Milestone Scientific (MLSS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 22.3% year-over-year to $2.8 million, with first half revenue at $5 million, up 10% year-over-year, driven by dental sales in China and a 231% surge in medical segment revenue from CompuFlo adoption and favorable reimbursement.

• Strategic distribution agreement with Red One Medical expands access to federal healthcare systems, with first orders targeted for Q4.

• Launched Milo, an AI-enabled digital engagement platform, and strengthened the board with a new executive chair and independent directors.

• Peer-reviewed study showed CompuFlo reduced composite complications by 91% in spinal cord stimulator procedures.

Financial highlights

• Q2 2026 gross profit was $1.9 million (up 18.1% YoY), but gross margin declined to 67.2% from 69.6% due to product mix and tariffs.

• Operating expenses for Q2 2026 decreased by 4.2% to $3 million; net loss narrowed to $1.06 million ($0.01 per share), improved from $1.5 million year-over-year.

• For the first half of 2026, revenue reached $5 million, gross profit was $3.5 million (69.4% margin), and operating expenses dropped 20.5% to $5.4 million.

• Cash and equivalents stood at $2.1 million, with working capital of $3.7 million and $466,000 in convertible debt as of June 30, 2026.

Outlook and guidance

• Management reaffirmed 2026 revenue guidance of $9.8–$10.2 million, with CompuFlo expected to outpace overall growth.

• Q3 2026 revenue projected at $2.3–$2.5 million, reflecting seasonality and absence of large international orders from Q2.

• Cost reductions and expanded payer channels expected to improve operating leverage and drive H2 growth.

• Additional financing may be required to support operations; no assurance of profitability or positive cash flow in future periods.