908 Devices Inc. (Nasdaq: MASS) Reports Third Quarter 2025 Financial Results, Reaffirms Full-Year Revenue Guidance
908 Devices Inc. (Nasdaq: MASS), a leading small-cap growth company specializing in purpose-built handheld chemical analysis tools designed for critical applications in health, safety, and defense technology, today announced its financial results for the quarter ended September 30, 2025. The company continues to advance its strategic vision, 908 Devices 2.0, aiming to build a more predictable and profitable business model while expanding its portfolio of handheld chemical analysis devices.
“We are pleased with our progress year-to-date as we continue to strengthen the foundation of our business and bring our 908 Devices 2.0 vision to life,” said Kevin J. Knopp, CEO and Co-founder of 908 Devices. “Revenue for the first nine months of 2025 increased 16% compared to the same period last year, driven by strong demand for our FTIR products and with 47% of revenues coming from our U.S. state and local government channel.
This combination of product and channel diversity strengthens our recurring revenue base and reduces our reliance on the timing of larger federal and defense enterprise awards. Additionally, our cost structure improvements have contributed to our strongest Adjusted EBITDA performance in our public company history, positioning us to achieve positive Adjusted EBITDA in Q4. While the recent U.S. government shutdown may impact the timing of certain awards and shipments, we remain confident in our demand outlook and strategic progress.”
Recent Highlights
- Revenue Growth: Revenue for the first nine months of 2025 reached $38.8 million, reflecting a 16% increase compared to the first nine months of 2024.
- Q3 Revenue: Revenue for the third quarter of 2025 was $14.0 million, representing a 4% decline from the same period in 2024.
- Recurring Revenue: Recurring revenue totaled $4.8 million in Q3, up 10% year-over-year, representing 35% of total quarterly revenues.
- State and Local Channel Strength: U.S. state and local government channel revenue accounted for 47% of revenues during the first nine months, supporting the company’s strategy to develop predictable, run-rate demand relative to the variable timing of large federal and defense contracts.
- Operational Efficiency: The quarter reflected operational improvements, resulting in better Adjusted gross margin and a significant reduction in Adjusted EBITDA losses.
- Gross Margin Improvement: Adjusted gross margin rose to 58%, a 190-basis-point improvement compared to the previous quarter.
- Adjusted EBITDA: The Adjusted EBITDA loss for Q3 was $1.8 million, an improvement of 53% compared to the previous quarter.
- FTIR Portfolio Momentum: The company reported a record 30% quarter-over-quarter increase in XplorIR placements, along with initial shipments of VipIR, its new 3-in-1 handheld chemical analyzer.
- Strong Balance Sheet: 908 Devices ended the quarter with $112.1 million in cash and marketable securities, maintaining a solid liquidity position.
Third Quarter 2025 Financial Results
Following the divestiture of the bioprocessing product portfolio in March 2025, all results discussed in this release relate to continuing operations only.
For the third quarter, revenue totaled $14.0 million, reflecting a 4% decrease from the prior-year period. This decline was primarily due to lower handheld product and service revenue, driven by fewer mass spectrometer device placements during the quarter. Revenue from OEM partnerships and funded programs increased to $0.8 million, compared with $0.5 million in Q3 2024. The company’s installed base grew by 27% year-over-year to 3,512 devices, with 176 new devices placed in the third quarter. Recurring revenue represented 35% of total quarterly revenue.
Gross profit for Q3 2025 was $7.4 million, slightly below the $7.8 million reported in the same period of 2024. GAAP gross margin stood at 53%, down from 54% a year ago, while adjusted gross profit was $8.1 million, compared to $8.5 million in Q3 2024. Adjusted gross margin was 58%, down by approximately 60 basis points from the prior year, primarily due to product mix effects where material costs represented a higher proportion of product revenue.
Operating expenses were $23.7 million for the quarter, compared to $32.3 million in Q3 2024. This decrease was largely attributable to a $30.5 million goodwill impairment charge recorded in the prior year, partially offset by a $22.8 million change in the fair value of contingent consideration liability, which was a charge in the third quarter of 2025 compared to a credit in Q3 2024.
Net loss from continuing operations totaled $14.9 million, an improvement from the $23.6 million net loss recorded in the prior-year period. Adjusted EBITDA loss improved to $1.8 million, compared to $2.7 million in Q3 2024. Net loss attributable to common stockholders was $15.0 million, compared to a net loss of $29.3 million in the same quarter last year.
908 Devices maintained a strong cash position at the end of Q3, with $112.1 million in cash, cash equivalents, and marketable securities, and no outstanding debt.
Strategic Business Highlights
During the third quarter, 908 Devices continued to gain traction in its FTIR portfolio, with record growth in XplorIR device placements. The company also began initial shipments of VipIR, a new 3-in-1 handheld chemical analyzer designed to expand the company’s offerings in chemical detection and analysis. The growth of the installed base, coupled with increasing recurring revenue, reflects the company’s ongoing focus on building a predictable and sustainable revenue model.
The company’s diverse revenue mix, with a strong contribution from state and local government channels, provides a more stable foundation relative to the timing of large federal and defense awards. Operational improvements made during the quarter also contributed to enhanced profitability metrics, including improvements in adjusted gross margin and reduced Adjusted EBITDA losses.
2025 Guidance
908 Devices reaffirms its guidance for full-year 2025 revenues from continuing operations to range between $54.0 million and $56.0 million. This represents growth of 13% to 17% compared to 2024 revenue from continuing operations. The company expects to maintain a disciplined focus on operational efficiency, cost management, and product innovation as it continues to execute its 908 Devices 2.0 strategy.
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