Earnings call transcript: Rxsight Q2 2025 reports wider loss, stock rises

RxSight Inc. (RXST) reported a wider-than-expected loss for the second quarter of 2025, with earnings per share (EPS) at -$0.29, missing analysts’ forecast of -$0.19 by 52.63%. Despite the earnings miss, the company’s stock price rose 3.18% to $7.79 in aftermarket trading, reflecting investor optimism about the company’s long-term growth potential and strategic initiatives. Revenue for the quarter came in at $33.6 million, falling short of the forecasted $38.55 million and representing a 12.84% negative surprise. According to InvestingPro data, four analysts have recently revised their earnings expectations downward for the upcoming period, though the company maintains a strong financial health score of "GREAT."

Key Takeaways

• RxSight’s Q2 2025 EPS was -$0.29, missing the forecast by 52.63%.
• Revenue for the quarter was $33.6 million, a 4% year-over-year decrease.
• Stock price increased by 3.18% in aftermarket trading.
• The company is expanding its global reach, focusing on innovation and customer support.
• Revenue guidance for full-year 2025 is set between $120 million and $130 million.

Company Performance

RxSight’s performance in Q2 2025 showed a decrease in revenue compared to the same period last year, reflecting challenges in the premium intraocular lens (IOL) market. However, the company made significant strides in product innovation and operational efficiency, which may have contributed to the positive market reaction. The premium IOL market remains attractive, despite the reduction in cataract reimbursement rates.

Financial Highlights

• Revenue: $33.6 million, down 4% year-over-year.
• Earnings per share: -$0.29, compared to -$0.19 forecasted.
• Gross Margin: 74.9%, up from 69.5% in the previous year.
• Net Loss: $11.8 million.
• Cash and Equivalents: $227.5 million.

Earnings vs. Forecast

RxSight’s Q2 2025 earnings showed a significant miss compared to expectations, with EPS at -$0.29 versus a forecast of -$0.19, resulting in a 52.63% negative surprise. Revenue also fell short of expectations, coming in at $33.6 million against the forecasted $38.55 million, marking a 12.84% surprise.

Market Reaction

Despite the earnings miss, RxSight’s stock rose by 3.18% to $7.79 in aftermarket trading. This increase suggests that investors are confident in the company’s strategic direction and growth potential, particularly in expanding its global reach and enhancing product offerings. InvestingPro analysis indicates the stock is currently undervalued, which may present an opportunity for investors. The stock has experienced significant volatility, trading between $6.32 and $58.23 over the past year, with a notable 84% decline in the past 12 months. The company maintains a strong balance sheet with more cash than debt, and its current ratio of 12.68 indicates robust short-term liquidity.

Outlook & Guidance

For the full year 2025, RxSight projects revenue between $120 million and $130 million, with gross margins expected to range from 72% to 74%. The company anticipates a slower second half due to softness in Light Adjustable Lens (LAL) adoption but remains optimistic about long-term growth prospects. InvestingPro subscribers have access to 10+ additional exclusive insights about RxSight’s financial health and growth prospects, along with comprehensive analysis in the Pro Research Report, which transforms complex Wall Street data into actionable intelligence for smarter investing decisions.

Executive Commentary

CEO Ron Kurtz emphasized the company’s strong conviction in the long-term potential of the LAL platform, stating, "Our conviction in the long-term potential of the LAL platform has never been stronger." CFO Shelly Tunin highlighted the high gross margin of RxSight’s products, noting, "We’ve got such a nice high gross margin product that it could come pretty quickly once we get back into that kind of level range of revenue."

Risks and Challenges

• Market Saturation: The premium IOL market’s growth may be limited by current adoption rates.
• Regulatory Challenges: Expansion into new markets requires navigating complex regulatory environments.
• Economic Pressures: Global economic conditions could impact consumer spending on premium medical devices.
• Competitive Landscape: Increased competition in the IOL market may pressure pricing and margins.
• Operational Costs: Managing operating expenses while investing in growth initiatives presents a balancing act.

Q&A

During the earnings call, analysts questioned the company’s market penetration strategy and path to achieving cash flow breakeven. Management expressed confidence in the long-term potential of the market but remained cautious about the immediate contributions from international revenues. The focus remains on enhancing customer success and maximizing utilization growth.

Full transcript - Rxsight Inc (RXST) Q2 2025:

Desiree, Conference Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, I will be your conference operator today. At this time, I would like to welcome everyone to the RX Site Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer I would now like to turn the conference over to Oliver Moravchowicz, Vice President of Investor Relations.

You may begin.

Oliver Moravchowicz, Vice President of Investor Relations, RxSight: Thank you, operator. Presenting today are RXI President and Chief Executive Officer, Doctor. Ron Kurtz and Chief Financial Officer, Shelly Tunin. Earlier today, RxSight released its financial results for the three months ending 06/30/2025, and reiterated its full year guidance. A copy of the press release is available on the company’s website.

Before we begin, I would like to inform you that comments and responses to questions during today’s call reflect management’s view as of today, 08/07/2025, and will include forward looking and opinion statements, including predictions, estimates, plans, expectations and other information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today and in our filings with the Securities and Exchange Commission or SEC. Our SEC filings can be found on our website or the SEC’s website. Investors are cautioned not to place undue reliance on forward looking statements, and we disclaim any obligation to update or revise these forward looking statements.

We will also discuss certain non GAAP financial measures. Disclosures regarding non GAAP financial measures, including reconciliations with the most comparable GAAP measures, can be found in the press release. Please note that this conference call will be available for audio replay on our Investor Relations website. With that, I will turn the call over to our President and Chief Executive Officer, Doctor. Ron Kurtz.

Ron?

Ron Kurtz, President and Chief Executive Officer, RxSight: Good afternoon, everyone, and thank you for joining us. On today’s call, we will outline the actions we have taken to address recent LAL utilization trends and declining growth in both LAL and LDD sales. Our top priority, of course, is to provide our customers with exceptional support that enables successful adoption and long term growth with our technology. To achieve this, we have unified our LAL sales and clinical support personnel into a single customer success organization. Using a standardized framework to both identify and close any gaps that could limit LAL growth, each regional team is responsible for a defined group of doctors practices, managing the customer experience from onboarding through long term utilization growth.

These teams leverage proven best practices derived from customers who have already demonstrated strong clinical and commercial success with our technology. We have paired these changes with coordinated investments in clinical affairs and education to accelerate feedback loops and support the mastery of postoperative vision optimization across the global LAL user base. This includes expanded engagement not only with RxSight representatives, but also via surgeon, optometric, and clinical staff focused peer to peer programs. By aligning and redeploying our existing field resources, we have strengthened clinical and practice support for current customers, directly addressing challenges that arose during the rapid growth of our installed base. These expanded in person and point of care interactions make use of new user friendly education and marketing resources, which were designed by leveraging our experience with more than 1,000 practices.

While our immediate focus is on driving adoption and maximizing utilization with existing LAL practices, our LDD sales team remains focused on bringing new high potential accounts into the platform. Once onboarded, these customers transition to our customer success organization, which drives clinical execution and supports sustained growth across the entire account base. With these coordinated efforts, our more than 200 field facing employees are intensifying RxSight’s commitment to execution. Combined with the flexibility to expand specific programs as needed, we are confident these changes will have a positive impact on adoption and unlock the long term clinical and commercial potential of the LAL platform. With that, I’ll turn things over to Shelly to take us through the financial results for the second quarter and reaffirm guidance.

Shelly Tunin, Chief Financial Officer, RxSight: Thank you, Ron. Good afternoon, everyone. Consistent with our 07/08/2025 preannouncement, RxSight generated second quarter twenty twenty five revenue of $33,600,000 down 4% compared to 34,900,000 in the year ago quarter, and down 11% compared to $37,900,000 in the 2025. During the quarter, we sold 27,380 LALs and generated $27,000,000 in LAL revenue, up 13% compared to the 2024 and down 1% compared to the 2025. In the second quarter of this year, LAL revenue represents 80% of total revenue, an increase from 68% in the 2024, and an increase from 72% in the 2025.

During the 2025, we sold 40 LDDs, down 49% from 78 units in the prior period, and down 45% from 73 units in the 2025. During the quarter, LDD sales generated revenue of $5,100,000 down 50% compared to the 2024, and down 45% versus the 2025. As of 06/30/2025, our LDD installed base totaled ten eighty four units, representing a 34% increase year over year, and a 4% increase quarter over quarter. Gross margin in the 2025 was 74.9%, compared to 69.5% in the year ago period and 74.8% in the 2025. The increase primarily reflects a shift in product mix with higher margin LAL revenue rising to 80% of total revenue, up from 68 percent in the 2024 and seventy two percent in the 2025.

SG and A expenses in the 2025 were $29,000,000 representing an increase of $4,700,000 or 19% versus $24,300,000 in the year ago quarter. This year over year increase was primarily due to an increase in personnel costs, elevated stock based compensation expense, and additional expenses related to post market studies. During the second quarter of this year, R and D expenses rose 23% to $10,200,000 compared to $8,300,000 in the 2024. This year over year comparison primarily reflects an increase in salaries and stock based compensation. Sequentially, both SG and A and R and D expenses were within 1% of the first quarter levels.

We reported a GAAP net loss in the 2025 of $11,800,000 or a loss of $0.29 per basic and diluted share using weighted average shares outstanding of 40,700,000 shares. This compares to a GAAP net loss of $6,100,000 or $0.16 per share on a basic and diluted basis in the 2024. Note the stock based compensation in the 2025 was $8,500,000 resulting in a non GAAP loss of $3,200,000 or a loss of $08 per basic and diluted share. Please refer to the unaudited non GAAP reconciliation and disclosure included in today’s press release for more comparative information. We ended the 2025 with cash, cash equivalents, and short term investments of $227,500,000 a decrease of approximately $1,800,000 compared to $229,300,000 as of 03/31/2025.

Moving on to our 2025 outlook, we are reiterating our full year 2025 guidance for revenue, gross margin, operating expense that we provided on July 8, as follows: Revenue of $120,000,000 to $130,000,000 representing an implied decrease of 14% to 7% from 2024. This outlook assumes a slower second half due to continued softness in LAL adoption and fewer expected new LDD sales. Gross margin of 72% to 74%, representing an applied increase of 130 to three thirty basis points compared to 2024. Despite gross margin in the first half approaching 75%, we are not adjusting our gross margin guidance higher because we expect lower gross margin in the second half of this year due to higher cost and lower production volume, as we have right sized production quantities consistent with our lower revenue guidance. Operating expense of $145,000,000 to $155,000,000 representing an implied increase of 7% to 14% over 2024.

We remain disciplined in managing operating expenses as we realign resources and sales, customer support and marketing to support long term growth in LAL adoption and support the continued expansion of our LDD installed base. Also note that the operating expense estimate includes non cash stock based compensation expense between 27,000,000 and $30,000,000 And with that, I’ll turn the call back to Ron.

Ron Kurtz, President and Chief Executive Officer, RxSight: Thank you, Shelly. Our new commercial strategy focuses on maximizing utilization by enhancing every aspect of customer engagement, including support, training and team alignment, to ensure that every LAL provider is fully prepared for success. We are confident that this approach designed to strengthen same store performance while also adding new high potential accounts will reaccelerate our growth and positively impact the overall premium IOL market. While we are initially realigning existing assets to ensure that we are fully resourced to support these efforts, we are also actively evaluating where more investment is required to accelerate success. Our strong balance sheet, coupled with this pragmatic approach, ensures that every investment is tied to measurable outcomes and long term value creation.

While our top priority is delivering on our renewed commercial execution in The U. S, we are equally focused on enabling future growth through innovation and global expansion. Regulatory approvals in key European and Asian markets have opened new doors. Building on our experience, we are now applying a similar customer success playbook to these geographies, which represent a significant opportunity for disciplined growth and modest revenue contributions over the next year. On the innovation front, we continue to advance our R and D roadmap to further enhance customer and patient experience, expand the LAL patient profile, and elevate the clinical value of our adjustable platform.

Our primary initiatives include refining the postoperative workflow and pursuing next generation platform capabilities to facilitate easier adoption of postoperative adjustability, offer greater flexibility for physicians, and extend accessibility to an even broader group of patients. As we shared earlier this week, we have also strengthened our strategic counsel with the appointment of Raymond Cohn to our Board of Directors. Ray brings decades of experience building and scaling high growth medtech companies, and his insights have already proved invaluable as we execute across the next phase of growth. In closing, our conviction in the long term potential of the LAL platform has never been stronger. With a refined go to market strategy and a unified focus on customer success, we believe RxSight is well positioned to drive durable value across clinical, commercial and shareholder dimensions.

With that, I’ll ask the operator to open the call for questions.

Desiree, Conference Operator: Thank you. We will now begin the question and answer If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like the majority of questions, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, And our first question comes from the line of Larry Biegelsen with Wells Fargo.

Simran, Analyst (for Larry Biegelsen), Wells Fargo: Questions here. This is Simran on for Larry, by the way. Maybe just to start off a two parter here. Can you just provide a bit more color on what trends have looked like exiting Q2 and thus far into Q3? I think on the prior call, you had made a comment around June not seeing the usual volume acceleration, which had informed the guide down.

So maybe just help us understand how those trends continued into the quarter. And then for the second part of the question there, for the people who have updated their models since the Q2 pre announcement, I’m seeing around 26,000,000 for Q3. So, are models properly calibrated now?

Shelly Tunin, Chief Financial Officer, RxSight: Thank you for your questions. They’re good questions, but generally we don’t get that specific in terms of guidance at all. I think that we are still early into the third quarter, but we are also cognizant of the trends that we saw in the second quarter, as well as the typical seasonality we see in the third quarter. I don’t think I have anything to comment different than that, as we are in the third quarter right now, in the beginning of the third quarter. I would say, while I don’t comment on models, I think that we were clear in the second half of the year that revenue would be down significantly from the first half of the year, and that third and fourth quarters would be lower than the second quarter.

So, I think that overall, if I look at the consensus for folks who have updated their models, we guided on the top line between 120,000,000 and $130,000,000 and consensus right now is sitting mid of that guidance.

Desiree, Conference Operator: Our next question comes from the line of Robbie Marcus with JPMorgan. Your line is open.

Robbie Marcus, Analyst, JPMorgan: Great. Thanks for taking the questions. Two for me. First, Ron, you said at the end of your closing remarks, you’re in a great spot to take advantage of the premium IOL segment of the market. How do you get confidence that the slowdown you’re seeing is market related and not just reaching a ceiling in penetration?

You’ve had a couple of quarters where the estimates or where the results came in a little bit below the estimates. You have a large installed base now of LTDs. How do you get comfort it’s the market and not RxSight?

Ron Kurtz, President and Chief Executive Officer, RxSight: Well, I don’t think, Ravi, that we’ve laid this on the market. We think that the market the is market is going to do what the market is going to do. It’s generally been good. The premium IOL market is an area where doctors are focused. As you know, the cataract reimbursement rates were for standard cataract surgery were further reduced recently by anywhere from 11 to thirteen percent.

And the other patient pay procedures that ophthalmologists have relied on such as LASIK, are much more sensitive to macro trends. So we think that overall the premium IOL market, over the long term is going to be a positive market. And, because we have now a very large base, installed base, we see that we can, with some of the changes that we’ve outlined here, we can really leverage that installed base for growth. Again, we don’t have to only depend on continued penetration of the market, which we also believe is that we have confidence that we’ll be able to do. But we also have a large base of customers who we feel are just based on the distribution that they can continue to grow their utilization of LAL.

And that’s where we’re really focused with some of the changes that we’ve talked about.

Robbie Marcus, Analyst, JPMorgan: Great. Maybe a quick follow-up. Shelly, with the reduction in sales, how are you thinking about the current pathway to cash flow breakeven and cash flow generation? And at the current run rate, do you think that’s still possible? Thanks a lot.

Shelly Tunin, Chief Financial Officer, RxSight: Yeah, well, we hadn’t previously given guidance on when we would hit cash flow breakeven. We did see that in the second quarter of last year. Even at a little bit lower gross margins, we got there. I think that that’s kind of a good proxy for when we could get to cash flow breakeven, but I think we’ve got some rebuilding to do before that. I think our most recent stall out and reduction in revenue certainly pushes it out.

I haven’t quite said so much for it yet because we’re trying to see how the changes that we’re making in our sales and customer support organizations help us recover and get back to high end growth, but you are correct. I think that we’ve got such a nice high gross margin product that it could come pretty quickly once we get back into that kind of level range of revenue.

Robbie Marcus, Analyst, JPMorgan: Perfect. Thanks a lot.

Desiree, Conference Operator: Next question comes from the line of Tom Stiefvann with Stifel. Your line is open.

Tom Stiefvann, Analyst, Stifel: Great. Hey, guys. Good afternoon. I’ll start with international actually. Ron or Shelly, can you just talk a bit about the path forward OUS, maybe specifically give us a sense for potential timelines, approvals and launches?

And then Ron, I know you mentioned maybe modest revenue contribution over the next year, but when do we think about revenue OUS starting to to pick up in a more meaningful way? Is that later 2026? Is that 2027? If you can kind of just talk about the OUS path forward.

Ron Kurtz, President and Chief Executive Officer, RxSight: Yes. So just for background, the OUS premium market represents about 80% of the overall premium market. So while The U. S. Is the largest single market, the OUS primarily Asia and Europe are very large markets.

We’ve focused over the last couple of years on regulatory approvals. In Europe that has meant going through the new MDR certification, which we completed at the end of Q1. And as we previously said, we’ve started to build out our European team, taking some of the lessons that we’ve learned in The U. S. To provide those customers with the support that they need.

Similarly in Asia, we’ve pursued regulatory approval in the major countries of Asia. We received approval in South Korea and launched in the quarter in Q2. That has gone well and we see that market, which has traditionally been a strong private pay market both, in, refractive as well as premium cataract surgery we see a strong market potential there, as well as, some of the countries in Southeast Asia, most recently Singapore. The large countries, Japan, China, they have longer regulatory cycles. We’re in those regulatory cycles and we’ll certainly update folks as we get additional information.

But those are traditionally longer term plays. So, overall, we’re quite excited about the OUS opportunity, but we’re also realistic that that will take time. And hence the relatively conservative language with respect to revenues. Do you want to add anything, Yeah,

Shelly Tunin, Chief Financial Officer, RxSight: I think in the press release, obviously we talked about the fact that, you know, cases were starting in South Korea as well as Singapore quite recently, and those are nice accounts for us. We think that, in particular, the South Korean market is an excellent one, But as Ron says, it takes time to develop. Would you add anything? I know you’ve been over to Korea a couple of times, Ron.

Ron Kurtz, President and Chief Executive Officer, RxSight: The Korean ophthalmologic practice is very sophisticated. It’s very much directed to advanced technologies and private pay. We’ve had a nice reception there to date. But again, the first step in all of these markets after regulatory is KOL development generation of in country data, just like we did in The US where that we’re able to establish, the combination of high quality vision that can be customized for that individual patient, which is a unique and disruptive product offering in that market. And again, we’ve learned a lot just as we have in The U.

S. On the different facets of gaining that expertise with postoperative adjustment. Certainly we are translating that to our commercialization efforts outside The US. Thank you.

Tom Stiefvann, Analyst, Stifel: Got it. That’s great. Super helpful. And then a quick follow-up just to pivot the guidance. I think back half revenue implies around $10,000,000 somewhat wide range, understandable.

Ron or Shelly, can you just give us a sense for sort of assumptions or what the drivers would be that would either kind of take you to the low end of that two implied guide as well as, I guess, importantly, the high end? And what direction are we kind of trending in within that range just based on what you’ve seen so far in the quarter? Thanks.

Shelly Tunin, Chief Financial Officer, RxSight: Yes, assume when you’re talking about $10,000,000 you’re talking about LDD revenue. When you said about $10,000,000 in the second half, I assume you’re talking about LDD revenue. That’s Total not a bad

Tom Stiefvann, Analyst, Stifel: revenue?

Ron Kurtz, President and Chief Executive Officer, RxSight: Total revenue? 120 to 130.

Shelly Tunin, Chief Financial Officer, RxSight: Oh, I misunderstood you. Okay. I’m sorry. The 120 to 130. Yeah.

I, you know, I think most people are sitting at the, mid of the guidance. I think that, where we could have down at the lower end at $120 it could be primarily driven by lower LDD sales rather than higher in terms of the mix. At the high end of guidance at 130, I think it would be probably fourth quarter seasonality driving LAL sales. It’s pretty tight guidance, but I think those would be the two factors that might play into low end, high end.

Tom Stiefvann, Analyst, Stifel: Got it. That’s great. Thanks, Shelley. Thanks, Ron.

Ron Kurtz, President and Chief Executive Officer, RxSight: Thank you.

Desiree, Conference Operator: There are no further questions at this time. I would like to turn the call back over to our CEO, Ron Kurtz, for closing remarks.

Ron Kurtz, President and Chief Executive Officer, RxSight: Well, thank you all for your time and attention today. We appreciate your interest in RxSight, and we look forward to updating you on our progress in future calls. Goodbye.

Desiree, Conference Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining, and you may now disconnect.

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