Quantum-Si incorporated Q3 FY2025 earnings call

Corporate Priorities

• Accelerate commercial adoption: Revenue impacted by capital sales headwinds, but 12 new customers with instrument placements, over half in academic labs. Launched expanded instrument acquisition options. Partnership with Broad Institute progressing.
• Deliver on innovation roadmap: Successfully completed sequencing runs on Proteus prototype; version 4 sequencing kit launched in early September; version 3 library preparation kit in internal validation; amino acid recognizer development program leveraging proprietary data and AI.
• Preserve financial strength: Strong balance sheet; lease termination in New Haven saved over $24M in future operating expenses; filed Form S-3 shelf registration and ATM facility for capital capacity.

In the third quarter of 2025, Quantum-Si's revenue was $552,000. Gross profit was $194,000 with a gross margin of 35%. For the 9 months ended September 30, 2025, revenue was $2.0 million, gross profit was $1.0 million, and gross margin was 52%. The revenue in the third quarter was impacted by capital market headwinds and NIH funding challenges. The alternative capital acquisition models, like instrument placements, are helping broaden the installed base, though they don't generate instrument revenue but contribute to consumable volume and awareness.

Guidance

• Adjusted operating expenses expected to be $96 million or less and total cash use $103 million or less. This includes a net $10.2 million payment under the lease termination agreement. The company filed a Form S-3 shelf registration statement for $300 million total capacity and an at-the-market facility utilizing $100 million of that shelf capacity to support business and strategic initiatives.

Risks

• Capital market headwinds impacting short-term commercial results.
• NIH funding challenges affecting access to academic labs.
• Geopolitical factors and uncertainties potentially impacting customers' ability to make capital purchases.
• Potential delays in product launches or challenges in optimizing technologies like Proteus and library preparation kits.

Q: Could you elaborate on what you discussed at the Investor Day in November and updates on the Proteus sequencer?

A: At the Investor Day on November 19, they'll provide more updates on Proteus, including early sequencing data, progress on the recognizer development program, and milestones for 2026 related to Proteus launch.

Q: Any comment on involvement in DARPA's PROS program?

A: Aware of the program, participated in industry/academia interactions, but their approach doesn't perfectly match DARPA's micro system strategy, but they're supporting existing Department of Defense labs using their technology.

Q: Break down placements by academia vs biopharma?

A: More than half of the 12 placements in the quarter were in academic labs; the other half split across pharma, biotech, and ag; academic labs are key for publications to validate tech and build momentum for Proteus.

Q: Thoughts on seasonal trend from third to fourth quarter?

A: Historically fourth quarter is up, but current geopolitical and NIH funding uncertainties may limit a significant upswing, but modest improvement possible.

Q: How many academic centers entered the placement program and internal targets?

A: More than half of 12 placements in the quarter were academic; no specific target, but focusing on high-value academic centers and segments to build publications and Proteus pipeline.