908 Devices at Leerink’s Global Healthcare Conference: Strategic Shift to Handhelds

On Tuesday, 11 March 2025, 908 Devices (NASDAQ: MASS) presented at Leerink’s Global Healthcare Conference 2025, outlining a strategic pivot towards handheld devices following the divestiture of its biopharma desktop portfolio. The company emphasized its focus on high-growth markets and its path to profitability, though challenges remain in achieving these ambitious targets.

Key Takeaways

• 908 Devices sold its biopharma desktop portfolio to Repligen for $70 million, aiming to double its cash reserves.
• The company targets adjusted positive EBITDA by Q4 2025 and full cash flow positivity in 2026.
• Handheld device revenue has doubled desktop sales since the IPO, with over 3,000 units installed.
• The company is focusing on critical health and safety applications, including opioid crisis solutions.
• International markets, notably Europe and Ukraine, contribute significantly to revenue.

Financial Results

• Divestiture Impact: The sale to Repligen nearly doubles the company’s cash reserves, strengthening its financial position.
• Revenue Growth: 908 Devices projects revenue from continuing operations between $53 million and $55 million, marking an 11% to 15% increase year-over-year.
• Profitability Goals: The company aims for adjusted positive EBITDA by the end of 2025 and full cash flow positivity by 2026.

Operational Updates

• Product Line Expansion: The acquisition of Redwave has expanded the handheld product line from one to four devices, with plans for further growth.
• Market Focus: The company is targeting 15,000 FTIR customer upgrades, addressing a total addressable market of $2.5 billion.

• Growth Catalysts:

- Equipment modernization trends worldwide.

- Launch of the next-generation handheld mass spectrometer by 2026.

- Progression of the AvCAD Air Monitor program with the US Department of Defense.

International Opportunities

• Revenue Distribution: International markets account for about one-third of total revenue.
• Significant Orders: A $1.7 million order from Ukraine’s Ministry of Health highlights international demand.
• EU Programs: Success in EU stockpile programs for chemical detection underscores growth potential.

Redwave Integration

• Portfolio Expansion: The integration of FTIR products has broadened the company’s offerings.
• Cross-Selling Success: Customers are increasingly purchasing both MX908 and FTIR products as comprehensive solutions.
• Pilot Program Growth: The number of units in the pilot program increased sevenfold to over 700 by the end of 2024.

Future Outlook

• Gross Margin Expectations: Further expansion of gross margins is anticipated in 2025 and 2026.
• Recurring Revenue: Approximately one-third of handheld revenue is recurring, enhancing financial stability.
• Customer Diversification: The company aims for a balanced customer base, with equal contributions from US federal, international, and US state-funded customers.

For further details, readers are encouraged to refer to the full transcript of the conference call.

Full transcript - Leerink’s Global Healthcare Conference 2025:

Kevin J. Mahoney, 908 Devices: Yeah. Thanks so much for having us. Appreciate the opportunity.

Unidentified speaker: Awesome. So, I think you had a couple of slides kind of

Kevin J. Mahoney, 908 Devices: We do. Yeah. We just have a few we’d love to walk through. Shall we start there?

Unidentified speaker: Yeah.

Kevin J. Mahoney, 908 Devices: Well, thank you again, and good afternoon to everybody here. Thanks for having us. We applications. And our products are based on innovative mass spec and spectroscopy technology, and and we’re really working to take these lab grade analytical instrument platforms out for mobile and field use. We serve a multitude of what we think of as critical to life use cases.

That includes the fentanyl and opioid crisis with users spanning from frontline workers to law enforcement. And that includes informing life safety, where we use our products to detect and identify toxic industrial materials and VOCs. And that’s really helping to prevent an acute exposure of emergency personnel to carcinogens. And lastly, being a platform technology, we really have broad across life science market use cases. And some of these applications areas we’re serving today across pharma and industrial QAQC through OEM and other funded partnerships.

So last week, we announced something pretty transformative to us here at at 09:08. And and really to us, it’s it’s a massive step forward. It’s a it’s a bold step in our opinion, but it’s also quite a natural step for us. It sharpens our focus and strengthens our financial position and importantly, dramatically accelerates our path to profitability. And in short, we’re really doubling down on the higher growth handheld markets, where revenue has outpaced our desktops by two times since our IPO.

And importantly, we now have an installed base of over 3,000 units and a pipeline, that’s very much aligned to some powerful secular tailwinds in the opioid crisis response, defense, and border security. To enable that, we are divesting the biopharma desktop portfolio to Repligen for $70,000,000 and that nearly doubles our our cash reserves and it and it really eliminates any, NIH health care related or or financing overhangs for us. And importantly, it also paves the way, for us to reach adjusted positive EBITDA by q four twenty twenty five and full cash flow positivity in 2026. And this is driven by the stronger margins and a more streamlined agile operation as a result. So it is a platform technology, as I previously mentioned.

So we do retain all the flexibility to operate in the broader life sciences market, ensuring that we do have, broader life life long term opportunities beyond the divested bioprocessing PAT segment. So now I’d love to just take a few more minutes to walk through a set of slides that maybe by the numbers tells a little bit why we view this as a as a pretty positive multidimensional impact here on our business. So Joe went through our on our earnings call, the q four and and full year, and and we felt it was a pretty solid q four set of results that’s really giving us momentum into 2025 that we can talk about here, for in our in our q and a. But I think it’s pretty informing if you step back to the year end 2023 and and see where we were. From a handheld portfolio, we had one device, just one product.

We did have a very solid cash position at the time. We were consuming approximately $30,000,000 annually of cash for operations, but it provided a limited but a multiyear runway. Now if you fast forward a bit to today into 2025 expectations, we’ve gone from that one to now four handheld products. And that was driven through an acquisition of Redwave in April of twenty twenty four, which is now as year end completely integrated into our commercial channel. As of the year end, we collectively have over 3,000 placements, which is about a 25% increase.

And we’re guiding revenue from our continuing operations to be in the range of 53,000,000 to $55,000,000 representing 11% to 15% year over year growth. And again, we’ve dramatically improved our path to profitability, and now we have a target of reaching that by Q4 of twenty twenty five. And importantly, again, we secured our cash balance, and we passed through what we anticipate as the low at year end 2024. So if you think about what’s beyond in 2026 and beyond, we’ve gone from that one product to now six. Massive opportunity as we see it for additional device placement.

We estimate there’s about tens of thousands, including an estimated 15,000 FTIR customer placements that we’re targeting, for upgrade. And we we’ve laid out in our prepared remarks last week details around three clear growth catalysts. One is around equipment modernization that we’re seeing across the globe. Two is around the launch of our next generation of our handheld of mass spec. And three is progression of our US Department of Defense program, AvCAD Air Monitor into a full rate production milestone.

So additionally, we do expect further gross margin expansion, year over year improvement as that, and as we get the full year benefit from the facility consolidation that we’re doing right now into, the Connecticut facility out of Boston. So 2026 also very importantly marks our anticipated full first year of being cash flow positive, which we believe will allow us to preserve that cash and and provides us a really healthy margin of safety for crossover and, again, eliminates any financing overhang, in our opinion, from this equation. So we really do look at it that this isn’t just a a simple announcement. We’re really not just evolving. We are really changing in a stepwise way.

Nine zero eight devices two point o. And in many dimensions of the business that we tried to articulate here, you can see that step change. So we went from one to four products preparing for six, and it’s allowing us to serve a larger total addressable market. It’s allowing us to diversify our customer base, which is very, very important, going from a more singular customer, large military federal accounts into much broader customer being more ballast with about a third from US federal customers, another third from international customers, and a third from from US states funding. So significant opportunity there with that diversification.

The international opportunity is is quite, topical, obviously, with world events across Europe. We did see some sizable wins in q four for our products in EU stockpile programs for this is chemical detection programs that have been there. And in fact, this morning, we announced a $1,700,000 order for our analytical technology, to the Ukraine Ministry of Health, really to to monitor air around them for health concerns. So we’re building off a higher base of revenue, higher base of placements that we’re leveraging now for that accelerated growth. So our adjusted gross margins have also made a stepwise improvement year over year in a few years now in a row.

And we have additional expansion forecast for ’twenty five and then 2026. Profitability goal of adjusted EBITDA positive this year. And now we’ve got a solid cash runway with a balance sheet that’s providing us an unlimited resource there in terms of a a runway time horizon. And to to us, again, as I started off, I think I hope you can see that this is why we view it as much more of a transformational moment, for for MAS here. And we’re really focused on these handheld problems, which are going against some of the most urgent public health and safety, application crises of our time, fentanyl, carcinogens, and and other security threats.

So we believe with our expanded portfolio, this more sharpened focus that we’re really well positioned to be the leader in this space and, again, taking analytical instruments out from the lab but into these field and mobile contexts. So we think it’s an incredible opportunity, and we’re working aggressively to seize it. So thank you.

Unidentified speaker: That’s great. So, maybe Kevin on, obviously, you know, a transformation for nine zero eight devices. Can you maybe talk to us in in terms of, the overall handheld opportunity? And and and, you know, obviously, you’ve been working at it for several years. Now a solid adoption, there’s international demand growing.

Maybe just what what are the levers as you talked about you touched on some of them in terms of Fentanyl being one, threat detection, Ukraine that you talked about, the order that could came from there. So maybe just overall, looking at that $2,500,000,000 TAM that you look at, maybe walk us through some of the key drivers that you again, with a sharpened focus on threat detection and, you know, toxin detections in the market?

Kevin J. Mahoney, 908 Devices: Yeah. Absolutely happy to to give you some more application insights and things. So we’re we’re again, we’re really focused on these health and safety applications that are that are more critical, where you need a response that’s a robust response, quicker and faster. And the TAM, as you said, it’s about $2,500,000,000 We’ve been unlocking more of that TAM as our portfolio has expanded to allow us to serve more of that TAM. So again, we went from one handheld device that did trace analysis of hundreds of analytes, very important for fentanyl.

And when we say fentanyl, it also means xylazines, nitrazines, the illicit drug market that’s expanding. It was amazing to me to see the secretary of of, a treasury secretary on Friday talking about he used the words fentanyl on his CNBC talk, I believe it was, and he used the words precursors. So precursors is not just the end product, but it’s also the constituents that are going in. So we’ve assembled a portfolio that cannot only do the trace amounts of the fentanyl components, but now with Red Wave, three additional products that can look at tens of thousands of analytes, 5,000 gases, that are all relevant for understanding, toxics around one in their on a surface, in air, aerosols, in a solid liquid puddle form. So really assemble that to address that 2,500,000,000 of TAM.

And and you’re right. Right now, there is a a considerable amount of of interest in in the fentanyl, but also security concerns, the border crisis that’s related to it. But again, or carcinogens, which is a leading cause of death, unfortunately, for the firefighter community. And things like California wildfires are causing more and more of these to be unleashed across our community. So really been focusing on a set there to provide more actionable insights with those products.

Unidentified speaker: That’s helpful. Just looking at the macro, there’s quite a bit of noise. On one hand, you could see that this product has potential to be used potentially increasingly more in the fenugreek crisis. But at the same time, you know, you need those orders from the states or the federal agencies. Maybe with the continuing resolution, you know, potentially, you know, expiring this week and maybe, you know, some, you know, noise around the budget and overall.

What’s your what what what are you hearing from Washington so far? What are the what’s the feedback from the field?

Kevin J. Mahoney, 908 Devices: Yeah. So so you’re right. There’s a lot happening there with the new administration and and getting through the the budget process. I think, again, it’s important to note that in our evolution, from the time of the IPO to now with this broader portfolio, we’ve really worked to address, the predictability, the diversification of that revenue. So some is very much connected to what you’re seeing and happening in the Washington DC, maybe a third of our handheld product sales.

But another third is coupled to what’s happening in all of our communities, and the last third is coupled to what you see in the international space. So it related to the to the federal and military portion thereof there. I think where you need to watch is what we believe is priorities for the administration, our customers, customs and border protection, our customer, the DEA, our customer Homeland Security, and and our customer, the Department of Defense. And and we believe those organizations, while there is still uncertainty in working through a budget process and working through the continuing resolution, we believe that they’re part of that administration priority. And so when we talk to our customers, they’re feeling that same, that they are part of the solution and part of the priority there.

But the U. S. Administration further caused a ripple internationally, and we’ve certainly seen a step up. We’ve talked about some topical news items already. Another one that happened on Friday was the in EU Brussels.

There was an emergency meeting around spending more of their GDP on defense and security. The German chancellor talking about going beyond their their debt limits to prepare and spend more on defense and security. And as I mentioned, we we did announce this morning the Ukraine Ministry of Health, buying $1,700,000 of our our product for protection, air monitoring, understanding what’s in the air from a chemical weapons or a fentanyl or other toxic compound that we can detect with this broad technology. So, yeah, I think there’s a there’s a bit of of multiple drivers here, but net net, the new administration is is is positive from where we see it today in Washington.

Unidentified speaker: Okay. That’s helpful. And then on in on the international side, one third of your revenue, is is from international markets given that this is still a relatively new product. That’s very interesting. I mean, maybe tell us, you know, sort of the international market opportunities that that you can access, you know, European opportunities, other, other countries, you know, potentially?

And how significant of, I guess, pricing wise, how how should we think about the MX nine zero eight installs if they were to grow internationally?

Joe Matz, 908 Devices: Yeah. From a international perspective, I think we’re just getting going. Yeah.

Unidentified speaker: There’s a

Joe Matz, 908 Devices: lot of opportunity there. We do use a distribution channel Mhmm. Really to light the fire and and create breadth and opportunity, whether it’s in Europe or The Middle East, do a little bit in APAC, but pretty international European Middle East. So with that distribution channel, you know, discounts can be 25, 30 percent, you know, depending on the partner status. So it can impact margins.

But I do think that as we continue to see the opportunities here about the funding start to tap into that, we’ve invested quite a bit over the last two years. But I think even with our nascent penetration, we’re continuing to see opportunities pop up and continued opportunities moving forward to grow internationally. And we’ll start to see that here in ’twenty five. And I think Ukraine was a great way to kick that off here in ’twenty five.

Kevin J. Mahoney, 908 Devices: Yeah. And Ukraine is a great example of what we think of as maybe a pilot program, where a pilot program then has the opportunity to convert into an enterprise program. So Ukraine, specifically, was in the twenties of units. But you can imagine, as these show success, you can imagine how big of a problem they’re dealing with there. So we would look to see if we can get that into an enterprise rollout potential.

Could that be hundreds? Perhaps. Right? And so that’s just one example of maybe where the international opportunity can go. As you said, it’s about 30% today.

We’re we’re pleased, but we think we can do much more there. And and maybe as the business grows, you’d expect it to balance out more. And as Joe mentioned, we have a a smaller footprint and and it is an area, that’s been performing, but, you know, we think we can do more there.

Unidentified speaker: On the, you know, AvCAD side, I mean, when do you expect AvCAD, you know, full rate production award decision to, you know, come out? And and how should we think about the phasing and duration of that 10,000,000?

Kevin J. Mahoney, 908 Devices: Yeah. Maybe I can start with just quick recap. So one of our three growth drivers is absolutely the it’s a US Department of Defense program called AvCat. It’s a it’s essentially an air monitor that’s a variant of our mass spec technology. So it’s really meant to to sit and being able to measure, toxic concerns, just by, like, warfare agents, other, chemicals, pharmaceutical agents, and things like that by being a standalone fashion that it can be parked around a base kind of used in a in a ring structure or deployed.

So we’re working with Smith’s Detection, for some time now, about a decade. We’ve further, provided about a hundred component sets over the last eighteen months for Smith’s Detection to build up the first low rate sets of systems. And now we’re on the precipice of getting a full rate award, for that program. And so we’re we’re very excited about that. Probably mid year, but more likely by the end of the fiscal year, we should have visibility into that.

Obviously, the government’s going through a lot of change right now. But again, we believe this is a priority program for them and is addressing a set of concerns. On the flow of the dollars, do you want to talk through that?

Joe Matz, 908 Devices: Yes. From a dollar perspective, as Kevin mentioned, we’ve initially partnered as we’re replacing the predecessor J CAD program. In the low rate initial production generate about $1,600,000 of revenue last year. I think it was $3,500,000,000 back in 2023. So we aren’t minimal impact here in 2025, but see it as one of the key growth drivers that Kevin mentioned in the slide presentation around our opportunity.

It could be up to $10,000,000 a year over multiple years, five to seven years. So looking forward to hearing about the timing, the pacing, the quantities, and ultimately the dollars that flow through, but excited to be in the program and hopefully taking that final step.

Unidentified speaker: And you had talked about, you know, next generation MX908 as well. I think gross margin is supposed to be much better there, 2026 launch And maybe, what are some of the enhancements of the product that you’re looking for? And just given the market itself and the end markets, can you maybe just give us a sense of, you know, where do you is that going to be positioned more broadly? Does it expand the market base?

Kevin J. Mahoney, 908 Devices: Yeah. No. It’s great. We’re very excited for that development of the next generation of our MX nine zero eight handheld mass spec. And our current mass spec is the only commercially handheld mass spec out there, so it’s definitely created a whole new product class with 2,800 devices now installed.

And in fact, if you look back since its launch, which was now 2018, it grew at a a 21% CAGR over that time period. So definitely a great product for us. And the but there is an urgent needs that are out there that we talk about here, and our customers will upgrade for the latest of capability. We’re looking with that product to make it smaller, about 50% smaller in size and weight. Importantly, we’re working and taking customer feedback to make it even simpler, right?

How do you make it just even one step easier to your point so we can and you have the replacement opportunity, but the more you can simplify it, the more you have the opportunity to expand the user set and really kind of expand those that can take it on and not have a maybe as much of a training burden because it was it’s something that’s just even more innate. So it’s definitely an area of simplification even inside the device. So we’re working to reduce like the number of boards and cables, so that directly affects your bill of materials and your labor costs. We have gone through these upgrades in our past history as a management team, nine zero eight and beyond. So we know you can drive upgrades for the new variant if you can unlock such new capability.

I also get excited because we’re looking at it and a nice roadmap of ways to increase our recurring revenue, our pull through. About a third of our total revenues for our handhelds is related to recurring elements. But using something like the next generation MX as an example, we’re looking to put and attach more connected services to it. So cell phone connectivity, we have an application called Team Leader that’s employed now on our FTIR products that we’re looking to continue to build out. That’s an ability to do fleet management of a large enterprise account.

Post office is a great example on our FTIR product where there’s a couple of hundred of those FTIRs and they’re able to see where they are in location, see what they’re measuring, detecting, being able to kind of build that ecosystem around it. So those are definitely areas with the next generation MX and all our products we’re going to be looking to expand as well.

Unidentified speaker: Got it. Let’s talk a little bit about Red Wave. Maybe just talk to us how is the addition of the FTIR products is changing the conversation you’re having with potential customers. In in in essence, I mean, do you get this as an expand this expanded portfolio gets you to a broader, you know, customer base?

Joe Matz, 908 Devices: That’s right. It’s really opened the door, where, you know, our sales team was out there selling one product, the MX nine zero eight, a great product, but now having more tools in the toolbox, you know, with the three FTIR. So it’s enabled us to leverage our customer base in the 2,800 install base, where we see instances where MX users are now coming on board and buying the Explorer, right, nine, ten, 12 at a time, which is exciting. And then also we’ve seen opportunities where we’ve begun to pitch a total solution and they’ve adopted and we’ve had purchase orders where they buy the MX and the Explorer or other FTIR products at the same time. So really kind of leveraging the multiple tools to go after the needs out there in the market.

So there’s more tools when they go to respond to instance has really proven quite beneficial. And we fully integrated the sales team by the end of the year and really excited to see what they do collectively here in 2025, not only with the direct sales, but also to, letting a fire within the channel. And there’s a really strong channel on the Red Wave side that, you know, we’re looking to leverage and we see that acquisition. What’s happened less than a year ago really help us to catapult the growth profile and the opportunities.

Unidentified speaker: And, you know, when you do the early pilots, I think in 2024, you had 18 pilots, 34 enterprise accounts, and that that was a step up from ’23. You know, sort of any thoughts on now with the focused portfolio, like, sort of how are you looking at 2025 in terms of those accounts?

Kevin J. Mahoney, 908 Devices: Yeah. I mean, we really do love this penetrate and radiate strategy, and and you first get these on the large opportunities. You start in a more of a pilot way where it might be ten, twenty, 50 units that’s adopted. I mentioned Ukraine in that same context of of in the twenties, the first adopted. And then we work with that customer to drive success and move people across to the full capacity, which we then consider as an enterprise account.

So a great metric as of year end of twenty twenty four, our number of units that we put in that pilot program went up sevenfold. So it went up from about a hundred that were in these various pilots to now over 700, greatly driven by the FTIR addition to it. And what that’s a prelude to is that we’re really working to get opportunities for the FTIR in these larger US federal and military accounts. Some international, but a lot of that progress last year was getting the FTIR positioned into and starting to take foothold in things that we hope to become enterprise accounts for the over time.

Unidentified speaker: Got it. And then, you know, one one could argue with the, desktop boxes that you had, you were leveraged to pharma, but it’s still the pharma QA, QC, or raw material opportunities is not I mean, you you still have some of those capabilities. How much of a focus would that be and and and maybe talk about specific applications where you can still use some of the products that you have?

Kevin J. Mahoney, 908 Devices: Yeah. Absolutely. So we have two great, very broad, platforms, mass spectrometry and and and spectroscopy, optical spectroscopy. And those are, as you know, are gold standard lab techniques that are, the major life sciences firms all have a a franchise in. Our variant is to take that to the field and be mobile.

So there is a a plethora of life science applications in a broad context. I’d argue everything we’re doing with small molecules today in in fentanyl is is part of that greater health and safety, need and application. But we’re not blocked there. We’ve got a we have as much opportunity in front of us, that we can handle in terms of things like cleaning validation, things like incoming material inspection, reaction monitoring, which we do serve today through some OEM partnerships. So these are all areas that’s about 5% of our revenue today, but definitely areas that we’ll be looking to invest as as we go.

Unidentified speaker: And then, sort of pauses if I’m jumping around. I mean, if we look at the forensic sales force, do you think it’s adequately staff right now in order to reach all the regions that you wanna have coverage on?

Joe Matz, 908 Devices: We have a little over 30 folks involved on the sales side. Of course, that covers applications, customer experience, training, and ultimately our salespeople inside and external. We also leverage a lot of channel partners in direct and direct. I think we’re adequately staffed for the short term opportunities that we’re going after. But one of the beauties of being focused is that if we see opportunities to go after new markets or, double down in certain markets, we have the ability to do that.

But I think as we sit here today and and what we put out there in the guide, last week, I feel adequately staffed to deliver, you know, on the organic growth, that we talked through.

Unidentified speaker: And, you know, do you see any, impact from you know, you don’t have a large academic position. If there was, it was maybe tied to Zip Chip. But, you know, there are certain grants, federal grants. There are some institutions that are under pressure. So how are you thinking about that risk overall?

Kevin J. Mahoney, 908 Devices: Yeah. I mean, to to us, those the NIH and health care overhangs and and some of these academics are are not relevant to 09/2008 now. We’ve really flipped that around, through this divestiture and and really enabled all the tailwinds on the other side, on the defense border crisis, fentanyl, and opioid side. So so I don’t think we really see an

Joe Matz, 908 Devices: impact going forward. No. Not on the academic side.

Unidentified speaker: Got it. And in terms of continuing to sort of expand the portfolio, maybe just help us understand what are the what are some of the areas or sort of pipeline opportunities, so to speak? Or is the focus after this, you know, selling of the p PAT assets, is the focus really going to be just driving commercial execution in the current product base?

Kevin J. Mahoney, 908 Devices: I mean, we definitely believe there’s a lot we can drive with commercial execution. We are, though, a very innovative company, as you know, and we’re gonna keep that culture, very much. And we talked already today about a couple of new product releases on the horizon with our with our AvCAD product through through Smith’s detection and also with our next generation MX. And we have a few other great products that we’re working on there in that same vein of really best in class handheld detection products that will tell more in the future. I do get, as I briefly mentioned, very excited for that roadmap of all these connected services and all the kind of network approach to these sensors that we can do.

And if you look at our our portfolio, you can see us doing more and more in air monitoring. Right? You see us doing that. I mentioned one of you in the winds today that was driven by that in in Ukraine. So we’re definitely putting the gas on that.

But there’s there’s nothing stopping us from from thinking and working towards these other broader life science applications that we touched on. And, again, about 5% of our revenue is is from those areas, industrial QA, QC, pharma, reaction monitoring, and such. And and those are through OEM. And now Repligen as well is an OEM partner to us. So we’ll definitely be looking to have some exposure and increase that.

Unidentified speaker: Got it. You know, when you look at the customer concentration, do you have more concentration after, you know, after the PAT assets? Are you just, again, given the type of customers you have, they order a large number for these units and some of the cases. And maybe just can you talk about the customer concentration going forward?

Joe Matz, 908 Devices: I think we’ve diversified our concentration over time. If I think back, we used to talk only about army for a few quarters. Right? And a lot of it was on the federal military opportunities, and we were concentrated around the IPO. And I’d say over the the more recent period, we’ve diversified.

Kevin mentioned a third state and local, third international, third federal military. And with that, you know, it’s really the individual customers and the opportunity. You know, we are not no longer focused in academia or biopharma, but I think there are opportunities where we haven’t been prevented. You know, really, we divested within a specific application area around bioprocessing and PAT, and we still can play in other areas and diversify even further into more life sciences. A few OEM partners today, but I think there’s opportunity as we think about organic opportunities for the years to come.

Unidentified speaker: And is it the right way to think about is profitable growth or, you know, there’s always a balance in terms of what you need to invest into the business versus how profitability?

Joe Matz, 908 Devices: Yes. There’s always a balance, right? You don’t want to go too far one way or the other. I think this was a bold step in really focusing more on profitability. We’re excited to get the six times multiple, ultimately, as it became a reality.

And I think having that balance sheet, you know, strong and then focused on revenue growth with an eye towards adjusted EBITDA positive in Q4, cash flow positivity in 2026, it’s great to be talking about those things and with a focused business and where we can take it from there and continue to fund our own operations. And as opportunity creates it, maybe strategically look at other opportunities to focus organically first here in the near term.

Unidentified speaker: Got it. Alright. That’s all the time we have. Thanks, guys. Thanks

Kevin J. Mahoney, 908 Devices: for having us.

Joe Matz, 908 Devices: Thank you very much.

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