Nanalysis Scientific Corp. reported second-quarter 2026 earnings that fell short of analyst expectations, with earnings per share at CAD 0.00 against a forecast of CAD 0.01. Revenue totaled CAD 9.72 million, a 1.5% increase from CAD 9.57 million in the same period of 2025, but missed the consensus estimate of CAD 12.55 million by 22.55%, or CAD 2.83 million.
Adjusted EBITDA rose to CAD 881,000 from CAD -462,000 a year earlier, while the net loss narrowed to CAD 666,000 from CAD 2.12 million in Q2 2025. Gross margins improved across segments, with product gross margin expanding to 65% from 61% and security services gross margin increasing to 12% from 10%.
The company’s shares fell 10.34% to CAD 0.13 following the release, extending a decline from their 52-week high of CAD 0.23. The stock remains 18.8% above its 52-week low of CAD 0.11.
Chief Executive Officer Sean Krakiwsky emphasized organic growth initiatives and operational improvements, noting that adjusted EBITDA serves as a key cash generation metric for internal and external stakeholders. He confirmed the company’s exemption from recent U.S. tariff discussions, addressing investor concerns about potential trade-related headwinds.
Chief Financial Officer Heather Kury attributed the quarter’s financial improvements to operational efficiencies, including higher security services revenue driven by airport maintenance projects, reduced sales and marketing expenses, and the filing of eligible investment tax credits. Product sales declined year-over-year due to the termination of third-party equipment distribution and the unwinding of an acquisition-related strategy, as Nanalysis shifts toward a leaner, organic business model.
Management highlighted restructuring efforts in international dealer networks across Japan, the U.K., India, China, and Indonesia. While the first half of 2026 was impacted by global uncertainty stemming from stalled U.S. budget negotiations, sales momentum improved in July and August, providing a stronger foundation for the second half of the year.
The company is scheduled to host its next earnings call for the third quarter of 2026 in November.
