Nano-X Targets Annual Operating Expense Cuts of Up to 30%

Key Facts

Nano-X Imaging said on November 9, 2026, that its board had approved a plan to cut costs and improve operating efficiency. The plan targets an annual reduction of 25% to 30% in operating expenses, according to the two accounting measures used in the company's financial disclosures. The reduction is measured against the 2026 annualized expense level, excluding one-time restructuring costs. The company said the measures are expected to reduce expenses and support its cash resources and focus on priorities. It estimated that the measures would be implemented by the end of the first quarter of 2027.

The plan includes lower operating expenses, a global workforce reduction and other operational changes. Its target is not limited to new measures: it also includes annual savings of about $2 million previously announced as part of the restructuring of the company's South Korean operations. The company said in September that the restructuring included a 67% workforce reduction there. It also said then that the annual savings of about $2 million were expected to begin in 2027. The previously announced savings are therefore included in the percentage target for the current plan.

Nano-X identified four areas it says cost reductions will help advance: marketing the Nanox.ARC device and Nanox Imaging Network, developing partnerships and business, improving operating efficiency, and strengthening financial resources. On marketing, the company aims to accelerate its U.S. expansion through distribution-channel partners, system installations and increased clinical adoption and use. It also aims to activate contracted network sites. These steps put the commercial focus on turning contracted devices and sites into operational activity. Chief Executive Officer and Acting Chairman Erez Meltzer said the goal was to "translate Nano-X's technological and clinical progress into measurable commercial performance while strengthening the company's financial foundation."

The plan comes as the company's prior results showed operating expenses rising in the second quarter of 2026. Expenses totaled $11.8 million under the generally accepted accounting measure, compared with $11.3 million in the corresponding quarter of 2025. They were $11.1 million under the adjusted measure presented by the company, compared with $10.0 million a year earlier. Revenue in the same period was $4.2 million, up from $3.0 million in the second quarter of 2025, an annual increase of 37%. The company attributed most of the revenue growth to the integration of Nanox Health IT's business.

Liquidity data published with the second-quarter results reflect financial pressures the company says it is seeking to address. Cash and cash equivalents totaled $31.4 million on June 30, 2026, compared with $60.0 million at the end of 2025. Net cash used in operating activities in the six months ended June 30, 2026, was about $25.548 million, compared with $19.638 million in the same period a year earlier. The company said it had recurring operating losses and negative operating cash flows. It added that substantial doubt existed about its ability to continue as a going concern.

The cuts do not mean their cash impact will be immediate: the company said restructuring payments could increase cash outflows in the near term. It expects the measures to lower its ongoing cash burn rate once completed, but the timing and extent of the reduction will depend on its ability to implement the plan and on other factors affecting cash flows. The company acknowledged that it would need additional financing to support its business. It cautioned, however, that financing might not be available on acceptable terms or might not be available at all. The expense-reduction target is part of a broader effort to support cash resources, but does not by itself resolve the financing needs the company has disclosed.

In its prior results, the company said it had begun screening patients at the first Nanox Imaging Network site in Philadelphia and had started receiving insurance reimbursements for scans provided by the network. It also said it was working on a potential new reimbursement pathway through the Centers for Medicare & Medicaid Services, which it said could support broader adoption of its services. Those activities provide context for the plan's marketing focus, alongside system installations and activating contracted sites. The company said it was continuing to evaluate additional opportunities to reduce expenses, including manufacturing and supply-chain arrangements and infrastructure spending. The scope, timing and implementation of those potential measures remain under evaluation.

Available trading data show Nano-X's closing share price, under the ticker NNOX, fell to $0.2402 on November 6, 2026, from $0.2483 on November 5. The documented data did not include the opening price or daily trading range on November 6. After the end of the second quarter, the company said it had raised gross proceeds of $8.5 million through a registered direct offering and an at-the-market program. It said it intended to continue raising financing to support its activities. According to its announcement, the cost-cutting measures are expected to be completed by the end of the first quarter of 2027, while additional reduction opportunities remain under evaluation.