908 Devices Inc. Common Stock Midwest IDEAS Conference

Kevin? Yeah. Thank you. Thanks so much for having us today.

I am Kevin, and here with Joe. My colleagues and I founded 908 Devices about 14 years ago, and we have been public for six years this coming December. Over those last 18 months, we have really worked to purposely transform the company to be more fully focused on building a category-defining company in handheld detection space. We just reported our second quarter 2026 results on August 11, and the numbers we are pleased with. We reported about 23% revenue growth, a 50% improvement in adjusted EBITDA loss, and strong execution across our 2026 strategic priorities. That is what I would like to walk through in a bit more detail today. Just to take a moment here, review our forward-looking non-GAAP statement.

We are a focused purpose-built company, providing handheld chemical analysis tools for public health safety and CBRNE defense. That focus and new cost structure that we have built around is starting to show up in our progress. In the second quarter, we grew revenues 23% year over year to $16.1 million, with recurring revenues representing 31% of the mix. Our last 12-month revenue now stands at $61 million. Our adjusted gross margin for Q2 was 57%, and we ended the quarter with $101.5 million in cash and no debt. Just as importantly, our adjusted EBITDA loss was less than $2 million, and that is a 50% improvement year over year, and that is really a demonstration to our continued commitment to scale and efficiently invest in growth at the same time.

Driving our business today are some of the most powerful and durable macro tailwinds we have seen out there, and those are related to the escalating opioid and illicit drug crisis, rising global defense budgets, and increased border security funding. Our installed base has grown to more than 4,000 devices across 700 accounts, and there are 70 plus countries that we have representation with our products in. Our technology stack is not really a me-too stack. It is a very differentiated approach. It is a full platform offering broad market flexibility ahead of us. We have got active OEM and funded partnership work in industrial QA, QC, and pharma, and emerging integration potential with drones, UGVs, as the market develops for more autonomous chemical detection solutions. We execute too with a pretty solid financial foundation, and we are pleased with the momentum that we are executing on.

908 Devices, what we do is really make handheld and portable products that take lab-grade technologies out to the field. These are lab-grade instrument platforms in a handheld form factor. They are used at the point of need in public health, safety, and defense applications. Use cases are pretty wide-ranging, from detection and identification of illicit drugs and fentanyl, to customs and postal inspection, to air monitoring, and to detection of toxic VOCs and advanced chemical agents. We also serve corrections and rehabilitation facilities and further serve industrial quality control and pharma as an OEM. The common thread, though, of all of this, it is in all of these settings, is that someone on the frontline needs an answer. They need to move faster. They need to move to that next step of their workflow.

We are working to make the invisible visible and the unknown known, and that is what our product set is designed to deliver. Our customers are frontline responders. That is fire and hazmat teams, law enforcement, federal and military customers globally. The numbers we are proud of and reflects the trust that they place in us and our technology. We have got more than 4,100 devices deployed across 700 accounts, more than 18,000 trained users, and presence in more than 70 countries. We shipped 198 devices in the second quarter. One of the most important commercial developments over the past couple of years is the diversification of our customer base. We have gone from the majority of sales concentrated in a handful of large U.S. federal accounts to a much more balanced base. In Q2, state and local customers represented over 50% of our revenue, continue to outperform our internal expectations for that channel.

This channel is a great one for delivering consistency. It is high-quality run rate demand, and it helps drive greater visibility and predictability across our business. Maybe it is worth sharing a quick example of a real-world use of our products that highlights the impact. In Virginia, leaders implemented a statewide program called Operation FREE that uses our MX908 device for trace narcotics detection in correctional facilities. The result of that was fatal overdoses in their correction system dropped from 24 in 2024 to zero in 2025. And we were actually honored, the product was honored by having a flag flown above the state house there in Virginia in recognition of its role. And that continues across other correction departments. We saw adoption in this quarter from Texas Department of Criminal Justice ordering their first 15 devices. We see this continuing as in the third quarter.

We announced in July that we secured a $6 million order for ProtectIR devices for a correction agency in the Asia-Pacific. When our technology shows up, it is really working to save lives. Our responders are working to employ it to do just that, and that is a lot of value that we see to continue to expand. We are tackling what we think is some of the largest and most urgent and escalating threats to public health safety, and demand for modern detection tools is really accelerating as a result. First, the opioid crisis. It is no longer just fentanyl. Our MX908 helps customers keep pace as the landscape evolves from fentanyl to nitazenes, onto orphines. Cocaine seizures were up 68% globally over the past four years, and fentanyl's designation as a weapon of mass destruction in December is opening new funding streams for frontline responders. Second, toxic industrial materials. A Wall Street Journal article this year found 131 serious chemical accidents in the U.S. in 2025.

That is up 20% year over year. We saw that firsthand recently this spring when a chemical tank overheated in Garden Grove, California. It forced the evacuation of more than 40,000 residents. Responders used our XplorIR device on entry and throughout the cleanup. The compounds that they are measuring and the compounds that the XplorIR can measure are leading causes of firefighter cancer deaths, with the Honoring Our Fallen Heroes Act as recently recognized in December 2025. Very important and critical to be able to measure and monitor. Third is rising global tensions and defense. NATO allies agreed to increase defense spending to 5% of GDP by 2035, and we are seeing signs that it is showing up in contract awards, like our win with the Danish Defence Acquisition and Logistics Organisation for XplorIR.

The funding tide is not just rising internationally. The funding backdrop in the U.S. is about as strong as we have ever seen it. Many of our customers use federal grants for purchases, and in June and July, we saw over $1 billion allocated in such programs across DHS, DOJ, and ONDCP, all of which sets a multilayer durable tailwind for us. The combined takeaway there is that the hazard and threat landscape is rapidly getting more complex and demanding adaptable, mobile, field-ready detection, and the funding is there to address it. That is exactly where we are focused. If I take a look, this slide really captures what differentiates us. We are not just selling the hardware. We are delivering the people, the data, the expertise our customers need to detect more faster with confidence. Start with the device suite itself.

Our portfolio spans hundreds of trace analytes, the ability to detect thousands of VOC gases, and 20,000-plus bulk compounds. That is detection to identification from air and aerosols to surfaces, piles, and puddles, all from one company. That is MX908 for trace-level Mass Spec, XplorIR for gas and vapor ID, and our optical products for bulk unknown ID. Now NIRLab rounding out the family there with rapid frontline screening. But the hardware is only part of it. We have reach-back operations, which gives our customers 24/7/365 access to expert staff and onsite decision support. One number, real people, whole portfolio, lot of subject matter expertise. We back that up with best practice and scenario training, delivering real-world workshops across customers' workflows, not just a manual or a how-to guide. Increasingly, it is about the data.

We are expanding our Team Leader app for usage tracking, fleet management, AI-powered guidance, some customized enterprise reporting, and that is really where we are going, the aggregate monitor and managing of the data. It is the connective tissue that is turning that one-time hardware sale into a more recurring relationship that is ongoing, and it is a big part of where we believe the competing position is just hard to penetrate as we build that out. That is our focus. Our recurring revenue base from these support service accessories, consumables, and softwares is currently about 30% of our business today, and we are looking to build that and further increase the stickiness and predictability. That takes us to the next topic, NIRLab. We acquired NIRLab in May. We announced on our Q1 earnings call to do that, to have a platform to expand and focus on our recurring revenue.

NIRLab is a purpose-built tool for frontline law enforcement patrol that combines near-infrared spectroscopy hardware with a cloud-connected software platform and a proven subscription model. NIRLab has more than 100 active customers globally and performed more than 1 million analyses to date. About 50% of the NIRLab revenue is recurring, with demonstrated high annual customer retention rates. The integration is going ahead of plan, and we are running the same playbook that we did with RedWave in the past. We are about 60 days in after the close of that transaction, and our U.S. commercial team really stepped up and ran in-person virtual demonstrations, secured field evaluations. They engaged over 30 different agencies, hundreds of prospects across that federal, state, and local level, including, importantly, seven HIDTA task forces.