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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.
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 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.