Nanalysis Scientific (NSCI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 16.5%–17% year-over-year to CAD 9.6 million, mainly due to lower product sales amid global economic uncertainty and tariff risks.

• Security Services segment revenue grew 7%–9.9% year-over-year, partially offsetting product sales weakness.

• Net loss increased to CAD 2.1 million in Q2 2025, up CAD 127,000 from Q2 2024, primarily due to lower Scientific Equipment sales.

• Management remains optimistic, citing a strong sales funnel and delayed—not lost—business, with expectations for improved performance in the latter half of 2025.

• Cost reduction and efficiency measures improved gross margins in scientific equipment and security services.

Financial highlights

• Consolidated revenue for the six months ended June 30, 2025, was CAD 20.2 million, down 11% year-over-year.

• Gross margin on product sales improved to 61% in Q2 and 64% for the six months, up from 50% and 49% respectively in 2024.

• Adjusted EBITDA loss was CAD 462,000 for Q2 2025, compared to a profit of CAD 759,000 in Q2 2024.

• Adjusted EBITDA loss for the six months was CAD 282,000, versus a profit of CAD 655,000 in the prior year.

• Net loss for the six months was CAD 3.43 million, an improvement from CAD 4.52 million in the prior year.

Outlook and guidance

• Management expects margin improvements to continue in the second half of 2025, driven by ongoing process and cost control initiatives.

• Business not closed in Q2 is expected to be realized later in 2025, with a positive outlook for proprietary product lines.

• Focus remains on efficiency, margin improvement, and advancing product and service offerings.

• Anticipates further announcements in the MRI and High Field NMR business units.