908 Devices Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 10, 2026
MASS$9.99-13.2%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001104659-26-093731
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001104659-26-124787
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 155 current paragraphs.
92 unchanged; 46 reworded; 11 added; 12 removed; 5 previous and 6 current paragraphs rearranged.
Tables are not compared: 31 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
We expect selling, general and administrative expenses to increase in future periods as we support the growth of our existing and future products.
Current report
Product cost of revenue increased by $2.3 million, or 44%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in product cost of revenue was primarily related to a $1.7 million increase in shipments, a $0.2 million increase related to amortization of intangibles from the NIRLAB acquisition, a $0.1 million increase related to higher personnel expenses and $0.3 million in all other costs.
Current report
Service and contract gross profit increased by less than $0.1 million, or 3%, and gross profit margin increased by one percentage point for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025.
Current report
Our research and development expenses were $3.8 million for the three months ended September 30, 2026, flat compared to research and development expenses of $3.8 million for the three months ended September 30, 2025. The research and development expenses included a $0.3 million reduction in facility costs, which reflected a $0.2 million shift in allocation to selling, general and administrative expenses along with a $0.1 million reduction from repairs, maintenance and overall facility
Current report
related costs, offset by a $0.2 million increase in consulting costs related to new product testing and increases in personnel related and travel related costs.
Current report
Other income (expense), net
Current report
Other income increased by $0.1 million for the three months ended September 30, 2026 from an expense of $0.1 million for the three months ended September 30, 2025. The increase was related to favorable foreign exchange impacts in the three months ended September 30, 2026 and a loss on disposal of fixed assets in the three months ended September 30, 2025.
Current report
Comparison of the nine months ended September 30, 2026 and 2025
Current report
Product cost of revenue increased by $3.8 million, or 25%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase in product cost of revenue was primarily related to a $4.2 million increase in shipments, a $0.3 million increase for intangible amortization costs, and a $0.2 million increase in warranty costs.
Current report
Other expense, net
Current report
Other expense, net decreased by $0.2 million for the nine months ended September 30, 2026 from $0.2 million for the nine months ended September 30, 2025. The decrease was primarily due to the transition services agreement expenses and losses on disposal of fixed assets recorded in the comparable period in 2025.
Removed paragraphs (12)
Previous report
Selling, general and administrative expenses
Previous report
We expect selling, general and administrative expenses, amortization of customer relationship and tradename intangibles to stabilize in future periods as we execute our strategic transformation as outlined in our restructuring plan.
Previous report
Product cost of revenue increased by $1.1 million, or 20%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in product cost of revenue was primarily related to a $1.3 million increase in shipments and related warranty costs and $0.1 million related to an increase in charges for excess and obsolete inventory. These increases were offset in part by $0.2 million in lower facility related costs and a $0.1 million reduction in all other manufacturing costs.
Previous report
$0.3 million reduction in personnel and related costs and a $0.2 million reduction in program spend related to materials and consulting expenses.
Previous report
Selling, general and administrative expenses
Previous report
Other expense (income), net
Previous report
Comparison of the six months ended June 30, 2026 and 2025
Previous report
Product cost of revenue increased by $1.5 million, or 15%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in product cost of revenue was primarily related to a $1.9 million increase in shipments and related warranty costs and $0.2 million in personnel related costs, offset in part by $0.4 million in lower facility
Previous report
Our research and development expenses were $7.1 million for the six months ended June 30, 2026, a decrease of $1.2 million from research and development expenses of $8.2 million for the six months ended June 30, 2025. The decrease was primarily due to a $0.8 million reduction in facility costs related to the shutdown of the Boston facility as of June 30, 2025, a $0.2 million reduction in personnel and related costs and a $0.2 million reduction in program spend related to materials and consulting expenses.
Previous report
Selling, general and administrative expenses
Previous report
Other expense (income), net
Previous report
Other expense, net for the six months ended June 30, 2026 did not change materially from the six months ended June 30, 2025 to the six months ended June 30, 2026.
Reworded paragraphs (46)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March9, 2026*, or the**2025 Form 10-K. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in “Item 1.A. Risk Factors” section of our 2025 Form 10-K, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March9, 2026*, or the**2025 Form 10-K. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in “Item 1A. Risk Factors” section of our 2025 Form 10-K, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*
Previous wording
We have developed an innovative suite of purpose-built handheld devices for point-of-need chemical analysis. Leveraging complementary analytical technologies including our proprietary mass spectrometry (“Mass Spec”) and optical spectroscopy, analytics and machine learning technologies, we make devices that are significantly smaller and more accessible than conventional laboratory instruments. Our devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address vital health and safety applications, including the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats.
Current wording
We have developed an innovative suite of purpose-built handheld devices for point-of-need chemical analysis. Leveraging complementary analytical technologies including our proprietary mass spectrometry (“Mass Spec”) and optical spectroscopy, analytics and machine learning technologies, we make devices that are significantly smaller and more accessible than conventional laboratory instruments. Our devices are used at the point-of-need to interrogate unknown and invisible materials and provide quick, actionable answers to directly address vital health and safety and defense tech applications, including the fentanyl and illicit drug crisis, toxic carcinogen exposure, and global security threats.
Previous wording
On March 4, 2025, the Company completed the sale of its Desktop Portfolio to Repligen. The Company has determined the sale of the Desktop Portfolio represents a strategic shift that will have a major effect on its business and therefore met the criteria for classification as discontinued operations in the first quarter of 2025. Accordingly, the Desktop Portfolio is reported
Current wording
On March 4, 2025, the Company completed the sale of its Desktop Portfolio to Repligen. The Company has determined the sale of the Desktop Portfolio represents a strategic shift that will have a major effect on its business and therefore met the
Previous wording
as discontinued operations in accordance with ASC 205-20,Discontinued Operations. The related results of operations from the Desktop Portfolio are classified within discontinued operations in the consolidated statements of operations. Applicable amounts in prior years have been recast to conform to this discontinued operations presentation. The Company recognized a gain on the sale of the Desktop Portfolio upon closing.
Current wording
criteria for classification as discontinued operations in the first quarter of 2025. Accordingly, the Desktop Portfolio is reported as discontinued operations in accordance with ASC 205-20,Discontinued Operations. The related results of operations from the Desktop Portfolio are classified within discontinued operations in the consolidated statements of operations. Applicable amounts in prior years have been recast to conform to this discontinued operations presentation. The Company recognized a gain on the sale of the Desktop Portfolio upon closing.
Previous wording
Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue from continuing operations of $29.5 million and $24.8 million for the six months ended June 30, 2026 and 2025, respectively, and incurred net losses from continuing operations of $23.8 million and $22.7 million for those same periods. As of June 30, 2026, we had an accumulated deficit of $247.2 million. We expect to continue to incur net losses as we focus on growing sales of our products in both the United States and international markets, scaling our manufacturing operations, continuing research and development efforts to develop new products and further enhance our existing products. As a result, we may need additional funding for expenses related to our operating activities, including selling, general and administrative expenses and research and development expenses.
Current wording
Since our inception, we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend on the successful further development and commercialization of our products. We generated revenue from continuing operations of $48.4 million and $38.8 million for the nine months ended September 30, 2026 and 2025, respectively, and incurred net losses from continuing operations of $28.4 million and $37.7 million for those same periods. As of September 30, 2026, we had an accumulated deficit of $251.7 million. We expect to continue to incur net losses as we focus on growing sales of our products in both the United States and international markets, scaling our manufacturing operations, continuing research and development efforts to develop new products and further enhance our existing products. As a result, we may need additional funding for expenses related to our operating activities, including selling, general and administrative expenses and research and development expenses.
Previous wording
Challenging capital market conditions and the limited availability of financing alternatives, together with inflationary and interest rates pressures, may contribute to more cautious spending by our customers. We cannot accurately predict the full impact of current macroeconomic factors on the budgets and capital expenditures of our customers, or the timing of the normalization of customer purchasing patterns.
Current wording
Challenging capital market conditions and the limited availability of financing alternatives, together with inflationary and interest rate pressures, may contribute to more cautious spending by our customers. We cannot accurately predict the full impact of current macroeconomic factors on the budgets and capital expenditures of our customers, or the timing of the normalization of customer purchasing patterns.
Previous wording
reciprocal tariffs recently implemented by non-U.S. countries where we export our finished products. We do not expect these tariffs to materially impact our business or results of operations in the 2026 fiscal year. Nonetheless, we will continue to review and assess how any current or future tariffs may affect our business.
Current wording
We are also closely monitoring increases or changes in tariffs on parts and components imported into the U.S., as well as reciprocal tariffs recently implemented by non-U.S. countries where we export our finished products. We do not expect these tariffs to materially impact our business or results of operations in the 2026 fiscal year. Nonetheless, we will continue to review and assess how any current or future tariffs may affect our business.
Previous wording
We regularly assess trends relating to recurring revenue which includes consumables, accessories, software, software subscription and services based on our product offerings, our customer base and our understanding of how our customers use our products. Recurring revenue was 30% and 36% of total revenue for the six months ended June 30, 2026 and 2025, respectively. Our recurring revenue as a percentage of total revenue will vary based upon new device placements in the period. As our device installed base expands, recurring revenue on an absolute basis is expected to increase and over time should be an increasingly important contributor to our revenue.
Current wording
We regularly assess trends relating to recurring revenue which includes consumables, accessories, software, software subscription and services based on our product offerings, our customer base and our understanding of how our customers use our products. Recurring revenue was 29% and 36% of total revenue for the nine months ended September 30, 2026 and 2025, respectively. Our recurring revenue as a percentage of total revenue will vary based upon new device placements in the period. As our device installed base expands, recurring revenue on an absolute basis is expected to increase and over time should be an increasingly important contributor to our revenue.
Previous wording
During the three and six months ended June 30, 2026 and 2025, our product placements (units recognized as revenue) were as follows:
Current wording
During the three and nine months ended September 30, 2026 and 2025, our product placements (units recognized as revenue) were as follows:
Previous wording
We generate product and service revenue from the sale of our devices and recurring revenue from the sale of consumables, accessories, software, software subscriptions and services. Device sales accounted for 69% and 63% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. Recurring revenue accounted for 30% and 36% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. Our current device offerings include MX908, ThreatID, ProtectIR, XplorIR, VipIR, NIRLab and AVCAD components.
Current wording
We generate product and service revenue from the sale of our devices and recurring revenue from the sale of consumables, accessories, software, software subscriptions and services. Device sales accounted for 71% and 64% of our total revenue for the nine months ended September 30, 2026 and 2025, respectively. Recurring revenue accounted for 29% and 36% of our total revenue for the nine months ended September 30, 2026 and 2025, respectively. Our current device offerings include MX908, ThreatID, ProtectIR, XplorIR, VipIR, NIRLab and AVCAD components.
Previous wording
Contract agreements are arrangements whereby we provide engineering services for the development of our technology platform for specific programs or new and expanding applications of our technologies for future commercial endeavors. Our contract agreements are with the U.S. government and commercial entities (who may be contracting with the government). Contracts typically include compensation for labor effort and materials incurred related to the deliverables under the contract. Our contract revenue was related to two and one customer during the six months ended June 30, 2026 and 2025, respectively.
Current wording
Contract agreements are arrangements whereby we provide engineering services for the development of our technology platform for specific programs or new and expanding applications of our technologies for future commercial endeavors. Our contract agreements are with the U.S. government and commercial entities (who may be contracting with the government). Contracts typically include compensation for labor effort and materials incurred related to the deliverables under the contract. Our contract revenue was related to two and one customer during the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
During the three and six months ended June 30, 2026 and 2025, our revenue was comprised of revenue from the following sources:
Current wording
During the three and nine months ended September 30, 2026 and 2025, our revenue was comprised of revenue from the following sources:
Previous wording
We expect that our gross profit margin for product and service will increase over the long term as our sales and production volumes increase and our cost per unit decreases due to efficiencies of scale. We intend to use our design, engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing, which we believe will reduce
Current wording
We expect that our gross profit margin for product and service will increase over the long term as our sales and production volumes increase and our cost per unit decreases due to efficiencies of scale. We intend to use our design, engineering and manufacturing capabilities to further advance and improve the efficiency of our manufacturing, which we believe will reduce costs and increase our gross margin. We expect that our gross profit margin for contract will remain consistent for our contracts that are cost reimbursement contracts.
Previous wording
Selling, general and administrative expenses consist primarily of salaries and other personnel costs, and stock-based compensation for our sales and marketing, finance, legal, human resources and general management, as well as professional services, such as legal, audit and accounting services, and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.
Current wording
Selling, general and administrative expenses consist primarily of salaries and other personnel costs, and stock-based compensation for our sales and marketing, finance, legal, human resources and general management, as well as professional services, such as legal, audit and accounting services, amortization of developed technology, customer relationships and trade name intangibles and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.
Previous wording
Income from transition services agreement, net represents service charges provided to Repligen to facilitate the transition of the Desktop Portfolio, net of directly identifiable personnel related costs. The scope of transition services includes the provision of certain manufacturing services, research and development support and certain administrative functions related to the Desktop Portfolio. The services and obligations under the TSA were completed as of June 30, 2026.
Current wording
Income from transition services agreement, net represents service charges provided to Repligen to facilitate the transition of the Desktop Portfolio, net of directly identifiable personnel related costs. The scope of transition services includes the provision of certain manufacturing services, research and development support and certain administrative functions related to the Desktop Portfolio. The services and obligations under the TSA were completed on June 30, 2026.
Previous wording
Product revenue increased by $3.4 million, or 35%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was primarily related to a $2.6 million increase in product revenue from our FTIR products, driven by our VipIR placements, a $0.6 million increase from our mass spec products related to accessories in the quarter and a $0.2 million increase related to our recently acquired NIRLab product revenues.
Current wording
Product revenue increased by $4.9 million, or 45%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase was primarily related to a $4.5 million increase in product revenue from our FTIR products, driven by our ProtectIR, which was primarily related to shipments to a corrections agency in the Asia-Pacific region, and VipIR placements. In addition, $0.7 million of the increase related to our recently acquired NIRLab product revenues, offset in part by a $0.3 million decrease from our Mass Spec products related to channel mix resulting in a lower average selling price.
Previous wording
Product gross profit increased by $2.3 million, or 54%, and gross profit margin increased by seven percentage points for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increased product gross profit was primarily due to the higher product revenue volume, a shift in channel mix with less international product sales that are at a lower gross margin, as well as the decreased facility costs related to the shutdown of the Boston facility as of June 30, 2025 and lower operating costs for the three months ended June 30, 2026, which drove the increase in gross profit margin.
Current wording
Product gross profit increased by $2.6 million, or 47%, and gross profit margin increased by one percentage point for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increased product gross profit was primarily due to the higher product revenue volume, offset in part by a shift in channel mix with more international product sales that are at a lower gross margin.
Previous wording
Service and contract revenue decreased by $0.4 million, or 10%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily related to a $0.9 million decrease in mass spec service revenue, driven by a $0.7 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. The decrease was offset in part by a $0.2 million increase in service revenue related to our FTIR products and $0.3 million related to our recently acquired NIRLab service and subscription revenues. Contract revenue for the three months ended June 30, 2026 was $0.1 million compared to less than $0.1 million in the three months ended June 30, 2025.
Current wording
Service and contract revenue increased by less than $0.1 million, or 1%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase was primarily due to $0.5 million related to our recently acquired NIRLab service and subscription revenues and a $0.1 million increase in service revenue related to our FTIR products. The increase was offset in part by a $0.5 million decrease in Mass Spec service revenue, driven by a $0.7 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. Contract revenue for the three months ended September 30, 2026, and 2025 was less than $0.1 million.
Previous wording
Service and contract cost of revenue decreased less than $0.1 million, or 1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease in service cost of revenue was primarily related to a reduction in third party contractors and materials spent on extended service contracts during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current wording
Service and contract cost of revenue decreased less than $0.1 million, or 2%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The decrease in service cost of revenue was primarily related to a $0.1 million decrease in stock based compensation and a $0.1 million decrease in travel and entertainment and facility related costs. The decreases were offset in part by $0.1 million in higher third party contractors and materials spent on extended service contracts during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous wording
Our selling, general and administrative expenses were $11.1 million for the three months ended June 30, 2026, an increase of $0.8 million from selling, general and administrative expenses of $10.3 million for the three months ended June 30, 2025. The increase was due primarily to a $0.8 million increase in personnel and related costs and a $0.7 million charge for legal and accounting expenses related to the NIRLAB acquisition, offset in part by a $0.8 million reduction in facility costs, mainly related to facility shut down and moving costs expensed in the second quarter of 2025.
Current wording
Our selling, general and administrative expenses were $12.0 million for the three months ended September 30, 2026, an increase of $2.8 million from selling, general and administrative expenses of $9.1 million for the three months ended September 30, 2025. The increase was due primarily to a $1.6 million increase in personnel and related costs, a $0.3 million increase in legal, consulting and professional fees, a $0.3 million increase in provisions for bad debt, $0.2 million in charges for transaction expenses related to the NIRLAB acquisition and higher amortization from the acquisition and a $0.2 million increase in facility and related costs.
Previous wording
The change in fair value of contingent consideration was $6.4 million for the three months ended June 30, 2026, a decrease of $0.4 million, compared to the $6.8 million charge in the three months ended June 30, 2025. The change in fair value for the three months ended June 30, 2026, consisted of a $1.3 million decrease related to the RedWave acquisition valuation and a $0.9 million increase related to the NIRLAB acquisition, which was not recorded in the prior comparative period. The increase in fair value for the three months ended June 30, 2026, primarily related to the increase in the Company’s publicly quoted share price and the impact to the NIRLAB contingent consideration, offset in part by a change in the final projections and backlog for FTIR revenues, net of the higher stock price. The increase in fair value for the three months ended June 30, 2025, related to both the increase in the Company’s publicly quoted share price, and due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR.
Current wording
The change in fair value of contingent consideration was a reduction of $0.3 million for the three months ended September 30, 2026, a decrease of $11.0 million, compared to the $10.7 million charge in the three months ended September 30, 2025. The change in fair value for the three months ended September 30, 2026, consisted of a $2.6 million decrease related to the reduction in the Company’s quoted share price between June 30, 2026 and the settlement of the RedWave acquisition on July 8, 2026, offset by a $2.3 million increase related to the NIRLAB acquisition. The increase in fair value related to the NIRLAB contingent consideration, in the three months ended September 30, 2026, primarily related to the increase in the Company’s publicly quoted share price and the projections over the certain contractual milestones. The increase in fair value for the three months ended September 30, 2025 was primarily due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR, and the increase in the Company’s publicly quoted share price during the three months ended September 30, 2025.
Previous wording
Interest income decreased by $0.3 million for the three months ended June 30, 2026 from $1.2 million for the three months ended June 30, 2025. The decrease was due to the lower cash, cash equivalent and marketable securities balances, primarily due to the average balance during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current wording
Interest income decreased by $0.3 million for the three months ended September 30, 2026 from $1.1 million for the three months ended September 30, 2025. The decrease was due to the lower cash, cash equivalent and marketable securities balances, primarily due to the average balance during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous wording
Income from the transition services agreement, net was zero for the three months ended June 30, 2026 compared to $1.2 million for the three months ended June 30, 2025.
Current wording
Income from the transition services agreement, net was zero for the three months ended September 30, 2026 compared to $0.4 million for the three months ended September 30, 2025.
Previous wording
Other expense, net for the three months ended June 30, 2026 did not change materially from the three months ended June 30, 2025.
Current wording
Income tax benefit (expense), net did not change materially from the three months ended September 30, 2025.
Previous wording
Thefollowing table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
Current wording
Thefollowing table summarizes our results of operations for the nine months ended September 30, 2026 and 2025:
Previous wording
Product revenue increased by $5.6 million, or 31%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily related to a $3.4 million increase in product revenue from our FTIR products, driven by our VipIR placements, a $2.0 million increase in product revenue from our mass spec products mainly related to higher device shipments within our federal and defense and state and local customers and a $0.2 million increase related to our recently acquired NIRLAB product revenues.
Current wording
Product revenue increased by $10.5 million, or 36%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase was primarily related to a $7.9 million increase in product revenue from our FTIR products, driven by our VipIR and ProtectIR placements, a $1.6 million increase in product revenue from our Mass Spec products mainly related to higher device shipments within our federal and defense and state and local customers and a $1.0 million increase related to our recently acquired NIRLab product revenues.
Previous wording
related costs, $0.2 million from reduced severance and retention costs driven by the facility move in 2025 and a $0.2 million reduction in all other manufacturing costs.
Current wording
These costs were offset in part by $0.4 million in lower facility related costs, $0.3 million in lower personnel related costs, and $0.2 million from reduced severance and retention costs driven by the facility move in 2025.
Previous wording
Product gross profit increased by $4.1 million, or 51%, and gross profit margin increased by six percentage points for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increased product gross profit was primarily due to the higher product revenue volume, a shift in channel mix with less international product sales that are at a lower gross margin, as well as the decreased facility and personnel costs related to the shutdown of the Boston facility as of June 30, 2025, which drove the increase in gross profit margin.
Current wording
Product gross profit increased by $6.7 million, or 49%, and gross profit margin increased by four percentage points for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increased product gross profit was primarily due to the higher product revenue volume, as well as the decreased facility and personnel costs related to the shutdown of the Boston facility in June 2025, which drove the increase in gross profit margin.
Previous wording
Service and contract revenue decreased by $1.0 million, or 14%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease was primarily related to a $1.6 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. The decrease was offset in part by a $0.3 million increase in service revenue related to our FTIR products and $0.3 million related to our recently acquired NIRLab service and subscription revenues. Contract revenue for the six months ended June 30, 2026 was $0.1 million compared to $0.1 million in the six months ended June 30, 2025.
Current wording
Service and contract revenue decreased by $0.9 million, or 9%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decrease was primarily related to a $2.1 million decrease in extended service contracts for MX908 devices mainly related to a funding-related pause in service coverage by a United States defense customer which began to impact our service revenues in the fourth quarter of 2025. The decrease was offset in part by a $0.5 million increase in service revenue related to our FTIR products and $0.8 million related to our recently acquired NIRLab service and subscription revenues. Contract revenue for the nine months ended September 30, 2026 was $0.1 million compared to $0.1 million in the nine months ended September 30, 2025.
Previous wording
Service and contract cost of revenue decreased by $0.2 million, or 7%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease in service cost of revenue was primarily related to a reduction in third party contractors and materials spent on extended service contracts during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, and to a lesser extend a decrease in costs to perform contract revenue.
Current wording
Service and contract cost of revenue decreased by $0.2 million, or 5%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The decrease in service cost of revenue was primarily related to a $0.2 million reduction in personnel related costs and a reduction of $0.1 million in third party contractors and materials spent on extended service contracts during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, offset in part by a $0.1 million increase in shipping costs.
Previous wording
Service and contract gross profit decreased by $0.3 million, or 16%, and gross profit margin decreased by four percentage points for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to a decrease in service volume related to extended service contracts, resulting in reduced leverage of our investments in personnel and service infrastructure.
Current wording
Service and contract gross profit decreased by $0.7 million, or 13%, and gross profit margin decreased by two percentage points for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to a decrease in service volume related to extended service contracts, resulting in reduced leverage of our investments in personnel and service infrastructure.
Previous wording
Our research and development expenses were $3.6 million for the three months ended June 30, 2026, a decrease of $0.8 million from research and development expenses of $4.4 million for the three months ended June 30, 2025. The decrease was primarily due to a $0.3 million reduction in facility costs related to the shutdown of the Boston facility as of June 30, 2025, a
Current wording
Our research and development expenses were $10.9 million for the nine months ended September 30, 2026, a decrease of $1.2 million from research and development expenses of $12.1 million for the nine months ended September 30, 2025. The decrease was primarily due to a $1.0 million reduction in severance and the shutdown of the Boston facility as of June 30, 2025, a $0.2 million reduction in non-cash stock-based compensation costs.
Previous wording
Our selling, general and administrative expenses were $21.0 million for the six months ended June 30, 2026, an increase of $0.5 million from selling, general and administrative expenses of $20.6 million for the six months ended June 30, 2025. The increase was due primarily to a $1.1 million increase for legal and accounting transaction expenses related to the NIRLAB acquisition, offset in part by a $0.6 million reduction in facility costs mainly related to the Boston facility shut down and moving costs and a net decrease in all other expenses of $0.1 million.
Current wording
Our selling, general and administrative expenses were $33.0 million for the nine months ended September 30, 2026, an increase of $3.3 million from selling, general and administrative expenses of $29.7 million for the nine months ended September 30, 2025. The increase was due primarily to a $1.9 million increase in personnel and related costs and a $1.2 million increase for legal and accounting transaction expenses related to the NIRLAB acquisition.
Previous wording
The change in fair value of contingent consideration was $12.8 million for the six months ended June 30, 2026, an increase of $3.5 million, compared to the $9.3 million charge in the six months ended June 30, 2025. The change in fair value consisted of a $2.6 million increase related to the RedWave acquisition and a $0.9 million increase related to the NIRLAB acquisition. The increase in fair value for the six months ended June 30, 2026, primarily related to the increase in the Company’s publicly quoted share price, and to a lesser extent a change in the final projections and backlog for FTIR revenues. The increase in fair value for the six months ended June 30, 2025, related to both the increase in the Company’s publicly quoted share price, and due to an increase in the projections for FTIR revenue, including the second quarter product launch of VipIR.
Current wording
The change in fair value of contingent consideration was $12.5 million for the nine months ended September 30, 2026, a decrease of $7.5 million, compared to the $20.0 million charge in the nine months ended September 30, 2025. The change in fair value for the nine months ended September 30, 2026, consisted of a $9.3 million increase related to the RedWave acquisition and a $3.2 million increase related to the NIRLAB acquisition. The increases in fair value for the nine months ended September 30, 2026, primarily related to the increase in the Company’s publicly quoted share price, and to a lesser extent a change in the final projections and backlog for FTIR revenues. The increase in fair value for the nine months ended September 30, 2025 was primarily due to an increase in the projections for FTIR revenue, including the recent product launch of VipIR, and the increase in the Company’s publicly quoted share price during the nine months ended September 30, 2025.
Previous wording
Interest income decreased by $0.1 million for the six months ended June 30, 2026 from $2.0 million for the six months ended June 30, 2025. The decrease was primarily due to the lower interest rates during the six month ended June 30, 2026, offset in part by higher cash, cash equivalent and marketable securities balances during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
Interest income decreased by $0.4 million for the nine months ended September 30, 2026 from $3.1 million for the nine months ended September 30, 2025. The decrease was primarily due to the lower cash, cash equivalent and marketable securities balances, primarily due to the average balance during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, and to a lesser extent the lower interest rates during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
Previous wording
Income from the transition services agreement, net was zero for the six months ended June 30, 2026 compared to $1.6 million for the six months ended June 30, 2025.
Current wording
Income from the transition services agreement, net was zero for the nine months ended September 30, 2026 compared to $2.1 million for the nine months ended September 30, 2025.
Previous wording
Income tax benefit (expense), net was a net benefit of less than $0.1 million for the six months ended June 30, 2026, compared to a net income tax expense of less than $0.1 million for the six months ended June 30, 2025. The change of $0.1 million was primarily due to the amortization of intangible assets acquired from our NIRLAB acquisition. We have recorded a full valuation allowance against our net United States deferred tax assets, and our income tax benefit (expense), net for these periods primarily related to state and foreign income taxes.
Current wording
Income tax benefit (expense), net was a net benefit of $0.1 million for the nine months ended September 30, 2026, compared to a net income tax expense of $0.1 million for the nine months ended September 30, 2025. The change of $0.2 million was primarily due to the amortization of intangible assets acquired from our NIRLAB acquisition. We have recorded a full valuation allowance against our net United States deferred tax assets, and our income tax benefit (expense), net for these periods primarily related to state and foreign income taxes.
Previous wording
Since our inception, we have incurred significant operating losses. To date, we have funded our operations primarily with proceeds from sales of redeemable preferred stock, borrowings under loan agreements and revenue from sales of our products and services and contract revenue. As of June 30, 2026, we had cash, cash equivalents and marketable securities of $101.5 million. We believe that our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next twelve months.
Current wording
Since our inception, we have incurred significant operating losses. To date, we have funded our operations primarily with proceeds from sales of redeemable preferred stock, proceeds from public offerings, funds from the sale of our Desktop Portfolio, borrowings under loan agreements and revenue from sales of our products and services and contract revenue. As of September 30, 2026, we had cash, cash equivalents and marketable securities of $99.1 million. We believe that our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses, capital expenditure requirements and debt service payments for at least the next twelve months.
Previous wording
During the six months ended June 30, 2026, net cash provided by operating activities was $4.4 million, primarily resulting from noncash items of $20.4 million and inflows from our operating assets and liabilities of $7.8 million, partially offset by our net loss of $23.8 million. Noncash items consisted primarily of a $12.8 million increase from the change in fair value of contingent consideration and a $4.7 million increase from stock-based compensation expense. Inflows from our operating assets and liabilities of $7.8 million consist primarily of a $4.2 million increase from prepaid expenses and other current assets, a $3.4 million increase from accounts payable and accrued expenses and a $1.2 million increase from deferred revenue, partially offset by a $1.4 million decrease from changes in inventory.
Current wording
During the nine months ended September 30, 2026, net cash provided by operating activities was $1.6 million, primarily resulting from noncash items of $24.4 million and inflows from our operating assets and liabilities of $5.6 million, partially offset by our net loss of $28.4 million. Noncash items consisted primarily of a $12.5 million increase from the change in fair value of contingent consideration, a $7.0 million increase from stock-based compensation expense and a $4.0 million increase from depreciation and amortization expense. Inflows from our operating assets and liabilities of $5.6 million consist primarily of a $6.1 million increase from accounts payable and accrued expenses, a $4.6 million increase from prepaid expenses and other current assets, and a $2.5 million increase from deferred revenue, partially offset by a $5.4 million decrease from changes in accounts receivable, net and a $2.1 million decrease from changes in inventory.
Previous wording
During the six months ended June 30, 2025, net cash used in operating activities was $20.8 million, primarily resulting from noncash income of $40.0 million, partially offset by our net income of $30.3 million and net cash used in changes in our operating assets and liabilities of $11.1 million. Noncash charges consisted primarily of a $56.2 million increase from the gain on sale of Desktop Portfolio, net of transaction costs, partially offset by a $9.3 million increase from the change in fair value of contingent consideration. Net cash used in changes in our operating assets and liabilities of $11.1 million consisted primarily of a $5.6 million decrease from changes in accounts payable and accrued expenses, a $5.2 million decrease from changes in inventory and a $3.3 million decrease from changes in prepaid expenses and other current assets, partially offset by a $5.3 million increase from changes in account receivable, net.
Current wording
During the nine months ended September 30, 2025, net cash used in operating activities was $25.0 million, primarily resulting from noncash uses of $25.8 million and net cash used in changes in our operating assets and liabilities of $14.5 million, partially offset by our net income of $15.3 million. Noncash uses consisted primarily of a $56.1 million increase from the gain on sale of our Desktop Portfolio, net of transaction costs, partially offset by a $20.0 million increase from the change in fair value of contingent consideration. Net cash used in changes in our operating assets and liabilities of $14.5 million consisted primarily of a $5.4 million decrease from changes in accounts payable and accrued expenses, a $5.5 million decrease from changes in inventory and a $2.1 million decrease from changes in deferred revenue, primarily related to assets and liabilities that were divested with our Desktop Portfolio.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Change in fair value of contingent consideration
Current report — wording carried from elsewhere
Income from transition services agreement, net
Current report — wording carried from elsewhere
Change in fair value of contingent consideration
Current report — wording carried from elsewhere
Income from transition services agreement, net
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Change in fair value of contingent consideration
Current report — wording carried from elsewhere
Income from transition services agreement, net
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
We are also closely monitoring increases or changes in tariffs on parts and components imported into the U.S., as well as
Previous report — wording carried elsewhere
costs and increase our gross margin. We expect that our gross profit margin for contract will remain consistent for our contracts that are cost reimbursement contracts.
Previous report — wording carried elsewhere
Income tax benefit (expense), net was a net benefit of less than $0.1 million for the three months ended June 30, 2026, compared to a net income tax expense net of less than $0.1 million for the three months ended June 30, 2025. The change of $0.1 million was primarily due to the amortization of intangible assets acquired from our NIRLAB acquisition. We have recorded a full valuation allowance against our net United States deferred tax assets, and our income tax benefit (expense), net for these periods primarily related to state and foreign income taxes.
Previous report — wording carried elsewhere
Service and contract gross profit decreased by $0.8 million, or 20%, and gross profit margin decreased by four percentage points for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to a decrease in service volume related to extended service contracts, resulting in reduced leverage of our investments in personnel and service infrastructure.
Previous report — wording carried elsewhere
Our condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The preparation of our condensed consolidated financial statements and related disclosures