1. Nanalysis reports Q1 2025 revenue drop of 5% due to macro uncertainties. 2. Adjusted EBITDA improves to $180, from a loss of $104 last year. 3. Product sales margin increases to 66%, driven by cost reductions. 4. Net loss reduces significantly by 48% compared to Q1 2024. 5. The company emphasizes operational excellence and strategic investments in innovation.
The reduction in net losses and improved EBITDA signal operational stabilisation, despite revenue decline. Historical performance shows similar trends lead to increased market confidence.
The article outlines financial performance pivotal for investor interest, impacting NSCIF positively amid mixed economic indicators.
Short-term plans for margins improvement can positively influence investor sentiment quickly, as seen in past earnings reports leading to immediate stock price adjustments.
CALGARY, AB, May 28, 2025 /PRNewswire/ - Nanalysis Scientific Corp. ("the Company") (TSXV: NSCI) (OTCQX: NSCIF) (FRA: 1N1), a leader in portable NMR spectrometers and MRI technology for industrial and research applications announces first quarter results for the period ending on March 31, 2025.
Chief Executive Officer Sean Krakiwsky and Chief Financial Officer Randall McRae will host a conference call at 5 P.M. Eastern Time today to discuss the results. A second call will be held for European investors at 8:30 A.M. Eastern Time tomorrow, Thursday, May 29th. All interested parties are invited to join these calls. All dollar figures in this press release are in thousands of Canadian dollars, except per share amounts or unless otherwise stated.
"The first quarter of this year was not without some macro headwinds which were felt at a global scale," said Sean Krakiwsky, Founder and CEO of Nanalysis. "In spite of that, the Company has been able to continue generating positive Adjusted EBITDA and positive operating cash-flows of $2.7 million. We are seeing significant margin improvement within product sales as a direct result of improvements to our manufacturing process and overall cost cutting measures. We have now turned our focus on operational excellence to our services organisation. We have begun to apply the same discipline that created efficiencies in our manufacturing processes to our service delivery to improve gross margins and drive increases in Adjusted EBITDA. Our plan hasn't changed as we remain focused on continuing to build a fully vertically integrated scientific instrumentation business with innovative products, as well as a growing service business, progressing on the path to profitable growth.”
| Three months ended March 31 | 2025 | 2024 | Change | Change |
|---|---|---|---|---|
| Product sales | 3,687 | 4,216 | (529) | -13 % |
| Security services revenue | 5,023 | 4,723 | 300 | 6 % |
| Flow-through inventory revenue | 1,884 | 2,223 | (339) | -15 % |
| Total sales and revenue | 10,594 | 11,162 | (568) | -5 % |
| Gross margin percentage - product sales | 66 % | 47 % | 19 % | |
| Gross margin percentage - service revenue | 6 % | 8 % | -2 % | |
| Adjusted EBITDA | 180 | (104) | 284 | |
| Net loss | (1,307) | (2,522) | 1,215 | 48 % |
2025
| ($000's) | Q1 | Q4 | Q3 | Q2 |
|---|---|---|---|---|
| Product sales | 3,687 | 5,536 | 4,242 | 5,402 |
| Security services revenue | 5,023 | 5,602 | 5,420 | 5,265 |
| Flow-through parts revenue | 1,884 | 1,151 | 908 | 807 |
| Total revenue | 10,594 | 12,289 | 10,570 | 11,474 |
| Adjusted EBITDA | 180 | 1,904 | 545 | 759 |
| Normalized net loss | (1,307) | (400) | (1,570) | (1,795) |
"As 2025 continues, we have maintained a strong sales funnel into the second quarter and full year. While the Company is optimistic that sales for the full year will not be impacted by tariffs and economic uncertainty, it is possible that product sales growth in 2025 will face some headwinds. We are working diligently to navigate these uncertainties and implementing risk mitigation strategies, including improving distributor relationships in markets outside the United States," continued Mr. Krakiwsky.
"In focusing our efforts on what we can control, we will continue to offer and innovate on our core Benchtop NMR products. We look to leverage new sales channels and partnerships as well as enter into new verticals.
"In our latest initiative, we are taking the same diligent approach to efficiency and process improvement that was implemented in our product business and applying it to our Services business. We have made leadership changes and have brought in a seasoned, operational focused leader. This process will center around workload management, process improvement, and continuing to implement automation and tools to help our team deliver their services effectively and efficiently. We have every confidence that we will be able to make improvements that will drive margins and results upward.
"I am quite positive on what the future brings for Nanalysis," concluded Mr. Krakiwsky.
Investors interested in participating in the live full year call can dial 1-888-510-2154 or 437-900-0527 from abroad. Investors can also access the call online through a listen-only webcast here or on the investor relations section of the Company's website HERE.
The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-660-6345 or 289-819-1450, conference ID # 00805.
Additionally, the Company will be hosting a Q&A session for its European investors at 8:30am ET tomorrow, Thursday, May 29th, which can be accessed by the following link: Join the meeting now.
The Company prepares and reports its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, as adopted by the Canadian Accounting Standards Board ("IFRS"). However, this press release may make reference to certain non-IFRS measures including key performance indicators used by management. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
The Company uses Flow-through parts revenue, Security services revenue, Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA"), and Normalized net loss as non-IFRS measures, which may be calculated differently by other companies. These non-IFRS measure are used to provide investors supplemental measures of the Company's operating performance and liquidity and thus highlight trends in the Company's business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies in similar industries.
Nanalysis Scientific Corp. operates two primary business segments: Scientific Equipment and Security Services. Within its Scientific Equipment business is what the Company terms "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The Company has followed up that initial offering with new products and continues to have a strong innovation pipeline. In 2020, the Company announced the launch of its 100MHz platform, which has the highest usable field on a fully featured benchtop NMR on the market. In early 2025, the Company launched its new 60MHz instrument which is based on the successful 100MHz product line. The Company's devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company is working to expand into new global market opportunities independently and with partners. With its partners, the Company provides scientific equipment sales and maintenance services globally.
Within the Company's Security Services business, the core activity is providing airport security equipment maintenance in each province and territory of Canada. In addition, the Company provides commercial security equipment installation and maintenance services to a variety of customers in North America.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nanalysis Scientific Corp.