SGHT — Sight Sciences, Inc.

Summary of Sight Sciences Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $20.4 million, a 7% increase year-over-year.
• Interventional Glaucoma Revenue: $19.7 million, up 5% year-over-year, flat sequentially.
• Interventional Dry Eye Revenue: $0.7 million, up from $0.3 million year-over-year.
• Gross Margin: 87%, consistent with the prior year; Interventional Glaucoma gross margin at 88%.
• Operating Expenses: $21.5 million, down 25% from $28.5 million, primarily due to reduced personnel and stock-based compensation.
• Net Loss: $4.2 million ($0.08 per share), improved from a net loss of $11.8 million ($0.23 per share) in the prior year.
• Cash Position: $92 million at the end of Q4, down from $120.4 million at the end of 2024.

2. Strategic Updates and Business Highlights:

• Market Positioning: Shifted terminology to "Interventional Glaucoma" and "Interventional Dry Eye" to reflect a focus on earlier, procedure-based interventions.
• TearCare Reimbursement Milestone: Achieved pricing for CPT code 0563T, marking a significant step for the Interventional Dry Eye business model.
• Sales Growth: Interventional Dry Eye showed strong commercial traction with 700 SmartLids sold to 80 accounts, including 30 new accounts.
• Interventional Glaucoma Strategy: Focus on expanding the stand-alone market and combo cataract segment, with investments in commercial resources to drive education and activation.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: $82 million to $88 million, reflecting 6% to 14% growth compared to 2025.
  • Interventional Glaucoma: $77 million to $81 million (2% to 7% growth).
  • Interventional Dry Eye: $5 million to $7 million (up from $1.6 million).
• First Quarter 2026 Expectations: Anticipated low single-digit growth for Interventional Glaucoma; approximately $1 million in Interventional Dry Eye revenue.
• Adjusted Operating Expenses Guidance for 2026: $93 million to $96 million, a 6% to 9% increase, driven by targeted investments.

4. Challenges and Points of Concern:

• Market Headwinds: The Interventional Glaucoma segment faced challenges from LCD changes impacting procedure combinations with cataract surgery in 2025.
• Cash Burn: Although cash usage was the lowest in Q4, the decrease in cash reserves from the previous year raises concerns about long-term sustainability.
• Dependency on MACs: The company is relying on further reimbursement approvals from additional MACs for the Interventional Dry Eye segment, which remains uncertain.
• Potential Goniotomy Code Changes: Anticipated changes in goniotomy reimbursement codes by 2028 could negatively impact revenue from this procedure.

5. Notable Q&A Insights:

• Guidance Breakdown: Management emphasized a stable market for Interventional Glaucoma and cautious optimism for Interventional Dry Eye, with no additional market access wins factored into guidance.
• Market Growth Assumptions: The underlying market growth for Interventional Glaucoma is expected to be low to mid-single digits.
• TearCare's Peak Sales Potential: While management did not provide a specific figure, they acknowledged the significant market opportunity for TearCare, suggesting it could be substantial given the prevalence of dry eye disease.
• Sales Strategy: The company is focusing on high-volume prescribers and leveraging synergies between Interventional Glaucoma and Interventional Dry Eye practices to enhance customer engagement.

This summary encapsulates the key points from the earnings call, highlighting the company's financial performance, strategic direction, and future outlook while addressing potential risks and challenges.