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

Are you keeping a close watch on Nano-X Imaging (NNOX) and wondering about its financial stability? In 2024, the company faced a GAAP net loss of $14.1 million, an increase from $10.2 million in 2023, even as revenue grew to $3 million from $2.4 million. With a significant stock drop of 9.75% following the earnings release and weak gross profit margins at -88.34%, is NNOX navigating rough waters, or are strategic advancements enough to steer it towards calmer seas? Let’s dive into the key financial insights that every investor should consider.

Nano-X Imaging Ltd. (NNOX) Revenue Analysis

Understanding Nano-X Imaging Ltd.'s (NNOX) revenue streams involves analyzing its various sources, growth rates, and the contribution of different business segments. A comprehensive look at these factors provides investors with key insights into the company's financial health and future prospects. Here's an overview based on the available information:

Breakdown of Primary Revenue Sources:

Nano-X Imaging Ltd. generates revenue primarily through these streams:

• Teleradiology Services: This segment involves providing remote radiology services. In Q4 2024, teleradiology services brought in $2.8 million with a 21% gross profit margin.
• Imaging Systems: This includes revenue from the sales of its Nanox.ARC devices. Q4 2024 revenue from imaging systems was $136,000.
• AI Solutions: Revenue is also generated from sales of AI solutions. This segment contributed $83,000 in Q4 2024.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's performance trends:

• Q4 2024: Revenue increased to $3 million, up from $2.4 million in Q4 2023.
• Full Year 2024: Total revenue reached $11.3 million, a 14% increase compared to the $9.91 million in 2023.

Contribution of Different Business Segments to Overall Revenue:

The financial results for Q4 2024 show the following contributions:

• Teleradiology services accounted for the majority of the revenue, with $2.8 million.
• Imaging systems contributed $136,000.
• AI solutions generated $83,000.

A more detailed breakdown can be seen in the table below:

Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams can highlight strategic shifts and market dynamics:

• The increase in revenue from teleradiology services is attributed to customer retention and increased volume of reading services.
• The company is focusing on expanding its market presence in the U.S. and Europe, which is expected to drive future revenue growth.
• Strategic partnerships and distribution agreements are pivotal in Nano-X Imaging's revenue growth.

Despite revenue growth, Nano-X Imaging Ltd. faces ongoing financial challenges, including weak gross profit margins. For instance, in Q4 2024, the company reported a GAAP net loss of $14.1 million, compared to a $10.2 million loss in Q4 2023, and a gross profit margin of -88.34%.

To delve deeper into Nano-X Imaging Ltd.'s financial health, you can read more at: Breaking Down Nano-X Imaging Ltd. (NNOX) Financial Health: Key Insights for Investors

Nano-X Imaging Ltd. (NNOX) Profitability Metrics

Analyzing profitability is crucial for investors, as it indicates how efficiently a company generates profits from its revenues. For Nano-X Imaging Ltd. (NNOX), a review of key profitability metrics provides essential insights. Also, you can check out this resource for more information: Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who’s Buying and Why?

Here’s an overview of Nano-X Imaging Ltd.'s profitability based on the available 2024 data:

• Gross Profit Margin: Nano-X Imaging Ltd. reported a weak gross profit margin of -88.34% in the fourth quarter of 2024. This indicates that the cost of goods and services sold significantly exceeded the revenue generated. For the full year, the gross loss margin was 93% on a GAAP basis.
• Operating Profit Margin: The operating margin stood at -489.57%, reflecting substantial operating losses relative to revenue.
• Net Profit Margin: The net profit margin was -465.38%, highlighting that the company experienced significant net losses compared to its total sales revenue. For Q4 2024, the GAAP net loss was $14.1 million, which is up from $10.2 million in Q4 2023.

A closer look at specific services reveals varied performance:

• Teleradiology Services:
  • Q4 2024 revenue reached $2.8 million with a gross profit of $600,000 (GAAP), resulting in a gross profit margin of approximately 21%.
  • Non-GAAP gross profit for teleradiology services was $1.1 million, yielding a gross profit margin of about 41%, compared to 38% in the comparable period.
• Imaging Systems: Revenue from imaging systems was $136,000.
• AI Solutions: Revenue from AI solutions totaled $83,000.

The following table summarizes key profitability figures for Nano-X Imaging Ltd. in Q3 2024:

Analyzing trends in profitability over time reveals the challenges and progress the company is making.

• Gross Margin Trends: Despite a weak gross profit margin of -88.34% in Q4 2024, there was an increase in revenue to $3 million, up from $2.4 million in the same period in 2023.
• Net Loss Trends: The GAAP net loss widened to $14.1 million in Q4 2024, compared to $10.2 million in Q4 2023. However, for the full year, the net loss decreased to $53.52 million from $60.78 million year over year.

When comparing Nano-X Imaging Ltd.'s profitability ratios with industry averages, it's important to note:

• The industry average for gross margin is 56.03%, while Nano-X Imaging Ltd.'s TTM gross margin is -88.34%.
• The industry average for operating margin is 14.73%, significantly higher than Nano-X Imaging Ltd.'s -489.57%.
• Similarly, the industry net profit margin averages around 9.73%, while Nano-X Imaging Ltd. reports a -465.38% net profit margin.

These comparisons underscore the significant gap between Nano-X Imaging Ltd.'s current profitability and the industry standards, indicating substantial areas for improvement.

Examining operational efficiency provides further insights into Nano-X Imaging Ltd.'s profitability struggles:

• Cost Management: The company's high gross loss margin (93% GAAP) suggests difficulties in managing production costs effectively.
• Gross Margin Trends: Although overall gross margins are weak, teleradiology services show a positive trend with a 21% gross profit margin on a GAAP basis in Q4 2024.

In summary, while Nano-X Imaging Ltd. has demonstrated revenue growth in specific areas like teleradiology services, its overall profitability metrics reveal significant challenges. The company's gross, operating, and net profit margins are substantially below industry averages, indicating a need for improved cost management and operational efficiency.

Nano-X Imaging Ltd. (NNOX) Debt vs. Equity Structure

Understanding Nano-X Imaging Ltd.'s (NNOX) financial strategy involves analyzing its approach to debt and equity. This reveals how the company funds its operations and growth initiatives. As of the fiscal year 2024, Nano-X Imaging's financial structure presents a mix of debt and equity, critical for investors to evaluate the company's financial health and risk profile.

Nano-X Imaging primarily relies on equity rather than debt to finance its operations. As the company is in a pre-revenue stage, this approach is vital for sustaining research, development, and operational activities. Examining the specifics of their debt and equity will provide a clearer picture.

Here’s a closer look at Nano-X Imaging Ltd.'s debt levels:

• Long-Term Debt: As of the end of 2024, Nano-X Imaging reported minimal long-term debt. This suggests a strategy of avoiding significant long-term financial obligations, which is common for companies focused on R&D.
• Short-Term Debt: Similarly, short-term debt levels are relatively low. The company appears to manage its immediate liabilities effectively without relying heavily on short-term borrowing.

The debt-to-equity ratio is a key metric for assessing financial leverage. For Nano-X Imaging, given the minimal debt, the debt-to-equity ratio is quite low, signaling that the company is primarily funded by equity. This is typical for growth-oriented companies that are not yet generating substantial revenue. This lower ratio can be compared against industry standards to determine if Nano-X Imaging is more or less financially leveraged than its peers.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, provide insights into Nano-X Imaging's financial management. However, as of 2024, there have been no significant activities in these areas, reinforcing the company's reliance on equity financing.

Balancing debt and equity is crucial for Nano-X Imaging. The company's strategy of favoring equity over debt reflects a cautious approach to financial leverage, which is prudent given its current operational phase. While debt can offer certain advantages, such as tax benefits and maintaining ownership control, Nano-X Imaging's choice to minimize debt aligns with its focus on long-term growth and innovation. You can explore more about the company’s goals and values at: Mission Statement, Vision, & Core Values of Nano-X Imaging Ltd. (NNOX).

Here is a table summarizing Nano-X Imaging Ltd.'s debt and equity position based on the 2024 fiscal year:

Nano-X Imaging Ltd. (NNOX) Liquidity and Solvency

When evaluating Nano-X Imaging Ltd. (NNOX) for investment, understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. These metrics provide insights into the financial health and stability of Nano-X Imaging Ltd. (NNOX).

Here's an overview of key aspects to consider:

Assessing Nano-X Imaging Ltd. (NNOX)'s Liquidity:

Analyzing Nano-X Imaging Ltd. (NNOX)'s liquidity involves examining several key ratios and trends:

• Current and Quick Ratios: These ratios measure Nano-X Imaging Ltd. (NNOX)'s ability to cover its short-term liabilities with its short-term assets. The current ratio includes all current assets, while the quick ratio excludes inventory, which may not be easily convertible to cash.
• Analysis of Working Capital Trends: Monitoring the trend of Nano-X Imaging Ltd. (NNOX)'s working capital (current assets minus current liabilities) provides insights into its operational efficiency and short-term financial health. A positive and increasing working capital trend is generally favorable.
• Cash Flow Statements Overview: A review of Nano-X Imaging Ltd. (NNOX)'s cash flow statements is essential. Investors should pay close attention to:
  • Operating Cash Flow: Cash generated from the company's core business operations.
  • Investing Cash Flow: Cash used for investments in assets like property, plant, and equipment.
  • Financing Cash Flow: Cash flow related to debt, equity, and dividends.
• Potential Liquidity Concerns or Strengths: Identify any potential red flags, such as a declining current ratio, negative working capital, or negative operating cash flow. Conversely, strong cash reserves and positive trends in liquidity ratios indicate financial strength.

For further insights into Nano-X Imaging Ltd. (NNOX) and its investors, consider exploring Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who’s Buying and Why?

Nano-X Imaging Ltd. (NNOX) Valuation Analysis

Determining whether Nano-X Imaging Ltd. (NNOX) is overvalued or undervalued requires a multifaceted approach, incorporating several key financial metrics and market analyses. Below is a breakdown of essential valuation indicators to provide a comprehensive perspective.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of April 2025, NNOX has a negative P/E ratio of -2.97. A negative P/E ratio suggests the company is currently generating losses, making it difficult to assess valuation based on earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio stands at 1.84. This metric compares a company's market capitalization to its book value, offering insights into whether the stock is trading at a premium relative to its net asset value.
• Price-to-Sales (P/S) Ratio: The P/S ratio is 35.29. Since NNOX is unprofitable, the Price-To-Sales Ratio is used for relative valuation analysis.
• Enterprise Value-to-EBITDA (EV/EBITDA): NNOX's EV/EBITDA ratio is -6.52. A negative ratio can occur when EBITDA is negative, which means the company has negative earnings before interest, taxes, depreciation, and amortization.

Stock Price Trends:

• 52-Week Price Change: Over the past 52 weeks, the stock price has changed by -42.35%, indicating a significant decrease in value.

Additional Financial Metrics:

• Revenue: In the last 12 months, Nano-X Imaging reported revenue of $9.90 million.
• Earnings Per Share (EPS): The company's EPS is -$1.08.
• Market Cap: Nano-X Imaging has a market capitalization of $331.56 million.
• Cash and Debt: The company holds $56.71 million in cash and marketable securities with $0.00 in debt, resulting in a net cash position of -$48.90 million.

Analyst Consensus:

• Consensus Rating: The analyst consensus for NNOX is a Strong Buy.
• Average Price Target: The average price target is $11.00, suggesting a potential upside of 111.54% from the current price.

Additional Ratios:

• EV to Sales: 31.41
• EV to Free Cash Flow: -6.47
• EV to Operating Cash Flow: -6.95

Profitability Margins:

• Gross Margin: -89.25%
• Operating Margin: -631.89%
• Net Profit Margin: -613.59%
• EBITDA Margin: -481.50%

Revenue and Earnings Growth Forecasts:

• Revenue Growth Forecast: 13.91%
• EPS Growth Forecast: 15.46%

For more insights into Nano-X Imaging Ltd.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Nano-X Imaging Ltd. (NNOX).

Nano-X Imaging Ltd. (NNOX) Risk Factors

Nano-X Imaging Ltd. (NNOX) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market and regulatory pressures. Understanding these factors is crucial for investors.

Here's an overview of the key risks:

• Intense Competition: The medical imaging industry is highly competitive. Established players with significant resources pose a threat to Nano-X's market penetration.
• Regulatory Hurdles: Medical devices are subject to strict regulatory approvals. Delays or failures in obtaining these approvals can severely impede commercialization efforts.
• Market Adoption: The acceptance of Nano-X's technology by healthcare providers and patients is not guaranteed. Market conditions and preferences can shift, affecting demand.

Operational, financial, and strategic risks are often highlighted in Nano-X Imaging Ltd.'s filings. According to the 2024 report, some of the key areas of concern include:

• Commercialization Delays: Production and distribution of the Nano-X System are subject to potential delays, impacting revenue projections.
• Financial Stability: Maintaining sufficient capital to fund operations and research is critical. Any shortfall could jeopardize the company's long-term viability.
• Technological Risks: The company's technology may face unexpected challenges or become obsolete, affecting its competitive edge.

Mitigation strategies are crucial for addressing these risks. While specific plans may vary, common approaches include:

• Strategic Partnerships: Collaborating with established healthcare providers and distributors to accelerate market adoption.
• Diversification: Expanding the range of applications for the Nano-X technology to reduce dependence on a single market.
• Cost Management: Implementing rigorous cost control measures to ensure efficient use of resources.

For a deeper dive into Nano-X Imaging Ltd., consider reading: Exploring Nano-X Imaging Ltd. (NNOX) Investor Profile: Who’s Buying and Why?

Below is a table summarizing potential risk factors and mitigation strategies based on the most recent information available:

Understanding these risks and mitigation efforts provides a more informed perspective on Nano-X Imaging Ltd.'s financial health and investment potential.

Nano-X Imaging Ltd. (NNOX) Growth Opportunities

For Nano-X Imaging Ltd. (NNOX), several factors could drive future expansion. These encompass product development, growing their market reach, strategic actions, and competitive advantages.

Key growth drivers for Nano-X Imaging Ltd. (NNOX) include:

• Product Innovations: Continuous development and improvement of the Nanox.ARC system and related technologies could attract more customers and expand the company's market share.
• Market Expansions: Successfully penetrating new geographic markets and expanding the applications of its technology in various medical fields.
• Strategic Initiatives: Forming partnerships with healthcare providers, research institutions, and technology companies to enhance its product offerings and market reach.

Predicting future revenue growth and earnings for Nano-X Imaging Ltd. (NNOX) involves considering several variables. It's essential to note that, as of the fiscal year 2024, Nano-X Imaging Ltd. (NNOX) has reported $0 in revenue. This context makes future projections highly speculative and dependent on the successful commercialization and adoption of their Nanox.ARC technology.

Strategic initiatives and partnerships that may drive future growth include:

As of now, Nano-X Imaging Ltd. (NNOX) doesn't have established revenue streams. Future growth hinges on successfully deploying and commercializing its Nanox.ARC system. Strategic partnerships will play a crucial role in achieving market penetration and acceptance.

Nano-X Imaging Ltd. (NNOX) possesses certain competitive advantages that could position it for growth:

• Novel Technology: The Nanox.ARC system, if proven effective and safe, represents a potentially disruptive technology in the medical imaging field.
• Strategic Partnerships: Collaborations with key players in the healthcare industry can provide access to markets, expertise, and resources.

Considering the information available up to April 2025, a detailed financial forecast would require more concrete data on market acceptance, regulatory approvals, and the success of initial deployments of the Nanox.ARC system. Investors should closely monitor these developments to assess the company's growth potential.

Here's a look at potential factors influencing Nano-X Imaging Ltd.'s (NNOX) growth trajectory:

For further insights into Nano-X Imaging Ltd.'s (NNOX) financial health, you can refer to: Breaking Down Nano-X Imaging Ltd. (NNOX) Financial Health: Key Insights for Investors