908 Devices Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- 908 Devices reported second quarter 2026 revenue of $16.1 million, a 23% increase year over year.
- Handheld product and service revenue was $15.5 million, up 24% from the prior year period.
- The company shipped 198 devices in Q2, bringing the installed base to 4,101 units.
- Recurring revenue represented 31% of total revenues at $4.9 million, a 4% increase year over year.
- Gross profit was $8.3 million with a gross margin of 52%, up from 49% in the prior year period.
- Adjusted gross margin increased to 57%, an 85 basis point improvement year over year.
- Adjusted EBITDA loss was reduced by 50% to less than $2 million.
- Net loss from continuing operations was $11.9 million, an improvement from $12.9 million the prior year.
- The company ended the quarter with $101.5 million in cash, cash equivalents, and marketable securities and no debt.
- 908 Devices acquired Neurolab, expanding its narcotics detection portfolio with an AI-powered, subscription-based near-infrared spectroscopy platform.
- The company shipped more than 35 Viper devices in Q2 and expects to ship over 100 units in 2026.
- Notable wins include a South Asian law enforcement agency purchasing over 15 Viper units and the Bureau of International Narcotics and Law Enforcement Affairs ordering its first Viper unit.
- The Texas Department of Criminal Justice purchased 15 MX 908 devices for statewide corrections facilities.
- Explorer device placements grew nearly 70% over the last 12 months, driven by rising chemical incidents and defense demand.
- A $6 million Protector order was secured in July for an Asia Pacific corrections agency.
- The U.S. military AVCD program contract has run its course and is under review with potential for commercial product consideration.
- Management highlighted a strategic focus on scaling proven platforms, extending platform leadership, and strengthening revenue durability through recurring revenue and connected services.
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Transcript
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Hello, everyone. Thank you for joining us and welcome to the 908 Devices second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Barbara Russo in investor relations. Barbara, please go ahead. Thank you and good morning.
On this call, we will be discussing our financial results for the second quarter ending June 30, 2026, which were released earlier this morning. Joining me from 908 Devices is Kevin Knopp, Chief Executive Officer and Co-founder, and Joseph Griffith, Chief Financial Officer. During today's call, we will make forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. For a discussion of these risks and uncertainties, please review the forward-looking statement disclosure in the earnings news release, as well as in our most recent annual report on Form 10-K and other SEC filings. These forward-looking statements reflect management's beliefs and assumptions as of the date of this live broadcast, August 11, 2026.
Except as required by law, we disclaim any obligation to update forward-looking statements to reflect future events or circumstances. Our commentary today will also include non-GAAP financial measures, which should be considered as a supplement to and not a substitute for GAAP financial measures. The non-GAAP reconciliations can be found in today's earnings press release, which is available in the investor relations section of our website. With that, I now turn the call over to Kevin.
Thanks, Barbara. Good morning and thank you for joining our second quarter 2026 earnings call. I am pleased to report that we delivered strong results this quarter, demonstrating the power of our strategy and dedication of our team. In the second quarter, we generated $16.1 million in revenue, representing 23% growth year-over-year. Our momentum with U.S. state and local customers remains particularly strong, with these customers representing more than half of our revenues in the second quarter. We are seeing continued funding support at the state and local level, driven by the urgent need to modernize detection capabilities in response to evolving threats, from the ongoing fentanyl crisis to emerging synthetic drugs and chemical hazards. This funding momentum, combined with strong customer demand, gives us confidence in the durability of this growth trajectory. From a profitability standpoint, we are making meaningful progress.
The cost structure initiatives we implemented last year are delivering results. Our Adjusted EBITDA loss was less than $2 million in the second quarter, which is a 50% improvement year-over-year. These improvements demonstrate our commitment to scale efficiently while investing in growth. As announced on May 6th, we acquired NIRLab, expanding our narcotics detection portfolio. We now have an AI-powered, subscription-based, cloud-connected near-infrared spectroscopy platform that enables point-and-click analysis of common drugs in seconds. Along with our VipIR and MX908 devices, we provide a comprehensive narcotics workflow for law enforcement, from fast screening to confirmatory analysis. Overall, I'm very pleased with our execution this quarter. We are delivering against our strategy on multiple fronts, expanding our market presence both organically and through strategic M&A, while building a stronger foundation for longer-term value creation.
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