Quantum-Si Inc (QSI)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $0.842M, up 84% year over year; gross margin reached 58% but included ~7% benefit from low/no-cost inventory; GAAP net loss improved to $19.2M and EPS to $(0.11) .
• Platinum Pro launched and delivered; Avantor (North American distributor) training completed; international channel network expanded to 23 partners, with continued consumable demand from U.S. academic customers despite instrument purchase headwinds .
• Management reaffirmed cash runway into the second half of 2027; provided 2025 guardrails of adjusted OpEx ≤$103M and total cash use ≤$95M; no top-line guidance given due to NIH funding uncertainty .
• R&D execution on track: v4 Sequencing Kit targeted for Q3 2025; v3 Library Prep Kit expected by year-end 2025; Proteus prototype sequencing milestone expected by end of 2025 (commercial launch H2 2026) .

What Went Well and What Went Wrong

What Went Well

• Platinum Pro commercial rollout with initial deliveries; “we completed a productive quarter, including launching Platinum Pro... and solid progress across all of our development programs” (Jeff Hawkins) .
• International channels expanded to 23 distribution partners; management “pleased with continued interest... across all international distribution partner territories” .
• Innovation cadence intact: v4 Sequencing Kit on track for Q3 2025; v3 Library Prep development underway; Proteus program hit interim milestones (wafer fabrication process, compatible dye set) and remains on track for prototype sequencing in 2025 .

What Went Wrong

• U.S. academic instrument sales slowed materially due to NIH funding uncertainties and proposed indirect cost caps; Q1 revenue “slightly below our expectations” .
• Gross margin benefited ~7% from legacy inventory at low/no value, indicating near-term variability in margin as the mix of instruments versus consumables and inventory accounting adjustments normalize .
• Management refrained from providing top-line guidance given market opacity; tariffs monitored (inventory acquisition impact deemed immaterial near term; scientific devices historically exempt for import tariffs), but represent a macro overhang to watch .

Financial Results

Segment breakdown:

KPIs and balance sheet highlights:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We completed a productive quarter, including launching Platinum Pro, completing the training of Avantor... and solid progress across all of our development programs” — Jeff Hawkins .
• “Our version 4 Sequencing Kit remains on track for a third quarter 2025 launch... [including] a new enzyme... to provide high-efficiency cutting... preceding a proline” — Jeff Hawkins .
• “We remain on track to successfully perform protein sequencing on a prototype Proteus system by the end of 2025... launch of Proteus in the second half of 2026” — Jeff Hawkins .
• “Our gross margin for Q1 2025 includes approximately a 7% benefit for inventory utilized during the quarter that was carried at low or no value” — Jeffry Keyes .
• “While... NIH funding environment... makes it challenging to provide any clarity around top line financial guidance... adjusted operating expenses ≤ $103M... total cash used ≤ $95M... runway into the second half of 2027” — Jeffry Keyes .

Q&A Highlights

• NIH/tariffs: Management does not see pharma/biotech R&D funding changes trickling through; tariffs monitored with mitigation strategies; import tariffs historically exempt for scientific devices .
• Platinum Pro/state of platform: Pro is “locked down,” made with contract manufacturing partner; continued sales of legacy Platinum inventory; early adopters value open/pro mode and local analysis .
• Gross margin/COGS outlook: Historical GM 40–50%; Q1 GM 58% included ~7% inventory accounting benefit; variability expected as mix normalizes; Platinum Pro COGS broadly consistent with Platinum .
• Cash runway and spend discipline: Capitalized into H2 2027; leveraging Avantor/international partners to extend commercial reach without fixed cost; R&D allocation prioritized to high-value programs (Proteus, library prep, chemistry) .
• International expansion: Network at 23 partners; many cover multiple countries; build-out largely complete; continued monitoring of tariff landscape .

Estimates Context

• Wall Street consensus for Q1 2025 revenue and EPS via S&P Global was unavailable at the time of this analysis; the company did not provide top-line guidance due to NIH-related uncertainty .
• Given U.S. academic instrument headwinds and consumables stability, Street models may need to reflect softer near-term instrument placements offset by international and pharma/biotech channels; margin variability likely around mix and inventory accounting normalization .

Note: Estimates were attempted via S&P Global and were unavailable at this time.

Key Takeaways for Investors

• Near-term headwinds in U.S. academic instrument demand tied to NIH uncertainty temper top-line visibility; focus shifts to pharma/biotech and international channels where momentum remains healthier .
• Gross margin should normalize toward historical 40–50% as inventory accounting benefits subside and mix stabilizes; watch consumables mix for margin resilience .
• Strong liquidity ($232.6M) and spend guardrails (2025 adjusted OpEx ≤$103M; cash use ≤$95M) support execution of the innovation roadmap into H2 2027 without near-term financing needs .
• Catalysts: v4 Sequencing Kit (Q3 2025), v3 Library Prep (YE 2025), Proteus prototype sequencing (2025) and launch (H2 2026); sustained cadence can re-rate commercial adoption narrative .
• Watch distribution leverage: Avantor and 23 international partners provide scalable reach with lower fixed costs, helpful if macro remains choppy .
• Trading implications: Expect sensitivity to NIH headlines and margin print quality; upside if pharma/biotech demand and international placements accelerate, and if consumables growth offsets instrument cyclicality .
• Medium-term thesis: If QSI sustains technology leadership and executes Proteus launch, the platform breadth (single-molecule proteomics methods) could expand TAM and drive higher utilization/recurring consumables revenue .