Nano-X Imaging Ltd. ((NNOX)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Nano-X Imaging Ltd. presented a mixed sentiment, highlighting both achievements and challenges faced by the company. While the company celebrated regulatory milestones and market expansion in Europe, concerns were raised due to increased net losses, ongoing gross losses in certain segments, and stagnation in AI solutions revenue.
Regulatory Achievements
Nano-X Imaging Ltd. marked significant regulatory achievements, including the FDA general use clearance obtained in December 2024 and the CE mark designation for the Nanox.ARC in February 2025. These milestones are crucial for the company’s growth and credibility in the medical imaging sector.
Market Expansion
The company is actively expanding its market presence, particularly in Europe. With the CE-marked Nanox.ARC, Nano-X has signed new distribution agreements in Romania and Greece, which are expected to enhance its footprint and sales in the region.
AI Commercialization Advances
Nano-X has made strides in AI commercialization by engaging with two new customers in the U.S. for its AI-powered imaging interpretation algorithms. The company reported a 25% increase in its AI customer and pilot-based projects, indicating a growing interest in its AI solutions.
Financial Performance in Teleradiology
The teleradiology segment showed promising growth, with revenue increasing to $2.8 million and a gross profit margin of 21% on a GAAP basis, compared to 14% in the previous year. This improvement highlights the potential of teleradiology services as a revenue driver for Nano-X.
Increased Net Loss
Despite some positive developments, Nano-X reported a GAAP net loss of $14.1 million for Q4 2024, a significant increase from the $10.2 million loss in Q4 2023. This increase in net loss raises concerns about the company’s financial health and sustainability.
Gross Loss in Imaging Systems
The imaging systems segment reported revenue of $136,000 but suffered a gross loss of $1.5 million on a GAAP basis. This highlights the challenges Nano-X faces in making its imaging systems profitable.
AI Solutions Revenue Stagnation
Revenue from AI solutions remained stagnant at $83,000, with a gross loss of $2.0 million, similar to the previous period. This stagnation suggests that the company needs to reassess its strategy in this segment to drive growth.
Increased General and Administrative Expenses
General and administrative expenses rose to $5.8 million from $3.8 million, primarily due to increased legal expenses. This increase adds to the financial pressures faced by the company.
Forward-Looking Guidance
Looking ahead, Nano-X plans to leverage its recent regulatory approvals to expand its market presence in the U.S. and Europe. The company is focusing on strategic partnerships and sales agreements to accelerate growth. Additionally, efforts to expand sales and clinical support teams in the U.S. are underway, aiming to enhance market penetration and operational efficiency.
In conclusion, the earnings call for Nano-X Imaging Ltd. reflected a blend of positive regulatory and market expansion achievements alongside financial challenges. While the company is making progress in AI commercialization and teleradiology services, increased net losses and stagnation in certain segments pose significant hurdles. The forward-looking guidance suggests a strategic focus on expanding market presence and leveraging regulatory milestones to drive future growth.