908 Devices Reports Second Quarter 2025 Financial Results and Raises 2025 Revenue Outlook
Revenue from continuing operations grew
“We executed with urgency and discipline in the second quarter, driving strong top-line growth while advancing key structural initiatives to strengthen our financial profile,” said Kevin J. Knopp, CEO and Co-founder. “We delivered record XplorIR placements, successfully launched VipIR, and made meaningful progress on our path to profitability. These achievements reinforce our confidence in hitting both our revenue and adjusted EBITDA targets for 2025. Looking ahead, we see clear momentum building, fueled by an improving funding landscape in the
Recent Highlights
-
Total revenue was
$13.0 million 14% year over year -
Recurring revenue was
$4.7 million 28% year over year, and represented36% of total revenues in the quarter -
Adjusted gross margin of
56% for the second quarter 2025 - Delivered a record number of XplorIR devices in the quarter
- Launched VipIR, a 3-in-1 handheld chemical analyzer, purpose built for global customs organizations
-
Completed manufacturing consolidation of handheld products into recently expanded and cost-effective
Danbury, Connecticut facility -
Strengthened go-forward financial profile through the completion of previously announced restructuring efforts, reducing square footage by
44% and employee headcount by39% , compared to prior year -
Acquired assets of KAF Manufacturing Company, Inc. in July for
$2.75 million $6.6 million
Second Quarter 2025 Financial Results
In light of the divestiture of the bioprocessing product portfolio in March 2025, all financial results discussed in this release for current and prior periods are for continuing operations only.
Revenue was
Gross profit was
Operating expenses were
Net loss from continuing operations was
Net loss attributable to common stockholders was
Cash, cash equivalents and marketable securities were
2025 Guidance
908 Devices now expects full year 2025 revenues from continuing operations of
Webcast Information
908 Devices will host a conference call to discuss the second quarter 2025 financial results before market open on Tuesday, August 5, 2025 at 5:30 am Pacific Time / 8:30 am Eastern Time. A webcast of the conference call can be accessed at https://ir.908devices.com/news-events/events. The webcast will be archived and available for replay for at least 90 days after the event.
About 908 Devices
908 Devices is revolutionizing chemical analysis with its simple handheld devices, addressing life-altering applications. The Company’s devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers in vital health, safety and defense tech applications, addressing the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats. The Company designs and manufactures innovative products that bring together the power of complementary analytical technologies, software automation, and machine learning. For more information, visit www.908devices.com.
Non-GAAP Measures of Financial Performance
To supplement the Company’s financial statements, which are presented on the basis of
- Adjusted gross profit is defined as gross profit excluding intangible amortization, acquisition and integration costs, restructuring charges (including the costs of severance), and non-cash expenses related to stock-based compensation.
- Adjusted gross margin is defined as adjusted gross profit expressed as a percentage of total revenue.
- Adjusted EBITDA is defined as net loss from continuing operations excluding other income, benefit for income taxes, depreciation, intangible amortization, acquisition and integration costs, restructuring charges (including the costs of severance), non-cash expenses related to stock-based compensation, and costs associated with contingent consideration related to the Company’s acquisitions and for which the conditions for payment have not yet been achieved.
The Company’s non-GAAP financial results presented in this earnings release exclude certain costs that management believes do not have a direct correlation to future business operations, nor do the resulting charges recorded accurately reflect the performance of ongoing operations for the period in which such charges are recorded, nor do the resulting charges recorded accurately reflect the anticipated cash flows of ongoing operations, and as such, excluding these costs allows management to understand and evaluate core operating performance and trends. However, as there are no standardized methods of calculating these non-GAAP financial measures, the Company’s methods may differ from those used by other companies in its industry, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness for purposes of comparison. Furthermore, these non-GAAP measures have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in the Company’s GAAP financial results. Accordingly, when analyzing the Company’s operating performance and guidance, investors should not consider non-GAAP measures in isolation or as a substitute for, or superior to, comparable financial measures prepared in accordance with GAAP. Rather, the Company believes that these non-GAAP financial measures, when viewed in addition to and not in lieu of reported GAAP financial results, provide investors with additional meaningful information to assess financial performance and trends, enable comparison of financial results between periods, and allow for greater transparency with respect to key metrics utilized internally in analyzing and operating the Company’s business.
Forward Looking Statements
This press release includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding the Company’s future revenue and growth. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and involve known and unknown risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including the risks outlined under “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission which are available on the SEC's website at www.sec.gov. Additional information will be made available in our annual and quarterly reports and other filings that we make from time to time with the SEC. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results. The Company has no obligation, and does not undertake any obligation, to update or revise any forward-looking statement made in this press release to reflect changes since the date of this press release, except as may be required by law.
908 DEVICES INC. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue: |
|
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|
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|
|
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|
|
Product revenue |
|
$ |
9,577 |
|
$ |
8,548 |
|
$ |
18,106 |
|
$ |
13,780 |
Service and contract revenue |
|
|
3,458 |
|
|
2,914 |
|
|
6,707 |
|
|
5,104 |
Total revenue |
|
|
13,035 |
|
|
11,462 |
|
|
24,813 |
|
|
18,884 |
Cost of revenue: |
|
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|
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|
|
|
|
Product cost of revenue |
|
|
5,323 |
|
|
4,037 |
|
|
10,048 |
|
|
6,456 |
Service and contract cost of revenue |
|
|
1,339 |
|
|
1,263 |
|
|
2,850 |
|
|
2,379 |
Total cost of revenue |
|
|
6,662 |
|
|
5,300 |
|
|
12,898 |
|
|
8,835 |
Gross profit |
|
|
6,373 |
|
|
6,162 |
|
|
11,915 |
|
|
10,049 |
Operating expenses: |
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|
|
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Research and development |
|
|
4,405 |
|
|
3,591 |
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8,234 |
|
|
6,883 |
Selling, general and administrative |
|
|
10,337 |
|
|
11,110 |
|
|
20,576 |
|
|
19,316 |
Change in fair value of contingent consideration |
|
|
6,792 |
|
|
— |
|
|
9,291 |
|
|
— |
Total operating expenses |
|
|
21,534 |
|
|
14,701 |
|
|
38,101 |
|
|
26,199 |
Loss from continuing operations |
|
|
(15,161) |
|
|
(8,539) |
|
|
(26,186) |
|
|
(16,150) |
Other income, net |
|
|
2,324 |
|
|
966 |
|
|
3,512 |
|
|
2,682 |
Loss from operations before income taxes |
|
|
(12,837) |
|
|
(7,573) |
|
|
(22,674) |
|
|
(13,468) |
Income tax expense |
|
|
(71) |
|
|
— |
|
|
(71) |
|
|
— |
Net loss from continuing operations |
|
|
(12,908) |
|
|
(7,573) |
|
|
(22,745) |
|
|
(13,468) |
Net income (loss) from discontinued operations, net of tax |
|
|
(398) |
|
|
(4,975) |
|
|
53,042 |
|
|
(9,997) |
Net income (loss) attributable to common stockholders |
|
$ |
(13,306) |
|
$ |
(12,548) |
|
$ |
30,297 |
|
$ |
(23,465) |
Net loss from continuing operations per share attributable to common stockholders, basic and diluted |
|
$ |
(0.36) |
|
$ |
(0.22) |
|
$ |
(0.64) |
|
$ |
(0.40) |
Net income (loss) from discontinued operations per share attributable to common stockholders, basic and diluted |
|
$ |
(0.01) |
|
$ |
(0.15) |
|
$ |
1.49 |
|
$ |
(0.30) |
Net income (loss) per share attributable to common stockholders, basic and diluted |
|
$ |
(0.37) |
|
$ |
(0.37) |
|
$ |
0.85 |
|
$ |
(0.70) |
Weighted average common shares outstanding |
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|
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Basic and diluted |
|
35,877,947 |
|
34,061,933 |
|
35,633,573 |
|
33,386,413 |
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908 DEVICES INC. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
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June 30, |
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December 31, |
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2025 |
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2024 |
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Assets |
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Current assets: |
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Cash, cash equivalents and marketable securities |
|
$ |
118,584 |
|
$ |
68,923 |
Accounts receivable, net |
|
|
6,207 |
|
|
8,852 |
Inventory |
|
|
15,461 |
|
|
10,886 |
Prepaid expenses and other current assets |
|
|
7,688 |
|
|
4,184 |
Current assets of discontinued operations |
|
|
— |
|
|
10,210 |
Total current assets |
|
|
147,940 |
|
|
103,055 |
Operating lease, right-of-use assets |
|
|
4,294 |
|
|
3,842 |
Property and equipment, net |
|
|
1,652 |
|
|
1,595 |
Intangible, net |
|
|
37,254 |
|
|
38,679 |
Other long-term assets |
|
|
561 |
|
|
511 |
Non-current assets of discontinued operations |
|
|
— |
|
|
11,794 |
Total assets |
|
$ |
191,701 |
|
$ |
159,476 |
Liabilities and Stockholders' Equity |
|
|
|
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Current liabilities: |
|
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|
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|
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Accounts payable and accrued expenses |
|
$ |
8,872 |
|
$ |
8,563 |
Deferred revenue |
|
|
8,828 |
|
|
10,417 |
Operating lease liabilities |
|
|
433 |
|
|
1,473 |
Contingent consideration |
|
|
11,575 |
|
|
— |
Current liabilities of discontinued operations |
|
|
— |
|
|
4,696 |
Total current liabilities |
|
|
29,708 |
|
|
25,149 |
Deferred revenue, net of current portion |
|
|
9,178 |
|
|
10,213 |
Other long-term liabilities |
|
|
3,998 |
|
|
4,884 |
Non-current liabilities of discontinued operations |
|
|
— |
|
|
4,638 |
Total liabilities |
|
|
42,884 |
|
|
44,884 |
Total stockholders' equity |
|
|
148,817 |
|
|
114,592 |
Total liabilities and stockholders' equity |
|
$ |
191,701 |
|
$ |
159,476 |
908 DEVICES INC. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited, amounts in thousands, except percentage and per share data) In all tables below, totals may not add due to rounding |
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Reconciliation from Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) and Margin Percentage: |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Gross Profit (GAAP) |
|
$ |
6,373 |
|
$ |
6,162 |
|
$ |
11,915 |
|
$ |
10,049 |
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Intangible amortization |
|
|
634 |
|
|
423 |
|
|
1,269 |
|
|
423 |
Acquisition and integration costs |
|
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- |
|
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- |
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|
50 |
|
|
- |
Restructuring |
|
|
222 |
|
|
- |
|
|
288 |
|
|
- |
Stock-based compensation |
|
|
107 |
|
|
123 |
|
|
223 |
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|
219 |
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|
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|
|
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|
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Adjusted gross profit (Non-GAAP) |
|
$ |
7,336 |
|
$ |
6,708 |
|
$ |
13,745 |
|
$ |
10,691 |
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Gross margin percentage (GAAP) |
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Adjusted gross margin percentage (Non-GAAP) |
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Reconciliation from Net Loss from Continuing Operations (GAAP) to Adjusted EBITDA (Non-GAAP): |
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Three Months Ended |
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Six Months Ended |
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|
June 30, |
|
June 30, |
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|
2025 |
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2024 |
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2025 |
|
2024 |
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Net loss from continuing operations (GAAP) |
|
$ |
(12,908) |
|
$ |
(7,573) |
|
$ |
(22,745) |
|
$ |
(13,468) |
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|
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Adjustments: |
|
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|
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|
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Other income, net |
|
|
(2,324) |
|
|
(966) |
|
|
(3,512) |
|
|
(2,682) |
Benefit for income taxes |
|
|
71 |
|
|
- |
|
|
71 |
|
|
- |
Depreciation |
|
|
260 |
|
|
252 |
|
|
551 |
|
|
460 |
Intangible amortization |
|
|
713 |
|
|
475 |
|
|
1,426 |
|
|
475 |
Acquisition and integration costs |
|
|
- |
|
|
1,950 |
|
|
640 |
|
|
2,224 |
Restructuring |
|
|
1,173 |
|
|
- |
|
|
1,266 |
|
|
- |
Stock-based compensation |
|
|
2,337 |
|
|
2,229 |
|
|
4,557 |
|
|
4,068 |
Change in fair value of contingent consideration |
|
|
6,792 |
|
|
- |
|
|
9,291 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
(3,886) |
|
$ |
(3,633) |
|
$ |
(8,455) |
|
$ |
(8,922) |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250805917693/en/
Investor Contact:
Carrie Mendivil
IR@908devices.com
Media Contact:
Barbara Russo
brusso@908devices.com
Source: 908 Devices Inc.
