[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 Focus and Financial Improvement - The company is shifting its focus to high-growth handheld markets, aligning with trends in opioid crisis response, defense budgets, and border security[8] - The company aims to achieve positive adjusted EBITDA by Q4 2025 and become cash flow positive in 2026, driven by improved gross margins and streamlined operations[8] - The company is divesting its biopharma desktop portfolio to REPLIGEN for $70 million in cash, nearly doubling its balance sheet cash and eliminating NIH/healthcare overhang[8] - The company retains the flexibility to operate in the broader life sciences market beyond the divested bioprocessing PAT segment[9] Financial Performance and Projections - The company's revenue in 2023 was $38.2 million[11] - The company held $146 million cash at year-end 2023[11] - The company experienced a net loss of $30 million in 2023[11] - The company shipped 2,422 devices in 2023[11] - The company projects revenue between $53 million and $55 million for 2024, representing an 11% to 15% year-over-year increase[13] - The company anticipates having over 3,015 devices in the field by the end of 2024, a 25% increase from 2023[13] - The company expects to have $110 million+ cash at year-end 2025[13, 16]

Strategic Transformation - 908 Devices shifted its focus to high-growth handheld markets, aligning with trends in opioid crisis response, defense budgets, and border security[9] - The company divested its biopharma desktop portfolio to REPLIGEN for $70 million in cash, nearly doubling its balance sheet cash[11] - 908 Devices 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 & Guidance - As of March 31, 2025, 908 Devices had $124 million in cash and $52 million in revenue for the last twelve months (LTM)[15] - Q1 2025 recurring revenue was $44 million, representing 37% of total revenue, with a year-over-year growth of 59%[41] - The company's 2025 revenue guidance from continuing operations is $53 million to $55 million, representing a year-over-year growth of +11% to +15%[39] - 908 Devices anticipates an adjusted EBITDA positive by Q4 2025 and expects to have a year-end cash balance of over $110 million[39] - Adjusted gross margin for Q1 2025 was 54%, an increase of 75 basis points year-over-year[41] Growth Catalysts - Equipment modernization, specifically replacing outdated FTIRs, presents a 15,000-unit replacement opportunity[45] - The launch of the next-generation MX908 device is expected to drive enterprise placement wins and generate a replacement cycle from the existing >2,800 MX devices fielded[36] - The U S Department of Defense AVCAD program anticipates an award for full-rate manufacturing, potentially generating >$10 million in annual revenue starting in 2026[37, 45]

Summary of 908 Devices (MASS) FY Conference Call - June 04, 2025 Company Overview - **Company**: 908 Devices - **Industry**: Handheld chemical detection technology for public health, safety, and defense Key Themes and Core Points 1. **Strategic Transformation**: The company has completed a significant transformation, exiting the desktop business and focusing solely on handheld chemical detection, which is expected to enhance operational alignment and financial performance [5][6][11] 2. **Financial Performance**: The company is on track to achieve adjusted EBITDA breakeven by Q4 2025 and anticipates full-year cash flow positivity by 2026 [9][40][42] 3. **Market Opportunity**: The total addressable market (TAM) for handheld devices is projected to reach $2.5 billion by 2027, with the handheld revenue growth outpacing that of the desktop segment [12][40] 4. **Product Portfolio Expansion**: The product lineup has expanded from one to four handheld devices, with plans to increase to six by 2026, enhancing the company's ability to address critical health and safety applications [39][41][43] 5. **Revenue Growth**: Q1 2025 revenue reached $11.8 million, a 59% year-over-year increase, driven by an 86% increase in handheld product and service revenue [47][48] 6. **Recurring Revenue**: Recurring revenue grew by 54% year-over-year, indicating strong demand for services and consumables [48] 7. **Cash Position**: The company ended Q1 2025 with approximately $124 million in cash, bolstered by a $70 million inflow from the divestiture of the desktop business [50] Industry Dynamics 1. **Opioid Crisis**: The company is positioned to address the escalating opioid crisis, with increasing demand for advanced detection technologies to combat synthetic drugs [15][16][18] 2. **Global Security Concerns**: Heightened global security needs are driving demand for modern detection tools, with NATO allies projected to increase defense spending significantly [20][22][23] 3. **Public Funding Trends**: There is a favorable funding environment for public safety technologies, with increased investments across various sectors including law enforcement and military [19][23] Additional Insights 1. **Sales Cycle Variability**: The sales cycle varies significantly across different channels, with state and local sales often turning around quickly, while federal military sales can take years [55][56] 2. **Competitive Positioning**: The company emphasizes its comprehensive service approach and modern technology to compete against legacy products in the market [60] 3. **Future Growth Catalysts**: Key growth drivers include the modernization of outdated FTIR units, the launch of next-generation handheld devices, and the full-rate production of the U.S. DoD AvCAD program, which could add over $10 million in annual revenue potential [32][36][42] Conclusion 908 Devices is undergoing a transformative phase, focusing on handheld chemical detection with a robust product portfolio and a favorable market environment. The company is positioned for sustainable growth, backed by strong financials and macro trends in public health and safety.

Core Insights - A deal with the Romanian Customs Authority has significantly boosted the stock price of 908 Devices, which rose over 18% [1][8] Group 1: Deal Announcement - 908 Devices announced the deployment of 27 MX908 devices by the Romanian Customs Authority [2] - The MX908 devices are handheld machines capable of rapid chemical analysis, identifying various substances in seconds [4] - The deal was facilitated through a European Union program aimed at enhancing border control capabilities for member nations [5] Group 2: Company Impact - The CEO of 908 Devices highlighted the proactive measures taken by the Romanian Customs Authority to enhance safety and security at the border [6] - Although financial details of the deal were not disclosed, it is expected to generate revenue and improve the company's reputation [7]

908 Devices Inc. (MASS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing ear ...

Financial Data and Key Metrics Changes - Revenue from continuing operations was $11.8 million, an increase of 59% compared to $7.4 million in the prior year period [6][22] - Adjusted EBITDA loss improved nearly 50% year over year, with a loss of $4.6 million compared to a loss of $5.3 million in the prior year [7][27] - Net loss from continuing operations was $9.8 million, up from $5.9 million in the prior year period [27] - Cash and cash equivalents at the end of the quarter were $124.3 million, with no debt outstanding [28] Business Line Data and Key Metrics Changes - Handheld product and service revenue was $11 million, up 86% from $5.9 million in the prior year, driven by $4 million in revenue from recently acquired FTIR products [22] - Program product and service revenue decreased to $100,000, down $1.4 million year over year [22] - OEM and funded partnership revenue was $700,000, with no comparable revenue recorded in the prior year [24] - Recurring revenue represented 37% of total revenues, amounting to $4.4 million, a 54% increase over the prior year [25] Market Data and Key Metrics Changes - The company is seeing strong interest in modern detection equipment across military and security agencies due to heightened geopolitical tensions [9] - The Texas Department of Public Safety placed a $2 million order for MX908 devices, reflecting urgency in modernizing public safety tools [11] - The EU's Rescue U initiative is prompting member states to build strategic stockpiles of response capabilities, with significant orders from countries like Finland and the Czech Republic [13] Company Strategy and Development Direction - The company is focused on three strategic areas for 2025: market expansion, advancing innovation, and reinforcing financial discipline [10][19] - The transformation aims to position the company in higher growth handheld markets aligned with national security funding and public health responses [5] - The company anticipates positive adjusted EBITDA by Q4 2025 and full-year cash flow positivity in 2026 [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities arising from increased national security funding and public health initiatives [8] - The company expects total revenue growth to accelerate above 20% in 2026, driven by expanding handheld adoption and launching next-generation products [30] - Management reiterated confidence in achieving cash flow breakeven in 2026, supported by a healthy cash balance and streamlined cost structures [28][30] Other Important Information - The company has transitioned its production from Boston to Danbury, Connecticut, which is expected to lower facility costs and improve margins [20][44] - The strategic divestiture of the biopharma desktop portfolio has fortified the company's cash position and reduced operating costs [5][19] Q&A Session Summary Question: Insights on RedWave integration and cross-selling opportunities - Management highlighted successful integration with RedWave, leading to a diversified product portfolio and increased sales team efficiency [38][39] Question: Update on the transition to Danbury and annual savings targets - The transition is progressing well, with expected annual savings of approximately $2 million from the move [44] Question: Timing for full production mode on the AvCAD program - Management expects a decision on full-rate production by the end of the government fiscal year, with potential revenue ramping gradually [51][52] Question: Visibility on government contracts and installed base expansion - Management noted good pipeline development for federal and international opportunities, with a diversified sales approach [70][72] Question: Pricing strategy and capacity utilization in Danbury - Pricing is expected to remain stable for 2025, with immediate cost benefits anticipated from the Danbury facility [75][76]

Financial Data and Key Metrics Changes - Revenue from continuing operations for Q1 2025 was $11.8 million, a 59% increase from $7.4 million in the prior year period, driven by strong device sales [6][23] - Adjusted EBITDA loss improved nearly 50% year over year in Q1 2025 compared to Q1 2024, reflecting the impact of the strategic transformation [7][28] - Net loss from continuing operations for Q1 2025 was $9.8 million, compared to $5.9 million in the prior year period, largely due to a non-cash charge related to the RedWave acquisition [28] Business Line Data and Key Metrics Changes - Handheld product and service revenue was $11 million for Q1 2025, up 86% from $5.9 million in Q1 2024, primarily driven by $4 million in revenue from recently acquired FTIR products [23] - Recurring revenue, which includes consumables, accessories, and service revenue, represented 37% of total revenues, amounting to $4.4 million, a 54% increase year over year [25] - Program product and service revenue decreased to $100,000 in Q1 2025, down $1.4 million year over year due to the completion of initial low-rate production deliveries [23][24] Market Data and Key Metrics Changes - The company is seeing strong interest in modern detection equipment across military and security agencies, particularly in response to heightened geopolitical tensions in Europe [10][14] - The U.S. government has increased its focus on drug interdiction, which is expected to drive future procurement opportunities for the company's handheld devices [8][9] Company Strategy and Development Direction - The company has established three strategic focus areas for 2025: increasing adoption of devices for public health and safety, advancing innovation in analytical tools, and reinforcing financial discipline [11][20] - The transition of production from Boston to Danbury, Connecticut is expected to significantly lower facility costs and improve margins, supporting the path to profitability [21][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA by Q4 2025 and cash flow positivity in 2026, supported by growth drivers and cost savings from facility consolidation [20][31] - The company anticipates total revenue growth to accelerate above 20% in 2026, driven by expanding handheld adoption and launching next-generation products [31] Other Important Information - The company ended Q1 2025 with $124.3 million in cash and cash equivalents, with no debt outstanding, providing a strong financial position to support future growth [29] - The company is focused on maintaining pricing stability for 2025 while monitoring potential tariff impacts [72] Q&A Session Summary Question: Insights on RedWave integration and demand acceleration - Management highlighted successful integration with RedWave, contributing to a diversified revenue stream and strong sales team performance [39][40] Question: Update on the transition to Danbury and annual savings - The transition is progressing well, with expected annual savings of approximately $2 million, with benefits anticipated in the second half of the year [44] Question: Timing for full production mode on AvCAD - Full rate production decision is expected by the end of the government fiscal year, with potential revenue ramping gradually [51][54] Question: Installed base expansion and gross margin benefits - Over 2,800 MX systems are active, with a significant portion under service contracts, and next-gen systems are expected to provide gross margin benefits [57][58] Question: Visibility on government contracts and pricing strategy - Management noted good pipeline development for federal and international opportunities, with pricing expected to remain stable for 2025 [66][72]