Nano-X Imaging (NASDAQ:NNOX) reported second-quarter 2026 revenue growth driven by its teleradiology, health IT and AI businesses, while recording a substantial non-cash impairment charge and outlining cost-reduction actions intended to extend its cash runway.
Revenue for the quarter ended June 30 rose 37% year over year to $4.2 million, compared with $3 million in the prior-year period. Chief Financial Officer Guy Nathanzon said the increase was primarily supported by the consolidation of Nanox Health IT, formerly VasoHealthcare IT, which contributed $0.9 million in quarterly revenue after being consolidated in November 2025.
Impairment Drives Reported Net Loss
Nanox reported a GAAP net loss of $55.5 million for the second quarter, compared with a $14.7 million loss a year earlier. The result included a $40.7 million impairment charge related to intangible assets in the company’s AI solutions business unit, excluding Nanox Health IT.
Nathanzon said the impairment assessment was triggered by a significant decline in Nanox’s share price and reduced forecasts for revenue and operating results. The charge reduced the fair value of the affected AI-related intangible assets to $1.9 million. He said the impairment did not result in a cash outflow and was excluded from adjusted EBITDA.
On a non-GAAP basis, Nanox posted a net loss of $11.6 million, compared with $10.9 million in the prior-year quarter. Adjusted EBITDA loss was $11.3 million, versus an adjusted EBITDA loss of $10.4 million a year earlier. GAAP operating expenses were $11.8 million, while non-GAAP operating expenses were $11.1 million.
Cash, cash equivalents and restricted deposits totaled $31.4 million as of June 30, down from $60 million in cash, cash equivalents, short-term deposits and restricted deposits at the end of 2025. Following the quarter, the company raised $8.5 million in aggregate gross proceeds through its at-the-market program and a registered direct offering. Nathanzon said Nanox intends to continue seeking capital from various sources.
Restructuring Korean Operations
Management also detailed changes intended to reduce fixed costs and shift manufacturing responsibilities to outside partners. The company idled its chip-production line in South Korea and reduced its Korean workforce by about two-thirds. It also reduced Israel-based headcount by 15%.
Nanox plans to transition volume chip production to qualified third-party manufacturing partners and has begun processes in preparation for a sale of its South Korean manufacturing facility. The actions are expected to generate approximately $2 million in annualized cost savings beginning in 2027, with most of the savings expected to be reflected in operating expenses, Nathanzon said.
Chief Executive Officer and acting Chairman Erez Meltzer said the restructuring is designed to streamline the operating model, lower cash burn and focus company resources on core technology and commercialization priorities.
Commercialization Efforts Expand
Meltzer said commercialization of the Nanox.ARC imaging system has taken longer than initially expected, citing operational requirements involving permits, shielding, construction schedules and integration into clinical workflows at imaging centers. The company is increasingly using commercial partners with existing imaging-industry relationships to support deployments.
The company now has 10 signed commercial distribution partnerships in the U.S., including a newly announced agreement between Nanox Impact Inc. and Associated X-Ray Imaging Corp. in New England. Nanox also cited recent engagements with Digital X-ray Imaging, Integrity Medical Service and Elite Surgical Technologies.
During the quarter and subsequent period, the company advanced deployments in Europe and Latin America. In response to an analyst question, Meltzer said systems had been placed in Greece, Romania and the Czech Republic, while installations in Peru and Argentina were awaiting import licenses. Nanox also appointed SOLME RC, S.A. as a distribution partner in Costa Rica.
In the U.S., Nanox said a system operating at a RadNet facility has been integrated into routine clinical workflow. The company also installed systems at an orthopedic center in Florida, an urgent-care unit in New Jersey, and through its Nanox Imaging Network initiative. Meltzer said one customer transitioned from a medical-screening-as-a-service arrangement to a capital-equipment purchase.
Network, AI and Reimbursement Updates
Nanox completed the first Nanox Imaging Network installation in Philadelphia, where the site has begun scanning patients. Meltzer said the company has received paid insurance claims ranging from $200 to $700 per claim. Based on its preliminary business model, management believes an individual network site could potentially generate annual revenue of $500,000 to $1 million, depending on utilization, reimbursement levels, payer mix and execution.
Nanox.AI launched five new installation pilots across the U.S. and India and entered an exclusive U.K. sales-reseller agreement with Virtek Vision International for its bone solution. The company also completed a pilot study with Cedars-Sinai in which its Health AVC product showed more than 92% agreement with standard-of-care tools for assessing aortic valve calcification.
The company highlighted a new CMS Healthcare Common Procedure Coding System code, G0680, effective April 1, 2026, for algorithmic analysis of coronary artery calcium and/or aortic valve calcification from chest CT scans. Meltzer said the code creates a potential reimbursement pathway for Nanox.AI Cardio when applicable documentation and medical-necessity requirements are met.
Looking ahead, Meltzer said Nanox plans to use the RSNA 2026 conference to engage with customers, partners and clinical leaders and position the event as a commercial kickoff for 2027.
About Nano-X Imaging (NASDAQ:NNOX)
Nano-X Imaging Ltd. is a medical technology company developing and commercializing a digital X-ray imaging platform designed to lower the cost and increase the accessibility of diagnostic imaging. Its flagship product, the Nanox.ARC, leverages a proprietary micro-electromechanical system (MEMS) based digital X-ray source and advanced image processing software to provide 2D and 3D imaging capabilities on a compact footprint. The system aims to streamline radiology workflows and facilitate point-of-care diagnostics in hospitals, clinics and outpatient settings.
The Nanox.ARC platform integrates a novel cold cathode X-ray source, which enables multiple emission points without the need for rotating anode tubes.
