Summary of RxSight Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Sales: $32.6 million, down 19% year-over-year, primarily due to lower LDD (Light Adjustable Lens) sales.

LDD Sales: 25 units sold, generating $3 million in revenue, a significant decline from 83 units and $11 million in Q4 2024.

LAL Sales: 28,611 units sold, down 2% year-over-year but up 10% sequentially, contributing $28.2 million (86% of total sales).

Gross Margin: Improved to 77.5% from 71.6% year-over-year, driven by a higher mix of LAL sales.

Net Loss: $9.2 million or $0.22 per share; adjusted net loss of $1.3 million or $0.03 per share.

Full Year 2025 Sales: $134.5 million, a 4% increase year-over-year, with LDD revenue down 48% but LAL sales up 12%.

Cash Position: Ended 2025 with approximately $228 million in cash, cash equivalents, and short-term investments.

2Strategic Updates and Business Highlights

RxSight is focusing on improving clinical outcomes and practice expertise through enhanced training and support for LAL technology.

The company aims to leverage its installed base of over 1,100 LDDs to drive same-store sales and patient outcomes.

RxSight is pursuing international expansion methodically, focusing on building relationships with key opinion leaders and gathering clinical data in new markets.

Recent clinical data published indicates high refractive accuracy for LALs, reinforcing the technology's value proposition.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected between $120 million and $135 million, implying a year-over-year decline of approximately 5% at the midpoint, primarily due to lower LDD sales.

Gross Margin Guidance: Expected to be 70% to 72%, reflecting anticipated manufacturing absorption headwinds.

Operating Expenses: Projected between $150 million and $160 million, reflecting ongoing investments in international expansion and U.S. sales efforts.

Sales Expectations: Q1 2026 anticipated to be the lowest quarter, with expectations for sequential growth in subsequent quarters.

4Bad News, Challenges, or Points of Concern

Significant decline in LDD sales and revenue, raising concerns about the sustainability of growth.

The company is facing headwinds from competitive pressures, particularly with new product launches from competitors in the premium IOL market.

The guidance reflects a cautious outlook due to challenging comparisons from the previous year and potential impacts of seasonality.

Increased operating expenses and net losses indicate ongoing financial pressure as the company invests in growth initiatives.

5Notable Q&A Insights

Management acknowledged the challenges of comparing Q1 2026 to a strong Q1 2025, indicating a cautious approach to growth expectations.

Discussions highlighted the need for consistent performance and the importance of improving utilization rates within the existing installed base.

Management is optimistic about the potential for recovery in the second half of 2026, contingent on improving market conditions and internal initiatives.

The competitive landscape remains a concern, with expectations of new premium IOL product launches impacting market dynamics. Overall, while RxSight is making strides in its strategic initiatives and maintaining a strong cash position, it faces significant challenges in sales performance and competitive pressures that could impact its growth trajectory in 2026.