RXST — RxSight, Inc.

Summary of RxSight Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Sales: Q1 2026 sales totaled $30.9 million, an 18% decline year-over-year, primarily due to a decrease in Light Adjustable Lens (LAL) unit volumes.
• LDD Units: Sold 20 Light Delivery Devices (LDDs) during the quarter, contributing approximately $2 million to sales. The installed base of LDD units is now 1,154.
• LAL Volumes: LAL unit volumes were 27,472, consistent with the previous year but down 4% sequentially, attributed to typical first-quarter seasonality.
• Gross Margin: Increased to 76.1% from 74.8% year-over-year, driven by a higher mix of LAL revenue.
• Operating Expenses: SG&A expenses rose 11% to $31.9 million, reflecting investments in personnel and global expansion. R&D expenses decreased by 9% to $9.5 million.
• Net Loss: Reported a net loss of $15.9 million ($0.38 per share), with an adjusted net loss of $7.9 million ($0.19 per share).

2. Strategic Updates and Business Highlights

• Commercial Progress: RxSight highlighted its presence at the American Society of Cataract and Refractive Surgery meeting, where LAL technology was prominently featured. The company celebrated reaching 300,000 LAL implants since U.S. commercialization.
• Customer Engagement: Ongoing reengagement programs with physicians have shown early signs of success, stabilizing LAL volumes and improving utilization rates.
• International Expansion: The company received approval for LAL in New Zealand and is cautiously expanding internationally, focusing on building a solid infrastructure for long-term growth.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Maintained full-year revenue guidance of $120 million to $135 million, with expectations for improved quarterly sales growth rates as the year progresses.
• Gross Margin Guidance: Expected to be in the range of 70% to 72% for the year, with anticipated impacts from higher-cost inventory.
• Operating Expenses: Forecasted to be at the higher end of $150 million to $160 million due to increased investments in commercial operations.

4. Bad News, Challenges, or Points of Concern

• Sales Decline: The 18% drop in sales and the sequential decline in LAL volumes raise concerns about market demand and competitive pressures.
• Competition: Increased competition in the premium IOL market may pose challenges, although RxSight remains confident in the unique advantages of its adjustable technology.
• Market Conditions: Some softness in the broader cataract market was noted, which could impact future growth, particularly in the non-premium segment.

5. Notable Q&A Insights

• Market Stabilization: Management expressed optimism about stabilization in LAL adoption and the positive feedback from reengagement efforts, though they refrained from commenting on specific Q2 performance.
• Growth Potential: There is a belief that the premium IOL market will grow significantly, with LAL positioned to capture a larger share due to its unique benefits.
• Customer Reengagement: The effectiveness of reengagement programs varies by practice, but the company is seeing positive results in customer utilization and satisfaction.
• Operational Focus: RxSight is focused on enhancing clinical training and support, which is critical for driving adoption and utilization of LAL technology.

Overall, while RxSight faces challenges in sales and competition, the company is taking strategic steps to stabilize its business and position itself for future growth.