908 Devices Inc.

Hello, everyone. Thank you for joining us and welcome to the 908 Devices first quarter 2026 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 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 first quarter, ending March 31st, 2026, 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 risks and uncertainties, It 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, May 6, 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 first quarter 2026 earnings call. We entered 2026 from a position of strength, with a streamlined cost structure, a solid balance sheet, and an expanding recurring revenue opportunity. In the first quarter, we continued to build on that momentum, delivering 13.4 million in revenue, up 14% year over year. Sales to U.S. state and local customers remained a key driver, representing approximately 50% of our first quarter revenues. This marks the third consecutive quarter that orders from these customers have exceeded our internal targets, and based on our current pipeline visibility, we believe we can continue this trend in the second quarter. Importantly, this channel is delivering consistent, high-quality run rate demand, helping to drive greater visibility and predictability. while complementing larger international and U.S. federal enterprise opportunities. Over the past 24 months, we have made deliberate investment to scale this segment alongside the successful integration of our Red Wave FTIR portfolio, and we are now seeing those efforts translate into sustained durable growth. FTIR products are becoming a meaningful contributor to this and represented 43% of our first quarter total revenues, while mass spec revenues represented the remaining 57%. Now I want to highlight an example that captures both the real-world impact of our products and the positive demand environment we're seeing. In March, a New York Times investigation highlighted the growing threat of drug-laced papers entering correctional facilities by mail, substances that are invisible to the naked eye and increasingly linked to rising overdose fatalities. States are acting. In Virginia, leaders have implemented a comprehensive program called Operation Free that includes the use of our MX-908 device for trace narcotics detection. We were recently honored by Virginia officials with the state flag recognizing our role in supporting their initiative, an integrated model of enforcement, intelligence, and treatment that has reduced fatal overdoses in their correction system from 24 in 2024 to zero in 2025. This need for advanced inspection and screening is not isolated. The leaders behind Operation Free are now expanding their approach nationally, reinforcing a broader and accelerating demand environment. In parallel, we anticipate that the passage last week of the Department of Homeland Security funding bill will provide additional support for our second half objectives. And to kick things off here in Q2, we closed a $3 million order in April with another State Department of Corrections. We will continue to drive momentum as we execute our law enforcement narcotic strategy. On our last earnings call, we outlined three focus areas for 2026, scaling our proven platforms, extending our handheld leadership through differentiated capabilities and disciplined innovation, and strengthening revenue durability through recurring and program-based opportunities. This morning, we are excited to announce the acquisition of NearLab AG. We believe this acquisition is additive to each of our existing initiatives for the year and will be a very strong strategic fit over the short and long term. This acquisition brings together highly complementary drug detection capabilities, increases our international revenue mix, and provides a high retention recurring software subscription model. Just as important as the strategic fit is the cultural alignment. NearLab is a founder-led, highly technical organization with deep expertise in spectroscopy, data science, and cloud-based AI analytics. Their mission-driven focus on enabling safer, faster decision-making in the field closely aligns with our purpose of protecting frontline responders and addressing critical public health challenges. So prior to reviewing our first quarter financial results, I wanted to walk you through a handful of slides about this acquisition and how it aligns to our focus areas and with our broader law enforcement narcotics strategy. Very simply, this acquisition does four things for 908. First, it expands our handheld franchise into a high-volume, widely deployable sub-$40,000 segment, unlocking about a $200 million market. This is a solution purpose-built for frontline narcotics detection, increasing accessibility, and driving unit volumes in markets we know well and already serve. And while not yet at scale, it's already validated with 100-plus active customers and approximately $2 million in law enforcement revenue. Second, it strengthens and extends our leadership in narcotics for law enforcement. It builds directly on the momentum we're seeing with MX-908 and complements VIPER, expanding a market-leading portfolio that's driving growth at the state and local level. Just as importantly, it completes our end-to-end coverage with near IR-based optical spectroscopy which we have core expertise, we now span from everyday screening to confirmatory analysis, driving higher customer value and deeper adoption. Third, it accelerates our software and recurring revenue strategy. This is a proven high retention subscription model, about 50% recurring revenue with a demonstrated annual retention of greater than 99%. It fits directly into our connected services vision with Team Leader and Neuralab's live cloud connected AI driven analysis. This gives us a faster path to scaling recurring revenue, increasing lifetime customer value, and improving visibility. And fourth, this is a highly leveraged growth opportunity. The business today is largely international, and we see a clear path to accelerate US adoption using our commercial infrastructure, while also benefiting from the technical know-how to further advance our platform. So taken together, We believe this deal expands our market, strengthens our portfolio, completes our workflow, and accelerates our software strategy, all tightly aligned to where we're taking 908. From a financial standpoint, Nearlab's growth and recurring revenue mix are accretive and support our long-term margin targets as high-margin software subscriptions scale. For the remaining eight months of 2026, we expect approximately 2.5 million in revenue, growing under our model to more than 5 million in 2027. We do expect a modest roughly $1 million adjusted EBITDA headwind in 2026 with the business plan to be profitable and contributing positively in 2027. The upfront transaction value is $15 million, $13 million in cash, and $2 million in equity with up to $8 million in additional equity tied to recurring revenue and customer capture performance milestones over the next 20 months. As we step back and look at what we're acquiring, it's important to recognize that this is not just a single product or point solution, but a fully integrated platform that is ready to scale. At its core, NearLab combines purpose-built hardware with a cloud-connected software ecosystem and a subscription model, enabling rapid field-based chemical analysis with a simple scalable workflow. This platform approach is what drives both adoption and long-term customer value. A key component of that value is the underlying data, know-how, and IP. NearLab has built what we believe is the world's largest near-IR spectral database for narcotics, supported by proprietary AI and machine learning models informed by tens of thousands of laboratory-characterized seed drug samples. This creates a meaningful and defensible data moat that strengthens over time as more data is collected in the field. As part of the acquisition, we're also integrating a highly specialized and mission-driven team of 15 people based in Switzerland with deep expertise across spectroscopy, software, cloud infrastructure, and machine learning. Their scientific foundation, anchored through their relationship with the University of Lausanne, brings both credibility and continued innovation to the platform. The Neolab experience is designed to be simple, fast, and highly accessible for frontline users. With a straightforward workflow of just downloading the app from the app store, pairing the device, analyzing a sample, and then receiving results in seconds, users can detect, identify, and quantify the most common illicit drugs directly in the field, approximately 400 substances, including THC and CBD in cannabis, which are important analytes not covered by our mass spec or other optical products. For reference, The initial device will be roughly $10,000, and its required subscription will be roughly half that again per year. Note, these are approximate as pricing varies by market and is still being established. We believe NearIR's ease of use, low training requirements, and safer operating profile versus Raman are critical competitor differentiators in this product segment. This platform is purpose-built for broad deployment across generalist users, enabling everyday use cases at scale. What further differentiates this platform, however, is what happens beyond the handheld device. Each measurement taken in the field is captured and aggregated into a centralized cloud-based ecosystem, transforming what would otherwise be isolated data points into a continuously expanding intelligence layer. This allows agencies and organizations to identify patterns across locations, users, and time. Turning decentralized field activity into actionable insights can inform both real-time decisions and longer-term strategy. On top of that, the platform leverages AI and advanced compute to continuously improve performance. As more data is collected, the system becomes more accurate, more robust, and more valuable to the end user. This creates a powerful flywheel effect with increased usage driving more data, more data driving better insights, and better insights driving further adoption. From a strategic perspective, this is also highly aligned with our broader team leader software vision. It strengthens our ability to deliver connected data-driven solutions, expands our recurring revenue opportunities, and enhances the overall value of our ecosystem to customers. NearLab is embedded in the day-to-day workflows of customers, with over 1 million analyses performed to date. This level of usage demonstrates both reliability of the technology and the value it delivers in operational settings. NearLab's customer base spans across continents, from the Australian Federal Police in Oceania to state police forces in Switzerland and Germany, local police forces in the Netherlands, Italy, and Spain, and more broadly across Europe. to a forensics laboratory in Malaysia, customs authorities in Mauritius, and anti-narcotics units in Nigeria, among many others. These are not pilot programs or limited trials. This is an active recurring use by frontline personnel who rely on the platform to make fast, informed decisions in the field. That consistency of use underpins the strong retention and subscription model we discussed earlier. At the same time, this platform is early in its broader market adoption. It has not yet been scaled globally, has not penetrated the U.S., and has not been fully leveraged through a larger commercial engine, which creates a significant opportunity ahead for us. From our perspective, this combination of proven validation and early stage scale is particularly compelling. It reduces execution risk while preserving meaningful upside as we expand adoption, especially in the U.S., and connect this installed base into our broader ecosystem. Our combined platforms provide end-to-end coverage for narcotics detection supporting the law enforcement market broadly. This is timely for two reasons. One, global drug markets are expanding in both scale and complexity with cocaine seizures up 68% over the past four years and more than 55 tons of new psychoactive substances seized in Europe alone in 2024. At the same time, over 1,000 emerging compounds, including highly potent synthetic opioids like nidazine, are driving a growing need for traceable detection in complex and hazardous environments. And two, low-cost, widely deployable colometric field tests are increasingly falling out of favor, and a growing number of U.S. states and jurisdictions are restricting their use for arrest decisions due to accuracy concerns and lack of an electronic record. This is expected to drive a shift towards scientifically validated field-ready alternatives such as our products. With NearLab, we now address the full spectrum of use cases, from high-frequency in-field screening to advanced confirmatory analysis. NearLab enables rapid frontline awareness. Our flagship MX908 supports traits-level detection for high-consequence scenarios, including fentanyl and the synthetic opioid crisis. And our new product, Viper, expands our capability in bulk and unknown substance identification with its ability to identify 39,000-plus chemicals, cutting agents, and more in customs and clandestine lab response settings. These platforms are becoming increasingly connected through our software ecosystem, enabling data sharing and coordination and insight across users and environments. This transforms isolated measurements into a unified, actionable workflow. Importantly, this drives pull-through across the portfolio where routine screening can lean to demand for more advanced capabilities or the opposite, increasing both utilization and customer lifetime value. Overall, this positions us with a differentiated full-stack solution that spans every day to specialist use cases and is difficult to replicate. The acquisition directly aligns with the three strategic priorities we outlined for 2026. First, it scales our proven handheld platforms by expanding to low-cost, widely deployable segments, enabling broader adoption across law enforcement and global frontline users. Second, it extends our handheld leadership by completing the end-to-end workflow from screening to confirmatory analysis, strengthening what we believe is the most comprehensive handheld detection portfolio in the market. And third, it strengthens revenue durability by adding a high-quality subscription-based revenue stream and expanding our software and data layer. So taken together, this is exactly how we're executing the strategy, broadening the portfolio with purpose, scaling from a position of strength, and reinforcing our leadership in handheld detection. I'm so proud of what the team has been able to accomplish over the last 12 months, the trajectory we are on, our Q1 performance, our outlook. And with the addition of Nearlab, I'm even more excited for what's next. With that, I'll now turn the call over to Joe for more details on our first quarter and our updated outlook.