908 Devices Inc. Q4 FY2025 earnings call

• Kevin expressed appreciation to the team for execution and strategic transformation. Q4 revenue driven by Explorer gas identification device, new product Viper, and U.S. state/local adoption. Achieved positive adjusted EBITDA of $0.7 million in Q4. Full-year revenue $56.2 million, up 18% y-o-y. 22% y-o-y growth in recurring revenue, 35% of 2025 revenues. - Progress across three strategic focus areas: increasing adoption of devices for public health/safety, advancing next-gen analytical tools portfolio (Viper launched, MX908 enhanced), and strengthening financial position. - 2026 strategic focus areas: scale-proven platforms, extend platform leadership, strengthen revenue durability.

In Q4 2025, revenue from continuing operations was $17.4 million, up 21% y-o-y. Handheld product and service revenue was $16 million, up 18% y-o-y. MX-908 product and service revenue was relatively flat. Program product and service revenue was $0.3 million. OEM and funded partnership revenue was $1 million. Recurring revenue was $5.5 million, 32% of total revenues. For full year 2025, revenue from continuing operations was $56.2 million, up 18% y-o-y. Recurring revenue was $19.5 million, 35% of total revenues. State and local sales grew 38% to ~$24 million, 43% of 2025 revenues.

• Expect revenue in 2026 to be $64.5 - $67.5 million, 15% - 20% growth over 2025. - Handheld product and service revenue expected to grow 13% - 17% y-o-y, range $59.5 - $61.5 million. - OEM and funded partnerships expected ~$3 million. - ADCAP program revenue expected $2 - $3 million, likely in second half of 2026. - Adjusted gross margins expected mid to high 50% range for 2026, targeting margin expansion of at least 100 basis points. - Expect to cut 2025 adjusted EBITDA loss in half for 2026, reducing to mid-single-digit millions.

Q: About relationship with Mountain Horse, why and economics?

A: Consolidated to one partner for procurement efficiency, predictability, etc. Danbury manufacturing helps with adjusted gross margin.

Q: On NextGen MX 908 platform?

A: Commercial launch later in 2026, disrupting themselves, high differentiation.

Q: On 2026 growth guidance range?

A: Drivers include Viper, Explorer, international growth, AVCAD.

Q: On Middle East conflict impact?

A: Not seeing meaningful immediate impact.

Q: On op expenses ticking higher?

A: Adding folks for state/local commercial efforts, international expansion, with state/local having more immediate contribution.