Nano-X Imaging Ltd. Q4 FY2025 earnings call

In Q4 2025, continued moving business forward. Secured supply chain and strengthened financial position. Made progress advancing Nanos' platform and operational infrastructure. Entered agreement with Howard Technology Solutions for 300 Nano-XR systems over 3 years. Announced multiple commercial agreements for ~360 systems over 2 - 3 years. Observed shift in market perception at radiology conferences. Restructured Korean manufacturing facilities to reduce OPEX and cash burn. Advanced regulatory work including TAP2D clearance in US and updated AMAR approval in Israel. Strengthened AI business with Cedars-Sinai trial and collaboration with MDS Wellness. Advanced OEM relationships with semiconductor and security markets. Announced leadership change with Ron Daniels stepping down and Guy Nathanson joining as CFO.

Fourth quarter 2025 net loss was $33.4 million vs $14.1 million in 2024 Q4. Revenue was $3.7 million vs $3.0 million in 2024 Q4. Teleradiology services revenue was $3.1 million in 2025 Q4 vs $2.8 million in 2024 Q4. Imaging systems sales and deployment revenue was $49,000 in 2025 Q4 vs $136,000 in 2024 Q4. AI and software solutions revenue was $0.5 million in 2025 Q4 vs $0.1 million in 2024 Q4. Research and development expenses net were $4.8 million in 2025 Q4 vs $5.4 million in 2024 Q4. Sales and marketing expenses were $2.0 million in 2025 Q4 vs $0.9 million in 2024 Q4. General and administrative expenses were $6.0 million in 2025 Q4 vs $5.8 million in 2024 Q4. Other expenses net were $1.4 million in 2025 Q4. Non-GAAP net loss attributable to ordinary shares was $11.2 million in 2025 Q4. Cash, cash equivalents, and market-based securities were approximately $60 million as of Dec 31, 2025 vs $55.5 million as of Sep 30, 2025. Property and equipment net was $29.7 million as of Dec 31, 2025 vs $45.4 million as of Dec 31, 2024. Shares outstanding were approximately 69.6 million as of Dec 31, 2025 vs 63.8 million as of Dec 31, 2024. The company sold ~4.2 million ordinary shares in 2025 Q4 generating net proceeds of ~$15.5 million net of issuance expenses.

Target revenue of $35 million for 2026. Expect ramp-up in revenue in second half of 2026 as agreements signed recently are onboarded and ramped up. Teleradiology services expected to continue growth but specific segments not attributed in guidance.

Pace of deployment influenced by external processes like import licenses, construction timeline, and regulatory requirements. Geopolitical situation in Middle East could potentially impact operations though no material disruption experienced yet. Estimates of restructuring-related charges and timing subject to assumptions and uncertainties with actual results possibly differing materially.

Q: Talk about U.S. commercial organization footprint including direct sales and distribution channels.

A: In US, have Nanox Impact with 5 direct salespeople, director of sales, clinical education specialists, tech people, SDRs. In process of adding 2 more for channel management. Onboarding process for business partners including training and demos.

Q: South Korean facility impairment and 2026 expectations.

A: Anticipate relatively minor cash expenses for further efficiency steps. Fab in Korea to be converted to R&D center for ceramic tubes.

Q: 2026 guidance cadence and teleradiology growth.

A: Ramp-up expected in second half of 2026. Teleradiology services expected to grow but specific segments not attributed.

Q: Spending trends after Q4.

A: G&A had seasonal increase due to audit and acquisition of Vaso Healthcare. Sales and marketing increase related to commercialization efforts and possible RSNA conference participation depending on future participation