Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $842,000, representing an 84% increase compared to Q1 2024, although it was slightly below expectations [7][18] - Gross profit was $486,000 with a gross margin of 58%, influenced by low or no-cost inventory utilized during the quarter [18][19] - Total operating expenses for Q1 2025 were $25.6 million, up from $23.6 million in Q1 2024, while adjusted operating expenses were $22.9 million compared to $21.9 million in the previous year [19][20] Business Line Data and Key Metrics Changes - The launch of the Platinum Pro system occurred during the first quarter, with initial customer sales reported [6][7] - Existing US academic customers continued to purchase consumables, despite a slowdown in new instrument purchases due to NIH funding uncertainties [8][19] Market Data and Key Metrics Changes - The US academic market is experiencing a slowdown in new instrument purchases, expected to persist until at least fall 2025 [7][8] - The company has 23 international distribution partners, and international business performed well during the first quarter [9][20] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [6][10] - Emphasis is being placed on the pharma and biotech sectors in the US market due to ongoing NIH funding uncertainties [8][10] - The technology roadmap includes the launch of Version four sequencing kits in Q3 2025 and improvements in library preparation kits by the end of 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity in proteomics despite current market uncertainties [17][23] - The company is monitoring potential impacts from evolving tariffs and has strategies in place to mitigate long-term effects [20][21] Other Important Information - The company has $232.6 million in cash and cash equivalents as of March 31, 2025, providing a runway into the second half of 2027 [20][23] - The company is focused on maintaining its technology leadership and is committed to investing wisely in R&D and commercialization efforts [45][46] Q&A Session Summary Question: Concerns about biopharma spending and tariffs - Management noted that current funding levels in biotech and pharma are stable and not significantly impacted by policy discussions [28][29] Question: Feedback on the Platinum Pro system - The system is considered locked down, with positive feedback from early adopters regarding reliability and performance [31][32] Question: Future gross margin expectations - Historical margins are expected to remain in the 40% to 50% range, with variability based on product mix and sales [37][38] Question: Cash runway and potential need for additional capital - The company has sufficient cash to sustain operations through the second half of 2027, with a focus on targeted investments [41][46] Question: International distribution partners and tariff impacts - No significant tariff impacts have been observed, and the distribution network has expanded to 23 partners covering multiple countries [49][50] Question: Sequencing kit improvements and market competition - The next version of the sequencing kit will provide meaningful performance improvements, with a focus on maintaining a competitive edge [72][76]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $842,000, representing an 84% increase compared to Q1 2024, although it was slightly below expectations [7][19] - Gross profit was $486,000 with a gross margin of 58%, influenced by low or no cost inventory utilized during the quarter [19][20] - Total operating expenses for Q1 2025 were $25.6 million, up from $23.6 million in Q1 2024, while adjusted operating expenses were $22.9 million compared to $21.9 million in the prior year [20][24] Business Line Data and Key Metrics Changes - The launch of the Platinum Pro system occurred in Q1 2025, with initial customer sales reported [6][7] - Existing US academic customers continued to purchase consumables despite a slowdown in new instrument purchases due to NIH funding uncertainties [8][19] - The company is focusing on growth opportunities in the pharma and biotech sectors, with a completed training program for Avantor, their North American distribution partner [8][10] Market Data and Key Metrics Changes - The US academic market is experiencing uncertainties related to NIH funding, which is expected to impact new instrument sales until at least fall 2025 [8][23] - Internationally, the company has 23 distribution partners and is optimistic about growth opportunities in pharma and biotech across these regions [9][10] - Approximately 60% of instrument installations are outside the US, with 20% of total business derived from the US academic market [56] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [6][18] - The technology roadmap includes the launch of a Version 4 sequencing kit in Q3 2025 and a Version 3 library preparation kit by the end of 2025 [11][12] - The Proteus development program is on track for a prototype demonstration by the end of 2025, with a launch expected in the second half of 2026 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity in proteomics despite current market uncertainties [18][23] - The company is monitoring potential impacts from evolving tariffs but does not anticipate significant near-term effects on inventory acquisition costs [21][22] - Future financial guidance remains uncertain due to the NIH funding environment, but the company expects to maintain cash reserves into the second half of 2027 [24][39] Other Important Information - The company has a strong balance sheet with $232.6 million in cash and cash equivalents as of March 31, 2025 [21] - The gross margin for Q1 2025 included a 7% benefit from low or no-cost inventory, indicating variability in future margins [20][36] Q&A Session Summary Question: Concerns about biopharma spending and tariffs - Management noted that current funding levels in biotech and pharma remain stable despite discussions around tariffs and pricing policies [28] Question: Feedback on the Platinum Pro launch - The Platinum Pro system is considered locked down, with positive feedback from early adopters regarding its reliability and features [30] Question: Future gross margin and cost of goods - Historical margins are expected to remain in the 40% to 50% range, with variability based on instrument and consumable sales mix [36] Question: Cash runway and potential adjustments in spending - The company has sufficient cash to sustain operations through 2027 and plans to invest wisely while monitoring market conditions [41][45] Question: International distribution partners and tariff impacts - No significant tariff impacts have been observed, and the company has expanded its distribution network to 23 partners [46][47] Question: Market share in the NIH/academic sector - Approximately 20% of the company's business is derived from the US academic market, with significant growth potential remaining [56] Question: Avantor relationship and early progress - Training for Avantor's team is complete, and early activity levels are promising, with ongoing support from the company [62]

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Quantum-Si reported increased Q1 2025 revenue driven by instrument and consumable sales, a slightly improved net loss, and enhanced liquidity from an equity offering Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenue | $842 | $457 | | Gross Profit | $486 | $269 | | Loss from Operations | $(25,112) | $(23,360) | | Net Loss | $(19,189) | $(19,474) | | Net Loss per Share | $(0.11) | $(0.14) | Condensed Consolidated Balance Sheets (As of March 31, 2025) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $37,293 | $49,241 | | Marketable securities | $195,308 | $160,362 | | Total Assets | $271,222 | $247,871 | | Total Liabilities | $24,302 | $32,451 | | Total Stockholders' Equity | $246,920 | $215,420 | - The company believes its current cash, cash equivalents, and marketable securities of **$232.6 million** as of March 31, 2025, are sufficient to fund planned operations for at least the next twelve months[28](index=28&type=chunk) - On January 3, 2025, the company completed a registered direct offering, issuing 15,625,000 shares of Class A common stock for gross proceeds of **$50.0 million**, with net proceeds of approximately **$46.8 million**[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 revenue growth to improved sales execution and new product launches, with increased operating expenses offset by a financing offering that bolstered liquidity - The company began a full commercial launch of its Platinum instrument in Q2 2024 and launched the Platinum Pro benchtop sequencer in January 2025, with first shipments in March 2025[104](index=104&type=chunk)[117](index=117&type=chunk) Results of Operations Comparison (Q1 2025 vs Q1 2024) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $842 | $457 | 84.2% | | Gross Profit | $486 | $269 | 80.7% | | R&D Expenses | $13,717 | $12,101 | 13.4% | | SG&A Expenses | $11,881 | $11,528 | 3.1% | | Loss from Operations | $(25,112) | $(23,360) | 7.5% | - R&D expenses increased by **$1.6 million** (13.4%) due to a **$1.7 million** increase in fabrication and outsourced services related to the development of the recently announced Proteus™ platform[119](index=119&type=chunk) - Net cash used in operating activities was **$26.2 million** for Q1 2025, compared to **$23.2 million** in Q1 2024, primarily due to the net loss and changes in operating assets and liabilities[127](index=127&type=chunk)[128](index=128&type=chunk) - Net cash provided by financing activities was **$48.4 million** in Q1 2025, a significant increase from a **$0.1 million** use of cash in Q1 2024, mainly due to **$46.8 million** in net proceeds from the Registered Direct Offering[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies inflation, interest rate, and foreign currency as its primary market risks, noting inflation's impact on costs, minimal interest rate risk from short-term investments, and currently immaterial foreign currency risk - Inflation is identified as a risk that has impacted the cost of supplies and manufacturing components, which could harm business if not offset by price increases or efficiencies[147](index=147&type=chunk) - Interest rate risk is considered minimal as investments are primarily in short-term, high-quality securities with a primary objective of capital preservation[149](index=149&type=chunk) - Foreign currency risk is currently not material as most business is conducted in U.S. dollars, but this could change with planned international expansion[150](index=150&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[152](index=152&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[153](index=153&type=chunk) [Part II. Other Information](index=38&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a class action lawsuit and disputes with a former manufacturer and a landlord, with details in Note 17 - The company is subject to several legal proceedings, including the Delaware Stockholder Litigation, a dispute with a former contract manufacturer, and a lawsuit against a landlord over lease incentives, with outcomes not currently estimable or probable[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company highlights risks associated with its use of artificial intelligence, including evolving regulations, increased compliance costs, potential lawsuits, and data exposure - A key risk factor is the use of artificial intelligence (AI), which is subject to evolving laws and regulations[157](index=157&type=chunk) - Potential risks associated with AI include additional compliance costs, regulatory investigations, lawsuits, and the exposure of sensitive data or intellectual property[158](index=158&type=chunk)[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is reported as not applicable for the period [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is reported as not applicable for the period [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is reported as not applicable for the period [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[164](index=164&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications and Inline XBRL documents

Financial Performance - Revenue for Q1 2025 was $842,000, representing an 84% increase compared to Q1 2024[6] - Gross profit for the quarter was $486,000, with a gross margin of 58%[4] - Net loss for Q1 2025 was $19.2 million, slightly improved from a net loss of $19.5 million in Q1 2024[7] - Adjusted EBITDA was negative $21.5 million, compared to negative $20.5 million in the prior year[7] - Net loss for Q1 2025 was $19,189, compared to a net loss of $19,474 in Q1 2024, showing a slight improvement[21] - Adjusted EBITDA for Q1 2025 was $(21,455), compared to $(20,547) in Q1 2024, indicating a decline[21] Operating Expenses - Total operating expenses were $25.6 million, up from $23.6 million in the same period last year[5] - Total operating expenses increased to $25,598 in Q1 2025 from $23,629 in Q1 2024, reflecting a rise of approximately 8.3%[21] - Adjusted total operating expenses for Q1 2025 were $22,858, up from $21,877 in Q1 2024, marking an increase of about 4.5%[21] - Stock-based compensation rose to $2,362 in Q1 2025 from $1,609 in Q1 2024, representing a significant increase of approximately 46.6%[21] - Restructuring costs decreased slightly to $134 in Q1 2025 from $143 in Q1 2024[21] - Other non-recurring operating expenses were $244 in Q1 2025, compared to none in Q1 2024, indicating the introduction of new expenses[21] Cash and Financing - The company completed a $50 million registered direct offering, netting proceeds of $46.8 million[8] - Cash and cash equivalents as of March 31, 2025, totaled $232.6 million, providing a cash runway into the second half of 2027[8] Product Development - The company launched the Platinum Pro units and is on track for the Q3 2025 launch of the version 4 Sequencing Kit[6] - Development of a new version 3 Library Preparation Kit is expected to launch by the end of 2025[6] Market Expansion - The international channel partner network has expanded to 23 partners, reflecting strong momentum in international markets[3] Other Financial Metrics - The change in fair value of warrant liabilities was $(3,401) in Q1 2025, compared to $(319) in Q1 2024, indicating a notable increase in liability[21] - Dividend and interest income decreased to $(2,547) in Q1 2025 from $(3,574) in Q1 2024, showing a decline of approximately 28.7%[21] - Depreciation and amortization expenses decreased to $917 in Q1 2025 from $1,061 in Q1 2024, reflecting a reduction of about 13.5%[21]

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were approximately $1.2 million, representing a 52% increase over Q3 2024 and a 183% increase year-over-year [11][35] - Full year 2024 revenues reached $3.1 million, with a gross profit of $1.6 million and a gross margin of 52% [37][38] - Gross profit for Q4 2024 was $610,000, with a gross margin of 51% [35][36] Business Line Data and Key Metrics Changes - The company achieved its first quarter exceeding $1 million in revenue, driven by the commercial launch of the Platinum instrument [10] - The customer base diversified significantly, now including academic, biotech, pharma, government, and contract research organizations [10][12] - The company sold its fiftieth Platinum instrument during Q4 2024, marking a significant milestone [12] Market Data and Key Metrics Changes - The international distribution channel expanded to eighteen partners, enhancing access to global markets [14] - The company noted a growing interest in proteomics research in regions with limited access to traditional high-cost instruments, indicating a potential market opportunity [15] Company Strategy and Development Direction - The company focuses on three corporate priorities: accelerating commercial adoption, delivering on the innovation roadmap, and preserving financial strength [9] - The launch of the Platinum Pro system is expected to enhance user experience and expand market reach [24] - The Proteus platform is anticipated to launch in the second half of 2026, aiming to significantly increase proteome coverage and workflow automation [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the international market opportunities and the potential impact of the Avantor partnership on sales [44][56] - There is uncertainty regarding NIH funding for 2025, which may affect the academic research market, but other segments are expected to remain stable [45][46] - For Q1 2025, the company anticipates revenue of at least $900,000, representing approximately 100% year-over-year growth [46] Other Important Information - The company raised capital through its at-the-market facility, providing an extended cash runway into the second half of 2027 [43][34] - A dedicated scientific affairs team was established to enhance collaboration with customers and promote the value of next-generation protein sequencing [16] Q&A Session Summary Question: Did you sell any Platinum Pro systems since the announcement? - The company expects to start shipping the Platinum Pro before the end of the quarter and has not seen any impact on Platinum sales yet [50] Question: Was any of the $1.2 million in Q4 pushed from Q3 or pulled forward from Q1 2025? - Management confirmed that nothing was pushed from Q3, but some end-of-year buying decisions occurred in Q4 [53][54] Question: What are the expectations for the Avantor partnership this year? - The partnership is in the training and implementation phase, with expected contributions in Q2 and more acceleration in the second half of the year [59] Question: How is the sales cycle evolving with more customers? - The sales cycle is longer than historically seen for similar instruments, but management is comfortable with its current predictability [84] Question: What are the largest markets and untapped opportunities? - The customer base is now about 50% academic and 50% other segments, with significant international opportunities identified [86][90] Question: What is the status of the internal commercial team expansion? - The commercial team is staffed as expected, with most sales professionals in the field and some still in training [95][99]

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were approximately $1.2 million, representing a 52% increase over Q3 2024 and a 183% increase year-over-year [11][35] - Full year 2024 revenues reached $3.1 million, with a gross profit of $1.6 million and a gross margin of 52% [37][38] - Gross profit for Q4 2024 was $610,000, with a gross margin of 51% [35][36] Business Line Data and Key Metrics Changes - The company achieved its first quarter exceeding $1 million in revenue, driven by the commercialization of the Platinum instrument [10] - The customer base diversified significantly, now including academic, biotech, pharma, government, and contract research organizations [10][11] - The company sold its fiftieth Platinum instrument in Q4 2024, marking a significant milestone [12] Market Data and Key Metrics Changes - The company established an international distribution channel with eighteen partners, expanding its market presence in Western Europe, Eastern Europe, Asia, the Middle East, Africa, South America, and the South Pacific [14] - The company noted a growing interest in proteomics research in regions where traditional instruments are cost-prohibitive, positioning its low-cost Platinum technology as an accessible option [15] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [9] - Plans for 2025 include launching a version four sequencing kit and continuing to develop the Proteus platform, expected to launch in the second half of 2026 [24][30] - The establishment of a scientific advisory board to enhance collaboration and expand the utility of next-generation protein sequencing [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the international market opportunities and the potential impact of the Avantor partnership, expecting contributions to revenue in the second half of 2025 [44][59] - There is uncertainty regarding NIH funding for 2025, which may affect the academic research market, but other segments like pharma and biotech are expected to remain stable [45][46] - The company anticipates Q1 2025 revenue to be at least $900,000, reflecting a 100% year-over-year growth [46] Other Important Information - The company raised capital through its at-the-market facility, providing an extended cash runway into the second half of 2027 [43] - Adjusted operating expenses for 2025 are projected to be $103 million or less, with total estimated cash usage of $95 million or less [47] Q&A Session Summary Question: Did you sell any Platinum Pro systems since the announcement? - Management confirmed that they expect to start shipping the Platinum Pro before the end of the quarter and have not seen any impact on Platinum sales yet [50][51] Question: Was any of the $1.2 million in Q4 pushed from Q3 or pulled forward from Q1 2025? - Management stated that nothing was pushed from Q3, but some end-of-year buying decisions occurred in Q4 [52][53][54] Question: What are the expectations for the Avantor partnership this year? - Management indicated that Q1 is focused on training and implementation, with expected contributions from the partnership in Q2 and more acceleration in the second half of the year [55][59] Question: Are you seeing a more predictable cadence to sales cycles? - Management acknowledged that the sales cycle is longer than historically seen but is now more consistent [83][84] Question: What is the largest market opportunity and any untapped markets? - Management noted a 50-50 split between academic and other segments, with significant international opportunities identified as untapped markets [86][88][90] Question: Have you expanded your internal commercial team? - Management confirmed that the commercial team is staffed as expected, with some new hires still in training, and they anticipate seeing impacts in the back half of 2025 [93][99]

Group 1: Financial Performance - Quantum-Si Incorporated reported a quarterly loss of $0.18 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.16 per share a year ago [1] - The company posted revenues of $1.19 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 20%, and this is an increase from revenues of $0.4 million a year ago [2] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $1.8 million, and for the current fiscal year, it is -$0.75 on revenues of $9.31 million [7] Group 2: Market Performance - Quantum-Si Incorporated shares have declined approximately 48.9% since the beginning of the year, while the S&P 500 has gained 1.2% [3] - The company has surpassed consensus EPS estimates three times over the last four quarters, but has only topped consensus revenue estimates once in the same period [2][1] Group 3: Industry Outlook - The Electronics - Semiconductors industry, to which Quantum-Si belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Quantum-Si's stock performance [5] Group 4: Future Expectations - The sustainability of Quantum-Si's stock price movement will largely depend on management's commentary during the earnings call and the outlook for future earnings [3][4] - The current estimate revisions trend for Quantum-Si is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Quantum-Si incurred net losses of $101.0 million, $96.0 million, and $132.4 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $596.6 million as of December 31, 2024[125]. - The company generated limited product revenue since the controlled launch of its first product, Platinum for RUO, in December 2022, and may never generate sufficient revenue to offset expenses[125]. - As of December 31, 2024, Quantum-Si had cash and cash equivalents totaling $209.6 million, expected to fund operations for at least the next twelve months[131]. - The company has recorded a full valuation allowance related to its NOLs and other deferred tax assets due to uncertainty regarding the realization of future benefits[200]. - As of December 31, 2024, the company had federal net operating loss carryforwards (NOLs) of approximately $388.3 million, with $65.5 million set to expire in 2033 if not utilized[199]. Market and Commercialization Risks - The commercialization plan for Platinum includes three phases: early access limited release, controlled commercial launch, and broad commercial availability, but progress may not occur as planned[135]. - The market for proteomics and genomics technologies is evolving, making it difficult to predict the size of the markets for current and future products[141]. - The success of Quantum-Si's products depends on broad scientific and market acceptance, which may take longer than anticipated, leading to continued operating losses[137]. - The total addressable market estimates for Quantum-Si's products may be incorrect, impacting the company's ability to successfully sell its products[143]. - The company anticipates that a significant portion of its revenue will depend on research and development spending by academic institutions, which is influenced by external budgetary constraints[162]. Operational Challenges - The company faces risks related to unforeseen expenses and challenges as it transitions from a research-focused entity to one capable of supporting commercial activities[127]. - The company may need to raise additional capital to fund ongoing research, development, and commercialization activities, which could adversely affect stockholder rights[133]. - The company experienced a workforce reduction of approximately 12%, 16%, and 23% in January and August 2023, and November 2024, respectively, as part of organizational restructurings aimed at decreasing costs[155]. - The company must navigate the complexities of recruiting and retaining qualified personnel, particularly in a competitive market for scientific and technical talent[158]. - The company faces potential additional costs and delays if it needs to switch contract manufacturers for its products, which could adversely affect its business[167]. Supply Chain and Manufacturing Risks - The company relies on contract manufacturers for its instruments and consumables, and any failure or unsatisfactory performance from these manufacturers could adversely affect commercialization efforts[165]. - The company relies on a limited number of suppliers for certain components, and losing a supplier could disrupt its ability to deliver products, impacting financial results[168]. - The company’s internal manufacturing equipment is specialized, and any failure could significantly hinder semiconductor chip production[169]. - The company relies on third-party foundries for silicon wafer production, and any failure in these partnerships could disrupt semiconductor chip supply[182]. Regulatory and Compliance Risks - The company is subject to various regulatory and operational risks when commercializing products internationally, which could impact financial results[175]. - The FDA's proposed rule to regulate Laboratory-Developed Tests (LDTs) could disrupt the industry and impact the company's sales and business model[221]. - Legislative efforts, such as the VALID Act, aim to create a new category for in vitro clinical tests, which may affect how the company markets its products[221]. - The company must comply with increasingly rigorous data privacy and security regulations, which could impact its operations and revenue[231]. - The company is currently evaluating its compliance obligations related to data protection laws and does not have formal policies in place for data storage, collection, and processing[235]. Intellectual Property Risks - The company relies on patent protection for its products, but uncertainties in patent laws may adversely affect its competitive position[240]. - The patent application process is costly and time-consuming, and failure to secure patents could expose the company to increased competition[242]. - The company may face claims regarding the inventorship of patents, which could lead to costly litigation and loss of valuable intellectual property rights[261]. - The company may incur substantial costs and distractions from defending against claims of wrongful use or disclosure of trade secrets by employees or contractors[264]. - The company may face significant costs and resource diversion due to potential intellectual property litigation, which could adversely affect its business and financial condition[271]. Cybersecurity Risks - Cybersecurity incidents pose a significant risk to the company's operations, potentially leading to financial, legal, and reputational harm[206]. - The company may face significant costs related to protecting against and responding to cybersecurity incidents, which could impact its financial condition[209]. - The company has implemented significant resources to maintain a secure information infrastructure, focusing on cybersecurity as a key element of risk management[310]. - The company has experienced a ransomware incident in August 2020 but did not pay the ransom due to sufficient data backups, leading to enhanced security measures[315]. - The Chief Financial Officer will provide quarterly updates to the Audit Committee on cyber risk topics, including incident response and material threats[317]. Governance and Control Risks - The company may face material weaknesses in internal control over financial reporting, which could adversely affect investor confidence and the accuracy of financial reporting[291]. - The dual class structure of the company's common stock concentrates voting power with Dr. Rothberg, potentially limiting other shareholders' ability to influence important transactions[303]. - The company has a risk of litigation related to restatements and material weaknesses in financial reporting, which could adversely affect its business and financial condition[295]. - The Board of Directors oversees risk management activities, including cybersecurity threats, with the Audit Committee specifically tasked with this oversight[316].

Financial Performance - The company reported revenue of $1.2 million for Q4 2024, with a full year revenue of $3.1 million, representing a 183% year-over-year growth[6] - Total revenue for Q4 2024 was $1,192 million, a significant increase from $400 million in Q4 2023, representing a growth of 198% year-over-year[19] - Product revenue reached $1,149 million in Q4 2024, compared to $377 million in Q4 2023, marking a 205% increase[19] - A net loss of $33.1 million was recorded in Q4 2024, compared to a net loss of $22.0 million in the same period of the prior year[8] - Net loss for Q4 2024 was $33,121 million, compared to a net loss of $22,048 million in Q4 2023, indicating a deterioration in financial performance[21] - Comprehensive loss for Q4 2024 was $33,229 million, compared to $22,048 million in Q4 2023, indicating an increase in overall losses[19] Operating Expenses - Total operating expenses for Q4 2024 were $31.3 million, compared to $28.1 million in the same period of the prior year[6] - Total operating expenses for Q4 2024 were $31,287 million, up from $28,061 million in Q4 2023, reflecting an increase of 8.0%[21] - Research and development expenses for the year 2024 totaled $59,641 million, down from $67,025 million in 2023, a decrease of 11%[19] - Selling, general and administrative expenses for the year 2024 were $50,535 million, compared to $44,634 million in 2023, an increase of 13.5%[19] Profitability Metrics - Gross profit for Q4 2024 was $0.6 million, resulting in a gross margin of 51%, while the full year gross margin was 52%[5] - The company reported a gross profit of $610 million for Q4 2024, up from $178 million in Q4 2023, representing a growth of 242%[19] - Adjusted EBITDA for Q4 2024 was negative $25.1 million, consistent with the same period in the prior year[8] - Adjusted EBITDA for Q4 2024 was $(25,143) million, slightly worse than $(25,078) million in Q4 2023[21] Capital and Cash Position - The company raised over $86 million in capital between Q4 2024 and the first week of 2025, extending its cash runway into the second half of 2027[6] - As of December 31, 2024, the company's cash and cash equivalents and investments in marketable securities totaled $209.6 million[9] Product Development and Launches - The company announced the launch of the Platinum Pro instrument in January 2025, with shipping expected to commence in Q1 2025[6] - The company plans to launch a new version 4 Sequencing Kit in Q3 2025[6] - The company has a strong pipeline of scientific data expected to be released throughout 2025, aimed at maximizing customer adoption[4] Shareholder Metrics - The weighted-average shares used to compute net loss per share for Q4 2024 were 146,329 thousand, compared to 141,575 thousand in Q4 2023[19]

Core Viewpoint - QuantumSi Incorporated (QSI) is expected to report significant revenue growth in its fourth-quarter 2024 results, with a consensus estimate of $1.49 million, reflecting a 272.5% increase year-over-year, despite an anticipated loss of 18 cents per share [2][4]. Group 1: Earnings Expectations - QSI's fourth-quarter performance is anticipated to benefit from year-end capital spending trends and new product launches, with expectations to exceed $1 million in quarterly revenues for the first time [4][5]. - The company has consistently beaten the Zacks Consensus Estimate in the previous four quarters, with an average surprise of 19.31% [3]. Group 2: Product Developments - QSI is set to release new products, including a library preparation kit and a barcoding kit, which are expected to enhance sample processing efficiency and attract more customers [6][17]. - The company is actively engaging with the scientific community to raise awareness of its Platinum platform, which may lead to increased customer adoption [7]. Group 3: Market Performance - QSI shares have declined by 43.7% year-to-date, underperforming the broader Zacks Computer & Technology sector and the Zacks Electronics - Semiconductors industry [8][11]. - Compared to peers like Agilent Technologies, Quanterix, and Seer, which have experienced smaller declines, QSI's performance has been notably weaker [11]. Group 4: Valuation and Financial Outlook - QSI is currently trading at a forward Price/Sales ratio of 18.61, significantly higher than the sector average of 6.28, indicating a stretched valuation [12]. - The company anticipates not meeting its full-year revenue guidance due to delayed customer purchases and a slower sales ramp-up, despite expecting sequential revenue growth in Q4 2024 [19][20].