RxSight, Inc. (NASDAQ: RXST) Q2 2025 Earnings | 08/08/2025

Summary of RxSight, Inc. Q2 2025 Earnings Call

Date: August 8, 2025
Participants:

• Dr. Ron Kurtz (President & CEO)

• Shelley Thunen (CFO)

• Oliver Moravcevich (VP of Investor Relations)

Key Highlights:

1. Financial Performance (Q2 2025):

• Revenue: $33.6M (down 4% YoY, down 11% QoQ).

  • LAL Revenue: $27M (up 13% YoY, down 1% QoQ; 80% of total revenue).

  • LDD Sales: 40 units (down 49% YoY); revenue of $5.1M (down 50% YoY).

• Gross Margin: 74.9% (up from 69.5% YoY), driven by higher-margin LAL sales.

• Net Loss (GAAP): $11.8M (vs. $6.1M YoY).

• Cash Position: $227.5M (down $1.8M QoQ).

2. Operational & Strategic Updates:

• Commercial Realignment:

  • Combined LAL sales and clinical support into a "Customer Success" team to improve adoption.

  • Focus on existing accounts to drive utilization, leveraging peer-to-peer training and new educational tools.

• LDD Installed Base: 1,084 units (up 34% YoY), but growth slowing due to softer demand.

• International Expansion:

  • Launched in South Korea and Singapore; regulatory progress in Europe (MDR-certified).

  • Long-term opportunity in Asia (Japan, China) but revenue impact expected to be modest near-term.

• R&D Focus:

  • Streamlining postoperative workflow and developing next-gen LAL capabilities to broaden patient eligibility.

3. 2025 Guidance Reiterated:

• Revenue: $120–130M (down 7–14% YoY).

  • Assumes soft LAL adoption and lower LDD sales in H2.

• Gross Margin: 72–74% (up 130–330 bps YoY).

• Operating Expenses: $145–155M (up 7–14% YoY), including $27–30M in stock-based compensation.

4. Key Challenges & Outlook:

• Adoption Headwinds: Slower-than-expected LAL utilization growth in existing accounts.

• Market Dynamics:

  • Premium IOL market remains attractive long-term, but near-term pressures include:

    • Lower Medicare cataract reimbursements pushing surgeons toward premium options.

    • Macro sensitivity in patient-paid procedures (e.g., LASIK).

• Path to Profitability:

  • Cash flow breakeven delayed due to revenue slowdown; high gross margins provide leverage when growth resumes.

Key Takeaways:

• Focus on Execution: Revamped commercial strategy aims to stabilize LAL growth by improving customer support.

• International a Long-Term Driver: Early traction in Asia/Europe, but material revenue contributions likely in 2026+.

• Innovation Pipeline: Next-gen LAL enhancements could expand addressable market.

• Balanced Risk/Reward: Strong cash position ($227M) supports turnaround efforts, but H2 revenue expected to decline further.