Nine Zero Eight Devices at William Blair Conference: Strategic Transformation Unveiled

On Wednesday, 04 June 2025, Nine Zero Eight Devices (NASDAQ:MASS) presented at the 45th Annual William Blair Growth Stock Conference, outlining a strategic shift towards handheld chemical detection. CEO Kevin Knopf and CFO Joe Griffith highlighted the company’s transition away from desktop bioprocessing, aiming for near-term EBITDA breakeven and cash flow positivity in 2026. While the company is optimistic about its future, challenges such as achieving these financial goals remain.

Key Takeaways

• Nine Zero Eight Devices has rebranded as "Nine Zero Eight Devices 2.0," focusing solely on handheld chemical detection.
• The company anticipates adjusted EBITDA breakeven in Q4 2025 and full-year cash flow positivity in 2026.
• A significant Total Addressable Market (TAM) of $2.5 billion is projected by 2027, driven by public health and security concerns.
• Q1 2025 revenue from continuing operations rose 59% year-over-year to $11.8 million.
• The company ended Q1 2025 with $124 million in cash and no debt.

Financial Results

• Q1 2025 revenue from continuing operations: $11.8 million, a 59% increase year-over-year.
• Handheld product and service revenue surged 86% to $11 million.
• Recurring revenue grew 54% to $4.4 million, accounting for 37% of total revenues.
• Adjusted gross margin improved to 54%, up 75 basis points year-over-year.
• Adjusted EBITDA was negative $4.6 million, a nearly 50% improvement from Q1 2024.
• The company expects to end 2025 with over $110 million in cash.

Operational Updates

• The company has exited the desktop business to focus on handheld devices, expanding its portfolio from one to four products.
• Device shipments in Q1 2025 tripled compared to Q1 2024.
• Manufacturing operations are being consolidated in Connecticut, with international expansion accelerating, especially in Europe.
• The U.S. DoD AvCAD program partnership with Smiths Detection could add over $10 million in annual revenue.

Future Outlook

• Nine Zero Eight Devices targets adjusted EBITDA breakeven by Q4 2025 and cash flow positivity by 2026.
• The company projects 20%+ top-line growth in 2026, driven by new product launches and program expansions.
• A next-generation MX908 device is expected in 2026, with a 50% reduction in size and weight.
• There is potential to upgrade 15,000 outdated FTIR units.

Q&A Highlights

• Sales cycles vary significantly, with state and local cycles being quicker than federal military ones.
• Government funding timelines range from 18 months to 5 years, depending on the channel.
• The company focuses on top-line growth, attractive gross margins, and controlled operating expenses to achieve financial goals.

For a detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - 45th Annual William Blair Growth Stock Conference:

Matt Larue, Analyst, Blair: For the nine zero eight devices management presentation. My name is Matt Larue. I cover, tools, including nine zero eight here at Blair. Two quick announcements, before we get to the presentation. Breakout session is in Burnham B on the Second Floor.

And then for complete business disclosures, please, visit WilliamBlair.com. Very pleased to have, one of the cofounder and CEO, doctor Kevin Knopf here, as well as CFO, Joe Griffith, who’ve joined us for a number of years running now, but, here to share kind of, as the slide says, launch v two point o, the story. So thanks very much. I’ll turn it over to Kevin.

Kevin Knopf, CEO, Nine Zero Eight Devices: Yeah. Thanks, Matt. Thanks for having us and everyone joining us. And we always enjoy this conference each year, and it’s a great great venue and and avenue. And and we’re especially excited this year, because we’ve got a lot to talk about, a lot to update, everyone on and and, with the new focus that we’re particularly excited about.

So I’ll jump right in. So first, just, whoop. They’re moving faster here. Can you reset it for me? It just skipped all the way to the end, essentially.

There we go. There. So if we could just take a quick moment there. So we got our forward looking statement and some of our non GAAP financial measures. But, you know, we’re really excited today to to walk through what we’re thinking of as really the the next chapter of our of our journey at at nine zero eight devices, and it really marks a pivotal shift in our overall trajectory.

And what we’ve done over the past several months really isn’t just a restructuring, and we’re viewing it more as a a transformation of where we’re going. And we’ve really redefined the company around a singular focus now, purpose built handheld chemical detection for public health, safety, and defense. And we’re calling this next phase, nine zero eight Devices two point o, and and it comes, with a truly sharper focus, stronger financials and much clearer operational alignment. Today, we’re going to touch on five key themes as we walk through the set of slides this afternoon. One is our strategic transformation is now complete.

We’ve exited the desktop business and sharpened our focus. Execution is well underway. We’re already seeing some results in the numbers, we’ll review some of our Q1 results. Profitability is within sight. We’re tracking towards a near term adjusted EBITDA breakeven in q four.

We feel we’re positioned for growth. We’ve got a substantial opportunity ahead, for our handheld devices, and we’re backed by global macro tailwinds. And we’ve got a pretty strong innovation pipeline, I’ll talk a little bit more about. And a fortified investor’s thesis. We’ve got a simpler, streamlined model, where we think creates greater value creation potential.

So let’s start for a moment on the transformation itself. We’ve really streamlined the business, and now we’re entirely focused on handheld chemical detection, delivering rapid, field ready analysis for high impact applications. With demand accelerating across the opioid crisis, defense modernization and cross border security. We really feel we’ve got the right product set now aligned at the right time. A major enabler of this shift has been the sale of our desktop bioprocessing business, to Repligen for approximately $70,000,000 That nearly doubled our cash reserved.

It removed the NIH and academic distractions. It simplified our operations. And it represented onefive of our revenues in 2024, but a lot of our cost, the majority of our costs. So the result is that we’re a we’re a company now that’s much leaner, more focused, and yet more flexible. We’re on track to achieve adjusted EBITDA profitability in ’4 this year and full year cash flow positivity in 2026.

That shift is really powered by a few things. One is gross margin improvements, overall operational streamlining and including a manufacturing consolidation in Connecticut. And while our handhelds are our core, we really still have the ability to scale into broader life sciences, and that’s via OEM and funded partnerships with efforts today in pharma and industrial QAQC. So we’ve really sharpened our focus, but we haven’t narrowed our over long term potential. With the transformation complete, we now have a pretty powerful foundation and a clear runway for growth.

So first, the handheld market we serve is large and expanding with a projected $2,500,000,000 TAM by 2027. Our handheld revenue growth has grown at approximately two times the rate of our desktop since the IPO, and we believe it’s still very much early innings in the penetration. Second, we’ve built a pretty comprehensive product portfolio. Just about a year ago, we offered only one handheld device, and now we have four devices. All are designed very much for use in the point of need in critical health and safety applications.

They’re all meant to be complementary in design, and they’re based on mass spec and spectroscopy technology platforms. These are lab grade analytical instrumentation platforms, but we’ve moved them into a handheld form factor. And they serve a multitude of what we think of as critical to life use cases. That includes the fentanyl and the opioid crisis, so used by frontline responders, law enforcement interdiction teams toxic industrial material detection, that’s identifying VOCs and carcinogens to help prevent acute exposure to emergency personnel. And this includes the acquired RedWave portfolio, which brought key complementary capabilities, and it drove a 17 pro form a revenue growth in 2024.

And third, our fortified balance sheet. It now gives us the capacity to pursue new opportunities, including strategic partnerships and continued investment in innovation. So we’re now a company that is much more focused, well capitalised and built to scale into these high conviction growth markets. So we’re tackling some of what we think of as the world’s most urgent and escalating threats to public health and safety and demand for modern detection, tech tools is accelerating as a result. So if we start first considering the opioid crisis, we’re seeing a dramatic evolution in both the scale and complexity of that threat.

It’s no longer just fentanyl. It’s nitazene, xylazine, pink cocaine, undetectable precursors. They’re all fueling a synthetic drug crisis, with some of these drugs having a potency of a hundred times that of morphine. And overdose deaths that in The US have exceeded a hundred thousand per year have prompted nationwide public health emergency. In response, in April, the White House Office of National Drug Control Policy announced an aggressive federal strategy explicitly calling for advanced technologies to detect smuggling routes and to equip first responders and other frontline workers to prevent overdose deaths.

So we really think that this is absolutely a priority. This isn’t just a future priority. This is a a now requirement. And so our devices are aligned to this. And beyond drugs, toxic industrial materials represent a growing and underappreciated public health risk.

Consumer goods, battery fires, industrial processes are releasing hazardous VOCs. Emerging professionals are increasingly exposed to these compounds. They’re now the leading contributor to occupational cancer and firefighter fatalities. So our devices enable fast on-site identification of these hazardous gases and materials, and that’s working to support faster decisions and better protection of these frontline workers. Each of these issues, I hope you can see, is pretty large scale concern on their alone.

But when you combine them and you think about the access and availability of these materials, these dangerous substances, and you think about the global tensions that we’re seeing, you can see the global security concerns that fall out of that. So with evolving threats, there’s concerns around AI, chemically driven synthesis, drone delivery based methods. It’s becoming imperative to really modernize and have proper detection tools for chemical threats. And this is already triggering an expanded preparedness effort across The EU and NATO. The common threat across all of this, it’s that it’s evolving.

Right? These there is a need now to have adapt mobile, field ready solutions for advanced chemical detection, and that’s exactly where we’re we’re setting up our portfolio. And then that’s exactly now where nine zero eight is fully focused. So public funding has been robust both in The US and globally, and we’re seeing a long term macro trend there of increasing investment. This is across police, fire, even correctional facilities and services.

As this chart clearly shows, this happens over multiple decades. And we believe that the unprecedented global security needs today will only accelerate that further. A couple of stats in that regard. So 23 NATO allies are projected to meet or exceed the 2% GDP target for defense spending, and that’s up from nine back in 2022. And we had three allies back in 2024 team that meant that, objective.

And so this reflects a a major shift in collective investments, and that’s driven by countries like Poland, Estonia, Latvia, Lithuania, The UK, Finland, as well as now Germany. And there’s an earmark within or a goal within the NATO to have about 20% of this defense funding targeting for equipment modernization. So that’s directly relevant, and in many cases, to us. And in many cases, it’s also tied to The US foreign policy stance and the decision and the allied procurements that that accompany it. So at the same time, in The U.

S, the new administration is prioritizing domestic spending on border, customs, military, law enforcement, and drug interdiction. Budget proposals that you see out there in the news, DOD, DHS, those are relevant to nine zero eight devices are showing increases. Bottom line, you know, we think the funding environment is favorable backdrop. We think we’ve got the right fieldable technology and tools to deliver both in U. S.

And international markets. So our first product to address this opportunity was our MX908. That’s shown in the bottom left there. So that’s our flagship device for trace level analysis. It’s introduced a completely new product class.

It brings mass spectrometry, which is a gold standard of chemical detection, out of the lab and into the field for the first time. Truly a handheld but with lab grade results at that point of need. Since its full introduction in 2018 through 2024, the MX908 has delivered a 21% revenue CAGR. And we now have over 2,800 of the MX908 handheld devices fielded across the globe. But we haven’t stopped there.

As you can see, we’ve got three additional devices on the screen through a comprehensive proposal portfolio that we’ve added to, in conjunction with the acquisition of RedWave. So we now have a a modern set of tools that span across hundreds of trace analytes, but thousands of toxic gases and tens of thousands of bulk compounds. They deliver collectively a pretty broad analyte panel, and they support detection and identification across air, aerosol, surface, piles, liquids. And together, they’re part of a a fast and comprehensive toolkit that our customers are using to work through a field workflow. And importantly, we’re even doing more with the data.

So each of these devices has a rich data set to them. So we’re working with our customers to enable them to identify trends of what’s coming through their regions and communities and to better manage their fleets of devices and gain actionable insights in real time. So I’m super excited about the road map we have in what we’ve been calling these connected services area. And over time, we believe we have a a platform approach here that could be sticky and and perhaps a driver of some increased pull through and more customer value. We have on the desk here.

I saw Matt and Joe showing it there, but we’ve got one of our products called the Protector, FTIR. We’d I’d be happy to show you after. So these products fit into a bit of a broad landscape of detection and chemical awareness tools used by our customers. And and that’s really two categories. First is on the low tech sensor based category.

These are products that offer minimum selective responses, no identification capabilities, and are valid for a few analytes. You can think about, like, a test strip solution, collimetric tubes, smoke alarm style gas detection. The second is advanced chemical detection. That’s where life science tools, analytical instrument companies compete, and that’s where we’re playing and and winning opportunity there. So we’ve, our competitive positioning is these modern products in that advanced chemical detection space.

So we’ve got a comprehensive offering now, but we also now offer a single source to a customer for both the hardware, but they also really much value the support, the services. So we have a 247 forensics call line where they can talk to us and and develop more information about the scenario that they’re undertaking. So the edge from our side is is absolutely our culture. It’s really driven around innovation. Our competitive positioning isn’t really just the product specs, but it’s that support.

It’s being there. It’s the partnership for those customers. And it really does come back to our people. So I’m very, very proud of that. So as an innovation leader, you know, we really have this broad portfolio and got continued integration work of these devices and innovation, and we’re really setting up to have accelerated growth.

And it’s supported by three catalysts that are clearly defined. First is equipment modernization. We went through some of the macro drivers and trends that’s causing demand across all our handheld devices. In particular, we estimate that there’s about 15,000 outdated FTIR units that are in need of upgrade. And so that’s a significant opportunity that we’re underway at at capturing.

We’re ready to capture that. We’ve got the right products for it. As of year end, the FJR products, that’s shown in red there, through an acquisition, are now fully integrated into our commercial operations. And they’re already contributing quite positively to our pilot enterprise statistics. Second is the next generation of that flagship handheld mass spec device we anticipate to launch in 2026.

It’s a new product. We will deliver a step change in performance and simplicity. We’re targeting about a 50% reduction in size and weight and lower cost of goods. And I mentioned some of the connectivity that we’re pursuing that can drive potential for for higher consumable serve consumables and connected service. So we’ve got 2,800 of the current generation MX nine zero eight devices that are fielded, and we feel that next generation can spawn a strategic upgrade cycle.

The third is the next phase of of AvCAD. For over a decade, we’ve partnered with Smiths Detection on The U. S. DoD AvCAD program. And over the last eighteen months, we’ve delivered 100 plus component sets to support initial low rate production.

Next, we expect to receive notice to proceed to full rate production later this year, with ramping deliveries to follow. At scale, this program could add greater than $10,000,000 of annual revenue potential. So the takeaway is that we’ve got three clear catalysts combined with some powerful secular tailwinds that are setting up across the fentanyl and opioid crisis, across the global rise in defense budgets and the intensifying US border crisis. So we believe we’re we’re positioned well for sustainable multiyear growth. Collectively, our technologies comprise a broad analytical instrumentation platform.

Our primary focus remains on our core handheld applications where we’re seeing the strongest demand and immediate impact. But that said, we certainly recognize that there’s sizable additional opportunity in the pharma and other applied markets that can be unlocked through partnerships. So beyond the government programs integration, we see tangential growth opportunities in our handhelds for GMP QAQC, industrial hygiene, environmental monitoring, and other applied segments. And we already have a presence in these markets through OEM and supplier relationships in industrial QAQC and pharma, and now we’re a supplier and partner to Repligen as well post divestiture. So OEM and funded partnerships are estimated to be about 5% of our 2025 continuing operation revenues.

But importantly, it’s really a strategic foothold for us for the future for growth and market expansion. Now I wanna walk walk you through in a little bit different of the manner of how this has really transformed, the multidimensional impacts of our business from a from a numbers perspective. And I think it it helps if you kinda look back at where we were when we ended in 2023. At that point, we had one handheld product, and we had an installed base of about 2,400 devices. We had about $300,000,000 in revenue from continuing operations.

Our adjusted gross margin was was 52%. Our adjusted EBITDA was negative $30,000,000 and a cash balance of $146,000,000 So we had a solid cash position, but we were consuming approximately $30,000,000 in cash annually for operations. Now if you fast forward to today and our 2025 expectations, we’ve gone from one product to four handheld products, thanks to the acquisition of the RedWave in 2024, which is now, again, fully integrated into our commercial engine. And as of q one, we now have over 3,100 device placements. That’s about a 25% increase year over year.

And we expect a meaningful step up in 2025 revenue from continuing operations and our year over year growth percentage. So that lands us in the estimated mid to high 50% adjusted gross margin range for the year. And most importantly, we’re on track to be adjusted EBITDA positive by Q4 twenty twenty five. So this really represents a dramatic improvement in that path to profitability. We’ve also secured our cash balance and anticipate ending with greater than $110,000,000 at the year end 2025, and that’s up from $70,000,000 at year end 2024.

So in short, we’ve done a lot of work to expand our portfolio, grow that installed base, and improve the margins. And so now we’re within striking distance of profitability from the actions we’ve taken. But I think it gets even more exciting if you look ahead and think about 2026 and beyond. So then we’ll have gone from one product to six products by 2026 in our handheld portfolio. Massive opportunity ahead for device placements that we estimate to be in the tens of thousands, including those 15,000 outdated FJR units that are all ripe for modernization.

And our top line growth is projected to accelerate to 20% plus, again driven by those three clear catalysts, equipment modernization, launch of that next gen of our mass spec, and in full rate production of the US DOD AVCAD program. We also anticipate further adjusted gross margin expansion with continued year over year improvement and year full year benefit, from our from our facility consolidation down in Connecticut. Twenty twenty six also will mark the first year that we anticipate being cash flow positive on a full year basis, which is absolutely a critical milestone, allowing us to preserve our cash balance. And importantly, that then eliminates any financing overhead from the equation. So we’ve taken a lot of steps here.

So in our view, we’re really not just evolving. We’re really launching nine zero eight Devices two point zero. So in many dimensions of our business, we’ve solidified our position or created a step change for the better. We’ve moved from that one product to four with preparations underway for six product portfolio. That expansion allows us to service more of our identified $2,500,000,000 TAM and reduce our customer concentration.

We’ve gone from majority of sales from a few large U. S. Federal customers to a much more balanced base, where about onethree of our total device sales last year came from state and local, then another third from U. S. Federal and the remaining third from international equivalents and accounts.

We’re seeing the international expansion accelerate, especially across Europe, with strong momentum late Q4 and into Q1 and a pipeline continuing to build. So we’re building a higher base of revenue and placements to leverage for accelerated growth. And our adjusted gross margin has already seen multiyears of stepwise improvement, and we expect additional expansion forecasted in ’twenty five and into ’twenty six. That expansion is really being driven by three things. That’s the product mix, that scale, and just getting more efficiencies across our organization.

Our OpEx has gotten more productive. That’s been enabling us to achieve the adjusted EBITDA target this year, paving the way for the long term profitability. And our cash on hand is now solid. This gives us an unlimited runway to execute. So to us, it’s really a transformative moment, a very exciting moment for us in nine zero eight.

We’re off to the races. You know, we’ve already begun executing. We had a pretty strong start to the year. Our Q1 results exceeded our internal expectations and provided some early validation of our focused strategy. Revenue came in at $11,800,000 for continuing operation.

That’s a 59% year over year increase. This includes $11,000,000 in handheld product and service revenue, which was an 86% year over year increase. That’s a clear indicator in our minds from the demand that we’re seeing for these products in the field and the value our customers are putting on the mass spec, but now also the FTIR products as a platform. Recurring revenue grew 54% year over year to 4,400,000.0. That was about 37% of our total revenues for q one, meaningful percent.

This growth reflects our expanded installed base, increasing demand for services, consumables, and that ongoing twenty four seven reach back support I mentioned. Adjusted gross margin reached 54%, which was an improvement of 75 basis points year over year. And driven by scaling and product mix, it was partially offset by international channel dynamics. Adjusted EBITDA improved to negative $4,600,000 and that’s a nearly 50% improvement if you look back to q one last year and you considered prior to the divestiture. Installed base grew to over 3,000 devices, 3,172 devices.

That’s a 28% increase year over year. We shipped 157 devices in q one, and that’s about triple what we did in q one twenty twenty four. We ended the quarter with approximately $124,000,000 in cash and no debt, and that was strengthened by the $70,000,000 inflow from the divestiture. So takeaway, really, we’re beginning to execute along this much more focused strategy. We are gaining traction with our with our customer base, and we’re operating now from a a much, much stronger position of financial strength and as we set up and move throughout the year.

So to close, you know, I think it’s it’s now clear. You know, we really believe the actions taken set us on truly a a new trajectory here for us, and we really feel that that bolsters and and fortifies the investor thesis behind nine zero eight devices. We’ve got we walked through that we’ve completed that strategic transformation. We executed here now with discipline and are starting to deliver some good results in Q1. And then we have a clear set of targets and near term path to profitability.

And we’ve positioned ourselves for long term growth backed by some powerful macro trends. But importantly, you know, we really believe that we’ve created that step change in that financials, operating model, that focus. And we’ve transitioned from the broader multisegment platform to a much more focused high impact company. And we’ve got clear target markets, stronger margins, a much more simplified operating model, and a and a clear path to near term profitability. So thank you very much, and appreciate your time for learning about nine zero eight two point o.

Matt Larue, Analyst, Blair: I think time for a couple questions. Maybe I would I would start to you alluded to the kind of one third, one third Yep. One third breakdown. No longer have exposure within bioprocessing where they’re, you know, biotech funding dynamics, downstream of NIH, etcetera. But, obviously, the government’s just this is a cover that the government funding.

So just as as you bucket each of those, what’s the typical sales cycle? How did the funnel work? Do most of them start as pilot and move to enterprise? Just, you know, as we’re now more focused on that piece, getting a sense for how those funnels evolve. Yep.

Joe Griffith, CFO, Nine Zero Eight Devices: Yeah. The sales cycle can vary based upon those channels you just talked about. Our state and local channel, mainly direct here in The US, You can see some, orders turn around relatively quickly, at times, right, where you might have seizure funds or short term budget availability, repurposing of budgeted funds across devices, to be focused on our technology. Others, it might take a year, you know, call it eighteen to twenty four months, and that’s usually when you’re getting it written into to grant funding. Some of that might be federal, some of it might be local, and we work with our customers pretty closely, on that.

On the other extreme is our fed military channel, and, you know, you can have these pilot and enterprise accounts in state and local, and then maybe five to 10, maybe 20 plus. Ohio is one of our biggest adopters from a state local perspective. On the fed military, that could be in the hundreds, and that can take years. Right? It can be two, three, sometimes five years to work through, get the allocated funding.

So we have quite an experienced sales team that’s been working with Kevin, myself, and others for years and prior, companies that work closely with the customer to understand the needs, the programs, the programs, or records. So it’s a multiyear journey. Internationally, we use distributors, distribution channels, and that can be everything from local, you know, civilian to more border patrol. So it kinda crosses over both of those. So we start to manage a pipeline with multiple timelines to getting a purchase order.

Matt Larue, Analyst, Blair: Of the catalyst you mentioned, you know, one is the replacement cycle for MX nine zero eight. So you you have a

Joe Griffith, CFO, Nine Zero Eight Devices: good feel of what you’ll

Matt Larue, Analyst, Blair: be replacing and and the advancements you’re making on the technology. The other is replacing outdated FTIRs. And, Kevin, of course, you’ve in this space a very long time, but the the portfolio you’ll be doing it with is new to 09/2008 to some extent, and many of those devices, I think, are not Red Wave devices or maybe competitive devices. So as you look at that opportunity, which is maybe the biggest unit potential, when does that start? What is different about the products you’re offering today, Visa, you know, relative to the legacy ones, and how do you attack that opportunity?

Kevin Knopf, CEO, Nine Zero Eight Devices: Yeah. That’s that’s a great question. I mean, I think what we’ve done now is create a a pretty compelling portfolio across FTIR and mass spec to bring to the customer and make a comprehensive toolkit. So when a customer is making a decision about upgrading an FTIR from a a legacy or a a product that may be in the market for some time, you know, we’re able to offer a a multitude of selections to that customer, including modern FTR approaches that got fleet management capabilities, application software, modern communication options, just been upgraded and updated. And the other part in their selection is they also truly want partners that will be there twenty four seven, are very much focused on this market, and they really like a comprehensive service approach, not just for a a break fix, but for that, guidance of a of a of a scene or a response.

So how do you put everything in context that’s in front of them? And and they’re dealing with some stressful situation. They’re experts at what they do, but they may not be expert at mass spec or chromatography or or anything related to spectroscopy, of course. So, I think we compete into those legacies by certainly modern equipment, modern approaches, but then also some of these advanced software and communication features that are continuing to develop and also that support partnership. And for Joe,

Matt Larue, Analyst, Blair: you know, the the p and l transformations I mean, 2024, the adjusted EBITDA loss of something like 34,000,000. Mhmm. You’ve done the divestiture. You’re moving consulting manufacturing in in Connecticut. So there are number of moving parts going on in the back half of this year, but it as you’ve just said, it sounds like there’s quite a bit of line of sight Mhmm.

To adjust to give it to positive and free cash breakeven. So what maybe are variables that could add risk to that on the early side or or later side?

Joe Griffith, CFO, Nine Zero Eight Devices: Absolutely. Yeah. It’s been something that, you know, as we were in the fourth quarter, you know, kind of making sure we have the right people in place, you know, looking at, you know, kind of moving our operations from Boston, manufacturing operations down to Danbury, Connecticut in motion. We then made the bold move to divest, you know, the desktop business and focus on forensics, which was key to that crossover. It was really subscale and burning a lot of money.

But if I think forward to what q four can bring and getting to adjusted EBITDA positive, starts with the top line top line growth, you know, to drive, and it seasonally is a stronger quarter. But as the pipeline develops and some of the opportunities that Kevin described, I think it starts with top line, attractive gross margin with scale. You’d expect there to be a step up in gross margin controlled OpEx. You know, pretty solid control of costs in q one. We expect that to continue to deliver on and set us up really for 2026 on a full year basis.

Matt Larue, Analyst, Blair: Okay. That’s our time. This presentation has now finished. Please check back shortly for the archive.

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