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]

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]