Milestone Scientific Inc ((MLSS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Milestone Scientific Inc.’s recent earnings call conveyed a positive sentiment, primarily driven by successful cost management and strategic initiatives in the Dental segment. The company has made significant strides in securing Medicare payment rates for its CompuFlo system. However, it continues to face challenges in achieving domestic revenue growth and executing a broader commercial rollout of CompuFlo.
Cost Reduction and Operational Restructuring
Milestone Scientific has effectively reduced its operating expenses by over $0.5 million compared to the previous year, while maintaining stable revenue performance. This achievement is a testament to the early benefits of the company’s transformational strategy, which focuses on streamlining operations and enhancing commercial execution.
Expansion in Dental Segment
The company has expanded its direct sales programs in North America and advanced international registrations for the STA Single Tooth Anesthesia System. This expansion has led to an increase in international dental sales, which has partially offset the decline in domestic revenue.
Medicare Payment Rate Assignments for CompuFlo
Milestone Scientific’s CompuFlo system has secured Medicare payment rate assignments under CPT Code 0777T in three jurisdictions, supported by two MACs, Novitas and First Coast. This includes states such as New Jersey, Texas, and Florida, marking a significant step forward in the company’s reimbursement and payer strategy.
Stable Revenue and Positive Outlook
For the three months and nine months ended September 30, 2025, Milestone Scientific reported revenues of $2.4 million and $6.9 million, respectively. This compares to $2.5 million and $6.6 million for the same periods in 2024. Despite a slight decline in quarterly revenue, the company maintains a positive outlook with stable gross profit.
Decline in Domestic Dental Revenue
Despite the success in international markets, Milestone Scientific has experienced a decline in domestic dental revenue. This highlights ongoing challenges in the home market that the company will need to address to sustain growth.
Challenges in Broader Commercial Rollout
The company remains cautious about a broader commercialization of its CompuFlo system, indicating that a more extensive rollout may require additional time and focus. This cautious approach suggests a strategic focus on ensuring successful implementation.
Supply Chain and Tariff Concerns
While tariffs are not currently having a significant impact, Milestone Scientific is considering the establishment of a bonded warehouse in the U.S. if tariffs persist. This proactive measure could help mitigate potential future supply chain disruptions.
Forward-Looking Guidance
Looking ahead, Milestone Scientific continues to emphasize its transformational strategy, focusing on streamlining operations and advancing its reimbursement strategy, particularly for the CompuFlo system. The company reported having $1.3 million in cash and cash equivalents and a working capital of approximately $3.1 million as of September 30, 2025, indicating a stable financial position to support its strategic initiatives.
In conclusion, Milestone Scientific’s earnings call highlighted a positive sentiment driven by strategic cost management and expansion efforts in the Dental segment. While challenges remain in domestic revenue growth and the broader rollout of CompuFlo, the company’s strategic initiatives and stable financial position provide a solid foundation for future growth.