On September 9, Nano-X Imaging (NASDAQ:NNOX) held its second-quarter earnings call, and the message was blunt: growth is real, but so is the cash burn. Revenue climbed 37% year over year to $4.2 million for the quarter ended June 30, yet the company also booked a $40.7 million impairment charge and watched its cash pile shrink by nearly half in six months. Management’s answer is to strip the business down, outsource chip manufacturing, cut headcount across two continents, and lean harder on outside distributors to get its X-ray systems into more clinics before the money runs out.
Reimbursement Dollars Start Trickling In
Revenue growth was driven largely by the consolidation of the Nanox Health IT business the company acquired on November 19, 2025. Teleradiology, still the steadiest part of the business, grew 14% year over year to $3 million on an expanded client list and the renewal of a multinational aerospace contract. The AI and software line added $1 million, helped by five new installations and pilot programs launched across the US and India during the quarter.
The most interesting number in the release may be the smallest one. The company’s first Nanox Imaging Network site, in Philadelphia, has already begun scanning patients and collecting insurance payments of $200 to $700 per claim. Management believes a fully utilized site could generate $500,000 to $1 million a year, a model built around segments like workers’ compensation and concierge medicine where reimbursement tends to run higher. Ten signed US distribution partnerships now supplement the direct sales team, and a new Medicare code covering algorithmic analysis of coronary artery calcium, effective April 1, opens a reimbursement path for the company’s cardiac AI tool. A Cedars-Sinai pilot study found the AI matched standard-of-care assessments of aortic valve calcification more than 92% of the time.
The Runway Keeps Shrinking
The quarter’s headline number was ugly. A $40.7 million impairment charge, triggered by a falling share price and lower revenue forecasts for the AI unit, dragged GAAP gross margin to negative 1,051%, compared with negative 107% a year earlier, and pushed the GAAP net loss to $55.5 million. The charge did not touch the company’s cash, but the cash needed no help getting worse on its own. Nano-X held $31.4 million as of June 30, down from $60 million as of December 31, 2025, and CFO Guy Nathanzon said the company’s resources raise substantial doubt about its ability to continue as a going concern.
Adjusted EBITDA loss widened to $11.3 million from $10.4 million, and the non-GAAP net loss grew to $11.6 million from $10.9 million, partly because the newly consolidated health IT business added its own operating costs. CEO Erez Meltzer conceded that commercialization has taken longer than expected, pointing to permitting, shielding, and construction delays at the small and medium-sized imaging centers the company depends on for deployment. The response is a restructuring that idles chip fabrication in South Korea, cuts that workforce by 67%, trims Israeli headcount by 15%, and shifts manufacturing to third-party partners, a plan expected to save just $2 million a year starting in 2027.
Wall Street Hedges Its Bets
Hedge fund ownership of Nano-X Imaging more than doubled, rising to 15 funds from 7 the prior quarter, pointing to growing institutional interest even as the company burns cash. Short interest sits at 8.24% of the float, a level that reflects real skepticism without approaching crowded-trade territory. That combination suggests that the market is still working out whether the restructuring story or the going-concern warning wins out.
What Happens Next
Nano-X is racing to prove its reimbursement model works before its cash runs out. The Philadelphia site’s early insurance payments and the new Medicare code give the bull case a real, if small, foothold in actual revenue rather than pilot programs. But a going-concern warning from its own CFO is not a detail investors can look past, and the promised restructuring savings will not show up until 2027.
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