Detailed Narrative
CompuFlo Medical Business Momentum
The Medical business, driven by CompuFlo, demonstrated significant momentum with revenue growing 231% compared to Q2 2025. The CompuFlo Advisor program, launched in February, continues to scale, adding physician advisers and expanding procedural use across additional Milestone Administrative Contractor (MAC) jurisdictions and commercial payers. This growth validates the technology's value proposition and supports its increasing adoption.
Reimbursement Progress and Expansion
Milestone Scientific has made substantial progress on the reimbursement front, with healthcare providers actively submitting claims and receiving favorable payment outcomes from Medicare in the Novitas and First Coast jurisdictions, as well as from commercial payers. A $325 payment has been established under these MAC fee schedules, covering 3 regions and 13 states, representing 30-35% of the population. The company plans to launch direct sales efforts in these regions and pursue the remaining MACs systematically.
Clinical Validation and Expanded Utilization
A peer-reviewed University of Texas Medical Branch study, published in Operative Neurosurgery, provided important third-party validation for CompuFlo. The study associated CompuFlo-guided epidural access during spinal cord stimulator implantation with a 91% reduction in the odds of composite complications. This compelling evidence reinforces CompuFlo's differentiated value and supports expanded utilization across various critical, spinal, and epidural procedures, having been evaluated or utilized across more than 40 universities and medical centers worldwide.
Strategic Partnerships and Market Access
Subsequent to quarter-end, Milestone Scientific expanded CompuFlo's addressable market through a strategic distribution agreement with Red One Medical. This partnership aims to bring CompuFlo to federal healthcare organizations, including the U.S. Department of Veterans Affairs and Department of Defense, collectively serving over 18 million beneficiaries, providing an efficient pathway into a significant market. Additionally, a new national distribution partner was signed for the dental business, and international registrations are targeted in Japan, Mexico, Turkey, and India.
AI Strategy and Digital Engagement
The company launched the first phase of its AI strategy with a pilot debut of Milo, an AI-enabled digital engagement platform, at the ASPN 2026 Conference. Milo is designed to answer product questions, provide educational information, support lead qualification, and connect healthcare professionals with sales and support teams. This initiative aims to enhance customer engagement and manage the high volume of leads generated by marketing campaigns, which currently stand at 150-200 per month.
Systematic Approach to Growth
Management emphasized a systematic and methodical approach to expanding the medical business, focusing on getting systems and processes right before accelerating. This includes putting reimbursement teams in place to help offices prosecute claims and building dedicated sales teams in key states like Florida. The strategy prioritizes focused execution and replication of successful models across the country, rather than a broad, unfocused expansion.