Milestone Scientific Inc (MLSS) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Driven ...
International Revenue: $1 million for Q2 2025, up from $489,000 in Q2 2024.
Medical Revenue: $32,000 for Q2 2025, an increase from $19,000 in Q2 2024.
Gross Profit: $1.6 million for Q2 2025, an increase of $206,000 from Q2 2024.
Selling, General and Administrative Expenses: $3 million for Q2 2025, up from $2.9 million in Q2 2024.
Research and Development Expenses: $52,000 for Q2 2025, down from $352,000 in Q2 2024.
Loss from Operations: $1.5 million for Q2 2025, a decrease from $1.8 million in Q2 2024.
Cash and Cash Equivalents: $1.3 million as of June 30, 2025.
Working Capital: Approximately $3.9 million with no long-term debt.
Cash Flows Used in Operating Activities: $2.8 million for the six months ended June 30, 2025.
Warning! GuruFocus has detected 6 Warning Signs with MLSS.
Release Date: August 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Milestone Scientific Inc (MLSS) reported a 25% revenue growth in Q2 2025, reaching $2.3 million, primarily driven by the dental segment.
The company secured Medicare Part B payment rate assignment under CPT code 0770T in multiple jurisdictions, enhancing reimbursement pathways for the CompuFlo Epidural System.
International sales more than doubled, contributing significantly to the revenue increase, with international revenue accounting for 48% of total sales.
The company has strengthened its leadership team with the appointment of Eric Hines as CEO and Jason Papes as Senior Vice President, Global Head of Sales and Marketing, both bringing extensive experience in scaling operations.
Milestone Scientific Inc (MLSS) maintained a solid balance sheet with $1.3 million in cash and no long-term debt, indicating strong financial management.
Negative Points
Despite the Medicare Part B coverage, adoption of the CompuFlo system in the medical segment has been slow, with only 5 to 10 clinics actively using the product.
Domestic dental sales were relatively flat, indicating challenges in growing the US market despite international success.
The company reported a loss from operations of approximately $1.5 million for Q2 2025, although this was a decrease from the previous year.
Research and development expenses decreased significantly, which could impact future innovation and product development.
The company faces challenges with tariffs and international market dynamics, which could affect future growth and profitability.
Q & A Highlights
Q: Can you discuss the adoption of the CompuFlo system on the medical side, particularly with Medicare Part B coverage, and what steps are being taken to accelerate its adoption? A: Eric Hines, CEO: We currently have between 5 and 10 clinics using the product in the US. The focus is on reimbursement, collecting data, and ensuring doctors are reimbursed appropriately. We plan to invest in specialists to help with claims and data collection, focusing initially on a few clinics to confirm reimbursement processes before expanding further.
Q: What are the plans for expanding the sales team under the new Head of Sales, Jason Papes? A: Eric Hines, CEO: Jason brings his prior distribution business, primarily focused in Texas. We are evaluating our current relationships with Axial and Shamrock. The focus will be on US-based sales, particularly in states where we have traction, and potentially hiring additional distribution as needed.
Q: What drove the international revenue growth this quarter, and what percentage of total revenue did it represent? A: Keisha Harcum, VP, Finance: International revenue accounted for 48% of total revenue. Growth was driven by additional distributors, larger orders, and improved communication with distributors. The international business tends to be lumpy due to large orders from groups of customers.
Q: How are tariffs affecting your international business, and what measures have you taken to mitigate their impact? A: Keisha Harcum, VP, Finance: Tariffs have not significantly impacted us. We have set up direct shipping from our warehouse in China to international partners and have sufficient inventory in the US to avoid tariff-related issues.
Q: What is the strategy for expanding reimbursement coverage for the CompuFlo system? A: Eric Hines, CEO: The focus is on deepening relationships in regions with existing reimbursement, collecting data, and ensuring reimbursement processes are solid before expanding. We plan to engage Board members with expertise in reimbursement to assist in this effort.
Q: Can you provide an update on the VA status and any progress in that area? A: Eric Hines, CEO: We are focusing on one VA vision in the eastern US to make progress. Each VA operates independently, so the strategy is to succeed in one area first. Neal Goldman, Chairman: Pricing is favorable for both instruments and disposables, and success in the VA could accelerate growth on the medical side.
Q: What is the status of the Brazil market, and are there any plans to pursue it further? A: Neal Goldman, Chairman: Brazil remains a long-term potential, but there are no immediate developments due to recent tariffs and other challenges. The focus is on executing in existing markets before expanding to new ones like Brazil.
Q: How are clinicians responding to the CompuFlo technology, and is there a plan to leverage their feedback for broader adoption? A: Eric Hines, CEO: We have an advisory group to gather insights from clinicians using the product. The focus is on understanding the pros and cons and collecting data to refine our approach before expanding to a broader market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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