Quantum-Si (QSIAW) Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $552,000 for Q3 2025, down from previous quarters due to capital sales headwinds.

Gross Profit: $194,000, resulting in a gross margin of 35%. For the first nine months of 2025, revenue totaled $2.0 million with a gross profit of $1.0 million (52% gross margin).

Operating Expenses: GAAP total operating expenses were $40 million, up from $28.5 million in Q3 2024. Adjusted operating expenses were $21.4 million, down from $26.0 million year-over-year.

Cash Position: As of September 30, 2025, the company had $230.5 million in cash and investments.

Guidance: Adjusted operating expenses projected at $96 million or less for 2025, with total cash use expected to be $103 million or less, reflecting a $10.2 million lease termination payment.

2Strategic Updates and Business Highlights

Commercial Adoption: The company launched alternative capital acquisition models, resulting in 12 new customers, primarily in academic labs, which are crucial for future consumable sales and scientific validation.

Innovation Roadmap: Successful sequencing runs on multiple prototype Proteus systems were reported, marking a significant milestone. The version 4 sequencing kit was launched, enhancing amino acid detection capabilities.

Scientific Affairs: Five manuscripts submitted for publication, with two published and three under review, indicating ongoing efforts to validate technology through scientific research.

Partnerships: The company is exploring partnerships to enhance development activities and broaden market participation.

3Forward Guidance and Outlook

The company remains optimistic about the long-term market opportunity in proteomics, despite short-term capital market headwinds. The focus is on building a large installed base to support future product launches, particularly the Proteus platform.

Upcoming Investor and Analyst Day on November 19, 2025, will provide further updates on the Proteus program and other initiatives.

4Bad News, Challenges, or Points of Concern

Market Headwinds: Continued capital sales headwinds and uncertainties in NIH funding are impacting revenue and customer acquisition, particularly in academic settings.

Operating Expenses: Significant operating expenses, including a $13.6 million lease termination payment, highlight financial pressures despite cost control efforts.

Sales Cycle: The sales cycle in biotech and pharma remains long (9-12 months), which may affect short-term revenue growth.

5Notable Q&A Insights

Investor Day Expectations: The upcoming Investor Day is expected to provide early sequencing data from the Proteus system and updates on the recognizer development program.

DARPA Program: The company is aware of the DARPA PROS program but sees limited alignment with its current strategy focused on high-throughput capabilities for research labs.

Placement Program: Over half of the new placements were in academic labs, with a focus on generating data for publications, which is crucial for building momentum for the Proteus launch. The company does not have a specific target for the number of placements but aims to leverage high-value academic centers. Overall, while Quantum-Si faces significant challenges in the current market environment, it is making strides in customer acquisition and product development, positioning itself for future growth.