A maker of benchtop instruments that read the sequence of proteins one molecule at a time, using semiconductor chips to detect individual amino acids. Its Platinum and Platinum Pro machines, sold to research labs, aim to make protein analysis cheaper and more automated than mass spectrometry. Founded in 2013 by Dr. Jonathan Rothberg, who earlier pioneered next-generation DNA sequencing, the name blends 'quantum' (its single-molecule detection) with 'Si,' the chemical symbol for silicon, the material of its chips.
Proteus platform launch delayed to Q2 2027, while Q2 revenue fell 42% YoY to $0.3M as customers deferred purchases.
The Proteus platform launch has been delayed from year-end 2026 to the second quarter of 2027. fell 41.8% to $0.3 million in Q2 2026 as customers deferred purchases of current instruments ahead of the new platform, while the net loss narrowed to $23.5 million on lower and legal costs. The company now faces a Nasdaq delisting deadline in January 2027 and must fund operations through at least two more quarters of pre-launch cash burn.
Key takeaways
The commercial launch of the next-generation Proteus platform has been delayed from the end of 2026 to the second quarter of 2027, citing hardware integration, application development, regulatory, and supplier challenges.
fell 41.8% to $0.3 million, which management attributed to customers deferring purchases of the current Platinum instrument ahead of the Proteus launch — the same dynamic that drove a 69.4% decline in Q1 2026.
contracted 9.4 percentage points to 50.0%, though it improved 21.3 points sequentially from 28.7% in Q1 2026, as product mix shifted on the low base.
Section summaries
Management's Discussion and Analysis
Revenue fell 58% YoY for H1 2026 as customers delayed purchases ahead of the Proteus platform launch, while operating loss narrowed on lower SG&A and legal costs.
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Total dropped 58.0% to $0.6M for H1 2026, driven by lower instrument and consumable volumes as customers deferred decisions pending the Proteus launch.
fell from 58.4% to 40.9% for H1 2026, primarily due to shifts in product mix.
The net loss narrowed to $23.5 million from $28.8 million a year ago, driven by a 17.5% decline in expenses across the first half of 2026 from lower legal, professional, and payroll costs.
Cash, cash equivalents, and marketable securities fell to $169.9 million at quarter-end, down from $190.4 million at the end of Q1 2026, and management expects this plus product to fund operations for at least 12 months.
The company received a Nasdaq deficiency notice on July 23, 2026, after its stock closed below $1.00 for 30 consecutive business days, and has until January 19, 2027, to regain compliance.
What changed
The Proteus platform launch timeline, previously targeted for year-end 2026, has been formally delayed to Q2 2027 — a shift flagged as a risk in the FY 2025 10-K, where the company warned that customer purchasing delays ahead of the launch could suppress near-term .
fell to $0.3 million in Q2 2026, down from $0.6 million in Q2 2025 and flat sequentially with Q1 2026, confirming that the customer deferral dynamic identified in Q1 2026 has persisted through the second quarter.
The Nasdaq delisting risk, first raised in Q3 FY2024 and resolved after a reverse stock split, has resurfaced with a new deficiency notice dated July 23, 2026, giving the company until January 19, 2027, to regain compliance.
Cash and investments declined to $169.9 million from $215.8 million at year-end 2025, a $45.9 million reduction over six months, with no equity raises disclosed in Q2 2026 after $93.5 million was raised in FY 2025.
What to watch
Whether the Proteus platform launch remains on track for Q2 2027, or if further delays are disclosed — given that the company's near-term is being cannibalized by customer anticipation of this single product.
Whether quarterly can recover from the $0.3 million level in the second half of 2026, or if customer deferrals keep sales suppressed until Proteus actually ships.
Whether the company regains Nasdaq compliance by the January 19, 2027, deadline, and whether it pursues a reverse stock split or transfer to the Nasdaq Capital Market to secure a second 180-day period.
The trajectory of the cash balance against the $169.9 million level, particularly if quarterly operating cash outflows remain near the $18.4 million recorded in Q2 2026 and no further equity is raised before the Proteus launch.
R&D expenses rose 4.8% to $30.3M for H1 2026, reflecting higher fabrication, outsourced services, and lab supplies for Proteus development, partially offset by lower facility costs.
SG&A expenses decreased 17.5% to $19.6M for H1 2026, mainly from lower legal, professional, and payroll costs.
Cash and investments totaled $169.9M as of June 30, 2026; management expects this to fund operations for at least 12 months, though negative operating cash flows are expected to continue.
A new San Diego facility lease was signed with estimated aggregate minimum payments of $38.3M, expected to commence by November 2027.
Quantitative and Qualitative Disclosures About Market Risk
The company sees limited near-term market risk from interest rates or foreign currency, while inflation in supply costs may not be fully passed on.
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Inflation has affected supply and manufacturing component costs, and the company may be unable to fully offset these through price increases or efficiencies.
Cash and equivalents are held mainly in short-term U.S. government and high-quality securities, with capital preservation as the primary objective.
Due to the short-term nature of most holdings, future interest rate changes are not expected to materially impact the marketable securities portfolio.
Operations are primarily U.S.-based with most transactions in U.S. dollars, so foreign currency translation risk is not currently material.
The company has not entered into any foreign currency hedging arrangements to date but will reassess as international operations expand.
From time to time, the Company is engaged in legal proceedings in the ordinary course of business. For further information on the Company’s legal proceedings, please refer to Note 16. Commitments and Contingencies in the Notes to the unaudited Condensed Consolidated Financial St…
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From time to time, the Company is engaged in legal proceedings in the ordinary course of business. For further information on the Company’s legal proceedings, please refer to Note 16. Commitments and Contingencies in the Notes to the unaudited Condensed Consolidated Financial Statements (Part I, Item 1) included elsewhere in this Quarterly Report on Form 10-Q.
Nasdaq delisting risk and a delayed Proteus platform launch threaten liquidity, capital-raising, and long-term financial success.
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The company received a Nasdaq deficiency notice on July 23, 2026, because its Class A common stock closed below $1.00 for 30 consecutive business days.
It has until January 19, 2027, to regain compliance by maintaining a $1.00 closing bid price for at least 10 consecutive business days, with a possible second 180-day period if it transfers to the Nasdaq Capital Market.
Delisting could materially reduce share liquidity, trading price, and the ability to raise capital or complete a strategic transaction.
The commercial launch of the Proteus platform has been delayed from end of 2026 to Q2 2027 due to hardware integration, application development, regulatory, and supplier challenges.
Further Proteus delays or a launch missing desired customer applications could materially harm long-term financial success and market credibility.