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

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

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

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.