Quantum-Si incorporated Q2 FY2025 earnings call

Corporate Priorities

• Accelerate Commercial Adoption: Q2 2025 marked the first full quarter with NIH funding and indirect cost cap uncertainties, leading to near halt in U.S. academic lab capital purchases. Revenue driven by capital sales of new instruments. Consumable purchases were ahead of expectations. Commercial team doubled pharma/biotech opportunities funnel. Launched expanded instrument acquisition options including capital purchase, reagent rental, third-party leasing, and short-term placement with monitoring.
• Deliver on Innovation Roadmap: Version 4 sequencing kit undergoing validation, launching soon with expanded barcodes. Version 3 library preparation kit on track for end-2025, lowering sample input quantity. Proteus development program on track to perform protein sequencing on prototype by end-2025. AI-based recognizer design using proprietary data set and PTM detection initiatives in development.
• Preserve Financial Strength: Priced a $50 million registered direct offering, with $214.2 million in cash, cash equivalents, and marketable securities as of June 30, 2025. Monitored tariffs with minor impacts on inventory acquisition costs so far, and scientific/medical devices historically exempt from import tariffs.

In the second quarter of 2025, Quantum-Si reported revenue of $591,000. For the 6 months ended June 30, 2025, revenue was $1.4 million. Gross profit in Q2 was $351,000 with a gross margin of 59%, and for the 6 months, gross profit was $837,000 with a gross margin of 58%. Consumable purchases in the quarter were slightly ahead of expectations across all market segments, with consistent purchasing observed in pharma, biotech, government, and existing U.S. academic customers despite capital purchase headwinds.

Providing top-line financial guidance is challenging due to NIH funding uncertainty and new acquisition models in early stages. Revised adjusted operating expenses to $98 million or less and total cash use to $95 million or less. Aim to provide clarity as new acquisition models gain momentum and NIH funding environment clarifies.

• NIH funding uncertainty impacting capital purchases and overall market uncertainty for capital device manufacturers.
• Minor tariff impacts on inventory acquisition costs, with mitigation strategies in place.
• Uncertainty around NIH funding environment affecting ability to provide clear top-line financial guidance.

Q: How much of Q2 revenue is overseas and in pharma biotech?

A: Installed base is ~65% outside the U.S. and ~35% in the U.S., encompassing all customer types including academic, government, pharma, and biotech.

Q: Example of new acquisition model?

A: Offer capital purchase, reagent rental with minimum consumable requirements, third-party leasing, and short-term placement with monitoring of consumable usage to potentially convert to capital sales or other models.

Q: Impact of new kits on end markets?

A: V4 sequencing kit benefits pharma biotech with expanded barcodes, while V3 library preparation kit is broadly applicable for complex biological sample research across segments.

Q: Timing of PTM capabilities commercial release?

A: Details to be shared at upcoming Investor Day, with development ongoing to provide site-specific peptide-linked PTM detection.

Q: Capital expenditure and R&D focus?

A: Focus on core technology and business with tight cost controls, R&D on track with milestones like Proteus development and kit launches, and strategic approach to fine-tuning and prioritizing programs.