Summary of Quantum-Si Conference Call Company Overview - **Company**: Quantum-Si - **Industry**: Protein Sequencing Technology - **Core Product**: Platinum, a single-molecule protein sequencing device, and associated software - **Upcoming Product**: Proteus, a second-generation sequencer with a new architecture [1][2] Key Points and Arguments Market Position and Technology - Quantum-Si is the first and currently the only company to commercialize next-generation protein sequencing, allowing analysis at the individual amino acid level [2] - The company launched the Platinum machine in 2022, which has been pivotal in establishing its market presence [6][10] - The Proteus architecture was announced in November of the previous year, aiming to enhance commercial penetration [4][5] Development and Milestones - The company has a strong track record of meeting technology milestones, with a goal to achieve sequencing on a Proteus prototype by the end of the year [4][5] - An analyst and investor day is scheduled for November, where further updates on Proteus and future plans will be shared [5] Market Insights - There is a growing belief that proteomics will surpass genomics in significance, driven by large-scale population studies generating new data [7] - The complexity of proteomics compared to DNA sequencing has led to a deeper understanding of market needs and the importance of sample preparation [8] Commercialization Strategy - Quantum-Si has established a mix of direct and distribution partnerships, with 23 partners outside the U.S. to expand its market reach [11] - The company has pivoted towards biopharma markets, finding traction in applications like barcoding for candidate selection and screening [15][16] Financial Management - The company ended the last quarter with $214 million in cash and has a runway extending into Q2 of 2028 [31] - Operational expenses have been controlled effectively, with spending projected to be less than $100 million this year, down from $120 million previously [31][32] Product Development and Innovation - The company is focused on evolving its library preparation and sequencing kits, ensuring compatibility with the new Proteus architecture [17][18] - Significant improvements have been made in sequencing output, with a new chemistry version showing an 83% increase in output [19] Customer Engagement and Feedback - Customer interactions have led to the development of specific tools and applications, such as those addressing post-translational modifications, which are critical for diagnostics and therapeutic targets [24][27] - The company has built a dedicated application development team to address unique customer challenges and expand its offerings [25][26] Data Analysis and Software Development - Quantum-Si is leveraging AI tools in partnership with NVIDIA to enhance data analysis capabilities and develop new recognizers for amino acids [21][22] - Continuous improvements in analysis software are being made to meet customer needs and automate workflows [23] Additional Important Insights - The company is focused on building brand recognition and establishing lighthouse accounts to support the launch of Proteus [12] - The evolving landscape of the academic and government markets has prompted the company to diversify its customer base and explore new opportunities [16] This summary encapsulates the key discussions and insights from the Quantum-Si conference call, highlighting the company's strategic direction, market positioning, and future growth potential.

Summary of Quantum-Si (QSI) Conference - August 14, 2025 Industry and Company Overview - **Industry**: Proteomics and Cellular Research - **Companies Involved**: Quantum-Si (QSI) and Cytec Biosciences Key Points and Arguments Quantum-Si's Technology and Applications - Quantum-Si offers next-generation protein sequencing, enabling the reading of individual amino acids, which allows for the study of previously difficult-to-analyze proteins and variants [3][4] - Customers are interested in applications such as single amino acid variants, isomers, and post-translational modifications, which are crucial for understanding therapy responses and disease progression [4] - The U.S. market shows a demand for advanced proteomics tools, while international markets may focus more on basic protein characterization due to limited access [5] Cytec Biosciences' Flow Cytometry Innovations - Cytec specializes in flow cytometry, enhancing conventional technology with full spectrum profiling, which captures more data and improves sensitivity in applications like minimal residual disease (MRD) detection [6][8] - The technology allows for faster drug discovery by enabling the analysis of multiple parameters quickly, addressing the needs of the pharmaceutical industry [9] Market Challenges and Business Management - The academic market is facing challenges, but Quantum-Si maintains a strong balance sheet that allows for strategic investments and operational stability through 2028 [16][17] - Cytec aims to replace older flow cytometers, leveraging the need for advanced features and cost efficiency to capture market opportunities despite tight capital expenditures [19][20] Clinical Market and Regulatory Approvals - Cytec has achieved clinical approvals in China and is progressing in Europe, with tools approved for applications like leukemia and MRD [28][29] - The U.S. FDA approval process is ongoing, which is expected to take longer compared to other regions [30] Future Technology and Market Potential - Quantum-Si is developing a new platform called Proteus, expected to launch in 2026, which will significantly increase sequencing capacity and capabilities [37][40] - The company believes that as technology improves and costs decrease, the adoption of proteomics will mirror the growth seen in DNA sequencing [31][34] Role of AI in Operations and Product Development - Both companies are integrating AI to enhance data analysis and operational efficiency, with Cytec using AI for panel design and Quantum-Si leveraging AI for protein design and analysis [41][42][46] - Quantum-Si has partnered with NVIDIA to improve AI-driven design processes, resulting in significant improvements in amino acid coverage [46][47] Additional Important Insights - The proteomics market is complex, with varying costs and applications, making it difficult to establish a uniform business model [35] - The companies are focused on maintaining their strategic direction and leveraging their technological advancements to capture market share and drive growth [18][21]

Quantum-Si (QSI) FY Conference Summary Company Overview - **Company**: Quantum-Si (QSI) - **Industry**: Life Science Tools and Diagnostics - **Technology**: Next generation protein sequencer utilizing single molecule detection technology for amino acid detection [1][3] Core Points and Arguments Technology and Market Position - Quantum-Si is the first company to commercialize next generation protein sequencing, aiming for de novo sequencing of proteins [3][4] - The technology is currently used for targeted applications, with plans to expand sequencing output and amino acid coverage [4] Market Dynamics - **U.S. Academic Market**: Experiencing slowdowns in capital purchasing; however, consumable purchases from existing customers are ahead of expectations [5][6] - **Biopharma Market**: Positive traction with applications in protein barcoding; the company has increased opportunities from 30 to 60 in this sector [6][7] Capital Acquisition Models - New models for capital acquisition have been introduced, allowing customers to reagent rent or lease the platform, which may enhance long-term customer engagement [9][10] - A six-month evaluation period is set for customers using the device to assess usage and potential purchase [12][13] Sales Cycles - Academic sales cycles have stretched due to funding issues, while biopharma sales cycles remain longer due to the complexity of implementation [15][16] - Biopharma customers are committing significant time and resources, creating high barriers for competitors once contracts are secured [17] Utilization Patterns - Academic customers show episodic usage patterns, while biopharma customers exhibit more consistent purchasing behavior [22][23] - The platform is expected to generate consumable revenue equivalent to its list price of $125,000 annually at scale [25][26] Product Development - The launch of the Platinum Pro sequencer has been successful, offering onboard analysis capabilities and access to dyes for various applications [28][29] - Upcoming products include V3 and V4 library prep kits aimed at expanding amino acid coverage and lowering sample input requirements [31][34] PTM Detection Kits - PTM detection kits are anticipated to significantly expand the customer base and revenue potential, particularly in developed markets [36][39] - The ability to combine pre-sequencing detection with sequencing runs will enhance the depth of protein profiling [38] Future Product: Proteus - The Proteus device, set to launch in 2026, will feature a new optics-based architecture, allowing for higher density and lower production costs [41][44] - The development timeline is on track, with a prototype expected to demonstrate sequencing capabilities by the end of the year [45] AI Integration - AI is being utilized to develop amino acid recognizers and improve kinetic databases, which is expected to accelerate the path to complete proteome coverage [50][52] - The company has screened over a million binder candidates, providing a rich dataset for AI training [55][56] Additional Insights - There is a perception that the potential of Quantum-Si and its technology may be underestimated, particularly regarding the capabilities of the upcoming Proteus device [58][59] - The complexity of protein sequencing presents high barriers to entry for competitors, suggesting a strong market position for Quantum-Si [59][60]

Core Insights - Quantum-Si incorporated (QSI) reported a second-quarter 2025 loss of 16 cents per share, matching the Zacks Consensus Estimate, with revenues increasing 12.4% year over year to $0.59 million but missing estimates by 61.12% [1][9] Financial Performance - QSI's product revenues were $0.56 million, a decrease of 4.5% year over year, while service revenues were $0.03 million, down 13.2% year over year [2] - Domestic revenues accounted for $0.156 million (26.4% of total revenues), decreasing 13.3% year over year, while international revenues were $0.435 million (73.6% of total revenues), down 1.6% year over year [3] - Gross profit for Q2 was $0.351 million, a decline of 0.8% from the previous year, with a gross margin of 59.4%, up 250 basis points year over year [4] - Non-GAAP operating expenses decreased to $0.237 million from $0.244 million year over year, while GAAP operating expenses increased to $0.304 million from $0.268 million [5] Balance Sheet and Cash Flow - QSI ended the quarter with cash and cash equivalents of $0.22 million, down from $0.37 million in the prior quarter, and total debt of $0.33 million as of June 30, 2025, with a net cash outflow from operating activities of $0.46 million [6] Guidance and Estimates - QSI revised its 2025 guidance, now expecting adjusted operating expenses of less than or equal to $98 million, down from a previous estimate of $103 million [7] - The Zacks Consensus Estimate for QSI's 2025 revenues is $5.7 million, indicating an 85.1% year-over-year increase, while the bottom line is expected to show a loss of 62 cents, reflecting a 6% year-over-year improvement [7]

Core Insights - Quantum-Si (QSI) reported a significant revenue shortfall in Q2 2025, with GAAP sales of $0.59 million, missing analyst estimates of $1.11 million by nearly 46.7% [1][5] - The company maintained a gross margin of 59%, an improvement from 57% in the prior year, despite ongoing struggles with commercial traction, particularly in U.S. academic markets [2][7] - QSI's accumulated deficit increased to $644.7 million as of June 30, 2025, highlighting the need for a clear path to sales growth to address sustained losses [8][15] Financial Performance - Q2 2025 GAAP revenue was $0.59 million, down 29.8% sequentially from Q1 2025 and a 5.0% decline year-over-year from Q2 2024 [2][5] - Earnings per share (EPS) for Q2 2025 was $(0.16), consistent with the same quarter last year [2] - Adjusted total operating expenses were $23.8 million, a decrease of 2.5% from the previous year, while adjusted EBITDA was negative $22.2 million [2][8] Business Overview - Quantum-Si focuses on next-generation protein sequencing technology aimed at making protein analysis more scalable and cost-effective [3] - The company is working on the launch of its Proteus platform, expected to enhance output and automation, with a prototype scheduled for late 2025 and commercial launch in the second half of 2026 [4][9] - The firm has expanded its international distributor network to 23 partners, indicating a strategic shift towards non-U.S. and non-academic customer segments [6] Product Development and Innovation - The company continues to invest in innovation, with upcoming product launches including the Version 4 Sequencing Kit in Q3 2025 and a new Version 3 Library Preparation Kit expected later in the year [9][10] - QSI's intellectual property portfolio includes nearly 400 issued patents and close to 600 pending, providing a competitive advantage [12] Market Strategy and Outlook - Management has increased academic outreach through webinars and user groups to drive demand and adoption of its technology [11] - The company raised an additional $50 million through a direct stock offering, which should fund operations into the second quarter of 2028, providing some financial breathing room [13] - Key issues for investors include the pace of commercial adoption outside U.S. academic markets and the need for recurring consumable sales to signal instrument utilization [15]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $591,000, significantly below expectations, primarily due to a near halt in capital sales of new instruments [7][24] - Gross profit was $351,000, resulting in a gross margin of 59% for the quarter [24] - For the six months ended June 30, 2025, total revenue was $1,400,000, with a gross profit of $837,000 and a gross margin of 58% [25] Business Line Data and Key Metrics Changes - Capital sales of new instruments were the main driver for the revenue decline, while consumable purchases slightly exceeded expectations [7][8] - The installed base of customers is approximately 65% outside the U.S. and 35% within the U.S., encompassing various customer types including academic, industrial, and government research labs [35] Market Data and Key Metrics Changes - The U.S. academic labs experienced a significant slowdown in capital purchases due to NIH funding uncertainties [7][29] - Despite capital market headwinds, consumable purchasing remained consistent across market segments, with government and pharma/biotech accounts showing stable demand [68] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [6][21] - New instrument acquisition options have been launched to address capital sales headwinds, allowing customers to purchase consumables without upfront capital investment [10][11] - The company remains confident in the long-term market opportunity in proteomics and is focused on growing its installed customer base [11][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of NIH funding uncertainties on capital sales and expressed optimism about the potential for growth through new acquisition models [29][30] - The company anticipates that the new models will help capture consumable revenue and improve overall financial performance in the long term [29][70] Other Important Information - The company reported total operating expenses of $30,500,000 for Q2 2025, an increase from $26,800,000 in Q2 2024, while adjusted operating expenses were $23,800,000, slightly down from $24,400,000 [26] - The company ended the quarter with $214,200,000 in cash, cash equivalents, and investments in marketable securities, providing a strong financial position [27][32] Q&A Session Summary Question: How much of the $591,000 revenue is overseas and in pharma/biotech? - The company does not break out revenue by specific segments but noted that 65% of its installed base is outside the U.S. and 35% is within [35] Question: Is $500,000 to $600,000 the bottom for revenue? - Management expressed optimism that this is the bottom and expects gradual improvement, though not instant [36][38] Question: What does a typical placement look like under the new model? - The company offers several models, including capital purchases, reagent rentals, and short-term placements based on consumable revenue potential [40] Question: Are there any trends in leads with the new acquisition opportunities? - Initial data suggests that customers who were previously interested but constrained by capital are now engaging with the new options [46][49] Question: Will Proteus be offered through new models? - Currently, there are no plans to offer Proteus through alternative models; the focus remains on capital sales [61] Question: How is consumable purchasing trending? - Consumable revenue was slightly ahead of expectations, with consistent purchasing across market segments despite capital sales challenges [68] Question: Are the new kits suitable for specific end markets? - The new kits are designed to meet the needs of pharma/biotech customers and are expected to enhance penetration in that segment [72] Question: Is the company considering partnerships or acquisitions given its cash position? - While the company is open to exploring opportunities, the primary focus remains on executing its core technology and business [80][81] Question: If revenue remains soft, where would cuts be made? - The company does not anticipate cuts in the commercial team but will remain targeted in its approach to R&D and operational expenses [85][90]

[Quantum-Si Q2 2025 Earnings Release](index=1&type=section&id=Quantum-Si%20Q2%202025%20Earnings%20Release) [Executive Summary and Business Highlights](index=1&type=section&id=Executive%20Summary%20and%20Business%20Highlights) Quantum-Si reported revenue growth, addressed commercial headwinds, advanced product development, and secured $50 million in capital - First half 2025 revenue grew **33%** year-over-year to **$1.4 million**[5](index=5&type=chunk) - Commercial slowdowns due to NIH funding challenges led to expanded instrument acquisition options to drive user base growth[4](index=4&type=chunk)[5](index=5&type=chunk) - Product development remains on schedule for Q3/Q4 2025 launches of the **v4 Sequencing Kit** and **v3 Library Preparation Kit**, with the **Proteus system prototype** on track for successful protein sequencing by end of 2025[4](index=4&type=chunk)[5](index=5&type=chunk) - A registered direct offering raised **$50 million** in gross proceeds, extending the cash runway into **Q2 2028**[5](index=5&type=chunk)[9](index=9&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Q2 2025 revenue was $591K, with increased operating expenses and a widened net loss, while adjusted EBITDA remained stable Q2 & H1 2025 Revenue and Gross Profit | Metric | Q2 2025 ($) | H1 2025 ($) | | :--- | :--- | :--- | | Revenue | $591,000 | $1.4 million | | Gross Profit | $351,000 | $837,000 | | Gross Margin | 59% | 58% | Operating Expenses Comparison (in millions) | Period | Total Operating Expenses (GAAP, $ millions) | Adjusted Total Operating Expenses (Non-GAAP, $ millions) | | :--- | :--- | :--- | | **Q2 2025** | $30.5 | $23.8 | | **Q2 2024** | $26.8 | $24.4 | | **H1 2025** | $56.1 | $46.6 | | **H1 2024** | $50.4 | $46.3 | Net Loss and Adjusted EBITDA Comparison (in millions) | Period | Net Loss (GAAP, $ millions) | Adjusted EBITDA (Non-GAAP, $ millions) | | :--- | :--- | :--- | | **Q2 2025** | $(28.8) | $(22.2) | | **Q2 2024** | $(23.1) | $(22.6) | | **H1 2025** | $(48.0) | $(43.7) | | **H1 2024** | $(42.6) | $(43.2) | - As of June 30, 2025, cash, cash equivalents, and marketable securities totaled **$214.2 million**, with a subsequent **$50 million** capital raise extending the operational runway into **Q2 2028**[9](index=9&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section details Quantum-Si's unaudited balance sheets, statements of operations, and GAAP to non-GAAP reconciliations [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects total assets of $254.4 million, with liabilities of $33.4 million and equity of $221.0 million Key Balance Sheet Items (in thousands) | Account | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $22,188 | $49,241 | | Marketable securities | $192,023 | $160,362 | | Total current assets | $226,474 | $218,009 | | Total assets | $254,406 | $247,871 | | Total current liabilities | $24,019 | $18,187 | | Total liabilities | $33,423 | $32,451 | | Total stockholders' equity | $220,983 | $215,420 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue was $591,000, with net loss widening to $28.8 million due to higher operating expenses and a legal settlement Statement of Operations Summary - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | | :--- | :--- | :--- | | Total revenue | $591 | $622 | | Gross profit | $351 | $354 | | Total operating expenses | $30,471 | $26,805 | | Loss from operations | $(30,120) | $(26,451) | | Net loss | $(28,836) | $(23,099) | | Net loss per share | $(0.16) | $(0.16) | Statement of Operations Summary - Six Months Ended June 30 (in thousands, except per share data) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | | :--- | :--- | :--- | | Total revenue | $1,433 | $1,079 | | Gross profit | $837 | $623 | | Total operating expenses | $56,069 | $50,434 | | Loss from operations | $(55,232) | $(49,811) | | Net loss | $(48,025) | $(42,573) | | Net loss per share | $(0.26) | $(0.30) | [Reconciliation of U.S. GAAP to Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, adjusting Q2 2025 net loss to negative $22.2 million Adjusted EBITDA Reconciliation to Adjusted EBITDA (in thousands) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | H1 2025 ($ thousands) | H1 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss (GAAP) | $(28,836) | $(23,099) | $(48,025) | $(42,573) | | Adjustments | $6,611 | $466 | $4,345 | $(2,403) | | Adjusted EBITDA (Non-GAAP) | $(22,225) | $(22,633) | $(43,680) | $(43,180) | Reconciliation to Adjusted Total Operating Expenses (in thousands) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | H1 2025 ($ thousands) | H1 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Total operating expenses (GAAP) | $30,471 | $26,805 | $56,069 | $50,434 | | Adjustments | $(6,704) | $(2,431) | $(9,444) | $(4,183) | | Adjusted total operating expenses (Non-GAAP) | $23,767 | $24,374 | $46,625 | $46,251 |

Core Insights - QuantumSi Incorporated (QSI) is set to report its second-quarter 2025 results on August 5, 2025, with projected revenues of $1.52 million, indicating a growth of 145.2% compared to the same quarter last year [1][9] - The consensus estimate for loss is 16 cents per share, consistent with the loss reported in the previous year [1][9] - QSI has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 18.35% [2] Revenue Growth Factors - QSI's first-quarter performance is expected to benefit from increased global traction, having established 23 international distribution partners, with 60% of instruments installed outside the U.S. [3] - The anticipated growth is driven by the adoption of the Platinum Pro system in the pharmaceutical and biotech sectors, alongside stability in R&D spending [4] - Upcoming product releases, including Version 4 Sequencing Kit and Version 3 of Library Preparation Kit, are expected to expand applications and growth opportunities [5] Market Challenges - Despite growth prospects, QSI faces challenges such as a slowdown in new instrument purchases attributed to uncertainties in NIH funding and weaknesses in the U.S. academic market [6][9] - The current Earnings ESP for QSI is 0.00%, and it holds a Zacks Rank of 3, indicating that the model does not predict an earnings beat this time [7]

Core Insights - Quantum-Si Incorporated (NASDAQ: QSI) was previously noted at a price of $3.60, which met the technical criteria for purchase, indicating potential investment interest [1] Group 1 - The company is being monitored for investment opportunities as the individual investor aims to build financial assets for retirement [1] - There is an interest in both long and short trading strategies, including the use of inverse ETFs to capitalize on market declines [1] - The focus is on developing winning trades through proper execution of trading plans and learning from feedback [1]

Core Viewpoint - Quantum-Si Incorporated reported a quarterly loss of $0.11 per share, which was better than the Zacks Consensus Estimate of a loss of $0.17, indicating a 35.29% earnings surprise [1] Financial Performance - The company posted revenues of $0.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 16.63%, compared to revenues of $0.46 million a year ago [2] - Over the last four quarters, Quantum-Si has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $2.21 million, and for the current fiscal year, it is -$0.66 on revenues of $8.78 million [7] Stock Performance - Quantum-Si shares have declined approximately 43.7% since the beginning of the year, while the S&P 500 has gained 0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Electronics - Semiconductors industry is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]