908 Devices Inc. (MASS) shares ended the last trading session 7% higher at $7.3. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.3% gain over the past four weeks.908 Devices witnessed a strong price rise on investors’ optimism surrounding its robust revenue growth in Q2. Additionally, the company strengthened its financial position by completing the previously announced restructuring efforts - cutting facility s ...

Summary of 908 Devices (MASS) FY Conference Call - August 13, 2025 Company Overview - **Company**: 908 Devices (Ticker: MASS) - **Industry**: Public Safety and Defense Technology - **Transformation**: Transitioning from a broad instrumentation provider to a focused public safety and defense tech company, termed "908 Devices 2.0" [5][6] Key Points and Arguments Transformation and Focus - The company has completed a transformation focusing on handheld devices for chemical detection in public health, safety, and defense markets [5][6] - Divested desktop business to streamline operations, focusing on handheld detection technologies [6] Market Position and Growth - Positioned well due to demand from the opioid crisis response, defense modernization, and cross-border security [7] - Projecting revenue growth of 13% to 17% for the current year, accelerating to over 20% next year [7][33] Financial Performance - Achieved significant operational improvements, including a 44% reduction in square footage and a 39% reduction in headcount [8] - Anticipating adjusted EBITDA profitability in Q4 of this year, with gross margin improvements [8][32] Product Development and Innovation - Expanded handheld product portfolio from one to five devices in eight months, with a focus on chemical analysis for critical health and safety applications [10][11] - The handheld market is projected to reach a total addressable market (TAM) of $2.5 billion by 2027 [10] Addressing Public Health Challenges - Devices are designed to combat the evolving opioid crisis, with overdose deaths exceeding 100,000 annually [13] - Products also address hazardous gas detection, which is a leading contributor to occupational cancer and firefighter deaths [14] Global Defense Spending - Increased global defense spending, particularly from NATO members aiming for 5% of GDP, creates a favorable funding backdrop for the company [17] - Recent legislative actions prioritize domestic spending on military and law enforcement, enhancing market opportunities [16] Competitive Landscape - The company differentiates itself with a modern portfolio of handheld mass spectrometry products, which are unique in the market [43][44] - Focus on providing 24/7 support and service to customers enhances competitive positioning [44] Future Opportunities - Significant growth potential in international markets, with 25% of sales currently outside North America [42][50] - Opportunities in UAVs and unmanned ground robots, with ongoing collaborations in defense technology [45][46] Financial Health - Post-divestiture, the company has a cash balance of approximately $119 million, providing a solid foundation for future growth [12][48] - Anticipating continued cash flow to support working capital and new product deployments [49] New Product Launches - Launched Viper, a three-in-one handheld chemical analyzer designed for customs agencies, enhancing the product portfolio [24][52] - Explorer, another product, is focused on measuring volatile organic compounds, particularly for first responders [54] Additional Important Insights - The company has a comprehensive product portfolio that covers a wide range of trace analytes and toxic gases [20] - The focus on data collection and analysis from devices is expected to create actionable insights for customers [21] - The company is on track for a full year of profitability by 2026, with a target of six or more handheld products in the portfolio [33][34] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic transformation, market opportunities, financial health, and product innovations.

Core Viewpoint - 908 Devices reported strong revenue growth in Q2 2025, with revenue reaching $13.0 million, exceeding Wall Street expectations, but faced challenges in profitability and margin management [1][5][14] Financial Performance - Revenue (GAAP) increased by 14% year-over-year, surpassing estimates by 6.8% [1][5] - GAAP earnings per share were reported at $(0.36), a decline of 63.6% compared to the previous year [2][8] - Adjusted gross margin decreased to 56% from 59% year-over-year, while GAAP gross margin fell to 49% from 54% [2][7] - Operating expenses rose by 46% to $21.5 million compared to Q2 2024 [7] - Net loss from continuing operations widened to $12.9 million from $7.6 million in Q2 2024 [8][9] Business Overview and Strategy - 908 Devices specializes in portable chemical analysis instruments, targeting sectors such as public safety, law enforcement, military, and pharmaceuticals [3] - The growth strategy includes innovation in device miniaturization, acquisitions to enhance technology capabilities, and expanding the customer base [4][10] - Recurring revenue accounted for 36% of total revenue in Q2 2025, reflecting a 28% increase to $4.7 million [6] Operational Highlights - The company placed 164 new devices, increasing the global installed base to 3,336, a 27% year-over-year growth [5][12] - The launch of the VipIR handheld chemical analyzer exemplifies the company's focus on expanding its product offerings [10] - Manufacturing consolidation efforts are expected to streamline costs and improve efficiency, although immediate benefits were not reflected in quarterly margins [11][13] Outlook and Future Prospects - Management raised full-year 2025 revenue guidance to $54 million–$56 million, indicating a projected growth of 13–17% [14] - The company aims to achieve adjusted EBITDA break-even by Q4 2025 and become cash-flow positive in 2026 [14][15] - Opportunities for growth are seen in innovation, diversification into related technologies, and a favorable funding environment in public safety [15]

Financial Data and Key Metrics Changes - Revenue from continuing operations was $13 million, an increase of 14% over the prior year period [5][22] - Adjusted EBITDA loss was $3.9 million for the quarter, an improvement of more than 45% year over year [6][26] - Net loss from continuing operations was $12.9 million compared to $7.6 million in the prior year period [26][27] - Cash, cash equivalents, and marketable securities totaled $118.6 million with no debt outstanding [26] Business Line Data and Key Metrics Changes - Device sales accounted for approximately 60% of revenue from mass spec devices, while FTIR products made up the remaining 40% [5][6] - Handheld product and service revenue was $12.5 million, up 13% from the prior year [22] - Recurring revenue represented 36% of total revenues, amounting to $4.7 million, a 28% increase year over year [23][24] Market Data and Key Metrics Changes - The U.S. Budget FY 2026 reconciliation bill includes over $1.7 billion in funding for various grant programs, representing an approximate 11% increase from 2024 levels [10][11] - The Department of Homeland Security budget saw a 7% year-over-year increase, opening broader procurement opportunities [11] Company Strategy and Development Direction - The company aims to be adjusted EBITDA positive by Q4 2025, focusing on marketing expansion, advancing innovation, and reinforcing financial discipline [6][19] - The launch of Viper, a new handheld chemical analyzer, is expected to strengthen the company's position in global security markets [15][18] - The company is targeting a 20% plus revenue growth for 2026, driven by expanding handheld adoption and launching next-generation products [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 targets due to strong legislative support and funding for public safety initiatives [12][13] - The company anticipates that recent U.S. legislative outcomes will institutionalize demand and clarify a growth path across core customer segments [13][14] Other Important Information - The company completed the transfer of manufacturing to a lower-cost facility, enhancing operational efficiency [19][20] - The acquisition of KAF Manufacturing is expected to improve quality control and reduce dependence on external vendors [20][21] Q&A Session Summary Question: Are federal funding items showing up in the order book? - Management indicated that while there are positive tailwinds, it may take time to see acceleration in sales reflecting these factors [39][40] Question: Can the company maintain positive EBITDA after achieving it? - Management noted that seasonality typically affects cash flow, but they are confident in achieving positive adjusted EBITDA in Q4 [42] Question: What is the early uptake of the new product Viper? - Initial feedback on Viper has been positive, with expectations for significant contributions in 2026 [50][53] Question: What is the runway for sustained device placement growth? - Management highlighted that the majority of Explorer orders were funded through new legislation, indicating a strong pipeline for future growth [58][60] Question: How does the company plan to leverage federal budget tailwinds? - Management believes the federal budget increases will support both new customer acquisition and replacement cycles for outdated technologies [82]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements and notes for periods ending June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current assets | $147,865 | $103,055 | | Total assets | $191,701 | $159,476 | | Total current liabilities | $29,708 | $25,149 | | Total liabilities | $42,884 | $44,884 | | Total stockholders' equity | $148,817 | $114,592 | - Total assets increased by **$32.2 million** from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and cash equivalents, marketable securities, and inventory[13](index=13&type=chunk) - Total stockholders' equity increased by **$34.2 million**, largely due to net income and additional paid-in capital[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | | Gross profit | $6,373 | $6,162 | $11,915 | $10,049 | | Total operating expenses | $21,534 | $14,701 | $38,101 | $26,199 | | Net loss from continuing operations | $(12,908) | $(7,573) | $(22,745) | $(13,468) | | Net income (loss) from discontinued operations | $(398) | $(4,975) | $53,042 | $(9,997) | | Net income (loss) attributable to common stockholders | $(13,306) | $(12,548) | $30,297 | $(23,465) | | Basic and diluted EPS (continuing operations) | $(0.36) | $(0.22) | $(0.64) | $(0.40) | | Basic and diluted EPS (discontinued operations) | $(0.01) | $(0.15) | $1.49 | $(0.30) | | Basic and diluted EPS (total) | $(0.37) | $(0.37) | $0.85 | $(0.70) | - Total revenue from continuing operations increased by **13.7%** for the three months ended June 30, 2025, and by **31.4%** for the six months ended June 30, 2025, compared to the respective prior periods[15](index=15&type=chunk) - Net loss from continuing operations widened significantly for both the three and six months ended June 30, 2025, primarily due to a substantial increase in the change in fair value of contingent consideration[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders | $(13,306) | $(12,548) | $30,297 | $(23,465) | | Total other comprehensive loss | $(14) | $(122) | $(1,162) | $(507) | | Comprehensive income (loss) | $(13,320) | $(12,670) | $29,135 | $(23,972) | - Comprehensive income for the six months ended June 30, 2025, was positive **$29.1 million**, a significant improvement from a loss of **$23.9 million** in the prior year, largely driven by the gain on sale of discontinued operations[17](index=17&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Common Stock Shares | 35,098,493 | 36,057,576 | | Additional Paid-in Capital | $356,216 | $361,305 | | Accumulated Deficit | $(242,805) | $(212,508) | | Total Stockholders' Equity | $114,592 | $148,817 | - Total stockholders' equity increased by **$34.2 million** from December 31, 2024, to June 30, 2025, primarily due to net income of **$43.6 million** (as of March 31, 2025, which includes the gain on sale of discontinued operations) and stock-based compensation expense, partially offset by a net loss in the second quarter[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(20,803) | $(22,397) | | Net cash provided by (used in) investing activities | $38,726 | $(50,891) | | Net cash used in financing activities | $(267) | $(928) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $17,683 | $(74,230) | | Cash, cash equivalents and restricted cash at end of period | $61,886 | $46,982 | - Net cash provided by investing activities significantly improved to **$38.7 million** for the six months ended June 30, 2025, compared to a use of **$50.9 million** in the prior year, primarily driven by proceeds from the sale of the Desktop Portfolio[21](index=21&type=chunk) - The company experienced a net increase in cash, cash equivalents, and restricted cash of **$17.7 million** for the six months ended June 30, 2025, reversing a decrease of **$74.2 million** in the same period last year[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Nature of the Business and Basis of Presentation](index=12&type=section&id=1.%20Nature%20of%20the%20Business%20and%20Basis%20of%20Presentation) Describes the company's core business, RedWave acquisition, Desktop Portfolio divestment, and operational funding - The Company acquired RedWave Technology in April 2024, expanding its portfolio with portable Fourier Transform Infrared (FTIR) spectroscopic analyzers for rapid chemical identification[24](index=24&type=chunk) - The Company sold its Desktop Portfolio to Repligen Corporation on March 4, 2025, classifying it as a discontinued operation due to its strategic shift and major effect on financial results[25](index=25&type=chunk)[33](index=33&type=chunk) - The Company incurred net losses from continuing operations of **$22.7 million** for the six months ended June 30, 2025, and had an accumulated deficit of **$212.5 million** as of June 30, 2025, expecting continued operating losses[32](index=32&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Summarizes significant accounting policies, including GAAP, discontinued operations, revenue recognition, fair value, and recent pronouncements - The Desktop Portfolio was classified as a discontinued operation in accordance with ASC 205, with all historical operating results reclassified[40](index=40&type=chunk)[41](index=41&type=chunk) Revenue by Stream (in thousands) | Revenue Stream | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Device sales revenue | $8,282 | $7,768 | $15,693 | $12,357 | | Recurring revenue | $4,733 | $3,694 | $9,037 | $6,527 | | Contract revenue | $20 | $— | $83 | $— | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | Revenue by End-User Entity Type (in thousands) | End-User Entity Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States federal and defense | $2,886 | $3,653 | $4,615 | $7,805 | | United States state authorities and local municipalities | $7,561 | $5,369 | $12,248 | $7,405 | | Rest of world national and provincial organizations | $2,033 | $2,079 | $6,707 | $3,313 | | Global pharmaceutical, industrial and other | $555 | $361 | $1,243 | $361 | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | [3. Discontinued Operation and TSA](index=25&type=section&id=3.%20Discontinued%20Operation%20and%20TSA) Outlines the Desktop Portfolio sale to Repligen, generating a **$56.2 million** pre-tax gain, and income from the Transition Services Agreement - The sale of the Desktop Portfolio to Repligen on March 4, 2025, resulted in a pre-tax gain of **$56.2 million**[69](index=69&type=chunk)[71](index=71&type=chunk) Financial Results of Discontinued Operations (prior to sale, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $— | $2,585 | $1,076 | $5,154 | | Gross profit | $— | $1,256 | $165 | $2,373 | | Net income (loss) from discontinued operations, net of tax | $(398) | $(4,975) | $53,042 | $(9,997) | - Income from the Transition Services Agreement (TSA) with Repligen, which was substantially completed by June 30, 2025, contributed **$1.6 million** in net income for the six months ended June 30, 2025[74](index=74&type=chunk)[189](index=189&type=chunk) [4. Fair Value Measurements](index=29&type=section&id=4.%20Fair%20Value%20Measurements) Outlines fair value measurements of financial instruments, categorized by Level 1, 2, and 3, noting a **$9.3 million** increase in contingent consideration Fair Value Measurements at June 30, 2025 (in thousands) | Asset/Liability | Level 1 | Level 2 | Level 3 | Total | | :---------------- | :------ | :------ | :------ | :---- | | Cash equivalents - Money market funds | $21,743 | $— | $— | $21,743 | | Marketable securities - U.S. Treasury securities | $— | $56,833 | $— | $56,833 | | Acquisition-related contingent consideration | $— | $— | $11,575 | $11,575 | - The fair value of acquisition-related contingent consideration increased by **$9.3 million** for the six months ended June 30, 2025, primarily due to increased FTIR revenue projections and the company's publicly quoted share price[82](index=82&type=chunk)[83](index=83&type=chunk) [5. Marketable Securities](index=31&type=section&id=5.%20Marketable%20Securities) Outlines marketable securities, primarily U.S. Treasury securities, valued at **$56.8 million** as of June 30, 2025 Marketable Securities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Fair Value of U.S. Treasury securities | $56,833 | $25,568 | - The company purchased approximately **$49.5 million** of U.S. Treasury securities and had **$18.6 million** mature during the six months ended June 30, 2025[84](index=84&type=chunk) [6. Inventory](index=31&type=section&id=6.%20Inventory) Outlines inventory composition, increasing to **$15.5 million** as of June 30, 2025, driven by raw materials and finished goods Inventory Composition (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :---------------- | | Raw materials | $11,308 | $7,366 | | Work-in-progress | $991 | $1,355 | | Finished goods | $3,162 | $2,165 | | Total | $15,461 | $10,886 | - Total inventory increased by **$4.6 million**, or **42%**, from December 31, 2024, to June 30, 2025[85](index=85&type=chunk) [7. Intangible Assets, net](index=32&type=section&id=7.%20Intangible%20Assets,%20net) Details intangible assets, primarily Developed Technology and Customer Relationships, with a net book value of **$37.3 million** as of June 30, 2025 Intangible Assets, Net (in thousands) | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------- | :----------------------------- | :------------------------------- | | Customer Relationships | $2,136 | $2,292 | | Developed Technology | $35,118 | $36,388 | | Total | $37,254 | $38,680 | Amortization Expense for Intangible Assets (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $634 | $423 | $1,269 | $423 | | Selling, general and administrative expenses | $79 | $52 | $157 | $52 | | Total | $713 | $475 | $1,426 | $475 | [8. Accrued Expenses](index=32&type=section&id=8.%20Accrued%20Expenses) Outlines accrued expenses, decreasing to **$5.3 million** as of June 30, 2025, mainly from lower employee compensation and benefits Accrued Expenses (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Accrued employee compensation and benefits | $3,544 | $5,144 | | Accrued warranty | $696 | $877 | | Accrued professional fees | $673 | $785 | | Accrued other | $374 | $389 | | Total | $5,287 | $7,195 | - Accrued employee compensation and benefits decreased by **$1.6 million** from December 31, 2024, to June 30, 2025[87](index=87&type=chunk) [9. Restructuring](index=33&type=section&id=9.%20Restructuring) Outlines the November 2024 restructuring, including an **11%** workforce reduction, facility abandonment, and **$1.4 million** in total restructuring expenses - In November 2024, the Company implemented an approximately **11%** workforce reduction as part of an organizational restructuring to strengthen operational efficiencies[88](index=88&type=chunk) - In June 2025, the Company abandoned its Boston facility and relocated its corporate headquarters to Burlington, Massachusetts, incurring a **$1.0 million** restructuring charge for lease abandonment[89](index=89&type=chunk)[90](index=90&type=chunk) - Total restructuring expenses for the six months ended June 30, 2025, were approximately **$1.4 million**, including facility abandonment and employee-related costs[90](index=90&type=chunk) [10. Long-Term Debt](index=33&type=section&id=10.%20Long-Term%20Debt) Outlines the Amended 2022 Loan Revolver with Silicon Valley Bank, providing a **$10.0 million** credit line with specific financial covenants - The Company has an Amended 2022 Revolver with Silicon Valley Bank, providing a revolving line of credit up to **$10.0 million**, with interest-only payments permitted through November 3, 2025[91](index=91&type=chunk)[93](index=93&type=chunk) - Financial covenants include maintaining **$20.0 million** on account at SVB and ensuring unrestricted cash minus advances is not less than the greater of **$10.0 million** or nine months of cash burn[95](index=95&type=chunk) [11. Equity and Net Income (Loss) per Share](index=35&type=section&id=11.%20Equity%20and%20Net%20Income%20(Loss)%20per%20Share) Outlines the company's equity structure, including common stock and warrants, and the calculation of basic and diluted net income (loss) per share - As of June 30, 2025, the Company had **36,057,576 shares** of common stock issued and outstanding, and warrants for the purchase of **92,703 shares**[13](index=13&type=chunk)[97](index=97&type=chunk) Net Income (Loss) per Share (in thousands, except share and per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss from continuing operations per share | $(0.36) | $(0.22) | $(0.64) | $(0.40) | | Net income (loss) from discontinued operations per share | $(0.01) | $(0.15) | $1.49 | $(0.30) | | Net income (loss) per share (total) | $(0.37) | $(0.37) | $0.85 | $(0.70) | | Weighted average common shares outstanding (basic and diluted) | 35,877,947 | 34,061,933 | 35,633,573 | 33,386,413 | - Due to net losses from continuing operations, basic and diluted net loss per share are identical for all periods presented, as potential dilutive securities are anti-dilutive[101](index=101&type=chunk) [12. Stock-Based Compensation](index=38&type=section&id=12.%20Stock-Based%20Compensation) Outlines stock-based compensation expense, totaling **$4.6 million** for the six months ended June 30, 2025, with **$11.4 million** unrecognized RSU cost Stock-Based Compensation Expense (in thousands) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $107 | $122 | $223 | $218 | | Research and development expenses | $569 | $578 | $1,134 | $1,009 | | Selling, general and administrative expenses | $1,660 | $1,529 | $3,199 | $2,841 | | Total | $2,336 | $2,229 | $4,556 | $4,068 | - As of June 30, 2025, there was **$11.4 million** of unrecognized compensation cost related to unvested restricted stock units (RSUs) to be recognized over a weighted average period of **2.1 years**[105](index=105&type=chunk) [13. Leases](index=38&type=section&id=13.%20Leases) Details operating lease obligations, including a new Burlington facility lease, abandoned Boston facility, and assumed leases by Repligen - In June 2025, the Company entered a new operating lease in Burlington, Massachusetts, for its headquarters and R&D activities, abandoning its Boston facility (see Note 9, Restructuring)[109](index=109&type=chunk) - Lease obligations for facilities in North Carolina and Braunschweig, Germany, were assumed by Repligen as part of the Desktop Portfolio sale in March 2025[110](index=110&type=chunk) Lease Expense (in thousands) | Lease Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $405 | $473 | $963 | $942 | | Short-term lease cost | $15 | $28 | $41 | $48 | | Variable lease cost | $29 | $42 | $52 | $78 | | Total | $449 | $543 | $1,056 | $1,068 | [14. Commitments and Contingencies](index=40&type=section&id=14.%20Commitments%20and%20Contingencies) Details commitments and contingencies, including royalty arrangements, 401(k) contributions, and RedWave acquisition earnouts of up to **4,000,000** shares - The Company may issue up to **4,000,000 unregistered shares** as contingent consideration for the RedWave acquisition, based on revenue targets of **$37 million** to **$45 million** from May 2024 through April 2026[120](index=120&type=chunk) - The Company contributes to a 401(k) savings plan, matching **100%** of the first **3%** of employee contributions, capped at **$3,500** per year per employee, with contributions of **$0.3 million** for the six months ended June 30, 2025[117](index=117&type=chunk) - The Company is not currently party to any material legal proceedings and has not incurred any material costs from indemnification agreements with officers and directors[121](index=121&type=chunk)[123](index=123&type=chunk) [15. Acquisition](index=44&type=section&id=15.%20Acquisition) Outlines the RedWave Technology acquisition on April 29, 2024, for **$69.1 million** total consideration, including **$45.0 million** cash and **1,497,171** shares - The Company acquired RedWave Technology on April 29, 2024, for an initial payment of **$45.0 million** in cash and **1,497,171 common shares**, plus contingent consideration[124](index=124&type=chunk) RedWave Acquisition Consideration and Allocation (in thousands) | Category | Amount | | :-------------------------------- | :----- | | Cash paid | $45,000 | | Fair value of common stock shares issued | $8,616 | | Contingent consideration - earnout | $15,500 | | Total consideration transferred | $69,116 | | Developed Technology acquired | $38,080 | | Customer Relationships acquired | $2,500 | - RedWave contributed **$3.1 million** in revenue during the six months ended June 30, 2024, following its acquisition[127](index=127&type=chunk) [16. Segment Reporting](index=46&type=section&id=16.%20Segment%20Reporting) Outlines the company's single operating segment structure, with the CEO as CODM, assessing performance based on net income and revenue - The Company operates and is managed as a single operating segment, with its Chief Executive Officer as the chief operating decision maker (CODM)[53](index=53&type=chunk)[132](index=132&type=chunk) Segment Revenue and Expenses (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $13,035 | $11,462 | $24,813 | $18,884 | | Cost of revenues | $6,662 | $5,300 | $12,898 | $8,835 | | Research and development | $4,405 | $3,591 | $8,234 | $6,883 | | Selling, general and administrative | $5,853 | $6,618 | $11,213 | $11,364 | | Net loss from continuing operations | $(12,908) | $(7,573) | $(22,745) | $(13,468) | [17. Subsequent Event](index=48&type=section&id=17.%20Subsequent%20Event) Outlines the acquisition of KAF Manufacturing Company on July 1, 2025, for **$2.0 million** cash, strengthening the FTIR supply chain - On July 1, 2025, the Company acquired KAF Manufacturing Company, Inc. for an initial cash payment of **$2.0 million** and a contingent obligation of an additional **$0.75 million**[136](index=136&type=chunk) - The acquisition of KAF Manufacturing Company, a precision machining company, is intended to strengthen and secure the Company's supply chain for critical FTIR components[137](index=137&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses management's perspective on financial condition, results of operations, global economic impacts, and liquidity, expecting continued operating losses [Overview](index=49&type=section&id=Overview) - 908 Devices Inc. develops handheld devices for point-of-need chemical analysis, leveraging mass spectrometry and FTIR technologies for vital health and safety applications[142](index=142&type=chunk) - The Desktop Portfolio was sold on March 4, 2025, and is reported as discontinued operations, resulting in a gain on sale[145](index=145&type=chunk) - The company incurred net losses from continuing operations of **$22.7 million** for the six months ended June 30, 2025, and expects to continue incurring losses while focusing on sales growth and R&D[146](index=146&type=chunk) [Global Economic Conditions](index=51&type=section&id=Global%20Economic%20Conditions) - The company is monitoring macroeconomic factors such as inflation, interest rates, challenging capital market conditions, and changes in trade policies, which may impact its business[150](index=150&type=chunk)[151](index=151&type=chunk) - Inflation and increased interest rates could lead to higher costs for raw materials, salaries, and travel expenses, and potentially cause customers to reduce or delay orders[151](index=151&type=chunk)[152](index=152&type=chunk) - Ongoing military conflicts and revised tariffs are also being monitored for potential impacts on European and Middle Eastern customers and supply chains, though no material impact is expected in fiscal 2025 from tariffs[154](index=154&type=chunk)[155](index=155&type=chunk) [Factors Affecting Our Performance](index=53&type=section&id=Factors%20Affecting%20Our%20Performance) - Financial performance is primarily driven by device sales, which are expected to grow through expanded sales efforts and enhanced technology/applications[160](index=160&type=chunk)[161](index=161&type=chunk) - Recurring revenue (consumables, accessories, services) accounted for **36%** of total revenue for the six months ended June 30, 2025, and is expected to increase as the device installed base expands[163](index=163&type=chunk) - Revenue mix and gross margin are influenced by the proportion of device sales versus recurring revenue, and direct sales typically yield higher margins than sales through channel partners[165](index=165&type=chunk) [Key Business Metrics](index=55&type=section&id=Key%20Business%20Metrics) Product Placements (Units Recognized as Revenue) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Handheld | 164 | 143 | 321 | 196 | Cumulative Product Placements (Number of Devices) | Metric | June 30, 2025 | June 30, 2024 | | :------- | :------------ | :------------ | | Handheld | 3,336 | 2,618 | - The number of product placements varies considerably due to customer type and size, particularly large government customers, leading to expected fluctuations in period-to-period placements[169](index=169&type=chunk) [Components of Our Results of Operations](index=55&type=section&id=Components%20of%20Our%20Results%20of%20Operations) - Revenue is generated from device sales (**63%** of total revenue for six months ended June 30, 2025) and recurring revenue from consumables, accessories, and services (**36%** of total revenue)[171](index=171&type=chunk)[172](index=172&type=chunk) - Cost of revenue includes raw materials, freight, royalties, personnel, and amortization of intangibles for products, and personnel/travel costs for services. Gross profit margin is expected to increase long-term due to economies of scale[178](index=178&type=chunk)[179](index=179&type=chunk)[182](index=182&type=chunk) - Operating expenses include R&D (essential for long-term competitive position) and Selling, General & Administrative (SG&A) expenses, which are expected to stabilize following the restructuring plan[183](index=183&type=chunk)[186](index=186&type=chunk) - Other income includes interest earned on cash/securities and income from the Transition Services Agreement (TSA). The company has a full valuation allowance against net deferred tax assets due to recurring losses[188](index=188&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) [Comparison of the three months ended June 30, 2025 and 2024](index=63&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030,%202025%20and%202024) Total revenue increased by **$1.6 million** (**13.7%**) to **$13.0 million**, but operating expenses rose by **$6.8 million** (**46.5%**), widening the loss from operations Key Financials (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Total revenue | $13,035 | $11,462 | $1,573 | 13.7% | | Product revenue | $9,577 | $8,548 | $1,029 | 12% | | Service and contract revenue | $3,458 | $2,914 | $544 | 19% | | Product gross profit | $4,254 | $4,511 | $(257) | (6)% | | Service and contract gross profit | $2,119 | $1,651 | $468 | 28% | | Research and development | $4,405 | $3,591 | $814 | 23% | | Selling, general and administrative | $10,337 | $11,110 | $(773) | (7)% | | Change in fair value of contingent consideration | $6,792 | $— | $6,792 | N/A | | Loss from operations | $(15,161)| $(8,539)| $(6,622) | (77.5)% | - Product revenue increased by **12%** due to FTIR products (RedWave acquisition impact), offset by fewer MX908 device sales[198](index=198&type=chunk) - The significant increase in operating expenses was primarily driven by a **$6.8 million** increase in the fair value of contingent consideration, linked to higher FTIR revenue projections and the company's share price[206](index=206&type=chunk) [Comparison of the six months ended June 30, 2025 and 2024](index=67&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030,%202025%20and%202024) Total revenue increased by **$5.9 million** (**31.4%**) to **$24.8 million**, but operating expenses rose by **$11.9 million** (**45.4%**), widening the loss from operations Key Financials (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Total revenue | $24,813 | $18,884 | $5,929 | 31.4% | | Product revenue | $18,106 | $13,780 | $4,326 | 31% | | Service and contract revenue | $6,707 | $5,104 | $1,603 | 31% | | Product gross profit | $8,058 | $7,324 | $734 | 10% | | Service and contract gross profit | $3,857 | $2,725 | $1,132 | 42% | | Research and development | $8,234 | $6,883 | $1,351 | 20% | | Selling, general and administrative | $20,576 | $19,316 | $1,260 | 7% | | Change in fair value of contingent consideration | $9,291 | $— | $9,291 | N/A | | Loss from operations | $(26,186)| $(16,150)| $(10,036) | (62.1)% | - Product revenue increased by **31%** due to **$5.8 million** from FTIR products (RedWave acquisition), partially offset by a **$1.3 million** decrease in AVCAD program product revenue[211](index=211&type=chunk) - Selling, general and administrative expenses increased by **$1.3 million**, partly due to RedWave acquisition-related payroll costs, transaction bonuses, and facility shutdown/moving costs, offset by lower consulting/legal fees[218](index=218&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$118.6 million** in cash, cash equivalents, and marketable securities, including proceeds from the Desktop Portfolio divestiture[223](index=223&type=chunk) - The company believes existing cash and revenue will fund operating expenses, capital expenditures, and debt service for at least the next 12 months, but future funding may be required[223](index=223&type=chunk)[224](index=224&type=chunk) - The Amended 2022 Revolver provides a **$10.0 million** revolving line of credit, with financial covenants requiring maintenance of **$20.0 million** at SVB and specific cash burn thresholds[226](index=226&type=chunk)[228](index=228&type=chunk) [Cash Flows](index=75&type=section&id=Cash%20Flows) Summary of Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Cash used in operating activities | $(20,803)| $(22,397)| | Cash provided by (used in) investing activities | $38,726 | $(50,891)| | Cash used in financing activities | $(267) | $(928) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $17,683 | $(74,230)| - Net cash used in operating activities decreased to **$20.8 million** in 2025 from **$22.4 million** in 2024, primarily due to noncash income from the Desktop Portfolio sale, partially offset by changes in operating assets and liabilities[233](index=233&type=chunk) - Net cash provided by investing activities was **$38.7 million** in 2025, a significant improvement from a **$50.9 million** use in 2024, driven by **$69.9 million** in proceeds from the Desktop Portfolio sale[235](index=235&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=75&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) - The preparation of financial statements requires management to make estimates and judgments affecting reported amounts, based on historical experience, known trends, and market factors[241](index=241&type=chunk) - There were no significant changes to the company's critical accounting policies for the three and six months ended June 30, 2025[242](index=242&type=chunk) [Recently Issued Accounting Pronouncements](index=77&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - The company qualifies as an 'emerging growth company' and has elected not to opt out of the extended transition period for complying with new or revised accounting standards[61](index=61&type=chunk) - The FASB issued ASU No. 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures), which the company is currently assessing for impact[62](index=62&type=chunk)[64](index=64&type=chunk) - The United States Congress passed the 'One Big Beautiful Bill' (OBBB) on July 4, 2025, which includes changes to corporate taxation, and the company is evaluating its financial impact[65](index=65&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, 908 Devices Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[244](index=244&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[245](index=245&type=chunk) - There were no material changes in internal control over financial reporting during the most recently completed fiscal quarter[246](index=246&type=chunk) [PART II. OTHER INFORMATION](index=78&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The Company is not currently party to any material legal proceedings[248](index=248&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors occurred during the three and six months ended June 30, 2025, compared to the 2024 Form 10-K - No material changes to risk factors occurred during the three and six months ended June 30, 2025, compared to those in the 2024 Form 10-K[249](index=249&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[250](index=250&type=chunk) [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[251](index=251&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There are no mine safety disclosures to report for the period - No mine safety disclosures to report[252](index=252&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) Outlines Rule 10b5-1 trading plans adopted by the CEO for up to **240,000** shares and the CFO for up to **26,940** shares - CEO Kevin J. Knopp, Ph.D., adopted a Rule 10b5-1 trading plan on May 19, 2025, for the potential sale of up to **240,000 shares** of common stock[254](index=254&type=chunk) - CFO Joseph H. Griffith IV adopted a Rule 10b5-1 trading plan on June 2, 2025, for the potential sale of up to **26,940 shares**, including shares from RSU vesting[255](index=255&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) Outlines exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and CEO/CFO certifications - Exhibits include the company's Sixth Amended and Restated Certificate of Incorporation, Amended and Restated By-laws, and certifications from the CEO and CFO[259](index=259&type=chunk) - Certifications under 18 U.S.C. Section 1350 (Exhibits 32.1 and 32.2) are not deemed filed with the SEC and are not incorporated by reference into other filings[258](index=258&type=chunk) [Signatures](index=80&type=section&id=Signatures) The report was signed on August 5, 2025, by the Chief Executive Officer and Chief Financial Officer of 908 Devices Inc - The report was signed by Kevin J. Knopp, Ph.D., Chief Executive Officer, and Joseph H. Griffith IV, Chief Financial Officer, on August 5, 2025[263](index=263&type=chunk)

Strategic Transformation - The company is focusing on high-growth handheld markets aligned with opioid crisis response, defense budgets, and border security[9] - The company divested its biopharma desktop portfolio to REPLIGEN for $70 million in cash[11] - The company is targeting adjusted EBITDA profitability by Q4 2025 and cash flow positivity in 2026, driven by improved gross margins and streamlined operations[9] Financial Performance and Guidance - The company's revenue for the last twelve months as of June 30th was $54 million[15] - The company's cash balance as of June 30th was $119 million[15] - The company projects revenue from continuing operations to be between $54 million and $56 million in 2025, representing a year-over-year growth of +13% to +17%[43] - The company anticipates a return to 20%+ growth with defined catalysts[43] - The company's adjusted gross margin is expected to be in the mid-to-high 50% range[43] - Recurring revenue accounted for $9.1 million, or 37%, of total revenue in YTD 2025[45] Growth Catalysts - Equipment modernization, specifically replacing outdated FTIR devices, presents a 15,000-unit growth opportunity[40] - The launch of the next-generation MX908 device is expected to generate a replacement cycle[40] - The U S Department of Defense AVCAD program partnership represents a growth catalyst, with potential for >$10 million per year in revenue[40]

[Q2 2025 Performance and Outlook](index=1&type=section&id=Q2%202025%20Performance%20and%20Outlook) This section provides an executive overview of 908 Devices' strong Q2 2025 performance, key operational highlights, and an updated full-year 2025 revenue outlook [Executive Summary & Recent Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Recent%20Highlights) 908 Devices reported strong Q2 2025 results with a 14% increase in revenue from continuing operations, driven by handheld product and service revenue, achieving record XplorIR placements, launching VipIR, and making significant progress towards profitability - Revenue from continuing operations grew **14%** compared to the prior year, largely driven by an increase in handheld product and service revenue[1](index=1&type=chunk)[6](index=6&type=chunk) - Delivered a record number of XplorIR devices in the quarter and launched VipIR, a 3-in-1 handheld chemical analyzer for global customs organizations[3](index=3&type=chunk)[9](index=9&type=chunk) - Completed manufacturing consolidation of handheld products into the expanded Danbury, Connecticut facility and strengthened the financial profile through restructuring efforts, reducing square footage by **44%** and employee headcount by **39%**[9](index=9&type=chunk) - Acquired assets of KAF Manufacturing Company, Inc. for **$2.75 million** to secure the supply chain of critical FTIR components, with a related OEM supply commitment of **$6.6 million** over 36 months[9](index=9&type=chunk) [2025 Revenue Outlook Update](index=3&type=section&id=2025%20Revenue%20Outlook%20Update) 908 Devices raised its full-year 2025 revenue guidance for continuing operations, now expecting $54 million to $56 million, which represents 13% to 17% growth compared to 2024 2025 Revenue Guidance Update | Metric | Previous Guidance | New Guidance | | :----------------------- | :---------------- | :----------- | | Full Year 2025 Revenue | $53 million to $55 million | $54 million to $56 million | | YoY Growth (New Guidance) | N/A | 13% to 17% | [Detailed Q2 2025 Financial Results (Continuing Operations)](index=1&type=section&id=Detailed%20Q2%202025%20Financial%20Results%20(Continuing%20Operations)) This section provides a comprehensive breakdown of 908 Devices' Q2 2025 financial performance from continuing operations, including revenue, gross profit, operating expenses, net loss, and balance sheet position [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue from continuing operations for Q2 2025 reached $13.0 million, a 14% increase year-over-year, primarily driven by growth in handheld product and service revenue, with recurring revenue growing 28% and constituting 36% of total revenues Q2 2025 Revenue Performance (Continuing Operations) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $13.0 | $11.5 | +14% | | Product Revenue | $9.6 | $8.5 | +12.9% | | Service and Contract Revenue | $3.5 | $2.9 | +20.7% | | Recurring Revenue | $4.7 | N/A | +28% | | Recurring Revenue % of Total | 36% | N/A | N/A | - The installed base of devices grew **27%** year-over-year to **3,336**, with **164** devices placed during the second quarter[6](index=6&type=chunk) [Gross Profit and Margin Analysis](index=1&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) GAAP gross profit for Q2 2025 was $6.4 million, with a GAAP gross margin of 49%, a decrease from 54% in the prior year, while adjusted gross profit increased to $7.3 million, but adjusted gross margin decreased by 220 basis points to 56% due to higher warranty costs Q2 2025 Gross Profit and Margin (Continuing Operations) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----------------------- | :----------------- | :----------------- | :--------- | | GAAP Gross Profit | $6.4 | $6.2 | +3.2% | | GAAP Gross Margin | 49% | 54% | -500 bps | | Adjusted Gross Profit | $7.3 | $6.7 | +8.9% | | Adjusted Gross Margin | 56% | 59% | -300 bps | - The decrease in adjusted gross margin percentage was driven by an increase in warranty costs compared to the prior year, related to the increasing installed base and specific costs incurred in Q2 2025[7](index=7&type=chunk) [Operating Expenses Breakdown](index=1&type=section&id=Operating%20Expenses%20Breakdown) Operating expenses for Q2 2025 significantly increased to $21.5 million from $14.7 million in the prior year, primarily due to a $6.8 million non-cash charge for contingent consideration, $1.0 million in facility shutdown and restructuring costs, and the inclusion of RedWave Technology acquisition operating expenses, partially offset by a $2.0 million decrease in acquisition costs Q2 2025 Operating Expenses (Continuing Operations) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :--------------------------------------- | :----------------- | :----------------- | :--------- | | Total Operating Expenses | $21.5 | $14.7 | +46.3% | | Change in fair value of contingent consideration | $6.8 | — | N/A | | Facility shutdown and restructuring costs | $1.0 | N/A | N/A | | Decrease in acquisition costs | -$2.0 | N/A | N/A | - The increase in operating expenses also included the operating expenses related to the RedWave Technology acquisition[8](index=8&type=chunk) [Net Loss and Adjusted EBITDA](index=3&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) Net loss from continuing operations widened to $12.9 million in Q2 2025 from $7.6 million in the prior year, with Adjusted EBITDA also showing a larger loss, moving to $(3.9) million compared to $(3.6) million in the corresponding period Q2 2025 Net Loss and Adjusted EBITDA (Continuing Operations) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :--------------------------------------- | :----------------- | :----------------- | :--------- | | Net Loss from Continuing Operations (GAAP) | $(12.9) | $(7.6) | -69.7% | | Adjusted EBITDA (Non-GAAP) | $(3.9) | $(3.6) | -8.3% | - Net loss attributable to common stockholders was **$13.3 million** for Q2 2025, compared to **$12.5 million** for the corresponding prior year period[11](index=11&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, 908 Devices maintained a strong liquidity position with $118.6 million in cash, cash equivalents, and marketable securities, with no outstanding debt, and total assets increased to $191.7 million from $159.5 million at December 31, 2024 Key Balance Sheet Items | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | Change | | :--------------------------------------- | :------------ | :----------- | :----- | | Cash, Cash Equivalents and Marketable Securities | $118,584 | $68,923 | +$49,661 | | Total Assets | $191,701 | $159,476 | +$32,225 | | Total Liabilities | $42,884 | $44,884 | -$2,000 | | Total Stockholders' Equity | $148,817 | $114,592 | +$34,225 | | Debt Outstanding | $0 | $0 | N/A | [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of 908 Devices' mission and technology, along with definitions for the non-GAAP financial measures used in the report [About 908 Devices](index=3&type=section&id=About%20908%20Devices) 908 Devices innovates chemical analysis through simple handheld devices, addressing critical applications in health, safety, and defense technology, providing rapid, actionable insights for challenges such as the fentanyl crisis, toxic exposure, and global security threats - 908 Devices revolutionizes chemical analysis with purpose-built handheld devices for vital health, safety, and defense tech applications[2](index=2&type=chunk)[15](index=15&type=chunk) - Their devices are used at the point-of-need to interrogate unknown and invisible materials, providing quick answers for the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats[15](index=15&type=chunk) - The company designs and manufactures innovative products that combine complementary analytical technologies, software automation, and machine learning[15](index=15&type=chunk) [Non-GAAP Financial Measures Definitions](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines the non-GAAP financial measures used in the release, including Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted EBITDA, which exclude certain costs to provide additional insights into core operating trends - Adjusted gross profit is defined as GAAP gross profit excluding intangible amortization, acquisition and integration costs, restructuring charges, and non-cash stock-based compensation[17](index=17&type=chunk) - Adjusted gross margin is defined as adjusted gross profit expressed as a percentage of total revenue[17](index=17&type=chunk) - Adjusted EBITDA is defined as net loss from continuing operations excluding other income, income taxes, depreciation, intangible amortization, acquisition and integration costs, restructuring charges, non-cash stock-based compensation, and costs associated with contingent consideration related to acquisitions[17](index=17&type=chunk) [Important Disclosures & Other Information](index=3&type=section&id=Important%20Disclosures%20%26%20Other%20Information) This section outlines important legal disclosures regarding forward-looking statements, provides investor and media contact information, and details for accessing the Q2 2025 earnings webcast [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section clarifies that the press release contains forward-looking statements regarding future revenue and growth, which are based on current expectations and subject to known and unknown risks and uncertainties, with no obligation to update or revise these statements unless legally required - All statements other than historical facts, including those regarding future revenue and growth, are forward-looking statements[18](index=18&type=chunk) - These statements are based on management's current expectations and involve known and unknown risks, uncertainties, and assumptions that may cause actual results to differ materially[18](index=18&type=chunk) - The company has no obligation to update or revise any forward-looking statement made in this press release, except as may be required by law[18](index=18&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) Provides contact details for investor relations and media inquiries - Investor Contact: Carrie Mendivil, IR@908devices.com[19](index=19&type=chunk) - Media Contact: Barbara Russo, brusso@908devices.com[19](index=19&type=chunk) [Webcast Information](index=3&type=section&id=Webcast%20Information) Details for accessing the conference call webcast to discuss Q2 2025 financial results, including the date, time, and URL for live access and replay - A conference call to discuss Q2 2025 financial results was scheduled for Tuesday, August 5, 2025, at 5:30 am Pacific Time / 8:30 am Eastern Time[14](index=14&type=chunk) - The webcast can be accessed at https://ir.908devices.com/news-events/events and will be archived for replay for at least 90 days[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, and GAAP to non-GAAP reconciliations for the specified periods [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Presents the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and 2024, detailing revenue, cost of revenue, gross profit, operating expenses, and net loss from continuing and discontinued operations Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | | Total Revenue | $13,035 | $11,462 | | Gross Profit | $6,373 | $6,162 | | Total Operating Expenses | $21,534 | $14,701 | | Net Loss from Continuing Operations | $(12,908) | $(7,573) | | Net Income (Loss) Attributable to Common Stockholders | $(13,306) | $(12,548) | | Net Loss from Continuing Operations per Share (Basic & Diluted) | $(0.36) | $(0.22) | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) Provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (June 30, 2025 vs Dec 31, 2024) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | Change | | :--------------------------------------- | :------------ | :----------- | :----- | | Cash, Cash Equivalents and Marketable Securities | $118,584 | $68,923 | +$49,661 | | Total Current Assets | $147,940 | $103,055 | +$44,885 | | Total Assets | $191,701 | $159,476 | +$32,225 | | Total Current Liabilities | $29,708 | $25,149 | +$4,559 | | Total Liabilities | $42,884 | $44,884 | -$2,000 | | Total Stockholders' Equity | $148,817 | $114,592 | +$34,225 | [GAAP to Non-GAAP Reconciliations](index=7&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) Presents detailed reconciliations from GAAP gross profit to adjusted gross profit and from GAAP net loss from continuing operations to adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, providing transparency on non-GAAP adjustments Reconciliation from Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | | Gross Profit (GAAP) | $6,373 | $6,162 | | Adjusted Gross Profit (Non-GAAP) | $7,336 | $6,708 | | Gross Margin Percentage (GAAP) | 49% | 54% | | Adjusted Gross Margin Percentage (Non-GAAP) | 56% | 59% | Reconciliation from Net Loss from Continuing Operations (GAAP) to Adjusted EBITDA (Non-GAAP) (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--------------------------------------- | :-------- | :-------- | | Net Loss from Continuing Operations (GAAP) | $(12,908) | $(7,573) | | Adjusted EBITDA (Non-GAAP) | $(3,886) | $(3,633) |

Core Insights - Masivo Silver Corp. reported historic high-grade results from the Cerro Colorado Gold-Silver Project in Sonora, Mexico, as it advances due diligence for a proposed acquisition [1][10] - The company announced a non-brokered private placement of up to $1,000,000 to fund exploration at both Cerro Colorado and the Boston Mine in Nevada [2][12] Historic Drill Highlights - Two drill holes from 2015 returned multiple broad, near-surface, high-grade polymetallic intercepts, indicating significant mineralization potential [3][10] - Key intercepts from Hole ETCC-15-01 include: - 29.65 m @ 50.74 g/t Ag, 0.607% Zn, 0.131% Pb, 0.053% Cu, 0.062 g/t Au [8] - Notable sub-intervals include: - 5.05 m @ 254 g/t Ag, 0.80% Zn, 0.365% Pb, 0.266% Cu, 0.262 g/t Au - 2.95 m @ 384 g/t Ag, 0.939% Zn, 0.544% Pb, 0.399% Cu, 0.395 g/t Au - 2.45 m @ 430 g/t Ag, 0.771% Zn, 0.444% Pb, 0.591% Cu, 0.432 g/t Au [8] - Key intercepts from Hole ETCC-15-04 include: - 35.80 m @ 23.44 g/t Ag, 0.406% Zn [8] - Notable sub-intervals include: - 3.15 m @ 159.06 g/t Ag, 0.513% Zn, 0.338% Pb, 0.141% Cu, 0.188 g/t Au - 0.60 m @ 577 g/t Ag, 0.907% Zn, 0.790% Pb, 0.516% Cu, 0.705 g/t Au [8] Geological Interpretation & Exploration Plans - The geological and geochemical signatures suggest that Cerro Colorado may host a sub-epithermal polymetallic system, potentially linked to breccia structures associated with a deeper porphyry system [9] - The company plans to apply modern exploration tools and initiate a focused drill campaign following the completion of due diligence [10] Private Placement Financing - The private placement will consist of units priced at $0.06 per unit, with gross proceeds of up to $1,000,000 [11] - Each unit will include one common share and one-half common share purchase warrant, allowing the holder to acquire one additional common share at an exercise price of $0.10 for 12 months [11] Use of Proceeds - Proceeds from the private placement will be allocated to exploration at the Cerro Colorado Project and the Boston Mine, as well as for general working capital [12]

Core Viewpoint - 908 Devices Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for 908 Devices suggests an improvement in its underlying business, which should encourage investors to drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for 908 Devices has increased by 33.2%, reflecting a positive revision trend [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places 908 Devices in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Strategic Transformation Realized MARCH 5th 2025 designed for 'point-of-need' use in vital health and safety contexts Forward looking statements / Non-GAAP financial measures This presentation and the accompanying oral presentation (this "presentation") contain forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations ...