Milestone Scientific (MLSS) Q2 FY26 earnings call: guidance and Q&A

How many MACs currently have reimbursement in place, and are there plans to add more?

Milestone Scientific currently has 2 MACs (Novitas and First Coast) covering 3 jurisdictions and 13 states, representing 30-35% of the population. They are actively working with Palmetto and plan to move westward to add CGS, WPS, and Noridian.

“So we've got 2 currently with 3 jurisdictions in 13 states, representing about 30% to 35% of the population.”

asked by Bruce Jackson · answered by Eric Hines

Can you clarify the expected sequential decline in sales for the third quarter?

Management projects Q3 revenue to be in the range of $2.3 million to $2.5 million, indicating a sequential decrease from Q2.

“Right now, we're projecting, again, I would say, in the range of $2.3 million to $2.5 million would be the range that I would provide.”

asked by Bruce Jackson · answered by Eric Hines

Why does CompuFlo reduce composite complications as highlighted in the recent study?

The accuracy of CompuFlo allows for much more precise implant placement, reducing missteps or misplacements compared to traditional methods, which often require multiple attempts.

“Just because of the number of, I guess, sometimes posts that they have to do. So for instance, with the accuracy that we command with the CompuFlo, they can get much more precise as far as where they're doing the implant.”

asked by Bruce Jackson · answered by Eric Hines

What is the current status of the CompuFlo Advisor program, specifically regarding the number of active physician partners?

The company has added a few more advisers, now totaling 10 or 11. They are not actively adding more at this point, as the focus has shifted to claim submission and expanding reimbursement with other MACs.

“Yes. We've added a few more. I think we're up to maybe 10 or 11. We're not really actively adding more advisers at this point as we're looking to get -- focusing on the claim submission.”

asked by Thomas McGovern · answered by Eric Hines

Has the digital marketing campaign's lead generation rate sustained, and what is the conversion rate?

The campaign continues to generate 150-200 leads per month, with demand exceeding current staff capacity. Milo, the AI bot, and additional hires are being implemented to handle the volume and improve follow-up.

“Yes. So the campaign has continued to do extremely well, getting anywhere between 150 to 200 leads per month. Again, we're sort of at a capacity situation where -- and that's why we launched Milo, which is going to be the AI bot that helps sort of prosecute some of those leads while they're on the phone and because we just don't have enough people to frankly follow up.”

asked by Thomas McGovern · answered by Eric Hines

Are there minimum purchase commitments with Red One Medical, and how will contracting with federal agencies work?

There are no minimum commitments with Red One Medical. The company is working to get details added to the Federal Supply Schedule (FSS), after which all federal agencies will purchase off that schedule, eliminating individual negotiations.

“No, it will be on the price schedule. It will be on the FSS schedule, and we're still working through that. So we've got the agreement in place with Red One. There's no minimum commitments.”

asked by Thomas McGovern · answered by Eric Hines

What is the nature of Milestone's distributor agreements, and how do they ensure sales and support?

Milestone controls pricing with distributors. Distributors act as additional feet on the street, clinical specialists, and salespeople. The company plans to have multiple distributors per state, overseen by Milestone employees who are compensated for the efficacy of the distributorships and their own sales.

“So we control the pricing with the distributors versus some other ways of going to market where they're allowed to discount up to a certain amount. So we want to make sure that we have cost control for, I guess, a starting point.”

asked by Unknown Attendee · answered by Eric Hines

What is the key difference in the company's approach to the medical business now compared to two years ago when Medicare approval was first obtained?

The current approach is more systematic and methodical, focusing on getting processes right before scaling. This includes dedicated reimbursement teams and focused sales teams in specific regions, ensuring proper coding and support for medical offices, rather than a broad, unfocused expansion.

“So I think the difference now is that we've sort of done it a little bit more systematically. So we've gone, I guess, a little bit -- sometimes they say you got to go slower to go faster. And I'm a big believer in that.”

asked by Unknown Attendee · answered by Eric Hines