Breaking Down Nano-X Imaging Ltd. (NNOX) Financial Health: Key Insights for Investors

You're watching Nano-X Imaging Ltd. (NNOX), a company that promises to disrupt medical imaging, and you know the clock is ticking; their Q3 2025 earnings drop tomorrow, November 20, 2025, and that report will defintely set the near-term trajectory. This is a classic high-risk, high-reward medical device story, so we need to map the next steps precisely. Wall Street is bullish, with a 'Strong Buy' consensus and a median price target of around $8.50, representing a potential upside of over 150% from the current trading price. But here's the quick math: analysts are forecasting a full-year 2025 revenue of only about $13.60 million, which means the market is betting heavily on the future Nanox.ARC deployment and teleradiology services, not current sales. Plus, the company is still deep in the red, with an expected 2025 full-year loss (EPS) of around ($0.90) per share. This gap between a strong analyst rating and negative earnings is exactly what you need to understand before making a move.

Revenue Analysis

You need to know where Nano-X Imaging Ltd. (NNOX) is actually making its money. The direct takeaway is that while the company's future hinges on its Nanox.ARC imaging system, its near-term revenue-and its financial stability-is overwhelmingly driven by its legacy teleradiology services business.

For the full fiscal year 2025, analysts project Nano-X Imaging Ltd.'s total revenue will reach around $13.33 million. That's a decent number for a company in this stage, but the breakdown shows a clear dependence on the acquired services side, not the core technology everyone is watching. Honestly, the teleradiology revenue helps fund the Nanox.ARC deployment, and that's the simple truth.

The company's revenue streams primarily break down into three segments, but the contributions are far from equal. Looking at the first quarter of 2025, the picture is clear:

• Teleradiology Services: This is the dominant, steady cash flow.
• Imaging Systems & OEM Services: Sales and deployment of the Nanox.ARC and related original equipment manufacturer (OEM) services.
• AI Solutions: Revenue from Nanox.AI, their artificial intelligence software for medical imaging.

Here's the quick math on the first quarter of 2025 (Q1 2025) revenue of $2.8 million:

The teleradiology segment brought in $2.6 million in Q1 2025, which was up from $2.4 million in the comparable period last year. That's the engine keeping the lights on. What this estimate hides, though, is that while the AI solutions revenue doubled year-over-year to $200,000 in Q1 2025, the core Imaging Systems revenue was only $33,000, a decrease from $47,000 in Q1 2024. That's a significant change in the mix and a reminder that the Nanox.ARC commercial ramp-up is still in its infancy.

Growth Rate and Near-Term Opportunities

The overall revenue growth rate is encouraging, even if the base is small. For the twelve months ending June 30, 2025 (TTM), Nano-X Imaging Ltd.'s revenue totaled $11.89 million, representing a growth of 17.36% year-over-year. This TTM growth rate is defintely higher than the US Medical Devices industry average, which is a positive sign of market traction.

The near-term opportunity lies in the successful deployment of the Nanox.ARC systems. Management is targeting over 100 systems in various stages of installation and commercial use by the end of 2025. As these systems move from deployment to generating usage-based revenue, the contribution from the Imaging Systems segment should flip from a minor line item to the primary growth driver. For a deeper dive into the institutional interest, you should check out Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking at Nano-X Imaging Ltd. (NNOX) and trying to figure out when the red ink turns black. Honestly, the company's overall profitability metrics for the 2025 fiscal year, based on trailing twelve months (TTM) data ending June 30, 2025, show it is still firmly in the high-growth, pre-profit stage. That is a critical distinction for a company focused on a disruptive technology like the Nanox.ARC system.

Here's the quick math on the overall business, which includes both the capital-intensive imaging system development and the revenue-generating teleradiology services. For the TTM period ending Q2 2025, total revenue was $11.89 million. This revenue base is currently overwhelmed by the cost structure:

• Gross Profit Margin: -100.8% (Gross Loss of $11.99 million).
• Operating Profit Margin: -484.9% (Operating Loss of $57.66 million).
• Net Profit Margin: -470% (Net Loss of approximately $55.85 million).

The company is burning cash to build its future. You simply can't ignore those negative margins.

Operational Efficiency and Margin Trends

The trend shows a mixed, but expected, picture for a company transitioning from R&D to commercialization. The overall GAAP Gross Loss Margin actually worsened slightly to (107%) in Q2 2025, compared to (106%) in Q2 2024. This is due to the costs associated with ramping up Nanox.ARC production and early deployment, a classic sign of an early-stage hardware business.

But the story changes when you break it down by business segment. The teleradiology services-which are already established-are the bright spot for operational efficiency. This division is generating real profit, which is a good sign for management's ability to run a services-based business:

The teleradiology segment's GAAP gross profit margin improved from 15% to 18% year-over-year in Q2 2025, which shows good cost management and pricing power in that established line of business. The AI solutions, however, are still incurring significant gross losses of $1.9 million on only $0.2 million in revenue in Q1 2025, which is typical for a new, high-value software product in its initial deployment phase.

Industry Comparison and Future Outlook

To be fair, Nano-X Imaging Ltd.'s overall negative margins are a stark contrast to the US Medical Technology industry average, which often sees operating margins around 22%. This huge gap tells you the company is being valued on its future potential, not its current earnings. The market is betting on the success of the Nanox.ARC system and the company's Mission Statement, Vision, & Core Values of Nano-X Imaging Ltd. (NNOX).

The opportunity here is the projected inflection point. Management expects the teleradiology division to be profitable at the gross margin level, and the AI business is forecast to break even in 2026, with the Nanox.ARC division targeting breakeven in 2027. Your action now should be to monitor the deployment of the Nanox.ARC systems-the company aims for over 100 units worldwide by the end of 2025-as this is the key to flipping the overall gross margin from negative to positive.

Debt vs. Equity Structure

When you look at how Nano-X Imaging Ltd. (NNOX) finances its operations, the picture is clear: they are an equity-funded growth company, not a debt-laden one. This is a critical factor for a high-growth, pre-profit business in the medical imaging space. The company's balance sheet, as of the most recent data from the 2025 fiscal year, shows a very conservative approach to leverage.

The total debt carried by Nano-X Imaging Ltd. (NNOX) is minimal, especially when compared to its shareholder equity. As of June 2025, the company reported total debt of approximately $7.95 million. This is primarily composed of a $3.3 million short-term loan from a bank, with long-term liabilities due beyond 12 months sitting at around $6.96 million.

The short-term debt is easily manageable. Here's the quick math on their liquidity: Nano-X Imaging Ltd. (NNOX) reported cash, cash equivalents, and marketable securities of about $62.6 million as of June 30, 2025. This leaves them with a net cash position of approximately $48.6 million, meaning they could pay off all their current debt several times over with cash on hand.

The Debt-to-Equity (D/E) ratio is the best way to see this capital structure in context.

• Nano-X Imaging Ltd. (NNOX) Debt-to-Equity Ratio (FY 2025): Approximately 5% (or 0.05).
• Biotechnology/Healthcare Technology Industry Average D/E Ratio (Nov 2025): Approximately 17% (or 0.17).

A D/E ratio of 5% is defintely low, signaling very little reliance on borrowed money to finance their total assets. The industry average for a comparable sector like Biotechnology is much higher at 17%, so Nano-X Imaging Ltd. (NNOX) is operating with a significantly lower financial risk profile than many of its peers. This company is not using debt to fuel its cash burn.

The company's financing strategy has overwhelmingly favored equity funding (issuing shares) to raise capital, which is typical for pre-revenue technology companies that need to fund research and development (R&D) and commercialization efforts. While this minimizes interest expense and default risk-there are no major credit ratings or recent bond issuances to report-it comes at the cost of shareholder dilution. The lack of material debt means the company has flexibility, but the negative free cash flow of over $42 million over the last twelve months means they will still need to raise capital, likely through equity, until their per-scan revenue model ramps up.

For a deeper dive into who is buying that equity, you should check out Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You're looking at Nano-X Imaging Ltd. (NNOX) to see if they have the cash to keep their growth engine running, and the short answer is that while their balance sheet looks strong on paper, the cash burn from operations is the one metric you need to watch closely. The company's high liquidity ratios signal a comfortable near-term position, but the negative cash flow trend means they are still relying on past financing to fund their future.

Assessing Nano-X Imaging Ltd.'s Liquidity Ratios

As of the second quarter of 2025 (June 30, 2025), Nano-X Imaging Ltd. exhibits excellent short-term liquidity, which is a significant strength. Their current ratio and quick ratio are well above the 1.0 benchmark, meaning they have more than enough liquid assets to cover all their liabilities coming due in the next twelve months.

Here's the quick math on their Q2 2025 liquidity position (figures in millions USD):

• Current Ratio: 4.19 (Current Assets of $57.48 million / Current Liabilities of $13.71 million).
• Quick Ratio: 3.93 (Quick Assets of approximately $53.83 million / Current Liabilities of $13.71 million).

A quick ratio this high, where inventory is largely excluded, tells you that their most liquid assets-cash, short-term investments, and receivables-are nearly four times their short-term debt. That's a defintely solid buffer.

Working Capital and Cash Flow Trends

The working capital (Current Assets minus Current Liabilities) for Nano-X Imaging Ltd. stood at approximately $43.77 million as of June 30, 2025. This positive number shows a strong capacity to fund day-to-day operations and short-term growth initiatives without immediate external funding pressure. Still, a deeper look at the cash flow statement reveals the underlying challenge.

The cash flow statement is where the rubber meets the road, and for Nano-X Imaging Ltd., it shows a company in a heavy investment phase. The Trailing Twelve Months (TTM) cash flow trends ending June 30, 2025, paint a clear picture of cash utilization:

• Operating Cash Flow (TTM): -$38.3 million. This is the core issue; the business is not yet generating cash from its main activities.
• Investing Cash Flow (TTM): $9.71 million. This positive cash flow is largely due to the sale or maturity of investments in securities, not a slowdown in capital expenditures, which is a good sign for managing capital.

The negative operating cash flow is the primary driver of their cash burn, meaning the company must use its existing cash reserves or seek new financing to cover its operational expenses. For the six months ending June 30, 2025, the company had a negative cash flow from operations of $19.6 million, which led to a drop in their total cash and equivalents from $83.5 million at the end of 2024 to $62.6 million by mid-2025.

Liquidity Strengths and Near-Term Risks

The major strength is the sheer size of the liquidity cushion. With a quick ratio of 3.93, the risk of an immediate liquidity crisis is extremely low. The management is also actively working to scale their Nanox.ARC system deployments, which is critical for future revenue and cash flow generation, as detailed in the Mission Statement, Vision, & Core Values of Nano-X Imaging Ltd. (NNOX).

The primary near-term risk, however, is the rate of the negative operating cash flow. If the current burn rate continues without a corresponding increase in revenue and gross profit from their new systems, the cash runway will shorten. Investors must monitor whether the deployment of their Nanox.ARC units-they expect to deploy over 100 clinical, demo, and commercial units worldwide by the end of 2025-translates into a meaningful reduction in the operating cash deficit in the second half of the year. This is a growth-stage company, so cash burn is expected, but the path to cash flow breakeven is the key to long-term solvency.

Valuation Analysis

You are looking at Nano-X Imaging Ltd. (NNOX) and asking the core question: is the market missing something, or is the price reflecting the risk? Based on the November 2025 analyst consensus, the stock is currently undervalued, but this is a high-growth, pre-profit company, so traditional metrics are tricky.

The average analyst price target is $7.75 from four firms, implying a significant upside of 134.14% from the recent trading price of approximately $3.31. One intrinsic value model even suggests a fair value of $10.37, indicating a potential upside over 213%. Still, you must remember that NNOX is a speculative investment; the stock is down about 43.42% over the last 52 weeks, so volatility is defintely a factor. The 52-week price range has been wide, from a low of $2.78 to a high of $11.00.

Key Valuation Ratios: A Growth-Stage View

For a company like Nano-X Imaging Ltd., which is focused on scaling its medical imaging technology, the standard Price-to-Earnings (P/E) ratio is not useful. Why? Because the company is still losing money as it builds out its infrastructure and commercializes its Nanox.ARC system.

For the full 2025 fiscal year, the consensus estimate for Earnings Per Share (EPS) is negative, at -$0.88 per share, reflecting that growth-over-profit strategy. This is why we lean on other metrics, like Price-to-Book and Enterprise Value-to-EBITDA, to gauge the market's perception of the company's assets and operating performance.

• Price-to-Earnings (P/E): Not meaningful (Negative EPS).
• Price-to-Book (P/B): Approximately 1.29. This is a key metric, showing the stock trades at only about 1.29 times its accounting book value. It suggests the market isn't pricing in a huge premium for intangible assets yet.
• EV/EBITDA: Approximately -5.37 (Trailing 12 Months). The negative value is expected because Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative, but it confirms the company is in an investment-heavy, pre-profit stage.

Analyst Sentiment and Dividend Policy

The Wall Street sentiment remains surprisingly bullish given the stock's recent performance. The consensus recommendation is an 'Outperform' rating, with an average brokerage recommendation of 1.8 (where 1 is a Strong Buy and 5 is a Sell). This indicates that analysts see the current price as a discount on future potential, betting on the successful rollout of the Nanox.ARC and the growth of their Radiology Services division.

Here is the quick math on the consensus forecast:

One simple action to take now: review the full financial breakdown in our post, Breaking Down Nano-X Imaging Ltd. (NNOX) Financial Health: Key Insights for Investors, to see if their cash position supports this aggressive growth plan.

Finally, Nano-X Imaging Ltd. does not pay a dividend, so your return will be purely from capital appreciation, not income. The dividend yield is 0.00%, which is standard for a technology company prioritizing reinvestment over shareholder payouts.

Risk Factors

You're looking at Nano-X Imaging Ltd. (NNOX) because the technology is genuinely disruptive, but you need to be a realist about the near-term financial risks. The core challenge is simple: the cash burn is still too high for the current revenue scale, and that means a persistent risk of share dilution. Honestly, the company's fundamentals remain weak, even with recent regulatory progress.

In the second quarter of 2025, Nano-X Imaging Ltd. reported a net loss of $14.7 million, which was an increase from the $13.6 million net loss in the same period a year earlier. Their cash and equivalents stood at $62.6 million as of June 30, 2025, but the negative cash flow from operations for the first half of 2025 was already $19.6 million. That's the quick math on why capital risk is the biggest concern. They need to hit commercial scale fast, or they'll need to raise more money, which will dilute your stake.

Operational and Financial Risks: The Cash Burn

The biggest operational risk is the chasm between their ambitious deployment targets and their current revenue model execution. Nano-X Imaging Ltd. aims to deploy over 100 Nanox.ARC systems globally by the end of 2025, but the imaging-related revenue is still nascent. This creates a contradiction in how investors should model revenue-is it a capital expenditure (CapEx) sale or a Medical Services as a Software (MSaaS) subscription model? The lack of clarity on this mix impacts revenue recognition and projections.

The financial strain is clear in the margins. The prior quarter showed a shocking negative net margin of 468.29%. Until the Nanox.ARC systems are deployed and generating consistent, scalable MSaaS revenue, the company will struggle to cover its operating expenses. You can see how the market reacts to this uncertainty; the stock has been volatile, trading below both its 50-day and 200-day moving averages as of November 2025.

External and Regulatory Hurdles

The external risks are typical for a medical device innovator, but they are defintely high-stakes here. The medical imaging industry is highly competitive and heavily regulated. Nano-X Imaging Ltd. must secure additional regulatory approvals, specifically for chest and full-body indications, to fully commercialize the Nanox.ARC in key markets like the U.S. Any delay in a U.S. Food and Drug Administration (FDA) 510(k) clearance or a similar international approval pushes back their revenue timeline and exacerbates the cash burn issue.

Plus, the competition isn't standing still. They are up against established players with deep pockets and existing infrastructure. This is why their strategic focus on AI solutions is so critical; it's a differentiator, but it also introduces a new set of risks around adoption and integration in a crowded field.

Mitigation Strategies and Clear Actions

Management is not ignoring these risks; they are taking concrete steps to build a more resilient foundation. Their strategy is focused on de-risking the supply chain and accelerating market penetration, which is exactly what you want to see.

• Manufacturing De-risking: They secured a multi-year Volume Supply Agreement with Fabrinet to ramp up Nanox.ARC production, addressing a key operational bottleneck.
• Market Expansion: The recent acquisition of VasoHealthcare IT is a smart move to enhance the deployment of their AI solutions in U.S. healthcare facilities, leveraging Vaso's existing operational framework and customer support.
• Regulatory Progress: Receiving the CE mark for the Nanox.ARC allows for European expansion, with initial shipments planned for countries like Romania and Greece. They are also planning to submit the TAP2D software module for FDA 510(k) clearance.

These actions show a commitment to disciplined execution and commercial expansion, but the pace of revenue growth must accelerate dramatically to outrun the negative cash flow. For a deeper dive into who is betting on this turnaround, you should read Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at Nano-X Imaging Ltd. (NNOX) and trying to map out a path to profitability, which is the right move. The direct takeaway is this: their growth hinges less on traditional hardware sales and more on the rapid deployment of their unique 'Radiology-as-a-Service' model, specifically targeting a goal of 100 Nanox.ARC system installations by the end of 2025.

The company's full-year 2025 revenue is projected to hit around $13.33 million, with an estimated Earnings Per Share (EPS) of -$0.88. Here's the quick math: that revenue is still modest, but the focus is on scaling the install base, which is the leading indicator for future recurring revenue. The net loss is expected to be substantial, around -$57,356,640, so cash burn is defintely a risk to monitor.

Key Growth Drivers and Product Innovation

Nano-X's future is driven by three interconnected components: their proprietary hardware, their AI suite, and their disruptive business model. The core innovation is the Nanox.ARC system, a multi-source digital tomosynthesis device that uses a cold cathode X-ray source. This technology is designed to be smaller, more durable, and significantly more cost-effective than traditional computed tomography (CT) scanners, making advanced imaging accessible in underserved markets.

The product innovations are heavily focused on their AI-driven software solutions (Nanox.AI), which augment routine CT imaging. These FDA-cleared algorithms are a huge deal because they help clinicians spot early signs of chronic diseases like:

• HealthCCSng: AI cardiac solution
• HealthOST: AI bone solution
• HealthFLD: AI liver solution

This integrated approach-combining the low-cost Nanox.ARC hardware with the high-margin Nanox.AI software and the Nanox.CLOUD teleradiology platform-is the engine for their long-term revenue growth. It's not just selling a machine; it's selling a full-service diagnostic ecosystem. You can read more about the financial implications of this model in Breaking Down Nano-X Imaging Ltd. (NNOX) Financial Health: Key Insights for Investors.

Strategic Initiatives and Competitive Edge

The company is aggressively expanding its commercial footprint through strategic partnerships and regulatory wins. They recently secured the CE mark certification for the Nanox.ARC, which is a green light for European market entry, with initial shipments planned for Romania and Greece. Also, a significant strategic reseller partnership with 3DR Labs was announced in November 2025, which gives Nano-X.AI access to 3DR Labs' network of over 1,800 hospitals and imaging centers across the U.S.

Their competitive advantage is rooted in two things. First, the Pay-Per-Scan business model, which dramatically lowers the upfront capital expenditure for healthcare providers, is a game-changer, especially in emerging markets. Second, their integrated solution, which includes the Nanox.ARC, the Nanox.CLOUD platform, and the teleradiology services from the acquired USARAD, creates a comprehensive, end-to-end offering that major competitors like GE Healthcare and Siemens Healthineers don't easily match. They are also accelerating their U.S. AI rollout with the agreement to acquire VasoHealthcare IT.

The table below summarizes the core of the 2025 financial picture and the analyst consensus for the near-term future. This is a classic growth-stock profile: high projected revenue growth but still deep in the red.