Nanalysis Scientific (NSCI) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was CAD 9.3 million, down 12% year-over-year, mainly due to discontinued business lines, lower product sales, and global macroeconomic and trade uncertainty.

• Security services revenue grew 10% year-over-year, driven by increased airport security maintenance project work.

• The company is refocusing on proprietary products, phasing out third-party equipment sales, and restructuring its sales organization for improved accountability and market focus.

Financial highlights

• Q3 2025 product sales fell 36% year-over-year to CAD 2.7 million; security services revenue rose 10% to CAD 5.9 million.

• Gross margin for product sales was 44% in Q3 2025, down from 52% in Q3 2024, due to lower manufacturing utilization and supply chain issues.

• Security services gross margin was 14%, slightly down from 15% year-over-year.

• Adjusted EBITDA loss was CAD 2,000 in Q3 2025, compared to a profit of CAD 545,000 in Q3 2024, mainly from lower scientific equipment sales.

• Net loss was CAD 1.5 million in Q3 2025, an improvement of CAD 144,000 year-over-year, due to lower depreciation and no further losses from an impaired investment.

Outlook and guidance

• Management expects continued margin improvements in security services and product sales as supply chain issues resolve.

• Cost control and resource allocation remain priorities amid ongoing macroeconomic uncertainty.

• Focus is shifting to proprietary products, with anticipated positive impact on future results.

• Restructuring of sales and distributor management is underway, with a focus on expanding direct sales in Europe and the US.

• Supply chain challenges with magnets have been resolved, expected to strengthen future operations.