[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions that forward-looking statements in the report are subject to risks and uncertainties, advising against undue reliance - The report contains forward-looking statements covered by safe harbor provisions, identifiable by words like 'anticipate,' 'expect,' 'will,' etc[9](index=9&type=chunk) - Actual events or results may differ from forward-looking statements due to risks, uncertainties, and assumptions detailed in the 'Risk Factors' section of the Annual Report and this Quarterly Report[10](index=10&type=chunk)[11](index=11&type=chunk) - Key factors that could impact future results include the ability to obtain and maintain sufficient reimbursement for products (Surgical Glaucoma and Dry Eye), manage and grow the business, compete effectively, maintain compliance with credit facilities, scale infrastructure, and protect intellectual property[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Unaudited balance sheets show decreases in total assets, liabilities, and stockholders' equity from December 2024 to June 2025 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $101,500 | $120,357 | $(18,857) | -15.67% | | Total current assets | $119,431 | $139,774 | $(20,343) | -14.55% | | Total assets | $121,971 | $142,839 | $(20,868) | -14.61% | | Total current liabilities | $11,936 | $15,468 | $(3,532) | -22.83% | | Total liabilities | $51,959 | $55,316 | $(3,357) | -6.07% | | Total stockholders' equity | $70,012 | $87,523 | $(17,511) | -20.01% | [Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(Unaudited)) Revenue and gross profit decreased, but net loss improved for Q2 and H1 2025 compared to prior year periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenue | $19,564 | $21,370 | $(1,806) | -8.5% | | Gross profit | $16,587 | $18,345 | $(1,758) | -9.6% | | Operating expenses | $28,254 | $30,996 | $(2,742) | -8.8% | | Net loss | $(11,941) | $(12,329) | $388 | 3.1% | | Net loss per share | $(0.23) | $(0.25) | $0.02 | 8.0% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Revenue | $37,072 | $40,635 | $(3,563) | -8.8% | | Gross profit | $31,681 | $34,816 | $(3,135) | -9.0% | | Operating expenses | $57,207 | $62,191 | $(4,984) | -8.0% | | Net loss | $(26,095) | $(28,595) | $2,500 | 8.7% | | Net loss per share | $(0.51) | $(0.58) | $0.07 | 12.1% | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) Statements detail changes in stockholders' equity, including common stock issuances, stock-based compensation, and net loss | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------- | :------------ | :---------------- | :--------- | | Common Stock Amount | $52 | $51 | $1 | | Additional Paid-In Capital | $442,352 | $433,769 | $8,583 | | Accumulated Deficit | $(372,392) | $(346,297) | $(26,095) | | Total Stockholders' Equity | $70,012 | $87,523 | $(17,511) | - For the six months ended June 30, 2025, stock-based compensation expense was **$8.085 million**, and the net loss was **$26.095 million**[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Cash and cash equivalents decreased by $18.857 million due to operating activities, partially offset by financing | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash used in operating activities | $(19,148) | $(19,254) | $106 | | Net cash used in investing activities | $(210) | $(197) | $(13) | | Net cash provided by (used in) financing activities | $501 | $(501) | $1,002 | | Net change in cash and cash equivalents | $(18,857) | $(19,952) | $1,095 | | Cash and cash equivalents at end of period | $101,500 | $118,177 | $(16,677) | - Net cash used in operating activities for the six months ended June 30, 2025, was **$19.1 million**, primarily driven by a net loss of **$26.1 million**, partially offset by non-cash charges of **$9.1 million**[156](index=156&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) [Note 1. Company and Nature of Business](index=10&type=section&id=Note%201.%20Company%20and%20Nature%20of%20Business) Sight Sciences develops ophthalmic devices in Surgical Glaucoma and Dry Eye, facing accumulated deficits and expected future losses - Sight Sciences, Inc. develops and commercializes surgical and nonsurgical technologies for prevalent eye diseases, with products categorized into Surgical Glaucoma (OMNI® Surgical System, SION® Surgical Instrument) and Dry Eye (TearCare® System)[30](index=30&type=chunk)[31](index=31&type=chunk) - As of June 30, 2025, the Company had an accumulated deficit of **$372.4 million** and a net loss of **$26.1 million** for the six months then ended, expecting future losses[32](index=32&type=chunk) - The Company believes its current liquidity will cover requirements for at least **12 months** but may need additional capital if revenue growth, gross profit improvement, or cost control are not achieved[33](index=33&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note details the basis of financial statement presentation, key accounting estimates, and recent accounting pronouncements - The financial statements are unaudited and prepared in accordance with US GAAP, consistent with audited statements, and include normal recurring adjustments[34](index=34&type=chunk)[35](index=35&type=chunk) - Significant estimates include allowance for credit losses, inventory obsolescence, useful lives of property and equipment, fair value of stock options, and income tax provisions[37](index=37&type=chunk) - The Company adopted ASU No. 2023-09 (Income Taxes) on January 1, 2025, which will require enhanced disclosures but had no impact on operating results, financial condition, or cash flows. ASU No. 2024-03 (Expense Disaggregation Disclosures) is effective after December 15, 2026, and its impact is being evaluated[38](index=38&type=chunk)[39](index=39&type=chunk) [Note 3. Fair Value Measurements](index=11&type=section&id=Note%203.%20Fair%20Value%20Measurements) Financial assets and liabilities are classified into a three-level fair value hierarchy, including cash, debt, and warrants - The fair value hierarchy prioritizes inputs: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) Investment Type | Investment Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :---------------- | :----------------------------- | :------------------------------- | | Money market funds | $21,300 | $6,400 | | U.S. treasury securities | $75,800 | $106,500 | - Outstanding debt of **$39.8 million** (June 30, 2025) and **$39.4 million** (December 31, 2024) is classified as Level 2, with amortized cost approximating fair value. Unissued common stock warrants are classified as Level 3 liabilities, with a fair value of less than **$0.1 million** at both dates[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 4. Balance Sheet Components](index=13&type=section&id=Note%204.%20Balance%20Sheet%20Components) This note details the breakdown of property and equipment, accrued liabilities, and other noncurrent liabilities Property and Equipment | Property and Equipment (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Tools and equipment | $2,015 | $1,991 | | Computer equipment and software | $37 | $37 | | Furniture and fixtures | $402 | $402 | | Leasehold improvements | $38 | $38 | | Construction in process | $1,249 | $1,218 | | Less: Accumulated depreciation | $(2,281) | $(2,106) | | **Property and equipment, net** | **$1,460** | **$1,580** | Accrued and Other Current Liabilities | Accrued and Other Current Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------------------- | :------------ | :---------------- | | Accrued expenses | $3,064 | $2,113 | | Current portion of lease liabilities | $566 | $533 | | Short-term interest payable | $345 | $344 | | Other accrued liabilities | $658 | $1,107 | | **Total accrued and other current liabilities** | **$4,633** | **$4,097** | Other Noncurrent Liabilities | Other Noncurrent Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Noncurrent portion of lease liabilities | $183 | $473 | | Other noncurrent liabilities | $19 | $19 | | **Total other noncurrent liabilities** | **$202** | **$492** | [Note 5. Debt](index=13&type=section&id=Note%205.%20Debt) Details the $65.0 million Hercules Loan Agreement, including funded amounts, unmet milestones, maturity, and interest rate - The Hercules Loan Agreement provides a maximum **$65.0 million** credit facility, with **$40.0 million** funded by December 2024 (Initial Loan of $35.0M and Tranche I(b) Loan of $5.0M)[53](index=53&type=chunk) - Tranche 2 (**$10.0 million**) and a six-month extension of the interest-only period were not available as performance milestones were not met by June 30, 2025. Tranche 3 (**$15.0 million**) is subject to Hercules' approval[55](index=55&type=chunk)[56](index=56&type=chunk) - The loan matures **July 1, 2028**, with an interest-only period for the first **30 months**. The interest rate is a floating annual rate, equal to **10.35%** at June 30, 2025. Warrants for **161,781 shares** of common stock were issued to lenders[56](index=56&type=chunk)[57](index=57&type=chunk) Maturity Year | Maturity Year | Amount (in thousands) | | :-------------- | :-------------------- | | 2025 (remainder) | $0 | | 2026 | $7,634 | | 2027 | $19,765 | | 2028 | $12,601 | | **Total principal payments** | **$40,000** | | Final fee due at maturity | $2,380 | | **Total repayments** | **$42,380** | [Note 6. Commitments and Contingencies](index=16&type=section&id=Note%206.%20Commitments%20and%20Contingencies) Details operating lease obligations and ongoing patent infringement litigation, including a $34 million verdict under reexamination - The company leases its corporate headquarters in Menlo Park, California, with a weighted-average remaining lease term of **1.3 years** as of June 30, 2025[63](index=63&type=chunk)[64](index=64&type=chunk) Lease Expense | Lease Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $146 | $195 | $293 | $390 | | Cash paid for operating leases | $154 | $210 | $307 | $420 | - In April 2024, the company was awarded a **$34 million** jury verdict in a patent infringement lawsuit against Ivantis and Alcon. However, Alcon filed for ex parte reexaminations in June 2025, challenging the validity of the asserted patents, which could materially and adversely impact the verdict[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 7. Stockholders' Equity](index=18&type=section&id=Note%207.%20Stockholders'%20Equity) Details authorized and outstanding common stock, shares reserved for equity plans, and common stock warrants issued to lenders - As of June 30, 2025, the company had **52,033,403 shares** of common stock outstanding and **18,491,241 shares** reserved for future issuances under equity incentive plans and warrants[17](index=17&type=chunk)[75](index=75&type=chunk) - Common stock warrants were issued to Hercules Loan Agreement lenders, totaling **161,781 shares** at exercise prices of **$5.159** and **$3.83 per share**, exercisable for **seven years**[76](index=76&type=chunk) - Unissued warrants related to potential future loan tranches are recorded as Level 3 liabilities and remeasured at each reporting date, with a fair value of less than **$0.1 million**[79](index=79&type=chunk) [Note 8. Equity Incentive Plans](index=19&type=section&id=Note%208.%20Equity%20Incentive%20Plans) Details equity incentive plans, including stock options, RSUs, ESPP, and stock-based compensation expense for the period - The 2021 Incentive Award Plan allows for various equity grants, including stock options and RSUs, with typical **four-year** vesting schedules. The share reserve increased by **2,546,899 shares** on January 1, 2025[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - As of June 30, 2025, **4,135,802 stock options** and **5,935,081 RSUs** were outstanding. Unrecognized stock-based compensation expense for options was **$2.6 million** (**1.1 years** weighted-average period) and for RSUs was **$21.0 million** (**2.6 years** weighted-average period)[87](index=87&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) Stock-Based Compensation Expense | Stock-Based Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of goods sold | $106 | $94 | $222 | $200 | | Research and development | $702 | $594 | $1,487 | $1,199 | | Selling, general and administrative | $3,033 | $3,629 | $6,376 | $7,424 | | **Total stock-based compensation expense** | **$3,841** | **$4,317** | **$8,085** | **$8,823** | [Note 9. Net Loss per Share Attributable to Common Stockholders](index=22&type=section&id=Note%209.%20Net%20Loss%20per%20Share%20Attributable%20to%20Common%20Stockholders) Reports basic and diluted net loss per share for Q2 and H1 2025, with dilutive securities excluded due to net loss | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to common stockholders (in thousands) | $(11,941) | $(12,329) | $(26,095) | $(28,595) | | Weighted-average shares of common stock outstanding (basic & diluted) | 51,821,773 | 49,903,386 | 51,557,686 | 49,694,825 | | Net loss per share (basic & diluted) | $(0.23) | $(0.25) | $(0.51) | $(0.58) | - Potentially dilutive securities, including stock option awards (**4,135,802**), restricted stock units (**5,935,081**), and common stock warrants (**161,783**), were excluded from diluted EPS calculation for the six months ended June 30, 2025, as their inclusion would be antidilutive[98](index=98&type=chunk) [Note 10. Segment Information](index=22&type=section&id=Note%2010.%20Segment%20Information) Details revenue and gross profit for Surgical Glaucoma and Dry Eye segments, both showing revenue declines - The company's two reportable operating segments are Surgical Glaucoma and Dry Eye, with segment gross profit used to assess performance and allocate resources[99](index=99&type=chunk)[100](index=100&type=chunk) Segment Revenue | Segment Revenue (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Surgical Glaucoma | $19,231 | $20,244 | $(1,013) | -5.0% | | Dry Eye | $333 | $1,126 | $(793) | -70.4% | | **Total revenue** | **$19,564** | **$21,370** | **$(1,806)** | **-8.5%** | Segment Revenue | Segment Revenue (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Surgical Glaucoma | $36,345 | $38,501 | $(2,156) | -5.6% | | Dry Eye | $727 | $2,134 | $(1,407) | -65.9% | | **Total revenue** | **$37,072** | **$40,635** | **$(3,563)** | **-8.8%** | Segment Gross Profit | Segment Gross Profit (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Surgical Glaucoma | $31,275 | $33,869 | $(2,594) | -7.7% | | Dry Eye | $406 | $947 | $(541) | -57.1% | | **Total gross profit** | **$31,681** | **$34,816** | **$(3,135)** | **-9.0%** | [Note 11. Subsequent Events](index=23&type=section&id=Note%2011.%20Subsequent%20Events) Discusses the H.R.1 - One Big Beautiful Bill Act (OBBBA) enactment and its potential impact on financial statements - The OBBBA, enacted **July 4, 2025**, makes permanent **100% bonus depreciation**, domestic research cost expensing, and the business interest expense limitation[104](index=104&type=chunk) - The legislation has multiple effective dates, with some provisions effective in **2025** and others through **2027**. The company is assessing its impact on consolidated financial statements[104](index=104&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) [Overview](index=24&type=section&id=Overview) Overview of Sight Sciences' mission, product segments, challenges with reimbursement and competition, and manufacturing reliance on China - Sight Sciences' mission is to develop transformative, interventional technologies for eye care, focusing on glaucoma (OMNI®, SION®) and dry eye disease (TearCare® System)[107](index=107&type=chunk)[108](index=108&type=chunk) - Surgical Glaucoma revenue decreased due to reimbursement coverage changes and increased competition, while Dry Eye revenue declined significantly due to a price increase for TearCare products, impacting demand[116](index=116&type=chunk)[117](index=117&type=chunk) - The company relies on a limited number of third-party manufacturers, primarily in China, leading to adverse impacts on gross margins from U.S. tariffs. Efforts are underway to expand manufacturing capacity outside of China[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) [Factors Affecting Our Business and Results of Operations](index=26&type=section&id=Factors%20Affecting%20Our%20Business%20and%20Results%20of%20Operations) Refers to the Annual Report's 'Risk Factors' for business impacts, noting no material changes in the current quarter - No material changes to the factors affecting the business and results of operations from those described in the Annual Report on Form 10-K[121](index=121&type=chunk) [Components of Our Results of Operations](index=26&type=section&id=Components%20of%20Our%20Results%20of%20Operations) Defines key components of operations, including revenue, cost of goods sold, gross profit, and various operating expenses - Revenue is primarily derived from Surgical Glaucoma products (OMNI, SION) and Dry Eye products (TearCare), with Surgical Glaucoma accounting for over **90% of total revenue**[122](index=122&type=chunk) - Cost of goods sold includes third-party manufacturing costs, overhead, personnel expenses, and tariffs on imported products, with gross margins expected to be adversely impacted by U.S. tariffs on China-produced goods[124](index=124&type=chunk)[127](index=127&type=chunk) - R&D and SG&A expenses are expected to increase as the company invests in product development, clinical trials, commercial teams, and market access initiatives[130](index=130&type=chunk)[132](index=132&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) [Comparison of the Three Months Ended June 30, 2025 and 2024](index=28&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Q2 2025 saw an 8.5% revenue decrease and 9.6% gross profit decline, but net loss improved by 3.1% to $(11.9) million | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Total revenue | $19,564 | $21,370 | $(1,806) | -8.5% | | Surgical Glaucoma revenue | $19,231 | $20,244 | $(1,013) | -5.0% | | Dry Eye revenue | $333 | $1,126 | $(793) | -70.4% | | Total gross profit | $16,587 | $18,345 | $(1,758) | -9.6% | | Total operating expenses | $28,254 | $30,996 | $(2,742) | -8.8% | | Net loss | $(11,941) | $(12,329) | $388 | 3.1% | - The decrease in Surgical Glaucoma revenue was primarily due to reduced OMNI unit sales, driven by restrictions on multiple MIGS procedures with cataract surgery for Medicare patients[138](index=138&type=chunk) - Dry Eye revenue decline was due to decreased SmartLids volumes and fewer new customers, reflecting a strategic shift towards reimbursed market access over a cash-pay model[139](index=139&type=chunk) - SG&A expenses decreased by **$2.8 million**, mainly due to lower legal expenses, stock-based compensation, and commissions/bonuses, partially offset by increased payroll-related expenses[143](index=143&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=30&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) H1 2025 revenue decreased by 8.8%, gross profit by 9.0%, but net loss improved by 8.7% to $(26.1) million | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Total revenue | $37,072 | $40,635 | $(3,563) | -8.8% | | Surgical Glaucoma revenue | $36,345 | $38,501 | $(2,156) | -5.6% | | Dry Eye revenue | $727 | $2,134 | $(1,407) | -65.9% | | Total gross profit | $31,681 | $34,816 | $(3,135) | -9.0% | | Total operating expenses | $57,207 | $62,191 | $(4,984) | -8.0% | | Net loss | $(26,095) | $(28,595) | $2,500 | 8.7% | - Dry Eye gross margin increased from **44.4% to 55.8%** due to the price increase for TearCare SmartLids, despite lower sales volumes[150](index=150&type=chunk) - SG&A expenses decreased by **$4.8 million**, primarily from a **$5.3 million** decrease in legal expenses and a **$1.0 million** decrease in stock-based compensation[152](index=152&type=chunk) - The company recognized no loss on debt extinguishment in **2025**, compared to a **$2.0 million** loss in **2024** related to refinancing the prior secured credit facility[154](index=154&type=chunk) [Cash Flows](index=31&type=section&id=Cash%20Flows) Operating cash outflow stable at $19.1 million; financing cash flow shifted to $0.5 million inflow from prior year outflow | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash used in operating activities | $(19,148) | $(19,254) | $106 | | Net cash used in investing activities | $(210) | $(197) | $(13) | | Net cash provided by (used in) financing activities | $501 | $(501) | $1,002 | | Net change in cash and cash equivalents | $(18,857) | $(19,952) | $1,095 | - Net cash used in operating activities for the six months ended June 30, 2025, was **$19.1 million**, driven by a net loss of **$26.1 million**, partially offset by **$9.1 million** in non-cash charges[156](index=156&type=chunk) - Net cash provided by financing activities in **2025** was **$0.5 million**, primarily from stock option exercises and ESPP purchases, contrasting with **$0.5 million** used in **2024** due to loan refinancing costs[160](index=160&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Details cash position, accumulated deficit, Hercules Loan status, and factors influencing future liquidity and capital needs - As of June 30, 2025, the company had **$101.5 million** in cash and cash equivalents and an accumulated deficit of **$372.4 million**[162](index=162&type=chunk) - The company expects its current liquidity to fund operations for at least the next **12 months**, but future cash requirements are subject to factors like sales growth, reimbursement, R&D, and litigation outcomes[162](index=162&type=chunk)[163](index=163&type=chunk) - The Hercules Loan Agreement provides a **$65.0 million** credit facility, with **$40.0 million** drawn. Tranche 2 (**$10.0 million**) was not available due to unmet performance milestones by June 30, 2025[165](index=165&type=chunk)[166](index=166&type=chunk) - U.S. tariffs on products imported from China are expected to increase costs and negatively impact gross margins and liquidity[163](index=163&type=chunk)[164](index=164&type=chunk) [Leases](index=34&type=section&id=Leases) The company leases its corporate headquarters in Menlo Park, California, with a lease term until October 2026 - The company leases its corporate headquarters in Menlo Park, California, with the lease term from **August 1, 2021**, to **October 31, 2026**[171](index=171&type=chunk) [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has no off-balance sheet arrangements - The company does not have any off-balance sheet arrangements[172](index=172&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) No material changes to critical accounting estimates compared to the Annual Report on Form 10-K - No material changes to critical accounting estimates compared to the Annual Report on Form 10-K[174](index=174&type=chunk) [JOBS Act Accounting Election](index=34&type=section&id=JOBS%20Act%20Accounting%20Election) As an 'emerging growth company,' the company uses the JOBS Act extended transition period for accounting standards - The company, as an 'emerging growth company,' has elected the extended transition period under the JOBS Act for new or revised accounting standards[174](index=174&type=chunk) - This election may make the company's financial statements not comparable to those of other public companies that comply with earlier effective dates[174](index=174&type=chunk) [Recently Issued Accounting Pronouncements](index=34&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Refer to Note 2 for details on recently issued accounting pronouncements not yet adopted - Refer to Note 2, 'Summary of Significant Accounting Policies,' for details on recently issued accounting pronouncements not yet adopted[175](index=175&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 risk, affecting cash and the Hercules Loan, with no material impact from a 1.0% rate change - The company's primary market risk is interest rate risk, affecting cash and cash equivalents and the Hercules Loan Agreement[176](index=176&type=chunk) - No material exposure to changes in the fair value of cash and cash equivalents (**$101.5 million** at June 30, 2025) due to their short-term nature[177](index=177&type=chunk) - A hypothetical **1.0%** change in interest rates would not materially impact financial statements, given the Hercules Loan Agreement's floating rate of **10.35%** at June 30, 2025[178](index=178&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) [Evaluation of Disclosure Controls and Procedures](index=34&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025 - As of June 30, 2025, the company's disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level[181](index=181&type=chunk) [Changes in Internal Control Over Financial Reporting](index=35&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025 - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[182](index=182&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 6 for legal proceedings, including patent infringement litigation, and discusses general risks of legal claims - The company is not currently a party to any legal proceedings that would have a material adverse effect on its business, except as detailed in Note 6[184](index=184&type=chunk) - General legal claims could lead to costly litigation, damage to reputation, and potential financial impact if insurance coverage is insufficient or denied[184](index=184&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, focusing on manufacturing reliance, tariff impacts, and ongoing patent infringement litigation with a $34 million verdict under reexamination - The company relies on a limited number of third-party manufacturers, many single-source, with most products and components produced in China, posing risks to supply and quality[186](index=186&type=chunk)[187](index=187&type=chunk) - U.S. tariffs on products imported from China have increased costs and will negatively impact gross margins, with the company evaluating additional manufacturing locations outside of China to mitigate this risk[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - The **$34 million** jury verdict in the patent infringement lawsuit against Alcon is now subject to ex parte reexaminations by the USPTO, challenging the validity of the asserted patents, which could materially and adversely impact the verdict[200](index=200&type=chunk)[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) [Use of Proceeds](index=39&type=section&id=Use%20of%20Proceeds) Net proceeds from the July 2021 IPO have been exhausted, with no material changes to their planned use - Net proceeds from the IPO, which closed on **July 15, 2021**, have been exhausted[203](index=203&type=chunk)[204](index=204&type=chunk) [Recent Sales of Unregistered Securities](index=39&type=section&id=Recent%20Sales%20of%20Unregistered%20Securities) No recent sales of unregistered securities occurred - No recent sales of unregistered securities[205](index=205&type=chunk) [Issuer Repurchases of Equity Securities](index=39&type=section&id=Issuer%20Repurchases%20of%20Equity%20Securities) No issuer repurchases of equity securities occurred - No issuer repurchases of equity securities[206](index=206&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred - No defaults upon senior securities[207](index=207&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable[208](index=208&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) [Trading Plans](index=39&type=section&id=Trading%20Plans) Chief Legal Officer modified his Rule 10b5-1 trading plan; no other directors or officers made changes - Jeremy B. Hayden, Chief Legal Officer, modified his Rule 10b5-1 trading plan on **June 13, 2025**, extending the expiration date to **June 12, 2026**, for **48,000 securities**[210](index=210&type=chunk) - No other directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[211](index=211&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Quarterly Report, including organizational documents, certifications, and XBRL documents - The report includes exhibits such as the Restated Certificate of Incorporation, Amended and Restated Bylaws, CEO and CFO certifications (Sarbanes-Oxley Act), and Inline XBRL documents[214](index=214&type=chunk) [Signatures](index=41&type=section&id=Signatures) [Signatures](index=41&type=section&id=Signatures) The report is signed by Alison Bauerlein, Chief Financial Officer, on August 7, 2025 - The report was signed by Alison Bauerlein, Chief Financial Officer, on **August 7, 2025**[220](index=220&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Recent Financial and Business Highlights](index=1&type=section&id=Recent%20Financial%20and%20Business%20Highlights) Q2 2025 revenue decreased 8% to $19.6 million, operating expenses fell 9%, with Surgical Glaucoma accounts up 4% Q2 2025 Financial and Business Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Total Revenue | $19.6M | $21.37M | -8% | | Surgical Glaucoma Revenue | $19.2M | $20.244M | -5% | | Total Operating Expenses | $28.3M | $31.0M | -9% | | Surgical Glaucoma Ordering Accounts | 1,174 | 1,131 | +4% | [Recent Clinical Highlights](index=1&type=section&id=Recent%20Clinical%20Highlights) Positive 24-month SAHARA trial results confirmed TearCare® System durability for dry eye disease, demonstrating significant cost savings - Publication of 24-month SAHARA RCT results, demonstrating the **durability** of the TearCare® System procedure for dry eye disease, with mean signs and symptoms **statistically significantly better** than study baseline up to 24 months[6](index=6&type=chunk) - Publication of a cost-utility analysis assessing the cost-effectiveness of TearCare compared to cyclosporine 0.05%, showing **improved patient outcomes** and **significant cost savings** for moderate to severe MGD-associated DED[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO highlighted strong Q2 execution and sequential growth, expressing confidence in delivering long-term value and elevating care - Second-quarter results reflect **strong execution** and **growing momentum**, with positive trends including **sequential growth** in both surgical glaucoma ordering accounts and procedural utilization[4](index=4&type=chunk) - Strengthening position as the **market leader** in implant-free MIGS[4](index=4&type=chunk) - Reinforced **confidence in delivering long-term value** and **elevating the standard of care** for glaucoma and dry eye disease management[4](index=4&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) [Total Revenue](index=1&type=section&id=Total%20Revenue) Q2 2025 total revenue decreased 8% to $19.6 million, driven by lower Surgical Glaucoma and Dry Eye sales Q2 2025 Revenue by Segment | Revenue Segment | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | $19.564 | $21.370 | -8.4% | | Surgical Glaucoma Revenue | $19.231 | $20.244 | -5.0% | | Dry Eye Revenue | $0.333 | $1.126 | -70.4% | - Expected **decline** primarily due to lower revenue from the Surgical Glaucoma segment, impacted by recent **Medicare local coverage determinations (LCDs)** restricting Medicare coverage for multiple MIGS procedures when performed with cataract surgery[6](index=6&type=chunk)[7](index=7&type=chunk) - **Decrease in Surgical Glaucoma account utilization by 11%**, partially offset by higher ordering accounts and higher average selling prices[7](index=7&type=chunk) - Dry Eye revenue **decrease** primarily due to **fewer SmartLids® sales**, a result of the Company's focus on achieving reimbursed market access for TearCare® procedures[6](index=6&type=chunk)[7](index=7&type=chunk) [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) Q2 2025 gross profit was $16.6 million, with total gross margin slightly down to 85%, impacted by higher costs and product mix Q2 2025 Gross Profit and Margin by Segment | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Gross Profit | $16.587 | $18.345 | -9.6% | | Total Gross Margin | 84.8% | 85.8% | -1.0 pp | | Surgical Glaucoma Gross Margin | 85.6% | 88.0% | -2.4 pp | | Dry Eye Gross Margin | 38.4% | 46.5% | -8.1 pp | - Surgical Glaucoma gross margin **decline** primarily due to **higher overhead costs** per unit, **tariff costs ($0.1 million** in Q2 2025), and **product sales mix**, partially offset by higher average selling prices[8](index=8&type=chunk) - Dry Eye gross margin **decline** primarily due to **product sales mix** and **higher overhead costs** per unit[8](index=8&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses decreased 9% to $28.3 million in Q2 2025, mainly due to lower legal expenses Q2 2025 Operating Expenses | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | $28.254 | $30.996 | -8.8% | | Research and Development Expenses | $4.387 | $4.316 | +1.6% | | Selling, General and Administrative Expenses | $23.867 | $26.680 | -10.6% | | Adjusted Operating Expenses | $24.394 | $26.587 | -8.2% | - Primary driver for the **decrease in total operating expenses** was **lower legal expenses**[9](index=9&type=chunk) [Net Loss and Earnings Per Share](index=2&type=section&id=Net%20Loss%20and%20Earnings%20Per%20Share) Q2 2025 net loss improved to $11.9 million ($0.23/share) from $12.3 million ($0.25/share) in Q2 2024 Q2 2025 Net Loss and EPS | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Net Loss | $(11.941) | $(12.329) | +3.1% | | Net Loss Per Share | $(0.23) | $(0.25) | +8.0% | [Cash and Debt Position](index=2&type=section&id=Cash%20and%20Debt%20Position) Cash decreased to $101.5 million by June 30, 2025, debt stable at $40.0 million, with cash usage improved to $7.3 million Cash and Debt Position | Metric | June 30, 2025 (in millions) | March 31, 2025 (in millions) | YoY Change (Cash Used) | | :-------------------------- | :-------------------------- | :--------------------------- | :--------------------- | | Cash and Cash Equivalents | $101.5 | $108.8 | N/A | | Total Long-Term Debt | $40.0 | $40.0 | N/A | | Cash Used (Q2) | $7.3 | $9.1 (Q2 2024) | -19.7% | [Full Year 2025 Financial Guidance](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance) [Revenue Guidance Update](index=2&type=section&id=Revenue%20Guidance%20Update) FY 2025 revenue guidance raised to $72.0 million - $76.0 million, projecting a 5-10% decline from FY 2024 FY 2025 Revenue Guidance | Metric | New FY 2025 Guidance | Prior FY 2025 Guidance | YoY Change (vs. FY 2024) | | :-------------------- | :------------------- | :--------------------- | :----------------------- | | Total Revenue | $72.0M - $76.0M | $70.0M - $75.0M | -5% to -10% | [Adjusted Operating Expenses Guidance](index=2&type=section&id=Adjusted%20Operating%20Expenses%20Guidance) FY 2025 adjusted operating expenses guidance reiterated at $101.0 million - $105.0 million, representing a 0-4% increase FY 2025 Adjusted Operating Expenses Guidance | Metric | FY 2025 Guidance | YoY Change (vs. FY 2024) | | :-------------------------- | :--------------- | :----------------------- | | Adjusted Operating Expenses | $101.0M - $105.0M | +0% to +4% | [Tariff Impact](index=3&type=section&id=Tariff%20Impact) Surgical Glaucoma tariff exposure expected to increase COGS by $1.0 million - $1.5 million in FY 2025, a reduction from prior estimates - Company has **exposure to U.S. tariffs on China**, as most products are produced and assembled in China[13](index=13&type=chunk) - Expected unmitigated tariff exposure for Surgical Glaucoma segment to **increase cost of goods sold by $1.0 million to $1.5 million** for full year 2025[13](index=13&type=chunk) - This revised estimate is a **reduction from the prior estimate of $3.5 million to $4.5 million**, based on a current China tariff rate of **30%**[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Non-GAAP measures provide insights by excluding non-core items but are not GAAP substitutes and may not be comparable - Non-GAAP financial measures, including adjusted operating expenses, are presented to assist investors in understanding the Company's financial and operating results[15](index=15&type=chunk)[18](index=18&type=chunk) - These measures **exclude items** such as stock-based compensation, depreciation and amortization, restructuring costs, and other one-time or non-recurring costs[15](index=15&type=chunk)[18](index=18&type=chunk) - Non-GAAP measures are **not intended to replace or be more meaningful than GAAP measures** and may **not be comparable** to similarly titled measures of other companies[15](index=15&type=chunk)[18](index=18&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About Sight Sciences](index=3&type=section&id=About%20Sight%20Sciences) Sight Sciences is an eyecare technology company developing innovative solutions for eye diseases, including OMNI®, SION®, and TearCare® systems - Eyecare technology company focused on developing and commercializing **innovative, interventional solutions**[21](index=21&type=chunk) - Utilizes **minimally invasive or non-invasive approaches** to target underlying causes of prevalent eye diseases[21](index=21&type=chunk) - **Key products** include OMNI® Surgical System (implant-free MIGS for glaucoma), SION® Surgical System (bladeless device for trabecular meshwork excision), and TearCare® System (localized heat therapy for evaporative dry eye disease due to MGD)[21](index=21&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) Forward-looking statements about future performance are subject to risks like tariff changes and regulatory shifts, with no obligation to update - Statements about future performance, including strategic initiatives, technology adoption, growth, impacts of Medicare LCDs, long-term value delivery, 2025 guidance, TearCare reimbursement, and tariff impacts, are **forward-looking**[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - These statements are based on current expectations and assumptions but are subject to **significant risks and uncertainties**[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - **Risks include** changes in tariff policies, reimbursement coverage, competitive landscape, regulatory requirements, and supply chain disruptions[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $122.0 million by June 30, 2025, driven by lower cash, with liabilities and equity also declining Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :--------------------------- | :------------------------------- | | Cash and cash equivalents | $101,500 | $120,357 | | Total current assets | $119,431 | $139,774 | | Total assets | $121,971 | $142,839 | | Total current liabilities | $11,936 | $15,468 | | Total liabilities | $51,959 | $55,316 | | Total stockholders' equity | $70,012 | $87,523 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenue was $19.6 million (net loss $11.9 million), YTD revenue $37.1 million (net loss $26.1 million) Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenue | $19,564 | $21,370 | $37,072 | $40,635 | | Cost of goods sold | $2,977 | $3,025 | $5,391 | $5,819 | | Gross profit | $16,587 | $18,345 | $31,681 | $34,816 | | Total operating expenses | $28,254 | $30,996 | $57,207 | $62,191 | | Loss from operations | $(11,667) | $(12,651) | $(25,526) | $(27,375) | | Net loss and comprehensive loss | $(11,941) | $(12,329) | $(26,095) | $(28,595) | | Net loss per share, basic and diluted | $(0.23) | $(0.25) | $(0.51) | $(0.58) | [Gross Margin Disaggregation](index=8&type=section&id=Gross%20Margin%20Disaggregation) Q2 2025 Surgical Glaucoma revenue was $19.2 million (85.6% margin), Dry Eye $0.3 million (38.4% margin), both declining Gross Margin Disaggregation | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Surgical Glaucoma Revenue | $19,231 | $20,244 | $36,345 | $38,501 | | Dry Eye Revenue | $333 | $1,126 | $727 | $2,134 | | Surgical Glaucoma Gross Margin | 85.6% | 88.0% | 86.1% | 88.0% | | Dry Eye Gross Margin | 38.4% | 46.5% | 55.8% | 44.4% | | Total Gross Margin | 84.8% | 85.8% | 85.5% | 85.7% | [GAAP to Non-GAAP Reconciliation](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Q2 2025 GAAP operating expenses of $28.3 million adjusted to $24.4 million non-GAAP, excluding stock-based compensation and D&A GAAP to Non-GAAP Reconciliation of Operating Expenses (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total Operating Expenses | $28,254 | $30,996 | $57,207 | $62,191 | | Less: Stock-based Compensation | $(3,735) | $(4,223) | $(7,863) | $(8,623) | | Less: Depreciation and Amortization | $(125) | $(186) | $(274) | $(378) | | Adjusted Operating Expenses | $24,394 | $26,587 | $49,070 | $53,190 | [Supplemental Financial Measures](index=9&type=section&id=Supplemental%20Financial%20Measures) Surgical Glaucoma active customers rose 4% to 1,174, while Dry Eye units sold and active customers significantly decreased Supplemental Financial Measures | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Surgical Glaucoma active customers | 1,174 | 1,131 | +4% | | Dry Eye lid treatment units sold | 1,142 | 4,088 | -72.1% | | Dry Eye active customers | 39 | 277 | -85.9% | - Surgical Glaucoma active customers are **defined as** those who ordered the OMNI Surgical System or SION Surgical Instrument[35](index=35&type=chunk)[36](index=36&type=chunk) - Dry Eye lid treatment units sold **refers to** the quantity of TearCare SmartLids® sold[35](index=35&type=chunk)[36](index=36&type=chunk) - Dry Eye active customers **are those who ordered** lid treatment units[35](index=35&type=chunk)[36](index=36&type=chunk)

Core Insights - Sight Sciences, Inc. reported second-quarter financial results for 2025, showing a revenue of $19.6 million, an 8% decrease year-over-year, and raised its revenue guidance for the full year 2025 [1][5][12] - The company emphasized strong execution and growth momentum in surgical glaucoma accounts and procedural utilization, reinforcing its market leadership in implant-free minimally invasive glaucoma surgery (MIGS) [4][21] Financial Performance - Revenue for Q2 2025 was $19.6 million, down 8% from $21.4 million in Q2 2024; Surgical Glaucoma revenue was $19.2 million, a 5% decrease, while Dry Eye revenue fell to $0.3 million from $1.1 million [5][7][30] - Gross profit for Q2 2025 was $16.6 million, with a gross margin of 85%, slightly down from 86% in the prior year [6][8] - Total operating expenses decreased by 9% to $28.3 million, with selling, general, and administrative expenses down 11% to $23.9 million [9][10] Clinical Developments - The company announced the publication of 24-month results from the SAHARA randomized controlled trial, demonstrating the effectiveness of the TearCare System for treating dry eye disease [7] - A cost-utility analysis showed that TearCare is more cost-effective than cyclosporine 0.05% for treating moderate to severe meibomian gland disease associated with dry eye disease [7] Guidance and Future Outlook - The company raised its revenue guidance for full year 2025 to a range of $72.0 million to $76.0 million, reflecting a 5% to 10% decline compared to 2024 [12] - Adjusted operating expenses guidance for 2025 remains at $101.0 million to $105.0 million, indicating a potential increase of 0% to 4% compared to 2024 [12] Market Position and Strategy - Surgical Glaucoma ordering accounts reached an all-time high of 1,174, up 4% from the previous year, indicating growing market penetration [7] - The company continues to focus on innovative technologies to enhance patient outcomes and elevate the standard of care for glaucoma and dry eye disease management [4][21]

Core Insights - The cost-utility analysis (CUA) indicates that the TearCare System is more cost-effective and offers better health utility compared to cyclosporine 0.05% (CsA) for treating moderate to severe meibomian gland disease (MGD) associated dry eye disease (DED) [1][2][3] Cost-Effectiveness Analysis - TearCare resulted in lower annual costs of $4,916 per patient compared to $5,819 for CsA, leading to annual cost savings of $903 [2][8] - TearCare also provided a higher quality-adjusted life year (QALY) of 0.76 versus 0.74 for CsA, translating to an incremental benefit of 0.014 QALYs [2][8] Clinical and Economic Implications - The analysis supports the notion that TearCare not only enhances patient outcomes but also represents a more economically sustainable approach to managing MGD-associated DED, with significant cost savings noted [3][5] - The findings are expected to bolster efforts to increase patient access to interventional dry eye therapies like TearCare [5] Robustness of Results - Scenario analyses confirmed the robustness of the results, showing consistent cost savings and greater QALY gains for TearCare even with varying assumptions [8]

Core Insights - The 24-month results from Stage 3 of the SAHARA trial demonstrate significant and sustained improvements in signs and symptoms of dry eye disease for participants treated with the TearCare System [1][3][5] - A majority of participants (66%) required no additional treatment after initial TearCare treatments, indicating the durability of the treatment effect [2][7] Study Results - All mean signs and symptoms remained statistically significantly better than the study baseline at all measured time points up to 24 months [2][5] - Tear breakup time (TBUT) improved from a baseline of 4.41 seconds to a range of 6.29 to 7.13 seconds at Month 24, with p<.0001 indicating strong statistical significance [5] - Meibomian Gland Secretion Score (MGSS) showed sustained improvement from Month 6 (7.26) to Month 24 (means ranging from 17.68 to 18.95), also with p<.0001 [5] - Subjective symptoms assessed by Ocular Surface Disease Index (OSDI), symptom assessment in dry eye (SANDE), and eye dryness score (EDS) remained significantly better than baseline values at all follow-up time points [5][6] Treatment Efficacy - The study confirmed that just two TearCare treatments within five months can lead to meaningful, lasting improvements for up to two years [3][9] - The median time for first retreatment was 7 months, with a 6-month retreatment-free survival probability of 92% [7]

Core Insights - Sight Sciences, Inc. will report its financial results for Q2 2025 on August 7, 2025, after market close [1] - A conference call to discuss the results will take place at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time [1] Company Overview - Sight Sciences is an eyecare technology company focused on innovative and interventional solutions to improve patient care [3] - The company develops minimally invasive or non-invasive technologies targeting prevalent eye diseases, aiming to enhance treatment paradigms [3] - Key products include the OMNI® Surgical System and OMNI® Edge Surgical System for glaucoma treatment, and the TearCare® System for evaporative dry eye disease [3]

Summary of the Conference Call Company and Industry Overview - The conference call involved **Site Sciences**, focusing on the **surgical glaucoma** and **dry eye** treatment markets, particularly the **minimally invasive glaucoma surgery (MIGS)** segment and the **TearCare** product for dry eye treatment [1][2][18]. Key Points on Surgical Glaucoma - **First Quarter Performance**: Surgical glaucoma revenue was initially guided to decline by 10-15% year-over-year but only decreased by 6%, indicating better-than-expected performance [2][26]. - **MIGS Environment**: The company is navigating a dynamic MIGS environment due to new restrictions limiting the combination of multiple MIGS procedures during cataract surgery, which has led to a decline in claims for these devices [3][4]. - **Product Performance**: Both **Omni** and **Scion** devices are performing slightly better than expected, with Omni's strong clinical efficacy and surgeon preference contributing to its market share [4][10]. - **Market Dynamics**: The transition to a one MIGS world is ongoing, with Omni positioned well due to its comprehensive functionality, allowing it to address multiple points of resistance in the outflow pathway [6][7]. - **Claims Data**: The volume of visits involving multiple MIGS procedures has dropped from 15% to 5%, indicating a significant shift in the market [11][12]. - **Long-term Growth Potential**: The market for MIGS is not fully penetrated, with significant opportunities in the combination cataract segment, as many patients undergoing cataract surgery are not receiving MIGS [18][19]. Key Points on Dry Eye Treatment - **TearCare Opportunity**: The company is focused on pioneering a new category of interventional dry eye treatment, addressing the underlying causes of dry eye disease, particularly obstructed meibomian glands [42][45]. - **Payer Discussions**: Productive conversations with payers are ongoing, with expectations for coverage policies and payment decisions to begin in 2025 [45][46]. - **Market Size**: There are over 19 million diagnosed patients with dry eye disease in the U.S., with a significant portion suffering from moderate to severe conditions, representing a large market opportunity [55][57]. - **Procedure Volume Potential**: The company estimates a potential for 7-8 million patients to undergo one or two procedures annually, depending on reimbursement rates [56][57]. - **Existing Infrastructure**: Site Sciences has a lean but experienced sales team ready to ramp up once reimbursement decisions are made, with over 1,500 trained smart hubs in place [49][50]. Additional Insights - **Competitive Landscape**: The introduction of new competitors, such as the Via 360 device, is acknowledged, but the company remains confident in the Omni product line and its ongoing innovations [31][34]. - **Market Education**: There is a need for continued education among surgeons regarding the importance of MIGS in the treatment paradigm to increase adoption rates [25][24]. - **Long-term Confidence**: The company expresses confidence in the long-term growth of both the MIGS and dry eye markets, emphasizing the importance of addressing unmet patient needs [20][21].

Core Insights - Sight Sciences, Inc. is an eyecare technology company focused on developing innovative interventional technologies to transform care and improve patients' lives [1][3] - The company will present at the Stifel 2025 Virtual Ophthalmology Forum on May 27, 2025 [2] Company Overview - Sight Sciences specializes in minimally invasive or non-invasive solutions targeting prevalent eye diseases, aiming to enhance patient care and replace outdated treatment methods [3] - The OMNI® Surgical System and OMNI® Edge Surgical System are implant-free technologies for glaucoma surgery, indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma [3] - The SION® Surgical System is a bladeless device for excising trabecular meshwork in ophthalmic procedures [3] - The TearCare® System is cleared for localized heat therapy in adult patients with evaporative dry eye disease due to meibomian gland disease, addressing the leading cause of dry eye [3]

Financial Performance - For the quarter ended March 2025, Sight Sciences, Inc. reported revenue of $17.51 million, a decrease of 9.1% year-over-year [1] - The earnings per share (EPS) was -$0.28, an improvement from -$0.33 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $16.53 million by 5.95% [1] - The company delivered an EPS surprise of 3.45%, with the consensus EPS estimate being -$0.29 [1] Key Metrics - Revenue from Dry Eye was $0.39 million, surpassing the average estimate of $0.23 million, but reflecting a year-over-year decline of 60.9% [4] - Revenue from Surgical Glaucoma was $17.11 million, exceeding the estimated $16.23 million, but down 6.3% compared to the previous year [4] - Gross Profit for Dry Eye was $0.28 million, significantly higher than the two-analyst average estimate of $0.07 million [4] - Gross Profit for Surgical Glaucoma was $14.82 million, also above the estimated $14.09 million by two analysts [4] Stock Performance - Shares of Sight Sciences have returned +21.7% over the past month, outperforming the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Sight Sciences, Inc. reported a quarterly loss of $0.28 per share, which was better than the Zacks Consensus Estimate of a loss of $0.29, and an improvement from a loss of $0.33 per share a year ago, indicating an earnings surprise of 3.45% [1] - The company posted revenues of $17.51 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.95%, although this represents a decline from year-ago revenues of $19.27 million [2] - Over the last four quarters, Sight Sciences has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - Sight Sciences shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $18.38 million, and for the current fiscal year, it is -$1.15 on revenues of $72.02 million [7] Industry Outlook - The Medical - Instruments industry, to which Sight Sciences belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]