Milestone Scientific (MLSS) investor relations material

Executive summary

• Q2 2026 revenue increased 22.3% year-over-year to $2.8 million, with first half revenue at $5 million, up 10% year-over-year, driven by dental sales in China and a 231% surge in medical segment revenue from CompuFlo adoption and expanded reimbursement.

• Gross profit rose to $1.9 million, but gross margin declined to 67.2% due to product mix, higher costs, and tariffs.

• Signed strategic distribution agreements, including Red One Medical for federal healthcare and a new national dental distributor, and launched Milo, an AI-enabled digital engagement platform.

• Strengthened board with new executive chair and two independent directors with healthcare and technology expertise.

• Cash position improved with private placement, but going concern risk remains due to recurring losses and limited cash.

Financial highlights

• Q2 2026 net sales: $2.8 million (up from $2.3 million in Q2 2025); six-month sales: $5.0 million (up from $4.6 million in 2025).

• Q2 2026 gross profit: $1.9 million; gross margin: 67.2% (down from 69.6%); six-month margin: 69.4%.

• Q2 2026 net loss: $1.1 million ($0.01/share), improved from $1.5 million; six-month net loss: $1.9 million ($0.02/share), improved from $3.5 million.

• Operating expenses for Q2 2026: $3.0 million (down 4.2% YoY); six-month expenses: $5.4 million (down 20.5% YoY).

• Cash and equivalents at June 30, 2026: $2.1 million; working capital: $3.7 million; convertible debt: $466,000.

Outlook and guidance

• Management reaffirms 2026 revenue guidance of $9.8–$10.2 million, expecting double-digit growth.

• CompuFlo revenue projected to outpace overall business growth for the remainder of 2026.

• Q3 2026 revenue projected at $2.3–$2.5 million, down sequentially due to non-recurring international orders and seasonality.

• Anticipates continued expansion of Medicare reimbursement and direct sales efforts to drive second-half growth.

• Ongoing geopolitical instability, trade tensions, and potential need for additional financing may impact future results.