Nano-X Imaging Ltd. Q1 FY2025 earnings call

• Strategic acquisitions in 2021: USARad (teleradiology) and Zebra Medical Vision (now Nano-X AI) to build end-to-end medical imaging solution.
• Commercial efforts: Multi-pronged strategy including direct sales, business collaborations, and distributors; sales pipeline doubled since January 2025 with over 1,000 leads; over 60 Nano-X ARC units in various deployment stages; targeting over 100 ARC systems worldwide by end-2025.
• US market progress: Preparing to ship first ARC systems to Puerto Rico; strengthening sales, clinical, and operational teams; notable distributor partnerships and workers' comp project.
• EU market: Secured CE Mark for Nano-X ARC; ready to ship and install in Europe, with plans for deployments in Greece, Romania, Mexico.
• AI solutions: Strong momentum with positive trial data and customer feedback; agreement with Ezra AI, collaborations with academic centers like Oxford University Hospitals.
• Regulatory: Received FDA 510(k) clearance for Nano-X ARC.
• Clinical work: Ongoing trials, installed in Shamir Hospital, multisite trial expansion.
• USARad: Providing teleradiology services, signed agreement with large US company, Second Opinion platform generating ~20,000 scans/month.
• OEM partners: Active with Oak Ridge National Labs and Varex; attending RSNA 2025 to present Nano-X solution.

GAAP net loss for the quarter ended March 31, 2025 was $13.2 million, compared to a net loss of $12.2 million in the first quarter of 2024. Revenue for the period was $2.8 million, with gross loss of $3.0 million on a GAAP basis. Revenue from teleradiology services was $2.6 million, with a GAAP gross profit of $0.4 million. Revenue from imaging systems and OEM services was $33,000, with a GAAP gross loss of $1.16 million. Revenue from AI solutions was $0.2 million, with a GAAP gross loss of $1.9 million. Non-GAAP gross loss for the quarter was $0.4 million, compared to a gross profit of $0.6 million in the comparable period. Teleradiology services had a non-GAAP gross profit of $1.0 million in the period. Research and development expenses were $5.0 million, sales and marketing expenses were $0.9 million, and general and administrative expenses were $5.1 million.

• Target to deploy over 100 Nano-X ARC systems worldwide by the end of 2025.
• US deployment of Nano-X ARC progressing, with plans to ship to Puerto Rico and continue strengthening teams.
• Expect AI business to grow with secular AI growth; ARC business aiming for breakeven in 2027.

• Market uncertainties may impact guidance as the year progresses.
• Time required for clinical validation, regulatory approvals, and revenue recognition due to the nature of medical device commercialization.
• Reimbursement and EOB processes taking time to translate into immediate revenue.

Q: Jeffrey Cohen inquired about the distribution of the fleet by geography and details of the USARad Second Opinion service.

A: Erez Meltzer stated the majority of units will be in the US, with ~15-20% in Europe and ~10% in other regions like Israel, Latin America; Second Opinion service is ~$300, retail model.

Q: Ross Osborn asked about the number of operating units in the US and the lack of associated revenue influx.

A: More than 20 units are operating in the US, but revenue generation takes time due to regulatory, setup, and EOB processes.

Q: Scott Henry asked about gross margin and breakeven expectations.

A: Teleradiology is already profitable; AI and ARC businesses expect to breakeven in 2026 and 2027 respectively, with breakeven depending on revenue mix.