908 Devices Inc. (Nasdaq: MASS) raised its 2026 revenue guidance on Wednesday, citing sustained demand for its handheld chemical and explosives detection systems. The Boston-based company now expects revenue of $68 million to $70 million for the year, up from a prior range and implying growth of 21% to 25% versus 2025.
The updated outlook follows a 23% year-over-year increase in second-quarter revenue to $16.1 million, while adjusted gross margin expanded to 57% in both the quarter and first half of 2026. Adjusted EBITDA loss narrowed to less than $2 million in Q2, a 50% improvement from the same period last year, as the company continues to reduce cash burn toward break-even.
Cash and equivalents stood at $101.5 million as of June 30, with no debt, compared with roughly $30 million in annual cash burn 18 months prior. CEO and co-founder Kevin Knopp told the 17th Annual Midwest IDEAS Conference that the company now has "multiple years of runway" and flexibility to pursue small acquisitions.
Knopp emphasized the company's shift from hardware sales to a broader offering that includes software, data, and operational expertise. "We're not just selling boxes," he said. "We're selling the people, the data, the expertise customers need to detect more, faster, and with confidence."
The installed base of 908 Devices' systems surpassed 4,100 units across 700 accounts in more than 70 countries, with more than 18,000 trained users. The MX908 platform alone accounts for over 3,000 deployed units, including more than 1,200 with U.S. government agencies. Revenue from recurring sources, such as software subscriptions, represented 31% of Q2 sales.
Gross margin expansion has been supported by operational improvements and the integration of NIRLab, acquired in May 2026. The company estimates the core detection market at $1.5 billion to $2 billion, with outdated FTIR laboratory units numbering 15,000 or more worldwide.
State and local customers contributed over half of Q2 revenue, reflecting growing adoption beyond federal agencies. The company also highlighted recent high-profile deployments, including the use of its XplorIR system during a chemical tank incident in Garden Grove, California, that led to the evacuation of more than 40,000 residents.
Shares of 908 Devices traded at $10.55 on Wednesday, near a 52-week high of $11.25, and have gained 109% year-to-date.
