Quanterix Corporation

Good day, everyone, and thank you for standing by. My name is RG, and I will be your conference operator today. At this time, I would like to welcome everyone to the Quanterix Corporation Q2 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Josh Shang, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon. With me on today's call are Masood Tulloo, Quinterix President and CEO, and Bandana Sriram, Quinterix Chief Financial Officer. Today's call is being recorded, and a replay of the call will be available on the Investors section of our website. During the course of today's presentation, we will make forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act. These forward-looking statements are based on management's beliefs and assumptions as of today, August 7, 2025. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements. Forward-looking statements involve known and unknown risks uncertainties, assumptions, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. To supplement our financial statements presented on a gap basis, we have provided certain non-gap financial measures. These non-GAAP financial measures are used to evaluate our operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business and our competitors. We believe that such measures are important in comparing current results with other periods' results and assessing our operating performance within our industry. Non-GAAP financial information presented herein should be considered in conjunction with and not as a substitute for the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the presentation posted to our website and in the earnings release we issued today. Finally, any percentage changes we will discuss will be on a year-over-year basis unless otherwise noted. Now I'd like to turn the call over to Masoud Talu. Masoud?

Thank you, Joshua. I'd like to thank the entire Quantirics team for their dedication to our mission. We made significant progress during the quarter and have positioned the company for long-term growth and value creation. Highlights since our last call include completing the transformative Acquia acquisition, Investing in strategic drivers to support sustainable double-digit revenue growth and margin improvement. Generating 24 million of revenue in a difficult market environment. This was below our expectation due to temporary headwinds in academic funding and biopharma spending. I will discuss specific actions we are taking. Managing our cash diligently to preserve continued financial flexibility. and taking decisive action to help ensure we are cash flow positive in 2026. It has been just one month since we completed the ACQUIA acquisition, and we're thrilled with both the long-term growth potential of ACQUIA's exciting spatial technology and the quality of the talented team. The combined Quanterix ACQUIA management teams took a clean sheet of paper look at how to build an organizational structure for the future that allowed us to be lean and nimble, but with the resources available for investments needed to sustain and grow our business. The conclusion is a structure that ensures a break-even position in 2026, a double-digit growth trajectory for the coming years in our core markets, and the additional opportunity to pursue significant upside potential in diagnostics. We expect to achieve approximately 85 million in synergy savings and cost reductions within this timeframe. As of today, we've already implemented 75% of these expense reductions on a run rate basis. We've outlined a roadmap in the slides, which we'll review quarterly, that shows synergies realized per quarter, along with our path to cash flow positivity in 2026. The lifetime tools market and Quantirx's position with it remain highly attractive in the long term, with proteomics offering one of the most transformative opportunities in our sector today. Proteomics is increasing in importance, and we believe it is poised to reshape how we understand, diagnose, and treat disease. Proteomics is where genomics was two decades ago, and just as advancements in genomics unlocked a wave of high-throughput discovery, that led to the rise of specialized diagnostic labs and precision therapies, proteomics is now beginning to reveal novel, clinically relevant biomarkers. At the center of this shift is Quanterix, with the most sensitive protein detection platform commercially available. This unparalleled sensitivity enables our platform to detect low abundance biomarkers that are often invisible to other technologies. particularly in complex diseases like neurodegeneration and cancer. What sets Quanterix apart is our unique ability to translate these discoveries into actionable assays for clinical trials and diagnostic testing through our Samoa and now spatial platforms. This convergence between groundbreaking proteomic discovery and real-world clinical utility creates a powerful value opportunity, positioning us to lead the next wave of innovation in advanced disease detection and therapeutic development. Our strategic priorities and investments are designed to position the company to fully capitalize on this opportunity. First, we've meaningfully expanded our addressable market. With the acquisition of ACOIA and our expanded menu in immunology, We now serve a $5 billion total market across neurology, immunology, and oncology. This broader reach is already reflected in our pro forma revenue mix, now 53% neurology and 47% immunology and oncology. We've built a franchise that is generating approximately $100 million of consumables revenue and demonstrating resiliency in its macro environments. Importantly, both our Samoa and spatial biology platforms rank amongst the highest pull-through systems and life science tools, generating strong reoccurring revenues across an install base of over 2,400 instruments. As we continue to expand assay content, we're increasing the utility and productivity of each instrument placed, deepening customer engagement and maximizing return on the install base. We're accelerating our vision to bring Samoa into every lab. As we shared last quarter, we're launching Samoa One, our next generation platform by the end of 2025, with reagents that are compatible with a large existing base of flow cytometers in 2026 and can be used with Samoa One instruments for even higher sensitivity. This creates a substantial high-margin growth opportunity while significantly reducing the need for capital equipment purchases. By enabling Samoa-level sensitivity on a broad range of instruments, we can expand our addressable installed base by 20x to over 20,000 systems globally. Third, we're building the foundation for our Alzheimer's diagnostic franchise. Since our last earnings call, we've announced several new partnerships, expanded our international regulatory footprint, doubled test volumes, tripled revenues, and we remain on track to secure a Medicare pricing recommendation this year, all critical milestones as we move from research to clinical impact. The investments we're making in innovation are among the most significant in the company's history. with approximately 30% of our revenues allocated to R&D, which is at the high end of our peers. Our commitment to innovation will strengthen our competitive advantage and position the company to achieve sustained double-digit growth. As proteomics drives the discovery of previously undetectable, yet clinically meaningful biomarkers, Quanterix is uniquely poised to translate those discoveries into scalable tools for drug development and diagnosis, anchoring our leadership in a rapidly expanding and clinically relevant market. Now, I'll turn the call over to Vandana.