908 Devices Raises Outlook as Product Sales Accelerate
Second-quarter revenue reached $16.1 million as demand for VipIR and newly acquired NIRLab products lifted sales.[1][2]
908 Devices Inc. (MASS), a maker of handheld chemical-analysis equipment, reported 23% second-quarter revenue growth, accelerating from 14% in the prior quarter and reversing a decline in the third quarter of 2024.
The improvement reflected a shift toward product sales as the company expanded VipIR shipments and recorded its first revenue from NIRLab. Product revenue rose 35% to $13.0 million, while service and contract revenue declined 10% to $3.1 million.
The installed base grew 23% to 4,101 devices. The company placed 198 devices during the quarter, up from 167 in the first quarter and below the 224 placed in the fourth quarter.
VipIR shipments exceeded 35 units in the quarter and topped 100 cumulatively since the product's launch in the third quarter of 2024. Eighteen of the quarter's units went to a major South Asian law-enforcement agency. NIRLab, acquired after the first quarter, contributed revenue for the first time as 908 Devices introduced the product in the U.S. and engaged hundreds of prospects across more than 30 agencies.
Recurring revenue increased to $4.9 million from $4.0 million sequentially and accounted for 31% of quarterly revenue, up from 30% in the first quarter. Its share remained below 35% in the third quarter of 2024.
GAAP gross margin widened to 52% from 49% a year earlier, while the adjusted EBITDA loss narrowed by more than half to $1.9 million. The loss also improved from $2.5 million in the first quarter, though the company remained below the positive adjusted EBITDA recorded in the fourth quarter.
908 Devices now expects 2026 revenue of $68 million to $70 million, raising the low end by $1 million and narrowing its projected growth range to 21% to 25%. A $6 million ProtectIR order from an Asia-Pacific corrections agency secured after quarter-end supported the company's second-half outlook. Cash, cash equivalents and marketable securities declined to $101.5 million after the NIRLab acquisition, and the company continued to carry no debt.