Milestone Scientific (MLSS) Q2 2026 Earnings Report

The call presented multiple clear operational and commercial wins — robust revenue growth, a large percentage increase in medical segment revenue, important Medicare reimbursement milestones, strong third-party clinical validation (91% reduction in complication odds), new federal distribution access, and improved expense discipline that reduced net loss. Offsetting these positives are margin pressure from increased product/import costs, a non-recurring ~ $500K international order that tempers near-term sequential revenue (Q3 guide below Q2), medical revenue still coming from a small base, staffing capacity constraints for lead and reimbursement follow-up, and a modest cash balance that could require monitoring. On balance the call emphasized measurable commercial progress and validation and management provided a path to scale reimbursement and federal channels, while acknowledging operational headwinds to be managed.

Management reaffirmed 2026 revenue guidance of $9.8M–$10.2M and said CompuFlo should grow faster than the overall business, after reporting Q2 revenue of $2.8M (up 22% YoY) and H1 revenue of $5.0M (up ~9.8% YoY), with the base business contributing $2.4M and roughly $500K of upside from international orders; Medical segment revenue grew 231% YoY in Q2, supported by a $325 payment established under Novitas and First Coast covering 3 jurisdictions and 13 states (≈30–35% of the U.S. population), while the company noted a UTMB study showing a 91% reduction in odds of composite complications and CompuFlo use at >40 academic centers; Q2 gross profit was $1.9M (67.2% margin), operating expenses were ≈$3.0M (down ~$0.5M or 4.2%), Q2 net loss was $1.1M (vs $1.5M prior), six‑month gross profit was $3.5M (69.4%), six‑month OpEx was $5.4M (down ~$1.4M or 20%), cash was $2.1M with $3.7M working capital and $466K convertible debt (plus a $2.51M private placement in April), the company expects Q3 to be seasonally slower and guided Q3 revenue to roughly $2.3M–$2.5M (noting two large Q2 international orders are not expected to recur), and highlighted commercial traction with 150–200 leads/month (150–200), >40 qualified ASPN leads, a Red One distribution channel reaching ~18M veterans/military beneficiaries, and a plan to take government orders in Q4.