908 Devices Inc.

Hello, everyone. Thank you for joining us and welcome to the 908 Devices 4th Quarter 2025 Financial Results Conference 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 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to Barbara Russo, Vice President of Marketing and Corporate Communications. Please go ahead.

Thank you and good morning. On this call, we will be discussing our financial results for the fourth quarter and full year ending December 31st, 2025, which were released earlier this morning. Joining me from 908 Devices is Kevin Knopf, Chief Executive Officer and Co-Founder, and Joe 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 risk and uncertainty 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 earning 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 March 3, 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 fourth quarter and full year 2025 earnings call. I want to start by expressing my sincere appreciation to our entire team for their exceptional execution and unwavering commitment to our strategic transformation throughout 2025. The momentum we've built and the progress we've achieved reflect our disciplined focus on delivering innovative chemical analysis devices that protect frontline responders worldwide. I'm pleased to report that we achieved $17.4 million in revenue from continuing operations in Q4, representing robust 21% year-over-year growth. This performance was driven primarily by three factors. continued demand for our Explorer gas identification device by firefighters and hazmat response teams, two, strong initial demand for Viper, our new product that provides simple and fast chemical analysis of solids and liquids, and three, continued strong adoption of all of our products by U.S. state and local customers. Most importantly, we achieved positive adjusted EBITDA in the fourth quarter of $0.7 million, which is a remarkable improvement from the prior year's loss of $4 million. This achievement validates the structural initiatives we implemented as part of our transformation. For the full year 2025, I'm proud to report that we delivered $56.2 million in revenue from continuing operations. representing strong 18% year-over-year growth and in line with our five-year K-year performance. This strong performance validates our focus on vital health, safety, and defense tech applications. A key highlight was our team's execution of replacing outdated FTIR equipment with modern devices, one of our growth catalysts. In 2025, more than 50% of device placements came from FTIR, led by the full-year impact of our Explorer device. Another highlight is our achievement of 22% year-over-year growth in recurring revenue, which represents 35% of our 2025 revenues. This growth reflects our ongoing efforts to offer more value to our customers through service, support, software and accessory offerings, strengthening revenue visibility and long-term predictability. I would now like to highlight our progress during 2025 across our three strategic focus areas. Our number one focus has been to increase adoption of our devices to address global threats to public health and safety. Our Explorer device continues to be a standout performer with its unique capability to detect, identify, and quantify over 5,000 unknown gas and vapor chemical threats in seconds. The market response has been exceptional across fire and hazmat teams worldwide who recognize the device's value in filling a critical gap in onsite gas identification to better inform decision-making and accelerate action. In its first full year of commercial sales of the quantification-enabled Explorer, we delivered over 150 units to high-quality accounts, including the Council of Governments serving the broader Washington, D.C. area and the U.S. Marine Corps CBR&E Installation and Protection Program. These wins underscored the growing adoption of Explorer among premier federal and regional response organizations. As a result, Explora achieved standout growth of more than 40% year-over-year, reflecting both the strength of demand and the impact of introducing quantification capability into the field. To help drive procurement efficiency and predictability in our U.S. federal government business, we consolidated contracting partners in the fourth quarter from four to one. For 2026, we are now working with Mountain Horse Solutions, who specializes in supplying mission-critical equipment, such as our portfolio of devices, to all levels of the U.S. government and military. By leveraging their strong procurement relationships, contracting expertise, and integrated logistics and kitting capabilities, we improve forecasting accuracy and level load production as a supplier, while enabling government customers to receive fully configured, mission-ready solutions more quickly and reliably. We look forward to the benefits of coupling our demand generation with their procurement expertise. Outside the US, we saw traction for devices accelerate, especially in Europe, as NATO countries have begun increasing their defense budgets due to the ongoing war in Ukraine and other global concerns. For the full year of 2025, 27% of revenues came from outside the United States. This is an increase from 25% in 2024, with an even stronger increase in sales along NATO's eastern flank. We ship chemical detection devices to Poland, Czech Republic, Finland, Ukraine, and others in the region. This international expansion we believe is just beginning, and our progress in 2025 validates the need for our technology in protecting frontline responders and the public globally from unintentional disasters or intentional attacks. Our combination of advanced technology and our product's operational simplicity is what sets us apart and drives the demand we're experiencing across all customer segments. Moving to our second objective, advancing our next-gen analytical tools portfolio, Our newest device, Viper, which we launched in July 2025, represents a breakthrough in simple field-based chemical identification of unknown bulk substances by combining FTR and Raman spectroscopy technologies with our proprietary smart spectral processing capability. The device's simple and smart workflow is a game-changing capability for customs and border personnel, as well as hazardous response teams. When connected with our team leader app, VIPER allows field teams to instantly share results with command centers and subject matter experts, dramatically improving response coordination and decision-making speed. Overall, we are excited about the positive market reception for VIPER with early deployments across state and local hazmat teams and international customers. In the fourth quarter, we shipped more than 40 VIPER units, over $3 million in revenue. We are encouraged by the ultimate potential of this new product and the full-year impact that VIPER will have in 2026. We also enhanced our flagship MX908 platform in 2025 and recently released several usability improvements, including the new Tick Hunter mission mode that provides first responders with a more guided and purpose-built tool for hazardous vapor detection. Additionally, we expanded the device's drug detection capabilities by adding five new priority targets. including metatomidine, a veterinary sedative estimated to be 200 times more potent than xylosine and which is increasingly being mixed with fentanyl. As the illicit drug landscape continues to evolve, our software updatable platform enables us to rapidly deploy new target libraries and capability enhancements, ensuring law enforcement remains current and equipped to address emerging threats in real time. And finally, our third focus has been to strengthen our financial position and accelerate profitability. The operational improvements we implemented throughout 2025 have solidified our financial position. Our manufacturing consolidation into Danbury, Connecticut, and our move to a cost-efficient headquarters in Burlington, Massachusetts have created meaningful efficiencies across our operations. These initiatives, combined with our disciplined cost management approach, enabled us to achieve our goal of positive adjusted EBITDA, which was $0.7 million in the fourth quarter. This achievement demonstrates that our cost structure is now right-sized, disciplined, and fully within our control. Compared to our year-end 2024 position, we also strengthened our balance sheet materially, exiting 2025 with $113 million in cash. With this solid financial foundation, we now have the flexibility to invest in the expanding growth opportunities ahead, driven by developing secular tailwinds, such as increased funding to combat the fentanyl and illicit drug crisis and increase global defense budgets. To that end, we've established three strategic focus areas for 2026. First, scale-proven platforms. We will sustain growth by continuing to modernize legacy detection equipment, especially FTIR, across global fire, law enforcement, and defense enterprise accounts. We believe we have only made a dent in the overall potential and expect 2026 to benefit from a full year of growth of our newest product, ViPR. Second, extend platform leadership. We will also drive growth with greenfield placements, differentiated capabilities, and discipline product introductions. New capabilities drive new opportunities. Our Explorer product is a great example of this. With the differentiated gas quantification and identification capabilities, it's quickly penetrating the broader gas detection market. Similarly, our MX908 is now the proven device for trace chemical identification, and our law enforcement customers continue to rely on its unique capabilities. We expect to build on this and raise the bar further with our next-gen mass spec platform. And our third focus is to strengthen revenue durability. We are building a predictable revenue mix by pursuing recurring revenue opportunities with connected services, expanding OEM-based revenue, and through long-term programs. To that end, our DoD AvCAD program in partnership with Smith Detection is nearing its next phase. Field testing was completed in late fall, and as of today, we believe all material issues have been deemed addressed. Smith Detection has responded to an RFP for a next phase and is awaiting feedback from the government. This next phase, quoted, is for an initial production run of approximately a few hundred systems with component and subsystem contributions from 908 devices being potentially delivered throughout the second half of this year. We remain committed to support service detection and DOD on this important national defense effort. We look forward to updating you on our progress in each of these focus areas on future calls. And now I'll turn it over to Joe to review our financial performance. Thanks, Kevin.