908 Devices | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 13.38 M

Revenue: As of FY2026 Q1, the actual value is USD 13.38 M, beating the estimate of USD 13.16 M.

EPS: As of FY2026 Q1, the actual value is USD -0.32, missing the estimate of USD -0.22.

EBIT: As of FY2026 Q1, the actual value is USD -13.82 M.

Total Revenue

Total revenue for 908 Devices Inc. increased by $1.6 million, or 13.6%, from $11.777 million for the three months ended March 31, 2025, to $13.381 million for the three months ended March 31, 2026.

Revenue by Stream

Device sales revenue increased from $7.411 million in Q1 2025 to $9.360 million in Q1 2026. Recurring revenue decreased from $4.303 million in Q1 2025 to $4.021 million in Q1 2026. Contract revenue decreased from $0.063 million in Q1 2025 to $0 million in Q1 2026. In Q1 2026, device sales accounted for 70% of total revenue, while recurring revenue accounted for 30%. In Q1 2025, device sales accounted for 63% of total revenue, and recurring revenue accounted for 37%.

Revenue by Source

Handheld product and service revenue increased from $10.936 million in Q1 2025 to $12.749 million in Q1 2026. Program product and service revenue decreased from $0.154 million in Q1 2025 to $0 million in Q1 2026. OEM and funded partnership revenue decreased from $0.687 million in Q1 2025 to $0.632 million in Q1 2026.

Revenue by End-User Entity Type

United States federal and defense revenue increased from $1.729 million in Q1 2025 to $3.259 million in Q1 2026. United States state authorities and local municipalities revenue increased from $4.687 million in Q1 2025 to $6.775 million in Q1 2026. Rest of world national and provincial organizations revenue decreased from $4.674 million in Q1 2025 to $2.715 million in Q1 2026. Global pharmaceutical, industrial and other revenue decreased from $0.687 million in Q1 2025 to $0.632 million in Q1 2026.

Revenue by Geography

United States revenue increased from $7.012 million in Q1 2025 to $10.598 million in Q1 2026. Europe, Middle East and Africa revenue decreased from $4.454 million in Q1 2025 to $1.128 million in Q1 2026. Asia Pacific revenue increased from $0.181 million in Q1 2025 to $0.580 million in Q1 2026. Americas other revenue increased from $0.130 million in Q1 2025 to $1.075 million in Q1 2026.

Cost of Revenue

Product cost of revenue increased by $0.435 million, or 9%, from $4.725 million in Q1 2025 to $5.160 million in Q1 2026. Service and contract cost of revenue decreased by $0.172 million, or 11%, from $1.511 million in Q1 2025 to $1.339 million in Q1 2026. Total cost of revenue increased by $0.263 million from $6.236 million in Q1 2025 to $6.499 million in Q1 2026.

Gross Profit and Margin

Gross profit increased by $1.341 million from $5.541 million in Q1 2025 to $6.882 million in Q1 2026. Product gross profit increased by $1.773 million, or 47%, from $3.804 million in Q1 2025 to $5.577 million in Q1 2026. Product gross profit margin increased by seven percentage points from 45% in Q1 2025 to 52% in Q1 2026. Service and contract gross profit decreased by $0.432 million, or -25%, from $1.737 million in Q1 2025 to $1.305 million in Q1 2026. Service and contract gross profit margin decreased by four percentage points from 53% in Q1 2025 to 49% in Q1 2026.

Operating Expenses

Research and development expenses decreased by $0.358 million, or -9%, from $3.829 million in Q1 2025 to $3.471 million in Q1 2026. Selling, general and administrative expenses decreased by $0.325 million, or -3%, from $10.239 million in Q1 2025 to $9.914 million in Q1 2026. Change in fair value of contingent consideration increased by $3.882 million from $2.499 million in Q1 2025 to $6.381 million in Q1 2026. Total operating expenses increased by $3.199 million from $16.567 million in Q1 2025 to $19.766 million in Q1 2026.

Other Income, Net

Interest income increased by $0.120 million from $0.816 million in Q1 2025 to $0.936 million in Q1 2026. Income from transition services agreement, net, decreased from $0.406 million in Q1 2025 to $0 million in Q1 2026. Other expense, net, decreased from -$0.033 million in Q1 2025 to -$0.007 million in Q1 2026. Total other income, net, decreased by $0.260 million from $1.189 million in Q1 2025 to $0.929 million in Q1 2026.

Net Loss from Continuing Operations

Net loss from continuing operations increased by $2.118 million, from -$9.837 million in Q1 2025 to -$11.955 million in Q1 2026.

Net Income (Loss) Attributable to Common Stockholders

Net income (loss) attributable to common stockholders changed from $43.603 million in Q1 2025 to -$11.955 million in Q1 2026, primarily due to $53.440 million net income from discontinued operations in Q1 2025.

Key Business Metrics

Handheld product placements increased from 157 units in Q1 2025 to 167 units in Q1 2026. Cumulative handheld product placements increased from 3,172 units as of March 31, 2025, to 3,903 units as of March 31, 2026.

Cash Flows

Net cash provided by (used in) operating activities changed from -$15.019 million in Q1 2025 to $1.205 million in Q1 2026. Net cash provided by (used in) investing activities changed from $50.313 million in Q1 2025 to -$1.991 million in Q1 2026. Net cash used in financing activities changed from -$0.189 million in Q1 2025 to -$2.168 million in Q1 2026.

Outlook and Strategy

908 Devices Inc. anticipates continued net losses in the foreseeable future as it prioritizes sales growth, manufacturing scaling, and investment in R&D for new products. The company expects its current cash, equivalents, marketable securities, and revenue to cover operating and capital expenditures for at least the next twelve months. Device sales are projected to grow through market penetration and expansion into new markets, while recurring revenue is expected to increase in absolute terms as the installed device base expands, contributing more significantly to total revenue over time.