Breaking Down NanoVibronix, Inc. (NAOV) Financial Health: Key Insights for Investors

You're looking at NanoVibronix, Inc. (NAOV) because the Q3 2025 earnings report showed a massive shift, but the full picture is far more complex than that single quarter's profit. The medical device maker just posted a Q3 2025 net income of $0.51 million-a sharp turnaround from the $0.998 million net loss in the same quarter last year-on sales of $0.722 million. That's a great headline, but the nine-month financials tell a different story: a net loss of $5.33 million, which is actually a significant increase from the $2.27 million loss a year prior, meaning the first half of the year was defintely rough. Anyway, the market is a trend-aware realist, and the stock price of $4.32 USD as of mid-November 2025 reflects a brutal -93.96% decline over the last year, keeping the company's market capitalization tiny at just $4.84 million. We need to map this recent profitability spike against the company's continuous need for capital-evidenced by the September 2025 announcement of a $2 million Direct Offering-to see if the new ENvue adoption efforts, like the 'Oscar' training aid, can truly stabilize the balance sheet and reverse the long-term trend.

Revenue Analysis

You're looking at NanoVibronix, Inc. (NAOV) and trying to figure out if their revenue story is a flash in the pan or a sustainable trend. The direct takeaway is that while the company is small and still faces significant top-line volatility, the recent quarter-over-quarter growth is strong, and a strategic merger is reshaping their future revenue mix.

For the first nine months of the 2025 fiscal year, NanoVibronix reported sales of approximately $2.24 million, up from $2.11 million in the same period a year prior. That's a modest but necessary increase, but you need to look closer at the quarterly swings. The trailing twelve months (TTM) revenue ending September 30, 2025, was about $2.69 million, which actually represents a year-over-year decline of approximately -18.41%, showing that growth isn't linear. This is a micro-cap medical device company, so expect these kinds of bumpy numbers.

Here's the quick math on the latest quarter: Q3 2025 revenue came in at $0.722 million, a sharp jump of over 92% compared to the $0.376 million reported in Q3 2024. That's a huge sequential win, but it needs to be sustained. One clean one-liner: Quarterly spikes don't make a trend, but they defintely get attention.

Breaking Down Primary Revenue Streams

NanoVibronix generates nearly all its revenue from the sale of its non-invasive, wearable ultrasound devices, which use Surface Acoustic Wave (SAW) technology. These are not services; they are product sales, which means the company is heavily reliant on distribution and reimbursement approvals for consistent cash flow.

The core product portfolio drives revenue through three main devices:

• UroShield: Focuses on preventing bacterial colonization and biofilm in urinary catheters.
• PainShield: A patch-based therapeutic device for pain management.
• WoundShield: A portable ultrasonic device aimed at accelerating wound healing.

The PainShield product line, in particular, has a significant near-term opportunity, as the company secured a $12 million minimum purchase commitment with a major distributor in late 2024, which should provide a floor for sales over the agreement's life.

Shifting Segment Contributions and New Opportunities

The company's revenue is segmented not just by product, but by the market channels they penetrate. The most important segments right now are the U.S. domestic market channels, which include the Veteran's Health System (VA) and the Worker's Compensation market. These are sticky, high-value channels that require significant regulatory and distribution effort to crack.

A major change in the revenue stream structure is the February 2025 merger with ENvue Medical Holdings LLC. This move is intended to expand the company's focus beyond just its SAW devices into the navigation technology space, specifically with products like the ENvue Drive, an intelligent robotic platform for feeding tube and vascular line navigation. This is a significant strategic pivot, adding a new, potentially higher-margin product category to the mix.

What this estimate hides is the actual revenue contribution from the newly merged ENvue segment in the 2025 numbers, as the full impact will take time to materialize. Still, the company is actively pushing adoption, even launching a training aid called 'Oscar' to accelerate ENvue's market entry.

For a deeper dive into the company's financial health, including valuation tools and strategic frameworks, you can read the full post: Breaking Down NanoVibronix, Inc. (NAOV) Financial Health: Key Insights for Investors.

Profitability Metrics

The core takeaway for NanoVibronix, Inc. (NAOV) is that while the company maintains a respectable Gross Profit Margin for a medical device firm, its operational and net profitability remains deeply negative, reflecting a pre-profitability, high-R&D-expense stage. You are defintely investing in a growth story, not a stable earner right now.

Gross Profit Margin: A Positive Signal in Cost of Goods

NanoVibronix's ability to manufacture its products, like UroShield and PainShield, efficiently is evident in its Gross Profit Margin. For the trailing twelve months (TTM) ending mid-2025, the company reported revenue of $2.34 million and a Gross Profit of approximately $0.75 million. This translates to a Gross Profit Margin of about 32.05%.

This margin is in line with or slightly below some medical technology peers. For instance, Varex Imaging, a larger medical device company, reported a GAAP Gross Margin of 34% for its fiscal year 2025. The industry typically sees strong gross margins, often averaging around 22% for general Medtech companies, but higher for specialized devices. The fact that NanoVibronix is holding above 30% suggests solid cost management (Cost of Goods Sold) for its proprietary SAW (Surface Acoustic Wave) technology products. This is the quick math: the cost to make the product is under control.

• Maintain Gross Margin above 30%.
• Cost of Goods Sold (COGS) is relatively efficient.
• Shows pricing power for specialized devices.

Operating and Net Profit Margins: The R&D Drag

Moving past the Gross Profit line, the picture changes dramatically due to high operating expenses, particularly in Research & Development (R&D) and Selling, General, & Administrative (SG&A) costs. For the TTM period, NanoVibronix reported an Operating Income of approximately -$8.17 million on $2.34 million in revenue. This results in a massive Operating Profit Margin of roughly -349.15%.

The Net Income (or Net Loss) follows suit, with a TTM Net Loss of about -$8.90 million, leading to a Net Profit Margin of roughly -380.34%. What this estimate hides is the significant investment required to get products like UroShield through regulatory hurdles and into new markets, plus the costs associated with the recent merger with ENvue Medical Holdings LLC. By comparison, a more established peer like Varex Imaging reported a Non-GAAP Operating Margin of 9% for FY2025.

The trend shows a company still burning cash to capture market share and advance its technology. While the Q3 2025 earnings report showed a positive net income of $0.51 million for the quarter, the nine-month net loss of $5.33 million confirms the overall negative trajectory. This is a classic profile of a high-growth, pre-profit medical technology firm. You need revenue to scale faster than R&D costs.

To understand the investor sentiment behind these numbers, you should read Exploring NanoVibronix, Inc. (NAOV) Investor Profile: Who's Buying and Why?, which maps the risk tolerance required for this type of financial profile.

Debt vs. Equity Structure

The headline takeaway for NanoVibronix, Inc. (NAOV) is a surprisingly low debt-to-equity ratio, reflecting a deliberate strategy to finance operations and debt reduction primarily through equity. This approach significantly de-risks the balance sheet, but it comes at the cost of shareholder dilution.

As of late 2025, NanoVibronix, Inc. (NAOV) maintains a highly conservative debt profile. The company's total debt stands at approximately $2.0 million against total shareholder equity of about $40.5 million. The short-term debt component, which includes obligations due within a year, is the majority of this figure, estimated at around $2.056 million. This suggests a strong preference for keeping long-term leverage off the books. That's a very low debt load.

The key metric here is the Debt-to-Equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of its shareholders' equity. For NanoVibronix, Inc. (NAOV), this ratio is exceptionally low at roughly 0.049 (or 4.9%). To put this in perspective, the average Debt-to-Equity ratio for the Biotechnology industry is around 0.17 as of November 2025. This means NanoVibronix, Inc. (NAOV) uses less than a third of the debt leverage compared to its peers, which is defintely a sign of low financial risk.

The low debt is not accidental; it's a clear financing strategy. NanoVibronix, Inc. (NAOV) has actively balanced its capital structure by using equity funding to pay down existing debt. This is a common move for growth-stage medical technology companies that need capital but want to avoid the stringent covenants and interest payments associated with high debt.

Here's the quick math on recent capital structure shifts:

• May 2025 Equity Raise: The company raised approximately $10 million through an offering of Series G Convertible Preferred Stock and Warrants.
• Debt Redemption: A portion of those proceeds was immediately earmarked to redeem a $1.3 million outstanding debenture and partially repay an outstanding note of $2,497,308.
• July 2025 Equity Raise: A subsequent private placement of Series H Convertible Preferred Stock secured an upfront $8 million in gross proceeds, with a potential for an additional $40 million.

This pattern shows a consistent reliance on equity-selling shares or convertible securities-to fuel operations and clean up the balance sheet. While this keeps the company's interest expense low, it does result in dilution for existing common stockholders. What this estimate hides is that the Series G and H Preferred Stock are convertible, meaning they represent future common stock dilution risk. Since NanoVibronix, Inc. (NAOV) is a smaller firm, it does not carry a formal credit rating from a major agency like S&P or Moody's, which is not unusual in this part of the market.

The company's approach is to prioritize financial stability over leverage, which is prudent given the capital-intensive nature of medical device development and the need for a long cash runway. You can review the strategic priorities that guide these decisions in the Mission Statement, Vision, & Core Values of NanoVibronix, Inc. (NAOV).

The table below summarizes the core of NanoVibronix, Inc. (NAOV)'s capital structure:

The clear action for you is to monitor the conversion terms of the preferred stock offerings. The low debt is a positive, but the trade-off is that future equity raises or conversions will continue to increase the share count.

Liquidity and Solvency

You need to know if NanoVibronix, Inc. (NAOV) has enough immediate cash to cover its bills, and the short answer is: they are right on the edge, leaning heavily on recent financing. Liquidity is tight, but the company has been proactive in raising capital to manage its burn rate (negative cash flow).

As of the most recent data near November 2025, the company's liquidity position shows a few key pressure points. The Current Ratio is approximately 1.05. This ratio compares current assets (what they can turn into cash within a year) to current liabilities (what they owe within a year). A ratio of 1.05 means they have just enough current assets to cover their current debts, which is defintely not a comfortable buffer for a growth-focused medical device company.

The situation gets more telling when you look at the Quick Ratio (or Acid-Test Ratio), which strips out inventory-often the hardest current asset to liquidate quickly. NanoVibronix, Inc.'s Quick Ratio stands at about 0.63. This means for every dollar of immediate debt, they only have about $0.63 in highly liquid assets (like cash and receivables) to pay it off. Anything under 1.0 is a red flag, signaling a potential reliance on selling inventory or securing new financing to meet short-term obligations.

Here's the quick math on their immediate position:

• Current Ratio: 1.05 (Marginal, but above 1.0)
• Quick Ratio: 0.63 (A clear liquidity concern)

The company's working capital-the difference between current assets and current liabilities-shows a positive trend, but the amount is small relative to their cash burn. The Trailing Twelve Months (TTM) change in working capital is a positive $421.25K, which is an improvement from prior years, but it's a slow pace of growth for a company with significant operational costs. This modest increase suggests they are managing their current asset and liability mix better, but it's not a fundamental shift in their cash-generating ability yet. If you want to dive deeper into the strategic direction underpinning these numbers, you can review their Mission Statement, Vision, & Core Values of NanoVibronix, Inc. (NAOV).

Reviewing the Cash Flow Statement is crucial because it shows where the money is actually coming from and going. For the last twelve months, the trends are clear:

The -$7.24 million in cash flow from operating activities is the biggest concern. This is the cash lost from the day-to-day business of selling products and paying expenses, confirming that NanoVibronix, Inc.'s core operations are not yet self-sustaining. Investing activities are minimal at -$37,000, which means they are spending very little on new property, plant, and equipment-a common trait for a smaller company focused on R&D and market penetration.

The financing cash flow, however, is the life raft. In May 2025, the company raised approximately $10 million through an equity offering. This capital infusion is what currently addresses the negative operating cash flow and keeps the company liquid. The strength here is the ability to tap capital markets, but the risk is the ongoing dilution for existing shareholders. They are funding operations through the capital markets, not through sales. This is a common but high-stakes model for medical technology firms in the pre-profit stage.

Valuation Analysis

You're looking at NanoVibronix, Inc. (NAOV) and trying to figure out if it's a bargain or a value trap. The direct takeaway is that, fundamentally, the company is difficult to value using traditional metrics due to its lack of profitability, but its Price-to-Book ratio suggests a deep discount relative to its assets.

As of November 2025, the stock is defintely volatile. The price has been on a steep decline, dropping by over -94.19% in the last 52 weeks, with a 52-week trading range spanning from a low of $4.28 to a high of $162.50. The recent closing price is around $4.32. That's a massive swing, so you need to be realistic about the risk here. The low market capitalization of approximately $4.47 million puts it squarely in the micro-cap, high-volatility bucket.

Key Valuation Multiples (FY 2025)

When we look at standard valuation multiples, the picture is mixed and requires translation. Since NanoVibronix reported a negative Net Income of -$3.71 million and a negative EBITDA of -$8.81 million for the fiscal year, its Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios are either negative or not meaningfully calculable (N/A). This is common for a growth-stage medical device company still scaling up. Here's the quick math on the key ratios that are informative:

• Price-to-Book (P/B): The P/B ratio is approximately 0.11. This is a very low number. It means the stock is trading for just 11 cents for every dollar of book value (assets minus liabilities). This suggests the stock is significantly undervalued on a liquidation basis, but what this estimate hides is the true value of its intangible assets and the risk of further losses.
• P/E Ratio: Not applicable (N/A). The company is not profitable, with a Basic EPS (TTM) of -$96.17. You can't use P/E to compare it to profitable peers.
• EV/EBITDA: Not applicable (N/A). The negative EBITDA of -$8.81 million makes this metric unhelpful for comparison.

The low P/B ratio of 0.11 is the main argument for an undervalued case, but the lack of positive earnings is the core risk. You're betting on future profitability, not current performance.

Analyst Consensus and Dividend Policy

NanoVibronix, Inc. (NAOV) has a very small analyst following, which adds to the uncertainty. While some sources indicate no formal consensus, others point to a heavily skewed positive sentiment, with 6 out of 7 analysts recommending a 'buy' and 1 a 'hold'. This is a strong technical signal, but it often comes with a wide margin of error for micro-cap stocks. The average price target for the near-term is around $7.8745, suggesting a significant upside if their projections hold.

As for passive income, the company is focused on reinvesting in its growth and operations, which is typical for a medical technology firm. NanoVibronix does not pay a dividend, so the dividend yield and payout ratio are both 0.00% as of November 2025. You won't get a quarterly check here; your return depends entirely on stock price appreciation. If you want to dive deeper into the operational side, check out Breaking Down NanoVibronix, Inc. (NAOV) Financial Health: Key Insights for Investors.

The clear action for you is to treat NAOV as a speculative 'turnaround' play based on its low P/B and the potential for its UroShield and PainShield products to gain traction, but only with capital you are prepared to lose. Finance: Draft a scenario analysis where NAOV hits $5 million in annual revenue by end of 2026 to model a realistic upside.

Risk Factors

You're looking at NanoVibronix, Inc. (NAOV) and seeing a medical device company with innovative products like UroShield and PainShield, but you need to be a realist about the risks. The direct takeaway is this: the company is still a pre-profit entity with significant financial and operational headwinds, and its ability to scale hinges entirely on continued capital raises and key regulatory wins.

The core challenge is financial stability. Despite reporting a positive net income of $0.51 million in the third quarter of 2025, the nine months ended September 30, 2025, still show a substantial net loss of $5.33 million. That's a sharp increase from the previous year, and it highlights the cash burn. Here's the quick math: the accumulated deficit was already a staggering $70.0 million as of December 31, 2024. A company with a weak current ratio-estimated at around 0.5 in mid-2025-faces real pressure to meet its short-term obligations.

Operational and strategic risks are also front and center. The merger with ENvue Medical Holdings LLC in February 2025 is a strategic move, but integrating a new business and product line (like the ENvue System) adds complexity and execution risk. Plus, a medical device company lives and dies by regulatory approval. The company is still seeking U.S. Food and Drug Administration (FDA) approval for its key product, UroShield. That's a binary event; success unlocks a massive market, but failure is a major setback.

The external risks are layered, and you can't ignore them.

• Industry Competition: NanoVibronix faces established medical device giants with deeper pockets and broader distribution networks for pain and wound care.
• Geopolitical Instability: The company's research and development operations are based in Israel, which exposes it to significant regional instability risks.
• Macroeconomic Headwinds: Global economic instability, currency fluctuations, and inflation can directly impact the cost of goods and international sales, especially since their products have CE Mark approval in the European Union.

The volatility is defintely a factor. The stock has seen massive swings, and historically, a strategy of buying the stock 30 days after an earnings report has yielded a severe loss over the past three years, signaling high risk and poor post-earnings performance predictability. It's a high-risk, high-reward profile, plain and simple.

To be fair, NanoVibronix is actively working to mitigate these risks. They've been disciplined with spending and are pursuing near-term clinical data to build investor confidence. Crucially, they've been successful in raising capital, including a $10 million preferred stock offering in May 2025 and a $2.0 million direct offering in September 2025, which buys them time and funds the expanded operations from the ENvue merger. They need to keep that capital runway long. For a deeper dive into the valuation and strategy, you can read the full post: Breaking Down NanoVibronix, Inc. (NAOV) Financial Health: Key Insights for Investors.

Here is a snapshot of the key financial risks based on the latest 2025 data:

The next concrete step is to monitor the Q4 2025 earnings release for any update on the FDA status of UroShield and the cash position, as the current quarter's loss trend is unsustainable without continuous dilution.

Growth Opportunities

You're looking for a clear path through the noise of a micro-cap medical device company, and for NanoVibronix, Inc. (NAOV), the immediate future is less about massive revenue projections and more about the targeted adoption of its proprietary technology. The company's growth hinges on converting its unique Surface Acoustic Wave (SAW) technology into consistent sales, especially with its flagship products, UroShield and PainShield.

Here's the quick math: NanoVibronix's revenue for the trailing twelve months ending June 30, 2025, was approximately $2.34 million. While the Q3 2025 revenue came in at $0.72 million, showing a slight uptick in the run rate, the company is still operating with a significant loss, evidenced by a Q3 2025 Earnings Per Share (EPS) of -$0.91 and a negative EBITDA margin of -349.04%. This means every operational win-like a new distribution deal-is defintely a fight for cash flow.

Key Growth Drivers: Product Innovation and Market Expansion

The core growth driver is the patented, low-intensity SAW technology, which allows for non-invasive, portable therapeutic devices. This is their differentiator in a market dominated by large players like Zimmer Biomet Holdings, Inc..

• UroShield Adoption: This device, which helps prevent catheter-associated urinary tract infections (CAUTIs) by disrupting bacterial biofilms, is the most promising near-term catalyst, especially given the strong clinical data.
• NextGen Prototypes: The completion of NextGen prototypes for both UroShield and PainShield in 2025 signals a commitment to product lifecycle management, which can drive new sales cycles.
• ENvue System: The acquisition of ENvue Medical Holdings, Corp. and the subsequent market entry into the Louisiana healthcare market with the ENvue System for feeding tube procedures is a critical new revenue stream.

What this estimate hides is the time lag between regulatory approvals, hospital adoption, and revenue recognition. You need to watch the pace of ENvue adoption closely; that's the new variable.

Strategic Initiatives and Financial Flexibility

The company has made smart operational moves in 2025 to stabilize its foundation and fund future expansion. A major positive was regaining NASDAQ compliance in May 2025, which removes a significant overhang for institutional investors.

The expanded distribution deal with Dukehill Healthcare Pty Ltd in Australia, now covering all states, provides a clear, international path for sales growth. Plus, the $10 million public offering closed in the first half of 2025 bolstered the balance sheet, providing capital for R&D and market penetration.

The competitive advantage is clear: their technology allows for non-invasive, portable, and home-use devices, which aligns perfectly with the broader trend toward decentralized healthcare. This positions NanoVibronix, Inc. to carve out a niche against larger medical device firms. For a deeper dive into the numbers, check out the full analysis at Breaking Down NanoVibronix, Inc. (NAOV) Financial Health: Key Insights for Investors.