Milestone Scientific Inc. Q4 2025 Earnings Call - CEO reset aims for cash flow breakeven by early 2027 via dental momentum and CompuFlo ramp

Operator: Good day, everyone. Welcome to the Milestone Scientific Inc. fourth quarter 2025 financial results and business update conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. As a reminder, this call is being recorded. It is now my pleasure to turn the floor over to your host, James Carbonara, with Hayden IR. The floor is yours.

James Carbonara, Investor Relations, Hayden IR: Thank you, operator. Good day, everyone. Before we begin, please note that today’s call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our earnings press release as well as our filings with the SEC, including our 2025 Form 10-K, for a discussion of these risks. A replay of this call will be available shortly after its conclusion. With that, I’ll turn the call over to our CEO, Arjan Haverhals.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Thank you, James, and good morning to everybody, and thank you for joining our call today. When I stepped in as a CEO in August of 2025, the company was in the middle of the quarter and had been operating without a consistent executive leadership team. I found an organization where spending wasn’t always tied to revenue generation or clear ROI, and from day one, we went line by line through every expense, cut what wasn’t moving the needle, and made sure every dollar had a purpose. We also chose not to raise capital just to fund that kind of spending. Our shareholders deserve better. Our focus has been on responsible stewardship while building a stronger operating model. Our early priority was understanding the business, restructuring, and building the right team.

We also invested in organizational structure, building a capable commercial team, and strengthening leadership to ensure we have the talent, processes, and tools to execute. The restructuring completed in 2025 allows us to move past stabilization and begin to play offense smartly, investing where we see clear returns and staying disciplined on everything else. By Q4, we began that shift, increasing targeted digital marketing and launching initiatives across both business segments that drove early traction. Our dental business remains the company’s backbone. Internationally, adoption of the STA Single Tooth Anesthesia System continues to grow, reflecting the strength of our technology and distribution relationships. We are also pursuing registrations in many other countries, including Japan, India, and Mexico, which could open meaningful new markets. Domestically, we see significant room for expansion with still less than 2% of the overall market.

The pilot launch of our Dental Ambassador Program in December sparked renewed engagement, and in January 26th, we took it national. We continue executing that program and pursuing international registrations, and we expect to see results from these efforts beginning in the second and third quarters. Turning to the medical side, CompuFlo is increasingly important to our story. This patented system provides real-time pressure feedback to guide precise epidural injections, and clinician interest continues to build. We believe CompuFlo represents a transformative growth driver as reimbursement and clinical adoption expand. In 2025, we relaunched commercialization efforts for CompuFlo and advanced the foundation for broader adoption, expanding clinician awareness, progressing regulatory and reimbursement efforts, and strengthening key account engagement. In February 2026, we introduced our CompuFlo Advisor Program, bringing together more than 10 physician partners and a dedicated reimbursement support infrastructure to drive utilization and accelerate adoption.

Looking ahead, we are advancing broader Medicare reimbursement, onboarding new distribution partners, and pursuing national and local VA channels. These programs position us to translate early traction into meaningful growth over the coming quarters. Turning to the guidance for 2026, we expect total revenue of $9.8 million-$10.2 million, reflecting double-digit year-over-year growth driven by expanding adoption across both markets. We expect CompuFlo to contribute $500,000-$600,000, an approximately 400% increase over 2025. Combined with 2025 cost actions, this 2026 top-line growth should meaningfully improve operating leverage and significantly reduce cash burn relative to prior year levels. I want to be direct. Our goal is to reach cash flow break even in early 2027 and build real lasting value for shareholders.

With a stronger organization, clearer commercial focus, and innovative products at the heart of our business, Milestone Scientific is entering 2026 ready to deliver. I’ll now turn the call over to Keisha for a few reviews of the financials. Keisha.

Keisha, Chief Financial Officer, Milestone Scientific Inc.: Thank you, Arjan Haverhals, and good morning, everyone. Let’s take a look at our financial performance for the fourth quarter and full year of 2025. For the three months ended December 31, 2025 and 2024, total revenue was $2.1 million and $2 million, respectively, an increase of 2.2% or $45,000. Gross profit was $1.5 million, unchanged compared to $1.5 million for the prior year period.

Operating loss was $1.1 million, an 89% improvement of $963,000 compared to the operating losses of $2 million in the prior period. Net loss was $1.1 million compared to the net loss of $2 million for the prior period. Turning to the full year, net sales totaled $9 million, up 4% from $8.6 million in 2024, driven primarily by the growth in international and dental sales. Gross profit remained flat at $6.4 million, reflecting changes in product mix and cost structure. Operating losses for 2025 improved by $1.1 million to $5.7 million, down from $6.8 million in 2024, primarily due to lower SG&A, reduction of dental-related and R&D expenses.

Net loss was $5.7 million or 0.7 cents per share, an improvement of $1 million on a dollar basis compared to $4.7 million or 0.6 cents per share in 2024. As of December 31, 2025, the company had $1.1 million in cash and debt of $800,000 and a strong working capital position to support continued growth initiatives. With that, the operator can open the floor for questions.

Operator: Certainly. The floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold just a few moments while we poll for any questions. Your first question is coming from Bruce Jackson with Benchmark Co. Please pose your question. Your line is live.

Bruce Jackson, Analyst, Benchmark Co.: Hi. Good morning. Thanks for taking my questions. You mentioned that with, I think it was CompuFlo, you’ve put in place some reimbursement support with the doctors. Maybe you could elaborate on that a little bit more?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Thanks, Bruce. Good to hear from you. Yeah, one of the things that I observed even in the past as a shareholder is that we really didn’t have the infrastructure in place to sort of shotgun the CompuFlo out globally. What we’ve done as part of the Advisor Program is we have put a very robust group of individuals. In fact, two consultants, Evelyn Getzinger and Rhonda Turner, both 20-plus-year Medicare veterans, who will be supporting our doctors that are part of the Advisor Program with reimbursement claims and so forth as they start to initiate that process. Not only that, we’ve also got a dedicated call center with 3-4 people that will be also helping the offices deal with rebuttals and so forth from a claims perspective.

We’ve got a good team with a lot of experience who will be helping the doctors through that process.

Bruce Jackson, Analyst, Benchmark Co.: Okay, great. Then, one more reimbursement question. Are you still currently in 3 of the MACs?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: We are.

Bruce Jackson, Analyst, Benchmark Co.: The idea is to go more deeply into those three regions and then consider expanding from there?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: The focus will be on the Novitas and First Coast in those three respective regions. However, we are already into, I believe, two additional MACs that are part of our advisor program. We are going to be pushing down and pressing down hard on the First Coast and Novitas MACs, but also expanding into others.

Bruce Jackson, Analyst, Benchmark Co.: Okay. Last question for me. The gross margins had a nice little tick up this quarter. Is that something that’s gonna be sustainable going forward?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: I’m gonna turn that over to Keisha. I think we’re more or less gonna be consistent with the gross margins. I think we’ll stay in the 70% range is kind of the plan.

Keisha, Chief Financial Officer, Milestone Scientific Inc.: Yes. That is our plan. However, with issues of tariffs and anything like that might arise, we still have to look at all of those options to make sure that we are putting in approvals and different things like that. We have not been affected totally with tariffs or anything like that at this time.

Bruce Jackson, Analyst, Benchmark Co.: Okay, great. That’s it for me. Thank you.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Thanks, Bruce.

Operator: Your next question is coming from Anthony Vendetti with the Maxim Group. Please pose your question. Your line is live.

Anthony Vendetti, Analyst, Maxim Group: Okay. Thank you. Yeah, Arjan Haverhals, I was just wondering the guidance for the CompuFlo, for the epidural system for pain management, is it? Are there specific milestones you need to reach or specific number of pain clinics or physicians using it to get to that? How much of that guidance is from current signed up clinics or physicians? How much of that do you need to actually go out and procure?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: That’s a great question. It’ll be a combination of a handful of things, right? It’ll be. I’m gonna say three different things, right? First and foremost, it’ll be the, you know, existing customers, right? We’ve got one of our board members, Didier Demesmin, whose clinic and others within that group use the solution. We’ve got several that were generated under the prior administration. We also have added quite a number of new physicians, and we’re finding that the adoption rate is maybe a little bit higher than even we expected because people that get it, get it and see the value even in spite of some of the Medicare challenges right at this moment. Then the third is international, right?

We’ve got, you know, sort of three components to that. Right now we are seeing quite an appetite for people and for new customers embracing the unit. I think you’ll see that reflected in our Q1 highlights at some point.

Anthony Vendetti, Analyst, Maxim Group: Okay. Switching gears to the dental program. You launched a new program, the Wand Ambassador Program. How does that differ from, you know, any other marketing strategy the company’s had in the past? What specific KPIs do you need to hit or do, you know, needs to occur for that to be deemed successful for 2026?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Yeah, no, another good question. How it differs is, you know, historically we’ve got a relatively small inside sales team who chases the dental business. We’ve got one person who focuses on the install base and another person that’s focused on new business. We’ve really fortified sort of our digital marketing tremendously to the point that we’re seeing so many leads come in that it’s a tough time for us to sort of keep up with the staff we have to do the demos. The ambassador program is a little bit more of a local push. I believe that as of now, we’ve signed up nearly 200 of, I think, about 175 ambassadors nationally, which include, I don’t know, maybe 20 or 30 states.

The point there is that we get people out, you know, physically in the marketplace talking with expertise because these are registered, you know, for the most part, dental hygienists. We get people out in the community who know the doctors in their respective communities out visiting offices, you know, in some cases in a physical way, and in other cases, you know, them using some of our own content to broadcast the great things about The Wand STA on their own social media channels. It’s really an effort to get out into the physical market more so than relying on inside sales and relying on digital marketing. We’ve generated, I think, close to 30 demos as a result of it so far.

Again, there’s a certain percentage of those that translates into new sales. As far as what we expected to contribute in 2026, you know, the goal is somewhere in the neighborhood of, you know, $a few hundred thousand of new sales as a result of the ambassador program. More recently, I think in the next, in the coming days, we have I don’t know if it’s like a refresher, but we have monthly meetings with our entire ambassador staff, to sort of giving them, you know, FAQs, what’s working, what’s not working, who’s having success, what content seems to be working. It’s still a little bit new, but at the same time we’re pretty happy with the results thus far.

Anthony Vendetti, Analyst, Maxim Group: Okay. On the guidance, I think the total guidance is $9.8 million-$10.2 million. Obviously, most of that is the dental program, the STA. You mentioned you’re looking at other international opportunities in Japan, Mexico, India. Does the guidance include any revenue from those new countries, or is the guidance, or if you start generating revenues in one of those other countries in 2026, that would be upside. Thanks.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: The numbers don’t contemplate any business from Mexico, India, or Japan at this moment. You know, we’re still waiting for the final registrations to be approved. You know, we’re 85%, 90% of the way through those, but it’s up to each individual country to you know, work through their respective systems to get us the official registration. But we’re pretty far along in each of them. We had expectations that we might get one or two in the first quarter, but we’re probably you know, a couple of months out. We’ll see. We hope that it will be accretive to the guidance.

Anthony Vendetti, Analyst, Maxim Group: Okay, great. Last question, I’m just gonna switch back to the CompuFlo. I know one of the reasons that the focus has moved to the pain clinics versus the hospitals for OBGYN, for CompuFlo, the hospitals are a much longer sales cycle, tougher to penetrate and get traction, as a small company, and the pain clinics are a little bit faster conversion cycle in terms of marketing to them and you know seeing the benefits and hopefully you know getting a sale. Do you have at this point a good grasp on how long that takes? How long is the sale cycle for the pain clinics, and is there any way to shorten that at this point?

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Yeah. No, we’ve seen sales cycles as short as a day, right? I mean, so-

Anthony Vendetti, Analyst, Maxim Group: Oh, wow.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: You know, I don’t think that we’re dismissing, you know, OBGYN, neurosurgery. What we’re finding is, you know, we’re still kind of a little bit in the discovery phase where we pivoted from labor and delivery over to pain. We’re not convinced, or at least I’m not convinced that this, you know, the CompuFlo unit doesn’t have an opportunity to penetrate all respective markets. Again, we wanna do our best to be focused. On the other hand, we don’t wanna completely walk away from things where we think there’s huge potential. I mean, labor and delivery being one of those, right?

Because there the doctor’s going blind with no fluoroscopy, and when you get into more complex cases and there is surgery up in the cervical spine and even the thoracic, you’ve got ribs in the way that compromise the X-rays, so it makes it more difficult for them in you know more difficult cases. We’re seeing you know spinal stimulation opportunities. We haven’t completely dismissed any of the markets. You know we wanna remain focused on pain, and we’re seeing sales cycles, like I said, you know that can you know anywhere from you know a few days, right? You know I’ll just give a shout-out to one of our great board members, Dawood Sayed, who’s been tremendously helpful in introducing us to lots of people within that community.

Anthony Vendetti, Analyst, Maxim Group: Okay, great. Thanks so much. I appreciate all the call. I’ll hop back in the queue.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Thanks, Anthony.

Operator: Once again, if you do have any remaining questions, comments or follow-up questions, please press star one at this time. Your next question is coming from John Corb, a private investor. Please pose your question. Your line is live.

John Corb, Private Investor: Thank you so much. Good morning, Arjan Haverhals.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Hey, John.

John Corb, Private Investor: I have a very short comment. As you may know or remember from our last quarterly call, I’ve been a long-term shareholder for many years with Milestone. First of all, I really like the way you are handling this company since you came on board. There’s the last line in your comment or your written comment yesterday. I don’t think I’ve ever read anything like this from Milestone. "Our objective is clear, position the company to achieve cash flow breakeven by early 2027." That’s extremely focused. I’ve asked in the past, when will you be cash flow neutral or positive? The answers were always nebulous. You’re extraordinarily focused, and I’m greatly encouraged by your stewardship at Milestone. I just wanna thank you for your efforts.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: John, I appreciate that, and I couldn’t do any of this without Keisha. She’s sitting here with me, and she’s tough, right? We together as a team are gonna ensure that every money, every cent that comes into this company is gonna be used in the right way. As a former shareholder and current shareholder like yourself, I know a lot of us were discouraged by the way the company was handling some of that. I can promise you we’re gonna do everything we possibly can to get to cash flow breakeven. As I pointed out in the conversation we had a few moments ago, you know, we are not going to take money and send it toward bad situations.

The money that we receive or that comes into the company will be used in a very judicious way. If we can’t get to breakeven next year, I’ll be disappointed.

John Corb, Private Investor: Well, good. Well, thank you so much for your efforts and your focus.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: Thanks, John.

Operator: Once again, if there are any questions or comments, please press star one now. There are no questions in queue at this time. I would now like to turn the floor back over to Arjan Haverhals for any closing remarks.

Arjan Haverhals, Chief Executive Officer, Milestone Scientific Inc.: No, I just wanna thank everybody for joining, and we greatly appreciate all of our shareholders. This is gonna be a shareholder-driven company here until I’m gone. Hopefully, that’s not for a long time. I’m looking forward to a great 2026. I hope everyone has a happy and healthy week ahead of them. Good luck to all of us. Thank you, Kelly, and thank you, James, for managing the call. Good luck. Thank you.

Operator: Thank you, everyone. This does conclude today’s conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.