Nanox (NASDAQ: NNOX) reported Q2 2026 revenue of $4.2 million, up 37% from $3.0 million a year earlier, while GAAP diluted loss per share widened to $0.79 from $0.23. Revenue growth was driven primarily by the acquired Nanox Health IT business, but a $40.7 million noncash impairment pushed GAAP net loss to $55.5 million; adjusted EBITDA loss also widened to $11.3 million from $10.4 million. Balance-sheet liquidity declined during the first half, although Nanox raised $8.5 million in gross proceeds after quarter-end.
Core Financial Results
Nanox Health IT, consolidated beginning November 19, 2025, contributed $0.9 million of quarterly revenue. That represented most of the $1.1 million year-over-year increase in total revenue.
The reported loss figures were heavily affected by the intangible-asset impairment recorded in cost of revenue. Excluding this and other specified items, non-GAAP losses increased more modestly, indicating that the quarter’s underlying cost base also remained above revenue.
| Metric | Q2 2026 | Q2 2025 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $4.2 million | $3.0 million | Up 37% |
| GAAP gross loss and margin | $(43.7) million; −1,051% | $(3.2) million; −107% | Loss widened by $40.4 million |
| GAAP operating expenses | $11.8 million | $11.3 million | Up approximately 5% |
| GAAP operating loss | $(55.5) million | $(14.5) million | Loss widened by $41.0 million |
| GAAP net loss | $(55.5) million | $(14.7) million | Loss widened by $40.8 million |
| GAAP diluted loss per share | $(0.79) | $(0.23) | Loss widened by $0.56 |
| Non-GAAP net loss | $(11.6) million | $(11.0) million | Loss widened by $0.7 million |
| Adjusted EBITDA loss | $(11.3) million | $(10.4) million | Loss widened by $0.9 million |
Nanox’s non-GAAP measures exclude items including intangible-asset impairment and amortization, share-based compensation, and certain settlement, litigation, and earnout-related adjustments.
Business and Segment Performance
Teleradiology remained the largest revenue source at $3.0 million. AI and Software Solutions generated $1.0 million, while imaging-system sales and OEM services contributed $0.2 million. The $0.9 million Health IT contribution is included within total revenue rather than being an additional revenue category.
Health IT expanded its customer activity after the acquisition, with more than 20 projects going live during the first half of 2026. Nanox.AI also signed an exclusive reseller agreement with Vertec Scientific and launched five pilot programs.
Commercial activity around Nanox.ARC progressed, but system deployment had not accelerated materially. Nanox said there was no material change in the number of systems in various deployment stages from previously reported levels. During the quarter, the company added capital-equipment agreements, placed a system at a Florida orthopedic center, expanded to ten U.S. distribution partners, and signed a distribution agreement in Costa Rica.
The first Nanox Imaging Network site began scanning patients in Philadelphia, and the company started receiving insurer reimbursement for scans. These developments establish initial clinical and reimbursement activity, but imaging-system and OEM revenue remained limited at $0.2 million for the quarter.
The Impairment Drove GAAP Losses Far Below Adjusted Results
Nanox recorded a $40.7 million impairment after a significant decline in its share price and reductions in forecast revenue and operating results triggered an asset review. The charge reduced the fair value of intangible assets associated with the AI solutions business, excluding Nanox Health IT, to $1.9 million.
Because the impairment was recorded in cost of revenue, it pushed the GAAP gross loss margin to −1,051%. It did not require a cash outflow and was excluded from adjusted EBITDA. This explains most of the difference between the $55.5 million GAAP net loss and the $11.6 million non-GAAP net loss.
Even after adjustments, profitability remained under pressure. Non-GAAP gross loss margin improved to −13% from −21%, but non-GAAP operating expenses increased to $11.1 million from $10.0 million, primarily because of the Health IT consolidation and higher legal expenses. Consequently, both non-GAAP net loss and adjusted EBITDA loss widened year over year.
Profitability, Cash Flow, and the Balance Sheet
Nanox provided cash-flow figures for the six months ended June 30 rather than for the quarter alone. First-half operating cash outflow increased to $25.5 million from $19.6 million a year earlier. Purchases of property and equipment also rose to $2.8 million from $1.6 million.
The balance sheet reported $31.0 million in cash and cash equivalents and $0.4 million in restricted deposits at June 30. At the end of 2025, Nanox held $49.2 million in cash, $10.5 million in short-term deposits, and $0.4 million in restricted deposits, for a combined cash-and-deposit balance of approximately $60.0 million. After quarter-end, the company raised $8.5 million in gross proceeds through a registered direct offering and its at-the-market program, and it said it intends to continue seeking funding from various sources.
Nanox is also restructuring its South Korean operations by transferring substantially all chip manufacturing to qualified third parties and reducing its workforce by 67%. The company expects approximately $0.9 million of restructuring expenses and annual cost savings of approximately $2 million beginning in 2027. The timing means the anticipated savings do not provide an immediate offset to current cash use.
Recent Insider Transactions
The supplied insider dataset reports four purchases totaling 128,443 shares and one sale of 678 shares during the latest six-month period. Net purchases were 127,765 shares, equal to 2.7% of the reported 4.95 million shares held by insiders. The separate two-year transaction report lists the following five latest records.
| Insider | Role | Transaction | Ownership | Reported Value | Date |
|---|---|---|---|---|---|
| Noga Kainan | Director | Purchase at $0.90 per share | Direct | $29,700 | July 28, 2026 |
| Dan S. Suesskind | Director | Purchase at $0.92–$0.94 per share | Direct | $46,500 | July 27, 2026 |
| Erez I. Meltzer | Chief Executive Officer | Purchase at $0.93 per share | Indirect | $33,480 | July 27, 2026 |
| Erez Alroy | Director | Sale at $1.65 per share | Direct | $1,119 | June 10, 2026 |
| Ran Daniel | Chief Financial Officer | Purchase at $3.65 per share | Direct | $3,650 | September 5, 2025 |
These records describe the reported transactions but do not, by themselves, establish insiders’ expectations for the business or its valuation.
Risks Investors Need to Watch
- Liquidity and additional financing: Nanox used $25.5 million of operating cash during the first half and ended June with $31.0 million in cash and equivalents. The post-quarter financing adds capital, but management also expects to continue raising funds.
- Conversion of commercial activity into system revenue: New distribution agreements and the first Imaging Network scans have not yet produced substantial hardware revenue, while the number of Nanox.ARC systems in deployment stages was largely unchanged.
- AI business expectations: Reduced revenue and operating forecasts helped trigger the $40.7 million impairment. The remaining $1.9 million fair value assigned to affected AI-related intangible assets highlights the reduced accounting value of that business unit.
- Restructuring execution: Moving chip manufacturing to third parties while reducing the South Korean workforce may lower future costs, but the transition must be completed before the projected savings begin in 2027.
- Securities litigation: A class-action complaint concerning company disclosures was filed in June 2026. The case remains at an early stage, and Nanox has not recorded an accrual because the probability and potential cost cannot yet be estimated.
Summary
Nanox’s Q2 revenue increased mainly because of the Health IT acquisition, while its existing imaging commercialization remained at an early stage. The noncash AI impairment accounted for most of the sharp deterioration in GAAP results, but higher adjusted losses and first-half operating cash use show that the underlying business has not reached profitability. Future reporting will need to show whether new distribution relationships, reimbursement activity, and Health IT projects translate into recurring growth while restructuring and additional financing support the remaining commercialization effort.
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