Summary of Key Points Core Viewpoint - RxSight, Inc. reported a quarterly loss of $0.08 per share, which was better than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of +20.00% [1] - The company has shown mixed performance in terms of revenue and earnings estimates over the past year, with a significant decline in stock price [3][4] Financial Performance - For the quarter ended June 2025, RxSight posted revenues of $33.64 million, slightly surpassing the Zacks Consensus Estimate by 0.11%, but down from $34.89 million a year ago [2] - Over the last four quarters, the company has exceeded consensus revenue estimates four times [2] Stock Performance and Outlook - RxSight shares have decreased approximately 78% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $29.04 million, and for the current fiscal year, it is -$0.49 on revenues of $126.63 million [7] Industry Context - The Medical - Instruments industry, to which RxSight belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of RxSight's stock may be influenced by the overall outlook of the industry [8]

Financial Data and Key Metrics Changes - RxSight reported Q2 2025 revenue of $33.6 million, down 4% year-over-year from $34.9 million and down 11% from $37.9 million in Q1 2025 [9] - The company sold 27,380 LALs, generating $27 million in LAL revenue, which is up 13% compared to Q2 2024 but down 1% from Q1 2025 [9] - LAL revenue represented 80% of total revenue in Q2 2025, an increase from 68% in Q2 2024 and 72% in Q1 2025 [9] - LDD sales decreased significantly, with only 40 units sold, down 49% from 78 units in the prior year and down 45% from 73 units in Q1 2025 [10] - Gross margin improved to 74.9% in Q2 2025, compared to 69.5% in the prior year and 74.8% in Q1 2025, primarily due to a higher proportion of LAL revenue [10] Business Line Data and Key Metrics Changes - LAL revenue increased to $27 million, while LDD revenue fell to $5.1 million, down 50% year-over-year [10] - The installed base of LDD units reached 1,084, representing a 34% increase year-over-year and a 4% increase quarter-over-quarter [10] Market Data and Key Metrics Changes - The company is focusing on enhancing customer engagement and support to drive adoption in the premium IOL market, which is expected to grow despite recent challenges [15][17] - Regulatory approvals in key European and Asian markets are seen as opportunities for future growth, with South Korea already launched and positive reception noted [39][41] Company Strategy and Development Direction - The company has unified its LAL sales and clinical support into a single customer success organization to enhance customer experience and drive long-term growth [5][6] - A new commercial strategy aims to maximize utilization by improving customer engagement and support, with a focus on both existing and new accounts [15] - The company is also pursuing innovation and global expansion, with plans to refine postoperative workflows and enhance platform capabilities [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slowdown in LAL adoption and fewer expected new LDD sales, leading to a cautious outlook for the second half of 2025 [13] - The company reiterated its full-year guidance for revenue between $120 million and $130 million, reflecting a decrease from 2024 [13] - Management expressed confidence in leveraging the existing installed base for growth despite market challenges [28] Other Important Information - The company ended Q2 2025 with cash and short-term investments of $227.5 million, a decrease of approximately $1.8 million from the previous quarter [12] - Operating expenses are projected to increase by 7% to 14% over 2024, with a focus on managing costs while supporting long-term growth [14] Q&A Session Summary Question: Trends exiting Q2 and into Q3 - Management noted that they are still early in Q3 and are aware of the trends from Q2, but did not provide specific guidance on revenue models [21][22] Question: Confidence in market slowdown vs. company performance - Management clarified that while the market is generally positive, recent challenges are not solely attributed to market conditions but also to internal execution [26][28] Question: Pathway to cash flow breakeven - Management indicated that while cash flow breakeven was previously achieved, recent revenue reductions may delay this target [30][32] Question: International market path forward - Management discussed ongoing regulatory approvals in Europe and Asia, emphasizing the long-term potential of these markets despite longer timelines for revenue contributions [35][39] Question: Guidance assumptions for revenue - Management explained that lower LDD sales could drive revenue to the lower end of guidance, while fourth-quarter seasonality could push it to the higher end [43][47]

Core Points - The Gross Law Firm has issued a notice to shareholders of RxSight, Inc. regarding potential lead plaintiff appointments for a class action lawsuit [1] - The class period for the lawsuit is from November 7, 2024, to July 8, 2025, during which the company allegedly made materially false and misleading statements [3] - Allegations include that RxSight faced "adoption challenges" and structural issues leading to declines in sales and utilization, overstated product demand, and an inability to meet previously issued financial guidance for fiscal year 2025 [3] Summary by Sections Class Action Details - Shareholders who purchased shares during the specified class period are encouraged to contact the Gross Law Firm for potential lead plaintiff appointment [1] - The deadline for shareholders to register for the class action is September 22, 2025 [4] Allegations Against RxSight - The complaint alleges that RxSight's management failed to disclose significant challenges affecting sales and utilization [3] - It is claimed that the company overstated the demand for its products, leading to misleading positive statements about its business prospects [3] Next Steps for Shareholders - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [4] - Participation in the case incurs no cost or obligation for shareholders [4]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the reporting period [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for H1 2025 show decreased assets, increased net loss to $20.0 million, and stable operating cash usage [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $309.0 million by June 30, 2025, primarily due to reduced short-term investments, while liabilities and equity also declined Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $40,355 | $16,706 | | Short-term investments | $187,136 | $220,517 | | Total current assets | $283,874 | $293,823 | | Total assets | $309,009 | $318,563 | | **Liabilities & Equity** | | | | Total current liabilities | $20,383 | $25,876 | | Total liabilities | $30,997 | $37,325 | | Accumulated deficit | $(642,071) | $(622,095) | | Total stockholders' equity | $278,012 | $281,238 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 sales declined 3.6% with increased operating loss, while H1 2025 sales grew 11.1% but net loss widened to $20.0 million Quarterly Financial Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $33,637 | $34,887 | (3.6)% | | Gross Profit | $25,190 | $24,250 | 3.9% | | Loss from Operations | $(14,003) | $(8,333) | 68.0% | | Net Loss | $(11,786) | $(6,079) | 93.9% | | Net Loss Per Share | $(0.29) | $(0.16) | 81.3% | Six-Month Financial Performance (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $71,531 | $64,399 | 11.1% | | Gross Profit | $53,518 | $44,935 | 19.1% | | Loss from Operations | $(24,677) | $(19,003) | 29.9% | | Net Loss | $(19,976) | $(15,179) | 31.6% | | Net Loss Per Share | $(0.49) | $(0.40) | 22.5% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw stable operating cash usage at $13.2 million, a shift to $35.5 million cash provided by investing, and reduced financing cash flow Six-Month Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,208) | $(13,336) | | Net cash provided by (used in) investing activities | $35,507 | $(91,371) | | Net cash provided by financing activities | $1,330 | $119,465 | | **Net increase in cash, cash equivalents and restricted cash** | **$23,649** | **$14,754** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the single operating segment, recurring losses, sufficient liquidity for 12 months, product revenue shifts, and a new securities class action lawsuit - The company operates in a single reportable segment: the research, development, manufacture, and sale of light adjustable lenses and related capital equipment[30](index=30&type=chunk) - The company has experienced recurring net losses and negative cash flows from operations since inception and expects to continue incurring net operating losses for the foreseeable future[31](index=31&type=chunk) - Management believes existing cash resources are sufficient to fund operations for at least the next 12 months[32](index=32&type=chunk) Revenue by Product (in thousands) | Product | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | LDD (including training) | $14,524 | $18,902 | | LAL | $54,192 | $43,745 | | Service and accessories | $2,815 | $1,752 | | **Total sales** | **$71,531** | **$64,399** | - A putative securities class action complaint was filed on July 22, 2025, alleging materially false and misleading statements regarding product demand and financial guidance[91](index=91&type=chunk) - The company denies the allegations and intends to defend the case vigorously[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue decline due to LDD sales, H1 2025 widened operating losses, and strategic realignment, while affirming sufficient liquidity for 12 months [Key Business Metrics](index=25&type=section&id=Key%20business%20metrics) Q2 2025 saw a significant decrease in LDD unit sales to 40, while LAL unit sales increased to 27,380, driven by the growing installed base Quarterly Unit Sales Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | LDDs Sold | 40 | 78 | -38 units | | LALs Sold | 27,380 | 24,214 | +3,166 units | - The decrease in LDD sales is attributed to slower adoption of the RxSight technology by practices and doctors, while the increase in LAL sales is due to the growing LDD installed base[105](index=105&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20operations) Q2 2025 sales decreased 3.6% due to LDD decline, while gross margin improved; H1 2025 sales grew 11.1% but operating loss widened to $24.7 million - **Q2 2025 sales decreased by $1.3 million** year-over-year, primarily due to a **49% reduction in LDD unit sales**, attributed to slower LAL growth, economic uncertainty, and sales organization realignment[123](index=123&type=chunk) - **Q2 2025 gross margin increased to 74.9%** from 69.5% in Q2 2024, driven by improved operating leverage and a higher percentage of revenue from LAL sales[124](index=124&type=chunk) - **Q2 2025 SG&A expenses increased by $4.7 million (19.3%)** year-over-year, mainly due to a $4.3 million increase in selling and marketing costs from higher headcount, stock-based compensation, and post-market studies[125](index=125&type=chunk) - **Q2 2025 R&D expenses increased by $1.9 million (23.2%)** year-over-year, driven by higher overhead, stock-based compensation, and personnel costs[126](index=126&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20capital%20resources) As of June 30, 2025, the company held $227.5 million in cash and investments, with management affirming sufficient liquidity for 12 months despite ongoing operating losses - The company had **cash, cash equivalents, and short-term investments of $227.5 million** as of June 30, 2025[136](index=136&type=chunk) - The company has a history of significant operating losses, with a **loss from operations of $24.7 million** for the six months ended June 30, 2025, and an **accumulated deficit of $642.1 million**[136](index=136&type=chunk) - Management believes current cash resources are sufficient to fund operations for at least the next 12 months and does not anticipate needing to raise additional capital to reach profitability[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuation on short-term investments, deemed immaterial due to their nature, with foreign currency risk considered de minimis - The company's primary market risk is interest rate fluctuation, but it is not considered material due to the short-term nature of its cash equivalents and investments[156](index=156&type=chunk) - Foreign currency exchange risk is considered de minimis as of June 30, 2025[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[158](index=158&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) Part II details legal proceedings, comprehensive risk factors, equity security information, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) A securities class action lawsuit was filed on July 22, 2025, alleging false and misleading statements regarding product demand and financial guidance - A securities class action complaint was filed on July 22, 2025, alleging false and misleading statements about product demand and financial guidance[163](index=163&type=chunk) - The company denies the allegations and intends to defend the case vigorously, but notes that an unfavorable resolution could have a material adverse effect on its business and financial condition[164](index=164&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Key risks include limited operating history, recurring losses, intense competition, regulatory compliance, supply chain dependencies, and ongoing litigation - **Business Risks:** The company has a limited operating history, a history of **net losses ($642.1 million accumulated deficit)**, and its success depends largely on the market adoption of its RxSight system[169](index=169&type=chunk)[175](index=175&type=chunk)[189](index=189&type=chunk) - **Competition:** The company faces significant competition from large, well-capitalized companies such as Alcon, Johnson & Johnson, and Bausch + Lomb, which have greater resources for development and marketing[202](index=202&type=chunk) - **Regulatory Risks:** Failure to obtain and maintain necessary regulatory clearances (e.g., FDA, EU MDR) for products and indications could harm commercial operations[333](index=333&type=chunk)[370](index=370&type=chunk) - The company must also comply with the FDA's Quality System Regulation (QSR), with a transition to the new Quality Management System Regulation (QMSR) required by February 2026[392](index=392&type=chunk) - **Supply Chain Risks:** The company depends on third-party, including single and sole source suppliers, for components and raw materials, making it vulnerable to supply disruptions and price fluctuations[428](index=428&type=chunk) - **Litigation Risks:** A putative securities class action lawsuit was filed in July 2025, which could result in substantial costs and divert management's attention[170](index=170&type=chunk)[478](index=478&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or issuer purchases during the reporting period - There were no unregistered sales of equity securities or issuer purchases of equity securities during the reporting period[484](index=484&type=chunk) [Item 5. Other Information](index=96&type=section&id=Item%205.%20Other%20Information) Director Robert Warner terminated his Rule 10b5-1 trading arrangement on June 6, 2025 - A Rule 10b5-1 trading plan for director Robert Warner, dated August 30, 2024, was terminated on June 6, 2025[485](index=485&type=chunk) [Item 6. Exhibits](index=97&type=section&id=Item%206.%20Exhibits) The report includes standard exhibits, such as CEO and CFO certifications and Inline XBRL data files - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL data files[488](index=488&type=chunk)

Core Insights - RxSight, Inc. reported a total revenue of $33.6 million for Q2 2025, a 4% decrease from $34.9 million in Q2 2024, with LAL revenue increasing by 13% and LDD revenue decreasing by 50% [4][10] - The company aims to accelerate growth through enhanced customer engagement and strategic expansion of its installed base, supported by a newly launched Customer Success Organization [3] Financial Performance - Gross profit for Q2 2025 was $25.2 million, representing 74.9% of revenue, an increase from $24.3 million or 69.5% of revenue in Q2 2024 [5] - Total operating expenses for Q2 2025 were $39.2 million, a 20% increase from $32.6 million in Q2 2024, reflecting investments in LAL sales and R&D [6] - The net loss for Q2 2025 was $(11.8) million, or $(0.29) per share, compared to a net loss of $(6.1) million, or $(0.16) per share in Q2 2024 [7] Cash Position - Cash, cash equivalents, and short-term investments decreased by $1.8 million to $227.5 million as of June 30, 2025, compared to $229.3 million as of March 31, 2025 [8] Guidance - The company reiterated its 2025 full-year revenue guidance of $120.0 million to $130.0 million, indicating a decrease of 14% to 7% compared to 2024 [9][14]

Core Viewpoint - The RxSight class action lawsuit alleges that the company and its executives made misleading statements regarding the company's performance and financial guidance, leading to significant stock price declines [1][4][5]. Company Overview - RxSight, Inc. is a commercial-stage medical technology company focused on the research, development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery [3]. Allegations of the Lawsuit - The lawsuit claims that during the class period, RxSight faced "adoption challenges" and structural issues that resulted in declining sales and utilization of its products [4]. - It is alleged that RxSight overstated the demand for its products, which contributed to the company being unlikely to meet its previously issued financial guidance for fiscal year 2025 [4]. - Following the release of preliminary second-quarter financial results on July 8, 2025, which showed significant declines in Light Delivery Device (LDD) sales and overall revenue, RxSight lowered its full-year 2025 guidance by approximately $42.5 million at the midpoint [5]. Financial Impact - The announcement of the poor financial results led to a nearly 38% drop in the price of RxSight stock [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of RxSight, Inc. regarding a class action lawsuit due to alleged misleading statements and undisclosed challenges faced by the company during a specified class period [1]. Group 1: Allegations - The complaint alleges that RxSight was experiencing "adoption challenges" and structural issues leading to declines in sales and utilization [1]. - It is claimed that the defendants overstated the demand for RxSight's products [1]. - As a result of these issues, RxSight is unlikely to meet its previously issued financial guidance for fiscal year 2025 [1]. - The positive statements made by the defendants about the company's business, operations, and prospects were materially misleading and lacked a reasonable basis [1]. Group 2: Class Action Details - The class period for the lawsuit is from November 7, 2024, to July 8, 2025 [1]. - Shareholders are encouraged to register for the class action by September 22, 2025, to potentially become lead plaintiffs [2]. - There is no cost or obligation for shareholders to participate in the case [2]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect the rights of investors who have suffered due to deceit, fraud, and illegal business practices [3]. - The firm is committed to ensuring companies adhere to responsible business practices and good corporate citizenship [3]. - The firm seeks recovery for investors who incurred losses due to false or misleading statements that led to artificial inflation of the company's stock [3].

Core Viewpoint - A lawsuit has been filed against RxSight, Inc. and its senior executives for potential violations of federal securities laws, with claims related to undisclosed challenges in product adoption and a significant decline in stock value following revenue forecast cuts [1][2][4][5][6]. Group 1: Company Overview - RxSight, Inc. specializes in manufacturing light adjustable intraocular lenses for cataract surgery, with its primary product being the Light Adjustable Lens (LAL) that can be customized post-surgery through non-invasive light treatments [3]. Group 2: Legal Proceedings - The lawsuit, titled Makaveev v. RxSight, Inc., et al., is pending in the U.S. District Court for the Central District of California, with investors having until September 22, 2025, to seek lead plaintiff status [2]. Group 3: Financial Performance and Stock Impact - RxSight experienced a slowdown in LAL utilization, first noted in 2024, which was not disclosed to investors, leading to a significant stock price decline [4]. - On April 3, 2025, RxSight cut its 2025 full-year revenue forecast, resulting in a 38% drop in stock price from $26.12 to $16.21 per share [5]. - A further revenue forecast cut on July 8, 2025, led to another 38% decline in stock price, dropping from $12.79 to $7.95 per share [6].

Core Viewpoint - A class action securities lawsuit has been filed against RxSight, Inc. due to alleged securities fraud affecting investors between November 7, 2024, and July 8, 2025 [1][2]. Group 1: Allegations - The lawsuit claims that RxSight, Inc. faced "adoption challenges" and structural issues leading to declines in sales and utilization [2]. - It is alleged that the defendants overstated the demand for RxSight's products [2]. - The company is unlikely to meet its previously issued financial guidance for fiscal year 2025 as a result of these issues [2]. - Positive statements made by the defendants regarding the company's business and prospects were materially misleading and lacked a reasonable basis [2]. Group 2: Legal Process - Investors who suffered losses during the specified timeframe have until September 22, 2025, to request to be appointed as lead plaintiff [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no out-of-pocket costs for class members [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record, having secured hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of RxSight, Inc. during the specified class period of the upcoming lead plaintiff deadline for a class action lawsuit [1]. Group 1: Class Action Details - The class period for the lawsuit is from November 7, 2024, to July 8, 2025, and the lead plaintiff deadline is September 22, 2025 [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. Group 2: Case Allegations - The lawsuit alleges that RxSight made false and misleading statements regarding its business, including issues with sales and utilization, overstated demand for its products, and an inability to meet financial guidance for fiscal year 2025 [4]. - The claims suggest that the positive statements made by RxSight about its operations were materially misleading and lacked a reasonable basis [4]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3].