Nanalysis Announces Third Quarter 2025 Results

Executive Summary

• Nanalysis Scientific Corp. reported Q3 2025 consolidated revenue of C$9.285 M, down 12% year‑over‑year, driven by a 36% decline in product sales.
• Security services revenue rose 10% to C$5.943 M and margins improved, offsetting part of the product sales weakness.
• Adjusted EBITDA swung to a loss of C$2 K (vs. C$545 K profit in Q3 2024); net loss narrowed to C$1.5 M from C$1.644 M a year earlier.

Key Details

• Revenue & Sales
• Total revenue: C$9.285 M (‑12% YoY).
• Product sales: C$2.719 M (‑36% YoY).
• Security services revenue: C$5.943 M (+10% YoY).

• Flow‑through inventory revenue: C$0.623 M (‑31% YoY).

• Margins

• Gross margin – product sales: 44% (down from 52%).

• Gross margin – security services: 14% (vs. 15% prior year).

• Profitability

• Adjusted EBITDA: ‑C$2 K (previously C$545 K).
• Normalized net loss (excludes asset impairment): ‑C$1.5 M (improved from ‑C$1.57 M).

• Net loss: ‑C$1.5 M (up 9% vs. prior year).

• Nine‑Month Highlights (ended Sep 30, 2025)

• Revenue: C$29.455 M (‑11% YoY).
• Product sales down 33% to C$9.308 M; security services up 8% to C$16.583 M.

• Adjusted EBITDA loss of C$284 K vs. profit of C$1.2 M in 2024.

• Strategic & Operational Updates

• Signed a five‑year, non‑exclusive OEM and technology‑licensing agreement with IMRIS for intra‑operative MRI systems.
• Completed cost‑reduction program (headcount cuts, lower R&D spend) contributing to reduced operating expenses and narrower net loss.
• Resolved magnet supply constraints by diversifying suppliers, improving inventory availability for benchtop NMR products.
• Announced first regulated benchtop NMR assay accepted by USP‑NF and European Pharmacopoeia (Molar Substitution Determination in Hydroxypropyl β‑Cyclodextrin).

• Integrated Wiley’s KnowItAll software and spectral libraries to broaden analytical workflow support.

• Outlook & Restructuring

• Management is restructuring the sales organization after exiting Mediso (France) and phasing out Agilent reseller business in Canada/US, with full wind‑down by Dec 31.
• Focus on building a direct, internationally trained dealer network and expanding presence in Europe and the U.S. beginning Q4 2025.
• Anticipates continued margin improvement in security services and expects product margins to recover once supply‑chain issues fully resolve in mid‑Q4 2025.

Notable Quotes

• “The first nine months of 2025 reflect broader challenges… lower product sales had a direct impact on our financial results,” – Sean Krakiwsky, Founder & CEO
• “Our new management team in security services has improved margins steadily from their Q1 2025 low point of 6%,” – Sean Krakiwsky
• “Cost control and careful resource allocation remain priorities as we restructure our sales organization,” – Sean Krakiwsky

All dollar figures are presented in thousands of Canadian dollars unless otherwise noted.