908 Devices(MASS) - 2025 Q2 - Quarterly Results

Q2 2025 Performance and Outlook 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 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][6] - 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][9] - 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] - 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] 2025 Revenue Outlook Update 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) 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 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] Gross Profit and Margin Analysis 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] Operating Expenses Breakdown 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] Net Loss and Adjusted EBITDA 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] Balance Sheet and Liquidity 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 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 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][15] - 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] - The company designs and manufactures innovative products that combine complementary analytical technologies, software automation, and machine learning[15] Non-GAAP Financial Measures Definitions 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] - Adjusted gross margin is defined as adjusted gross profit expressed as a percentage of total revenue[17] - 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] Important Disclosures & Other Information 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 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] - 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] - 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] Investor and Media Contacts Provides contact details for investor relations and media inquiries - Investor Contact: Carrie Mendivil, IR@908devices.com[19] - Media Contact: Barbara Russo, brusso@908devices.com[19] Webcast Information 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] - 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] Condensed Consolidated Financial Statements 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 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 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 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) |