Milestone Scientific Inc. (MLSS) Earnings Call Transcript & Summary

Thanks, operator. Hello, everybody. Prior to starting, please be aware that forward-looking statements will be part of today's call, as defined under the Private Securities Litigation Reform Act of 1995; risks and uncertainties apply to these statements, and they might lead to actual results differing materially from what has been projected. For a discussion of such risks, kindly look at our earnings press release and our SEC filings, which include our 2025 Form 10-K. Shortly after this call ends, a replay will be made available. Having said that, I will now hand things over to Eric Hines, our CEO.

Thanks, James, and good morning, everyone — appreciate you all being on the call with us today. When I came on board as CEO in August of 2025, we were midway through the quarter and the company had been running without a steady executive leadership group. What I walked into was an organization where expenses weren't consistently linked to bringing in revenue or to clear ROI, so starting on day one, we reviewed each expense item by item, trimmed anything that wasn't making a difference, and ensured all dollars served a purpose. We also decided against raising capital simply to pay for that type of spending. Our shareholders are entitled to more. We've concentrated on responsible stewardship while creating a stronger operating model. Our initial focus was getting to know the business, restructuring, and assembling the right team. We also put money into organizational structure, developing a capable commercial team, and reinforcing leadership so that we have the talent, processes, and tools needed to execute. The restructuring finished in 2025 lets us move beyond stabilization and start playing offense smartly, putting money where we see clear returns and remaining disciplined on everything else. By Q4, we started that shift, boosting targeted digital marketing and rolling out initiatives across both business segments that generated early traction. Our dental business is still the company's backbone. Overseas, more and more clinicians are picking up the STA Single Tooth Anesthesia System, a sign of how solid our technology is and how well our distribution partnerships work; beyond that, we have registration efforts underway in a number of additional nations, including Japan, India, and Mexico, and those could open up significant new markets. Here at home, there's plenty of room to grow, since we still hold less than 2% of the total market. When we piloted our Dental Ambassador Program in December, engagement picked back up, and we rolled it out nationwide on January 26th. As we continue running that program and chasing international registrations, we anticipate seeing results start to appear in the second and third quarters. Turning to the medical business, CompuFlo is playing an increasingly important role in our story. This proprietary technology provides immediate pressure readings that help clinicians place epidural injections accurately, and enthusiasm among doctors continues to rise; in our view, CompuFlo represents a game-changing source of growth as payment coverage and real-world clinical use broaden. During 2025, we restarted our push to commercialize CompuFlo and laid the groundwork for wider uptake — raising physician familiarity, making headway on regulatory and reimbursement fronts, and deepening relationships with major accounts. Come February 2026, we rolled out the CompuFlo Advisor Program, which unites over 10 physician collaborators along with a specialized reimbursement assistance framework designed to boost usage and speed up adoption. As we look forward, we're pushing ahead on wider Medicare reimbursement, bringing on additional distribution partners, and going after VA channels at both the national and local levels; through these efforts, we're set up to turn early traction into meaningful growth across the quarters ahead. Now for the 2026 guidance: we anticipate total revenue between $9.8 million and $10.2 million, which reflects double-digit growth year over year, fueled by broader adoption in both markets. From CompuFlo, we expect a contribution of $500,000-$600,000, which works out to roughly a 400% increase compared with 2025. Combined with the cost actions we took in 2025, the revenue growth we're anticipating in 2026 should produce considerable improvement in operating leverage and substantially reduce cash burn relative to where we were the prior year. I'll speak plainly. Reaching break even on cash flow in early 2027 and creating genuine, enduring value for shareholders is what we are aiming for; with a stronger organization, sharper commercial focus, and innovative products at the core of what we do, Milestone Scientific heads into 2026 prepared to perform. At this point I'll hand the call to Keisha, who will walk through some reviews of the financials. Keisha?

Thanks, Eric, and good morning to all of you. We'll now review how we did financially in Q4 and across the entirety of 2025. During the 3 months that closed on December 31st, 2025 and 2024, total revenue came in at $2.1 million and $2 million, respectively — a gain of 2.2%, which works out to $45,000. Gross profit landed at $1.5 million, flat versus the $1.5 million recorded in the same period a year earlier. Operating loss reached $1.1 million, which is an 89% improvement, or $963,000, relative to the $2 million in operating losses posted in the comparable prior period. Net loss came to $1.1 million, versus a net loss of $2 million a year earlier. Now for the whole year: net sales reached $9 million, rising 4% over the $8.6 million posted in 2024, mainly powered by gains in international and dental sales. Gross profit stayed level at $6.4 million, which mirrors shifts in product mix along with our cost structure. Operating losses during 2025 got better by $1.1 million, landing at $5.7 million, a decline from $6.8 million in 2024, largely attributable to reduced SG&A as well as cuts to dental-related and R&D expenses. Net loss stood at $5.7 million, or $0.07 per share — a $1 million improvement on a dollar basis, compared against $4.7 million, or $0.06 per share, in 2024. At December 31st, 2025, the company held $1.1 million in cash along with $800,000 of debt, plus a solid working capital position to back ongoing growth initiatives. With that said, the operator can now open the floor for questions.

Hello, and good morning. I appreciate your time in answering my questions. Regarding what you brought up — I believe it concerned CompuFlo — you've established certain reimbursement assistance together with the physicians. Could you perhaps expand on that somewhat further?

Thank you, Bruce. It's nice to hear from you. Yes, something I noticed, including previously while being a shareholder, is that we truly lacked the infrastructure needed to, in a sense, scatter CompuFlo worldwide. Through what we've accomplished under the Advisor Program, we've assembled a highly capable set of people. Specifically, 2 consultants, Evelyn Gittinger along with Rhonda Turner, each possessing more than 20 years as Medicare veterans, are going to assist the physicians enrolled in the Advisor Program regarding reimbursement claims and similar matters when they begin launching that effort. Beyond that, we've additionally established a committed call center staffed by 3 to 4 individuals who are likewise going to assist the offices in handling rebuttals and similar issues from the claims standpoint. We possess a solid team bringing substantial experience, and they are going to guide the physicians across that entire process.

All right, excellent. Then I have another question about reimbursement. At this point, do you still have a presence in three of the MACs?

That's correct — we do.

So the plan is to dig deeper in those 3 areas, then look at growing beyond them?

Novitas and First Coast will get the attention in those 3 areas, each in its own region. That said, we're already involved, I think, with 2 more MACs that belong to our advisor program. We'll keep pressing hard on the Novitas and First Coast MACs, while also moving into additional ones.

Alright, that's my final question. Gross margins ticked up a bit this quarter, which was good to see. Can we expect that to hold up going forward?

I'll hand that one to Keisha. My view is that gross margins will be roughly steady. Staying around 70% is basically what we're aiming for.

Correct, that's what we intend to do. That said, when it comes to tariff problems or similar matters that could come up, we still need to review each of those possibilities so we can be sure we're filing approvals and handling other such items; so far, tariffs or anything of that nature haven't hit us in any major way.

Alright, that's all from my side. Appreciate it.

Thank you, Bruce.

All right, thanks. So Eric, I had a question about the outlook for CompuFlo, the epidural system for pain management — is there something specific you have to hit, like a certain count of pain clinics or doctors who are using it, to get there? What portion of that outlook comes from the clinics or physicians already signed up? And what portion do you still have to go out and bring in yourself?

Good question. It's going to come from a mix of a few items, correct? It will be — let me say it involves 3 separate items, correct? Above all else, it's going to be the existing customers, correct? One of our Board members, Didier Demesmin, has a clinic, and others in that group, that use the solution; we have several that came about under the prior administration. We've also brought on a good number of new physicians, and we're seeing that the rate of adoption is possibly slightly higher than what even we anticipated, since those who get it, get it and recognize the value even with some of the Medicare challenges at this very moment. Then the third piece is international, correct? There are, you know, kind of 3 components to that. At present we're seeing a real appetite among people and among new customers to embrace the unit. I believe you'll see that show up in our Q1 highlights at some point.

All right, let's shift over to the dental side of things. There's a new initiative you rolled out called the Wand Ambassador Program. In what ways is it different from whatever other marketing approaches this company has used before? And which particular KPIs have to be met, or what has to happen, for you to consider it a win for 2026?