Astrotech (NASDAQ:ASTC) signaled a major pivot from development to commercialization in its fiscal second-quarter results, slashing research spending as its flagship mass spectrometry devices gain a foothold in international security and environmental markets.
The Austin-based technology incubator reported that research and development expenses fell to $1.83 million for the quarter ended Dec. 31, 2025, a 25% decline from the same period last year.
Management characterized the drop as a deliberate move to transition its EN-SCAN Handheld GC and 1st Detect TRACER 1000 product lines from development-stage prototypes into saleable commercial offerings.
The commercial push is already showing geographic breadth.
As of the end of 2025, the company had deployed the TRACER 1000—a high-fidelity explosives and narcotics detector—in approximately 35 locations across 16 countries.
The rollout spans critical infrastructure hubs in the U.S., Europe, and Asia, where security agencies are increasingly seeking laboratory-grade identification tools to combat the rise of synthetic drugs and sophisticated explosives.
To steer this next phase, Astrotech reshuffled its leadership team.