusing on improving operational efficiency and building a vertically integrated scientific instrumentation company, particularly in its Benchtop NMR products and security services [2][14] Financial Performance - For Q3 2025, total revenue was $9,285, a decrease of 12% from Q3 2024, primarily due to a 36% decline in product sales, which fell to $2,719 from $4,242 [2][11] - Security services revenue increased by 10% year-over-year to $5,943, driven by increased project work related to airport security maintenance [2][18] - Gross margin percentage for product sales decreased to 44% from 52% in Q3 2024, impacted by supply chain challenges [3][4] - Adjusted EBITDA for Q3 2025 was a loss of $2, compared to a profit of $545 in Q3 2024, primarily due to reduced scientific equipment sales [6][19] Year-to-Date Performance - For the nine months ended September 30, 2025, total revenue was $29,455, down 11% from the same period in 2024, with product sales decreasing by 33% to $9,308 [7][10] - Security services revenue for the nine-month period increased by 8% to $16,583 [7][10] - Gross margin percentage for product sales improved to 58% from 50% year-over-year, while service revenue margins decreased slightly to 10% from 11% [8][9] Operational Highlights - The company is undergoing a restructuring of its direct sales and distributor management organizations to enhance accountability and leadership [13][14] - Recent management changes and efficiency initiatives in the Security Services segment have led to improved margins, which are expected to continue [5][14] - The company has resolved earlier magnet supply constraints by diversifying supplier alternatives, which supports growth in its benchtop NMR product lines [15] Strategic Developments - Nanalysis has secured a five-year, non-exclusive OEM supplier and technology-licensing agreement with IMRIS to support intra-operative MRI systems [15] - The company is committed to continuous improvement initiatives, including cost reductions and operational efficiencies, to enhance financial performance [15][26]