Milestone Scientific (MLSS) Q3 2026 Earnings Report

The call was predominantly positive, with strong medical segment growth, improved margins, lower operating expenses, substantial narrowing of the net loss, additional cost savings, a debt-free balance sheet, expanding CompuFlo adoption, and reiterated expectations to approach or achieve profitability in the fourth quarter of 2026. The main challenges were the 5.9% year-over-year revenue decline driven by dental sales, the current predominance of new rather than recurring medical revenue, the four-to-six-month reimbursement lag, additional field-training needs, and expected gross-margin normalization to 69% to 70%.

Management reaffirmed its 2026 outlook of a range of $9.8 million-$10.2 million, representing double-digit growth, and expects to approach or achieve profitability in the fourth quarter of 2026; it also identified approximately $400,000 in additional annual savings. Gross margin is expected to be in the 69%-70% range moving forward, although there might be some occasional fluctuations to the positive there. For 2027, management expects considerably lower costs than this year and additional profitable quarters, although results may vary from quarter to quarter depending on revenue levels; quarterly revenue of approximately $2.6 million-$2.7 million puts the company near the threshold where incremental revenue begins to flow meaningfully to the bottom line. Management said recurring revenue will probably become a significant portion of revenue until mid-Q1 of next year and Q2, expects to approach 25 to 50 CompuFlo purchasers by the end of the year, more than likely, and said each unit can generate about $90,000-$100,000 per year if used at 50 cases per month, with 25 units translating to about $2.5 million in revenue. Mexico, Vietnam, and India are expected in Q1, while Turkey is complete.