Milestone Scientific reported third-quarter 2026 revenue of $2.2 million, down 5.9% from $2.4 million a year earlier, mainly because of lower dental product sales. The medical segment moved in the opposite direction, growing 136% year over year as clinicians adopted the CompuFlo system. Gross margin improved 280 basis points to 72.3%, up from 69.5% in the third quarter of 2025, driven by lower product costs.

Operating expenses fell 15.3% to $2.4 million from $2.8 million, reflecting lower salary, compensation and professional fees. The company posted a net loss of $748,000, or $0.01 per share, compared with a net loss of $1.2 million in the same quarter last year. Management identified an additional $400,000 in annual cost reductions, which it said should support reaching profitability by the fourth quarter of 2026.S1

Management reaffirmed full-year 2026 revenue guidance of $9.8 million to $10.2 million, which would represent double-digit growth. The company said quarterly revenue of $2.6 million to $2.7 million is the level at which operating leverage takes hold. In the medical segment, more than 500 U.S. leads are being worked by five dedicated sales professionals and 15 sales consultants, and 85% of third-quarter medical revenue came from new equipment sales, with recurring disposable revenue expected to scale after a four to six month lag.S1S3

The balance sheet was strengthened during the quarter, with director loans converted into equity and outstanding debt eliminated. Cash stood at $1.3 million as of September 30, 2026, with working capital of $3.5 million. Contractual obligation costs fell to $91,000 for the first nine months of 2026 from $351,000 a year earlier, after existing agreements were restructured.S1

The company is focused on the U.S. epidural market, which accounts for about 11 million annual procedures within a global market of more than 30 million. Management estimated that each CompuFlo unit used for 50 cases per month could generate $90,000 to $100,000 in annual revenue. Whether the company reaches its fourth-quarter profitability goal will depend on sustaining that medical growth while dental sales continue to decline.S1S3