Nanalysis Announces First Quarter 2026 Results

Reports Quarterly Revenue of $10.7 Million and Adjusted EBITDA of $292 Thousand

CALGARY, AB, May 20, 2026 /CNW/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, FRA: 1N1), a leader in portable NMR spectrometers and MRI technology for industrial and research applications, announces its financial results for the first quarter ending March 31, 2026. Chief Executive Officer Sean Krakiwsky and Interim Chief Financial Officer Heather Kury will host a conference call at 10 A.M. Eastern Time tomorrow to discuss the results. All interested parties are invited to join the call through the details provided below. All dollar figures in this press release are in thousands of Canadian dollars, except per share amounts or unless otherwise stated.  

The Company reported first quarter revenue of $10.7 million, consistent with both the prior quarter and the comparative period in 2025. The Company also delivered Adjusted EBITDA of $292 thousand, continuing its trend of positive EBITDA, and representing an increase of $112 thousand over the comparative period in 2025.

"We are encouraged by the operational progress made during the first quarter, particularly within our Security Services segment where margin performance improved meaningfully year-over year," said Sean Krakiwsky, Founder and CEO of Nanalysis. "While scientific equipment purchasing activity continues to experience longer sales cycles in certain markets, we believe the actions taken throughout 2025 to streamline operations, strengthen sales execution and improve efficiency are beginning to positively impact the business.  We remain focused on disciplined execution, operational efficiency, and positioning the Company for improved performance through the balance of 2026.

Financial highlights for the three months ended March 31, 2026:

		Three months ended March 31
($000's)		2026	2025	Change $	Change %
Product sales		2,179	3,687	(1,508)	-41 %
Security services revenue		5,904	5,023	881	18 %
Flow-through inventory revenue		2,584	1,884	700	37 %
Total sales and revenue		10,667	10,594	73	1 %
Gross margin percentage - product sales		58 %	66 %	-8 %
Gross margin percentage - service revenue		19 %	6 %	13 %
Adjusted EBITDA		292	180	112	62 %
Net loss		(1,281)	(1,307)	26	2 %

• For the three months ending March 31, 2026, the Company reported consolidated revenue of $10,667, an increase of $73 or 1% from the comparative period in 2025. While there was a decline in product revenue due to lower NMR benchtop sales and the termination of the third-party equipment sales contracts, security services revenue increased primarily due to higher levels of project-related work associated with the Airport Security Maintenance Business.
• Gross margin percentage for product sales for the three months ended March 31, 2026, was 58%, versus 66% from the comparative period in 2025.  The decrease was primarily due to changes in product mix following the termination of the third-party equipment sales contracts.
• Gross margin percentage for security services for the three months ended March 31, 2026, was significantly improved at 19% versus 6% from the comparative period in 2025. This increase in margin was driven by operational efficiencies, including enhanced logistics processes and more effective management of overtime and on-call hours, as well as higher levels of project-related service activity. Management believes the operational improvements implemented in 2025 position the segment for continued margin improvement through 2026.
• The Company recorded Adjusted EBITDA of $292 for the three months ended March 31, 2026. This represents an increase of $112 over Adjusted EBITDA of $180 for the three months ended March 31, 2025. This was primarily the result of an increase in services margin and lower spending in sales and marketing expenses and general and administrative expenses, offset by lower product sales.
• Net loss was $1,281 for the three months ended March 31, 2026, which is an improvement of $26 from the comparative period in 2025. The decrease in net loss for the three months ended March 31, 2026, was due to improved business margins in 2026.

Quarterly Trend:

($000's)		Q1 2026	Q4 2025	Q3 2025	Q2 2025
Product sales		2,179	4,133	2,719	2,902
Security services revenue		5,904	5,563	5,943	5,617
Flow-through parts revenue		2,584	980	623	1,057
Total revenue		10,667	10,676	9,285	9,576
Adjusted EBITDA		292	1,187	(2)	(462)
Normalized net loss		(1,281)	(729)	(1,500)	(2,122)

In Q1 2026, product sales decreased by $1,954 from Q4 2025 due to normal seasonality and softer benchtop NMR demand in certain markets. This was partially offset by an increase in Security Services revenue driven by higher project-related activity associated with the Airport Security Maintenance Business.

Recent strategic and operational highlights include:

• Debt Repayment: Following completion of the January 2026 equity financing, the Company repaid approximately $2.1 million of its ATB Term Loan and $1.3 million outstanding under its ATB Line of Credit.
• Improved Services Margin: The Company continued to improve operating performance within its Security Services segment through operational efficiency initiatives and increased levels of project-related work.
• Sales and Marketing Team Strengthening: As part of its strategy to strengthen and restore European sales activity, the Company materially expanded its European-based sales presence during the quarter and increased focus on its international distributor network.  Distributor-led sales represented ~45% of benchtop NMR sales in Q1 2026. Management expects these investments to support improved sales activity in the second half of 2026.
• Board of Directors Transition: The Company announced earlier this month that it had appointed three new directors. These new directors bring additional experience in technology commercialization, operational scaling, capital markets and public company governance.  In connection with these appointments Martin Burien and Jennifer Stubbs have stepped down.
• Continuous Improvement Initiatives: The Company continued executing operational efficiency and cost optimization initiatives during the quarter, including organizational streamlining and prioritization of research and development activities.  These initiatives contributed to lower operating expenses and improved financial performance during the period.

Outlook

"Our outlook has not changed, and we continue to expect improved operational performance through 2026." said Mr. Krakiwsky. "We believe the actions taken over the past year to strengthen our operational efficiency and invest in customer and distributor relationships are positioning the Company for improved financial performance over time. While macroeconomic conditions continue to impact purchasing timelines in the Scientific Equipment segment, we remain focused on disciplined execution and long-term value creation across both operating segments.

Conference Call:

Thursday May 21^st, 10am EST

Investors interested in participating in the live call can join through Zoom. Details provided below.

https://us02web.zoom.us/j/87624958529?pwd=FxTQ2xf1geEDJ3svrWXYSiNBZ7rJ5g.1

Meeting ID: 876 2495 8529
Passcode: 351966

One tap mobile
[phone],,87624958529#,,,,*351966# US (San Jose)
[phone],,87624958529#,,,,*351966# US

The webcast will be archived on the Company's investor relations webpage for at least 90 days.

Non-IFRS and Supplementary Financial Measures

The Company prepares and reports its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, as adopted by the Canadian Accounting Standards Board ("IFRS"). However, the press release may make reference to certain non-IFRS measures includes key performance indicators used by management. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS

The ‎Company uses Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA"), which may be calculated ‎differently by other companies. This non-IFRS measure is used to provide investors a supplemental measure of the Company's operating performance and liquidity and thus highlight trends in the Company's ‎business that may not otherwise be apparent when relying solely on IFRS measures. The Company also ‎believes that securities analysts, investors and other interested parties frequently use non-IFRS measures ‎in the evaluation of companies in similar industries.

Adjusted EBITDA

	Three months ended March 31
($000's)	2026	2025	($) Change
Net loss	(1,281)	(1,307)	26
Depreciation and amortization expense	888	924	(36)
Finance expense	354	327	27
Stock-based compensation	63	131	(68)
Other (income) expenses	13	(138)	151
Amortization of deferred wages	216	190	26
Loss from associate	-	-	-
Impairment of assets	-	-	-
Current income tax expense (recovery)	33	27	6
Deferred income tax (recovery) expense	6	26	(20)
Adjusted EBITDA	292	180	112

Supplementary Financial Measures 

The Company may also use supplementary financial measures which are intended to be disclosed on a periodic basis to depict the historical or expected future financial performance, cash position, or cash flow of the Company, are not a non-IFRS measure, and are not presented in the financial statements. The measures as discussed in this press release include:

• Gross margin, which is defined as either product sales less cost of product sold, or, security services revenue less security services cost; and,
• Gross margin percentage, which is defined as either (product sales less cost of product sold) divided by product sales or (security services revenue less Security services costs) divided by security services revenue

About Nanalysis Scientific Corp. (TSXV: NSCI, FRA:1N1)

Nanalysis Scientific Corp. develops and manufactures benchtop Nuclear Magnetic Resonance (NMR) spectrometers used worldwide in pharma, biotech, energy, food, materials, and security industries, as well as in academic and government labs. The Company also operates a growing services division that maintains both its own products and third-party imaging equipment, anchored by a $160 million long-term contract with the Canadian Air Transport Security Authority (CATSA) to maintain security scanners at more than 80 Canadian airports.

Notice regarding Forward Looking Statements and Legal Disclaimer

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE Nanalysis Scientific Corp.

Contacts: Jake Bouma, JT Pacific Capital Partners Corp., 604-317-3936, [email protected]