908 Devices (MASS) Sidoti March Small-Cap Virtual Conference summary

Strategic transformation and business overview

• Underwent a major transformation by divesting desktop products, focusing on handheld and portable analytical devices for public health, safety, and defense applications.

• Achieved 18% year-over-year revenue growth in 2025, with positive adjusted EBITDA in Q4 and $113 million in cash at year-end.

• Expanded product portfolio from one to five devices, including new FTIR-based products and the innovative VipIR, with over 3,700 devices deployed globally.

• Recurring revenue accounted for 35% in 2025, with a goal to maintain or grow this proportion through service and software offerings.

• Manufacturing consolidated in Danbury, Connecticut, improving margins and operational efficiency.

Product innovation and growth drivers

• VipIR, launched in July 2025, integrates two optical technologies for robust sample identification and contributed $3 million in Q4 revenue.

• XplorIR, capable of quantifying 5,000 VOCs, saw 40% year-over-year growth and is expected to remain a strong driver.

• Product suite addresses urgent needs in opioid crisis response, hazardous material detection, and global security threats.

• Active OEM and funded partnerships, including the U.S. Army AVCADD program, support multi-year growth.

• International markets represented 27% of revenue, with significant opportunities in Europe and the Middle East due to increased defense and safety spending.

Financial outlook and operational execution

• Projected 15%-20% revenue growth for 2026, with further gross margin expansion and EBITDA loss reduction to mid-single-digit millions.

• Facility consolidation and insourcing initiatives are expected to drive an additional 100 basis points in gross margin improvement in 2026.

• No significant supply chain disruptions reported; most materials sourced domestically.

• Cash position is strong, supporting organic growth and potential M&A opportunities.

• Distribution model streamlined in the U.S. with Mountain Horse as the primary contracting partner; international sales supported by distributors and in-region experts.