Q2 2026 Nanalysis Scientific Corp Earnings Call Transcript
Key Points
- Adjusted EBITDA improved significantly to $881,000 in Q2 2026, a $1.343 million increase year-over-year, driven by operational improvements and cost controls.
- Gross margin for product sales improved to 65% in Q2 2026, up from 61% in the prior year period, reflecting operational efficiencies.
- Security Services revenue increased year-over-year, driven by higher project-related work in the airport security maintenance business, with gross margins improving to 12% from 10%.
- The company has revamped its international dealer network and direct sales organization, already seeing promising early results and expecting stronger performance in the coming months.
- Management expects a significantly stronger second half of 2026, citing improved sales pipeline in July and August and a better cost structure in place for future profitability.
- The company is exempt from recent US-Canada tariffs, eliminating a potential external risk to its operations.
- Consolidated revenue growth was modest at only 1.5% year-over-year, with product revenue declining due to the termination of third-party equipment sales.
- The company reported a net loss of $666,000 for Q2 2026, although this was an improvement from the prior year.
- The company missed the opportunity for more explosive growth in Q2, as some deals did not close before the June 30 revenue recognition cutoff.
- The business continues to face macro headwinds, including budgetary stalls in the US and global uncertainty, which have dampened first-half performance.
- The company's R&D spend appears low on the income statement, which may mislead investors, though it is offset by government subsidies.
- Management's optimism for the second half is based on expectations of macro improvement, which remains uncertain and outside the company's control.
Good morning, everyone. Welcome and thank you for joining Nanalysis Scientific Corp.'s Q2 2026 earnings call. I'm Jake Bouma, an IR consultant for Nanalysis. Today, on the line discussing Nanalysis' Q2 2026 financial results and company highlights are the company's President, CEO and Founder, Sean Krakiwsky; and CFO, Heather Kury. Following their remarks, we will open up the call for an analyst Q&A session.
Before having over the call to Sean and Heather, please note that information we present today could contain forward-looking information that is based on management's expectations, estimates and projections.
Please consider the risk factors, including those in the filings made by analysis on SEDAR when reviewing this information. Also, all amounts discussed will be in Canadian dollars unless otherwise noted.
With that, I'd like to turn the call over to Nanalysis CFO, Heather Kury.
Thank you, Jake, and
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