Sight Sciences(SGHT) - 2025 Q1 - Quarterly Results

Sight Sciences Q1 2025 Earnings Release Overview and Highlights Sight Sciences reported a 9% year-over-year revenue decrease to $17.5 million in Q1 2025, maintaining an 86% gross margin and launching the OMNI Edge Surgical System - The company is focused on strategic initiatives including building commercial momentum in MIGS, establishing equitable reimbursement for TearCare®, publishing new data, and advancing its product pipeline[3] - Successfully launched OMNI Edge with TruSync™ technology at the ASCRS Annual Meeting in April, designed to deliver more viscodilation while maintaining the safety of the OMNI platform[4] - Management expressed confidence that consistent execution of strategic initiatives will make 2025 a transformational year for the business, despite the dynamic market environment[3] First Quarter 2025 Financial Performance In Q1 2025, total revenue decreased by 9% to $17.5 million, driven by a 6% decline in Surgical Glaucoma revenue, while gross margin remained stable at 86% and net loss improved Q1 2025 Key Financial Results (vs. Q1 2024) | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $17.5M | $19.3M | -9% | | Gross Profit | $15.1M | $16.5M | -8.5% | | Gross Margin | 86% | 86% | 0% | | Total Operating Expenses | $29.0M | $31.2M | -7% | | Net Loss | ($14.2M) | ($16.3M) | +12.9% | | Net Loss Per Share | ($0.28) | ($0.33) | +15.2% | Q1 2025 Revenue by Segment (vs. Q1 2024) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | Change | | :--- | :--- | :--- | :--- | | Surgical Glaucoma | $17.1M | $18.3M | -6% | | Dry Eye | $0.4M | $1.0M | -60% | - The decline in Surgical Glaucoma revenue was expected and primarily caused by new Medicare LCDs restricting coverage for multiple MIGS procedures performed with cataract surgery[4][5] - The decrease in Dry Eye revenue was due to fewer SmartLids® sales as the company shifted focus from cash-pay to achieving reimbursed market access for TearCare procedures[5] - As of March 31, 2025, cash and cash equivalents were $108.8 million, and total long-term debt was $40.0 million; cash used in the quarter was $11.6 million[9] 2025 Financial Guidance Sight Sciences reaffirmed its full-year 2025 revenue guidance of $70.0 million to $75.0 million, while improving its adjusted operating expense outlook to $101.0 million to $105.0 million Full Year 2025 Financial Guidance | Metric | Guidance Range | YoY Change vs. 2024 | Prior Guidance | | :--- | :--- | :--- | :--- | | Revenue | $70.0M - $75.0M | -6% to -12% | Reaffirmed | | Adjusted Operating Expenses | $101.0M - $105.0M | 0% to +4% | $105.0M - $107.0M | - Revenue guidance assumes the continued impact of new Medicare LCDs that restrict coverage for multiple MIGS procedures combined with cataract surgery[10] - The guidance for the Dry Eye segment assumes approximately $1.0 million in revenue and does not factor in any potential positive reimbursement decisions for TearCare in 2025[10] - The company anticipates that U.S. tariffs on products from China will increase the Surgical Glaucoma segment's cost of goods sold by approximately $3.5 million to $4.5 million for the full year 2025[12] Financial Statements Consolidated Statements of Operations For Q1 2025, the company reported $17.5 million in revenue and a net loss of $14.2 million, representing an improvement from the prior year's net loss Consolidated Statements of Operations (Unaudited, in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Revenue | $17,508 | $19,265 | | Gross Profit | $15,094 | $16,472 | | Loss from Operations | ($13,859) | ($14,723) | | Net Loss | ($14,154) | ($16,266) | | Net Loss Per Share | ($0.28) | ($0.33) | Consolidated Balance Sheets As of March 31, 2025, Sight Sciences reported total assets of $129.7 million, with $108.8 million in cash and cash equivalents, and total stockholders' equity of $77.6 million Consolidated Balance Sheet Highlights (Unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $108,768 | $120,357 | | Total current assets | $126,906 | $139,774 | | Total assets | $129,680 | $142,839 | | Long-term debt, net | $39,583 | $39,356 | | Total liabilities | $52,052 | $55,316 | | Total stockholders' equity | $77,628 | $87,523 | Segment and Margin Analysis In Q1 2025, Surgical Glaucoma generated $17.1 million in revenue with an 86.6% gross margin, while Dry Eye revenue was $0.4 million with a significantly improved 70.6% gross margin Gross Margin Disaggregation (Unaudited, in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Surgical Glaucoma | | | | Revenue | $17,114 | $18,257 | | Gross Profit | $14,816 | $16,048 | | Gross Margin | 86.6% | 87.9% | | Dry Eye | | | | Revenue | $394 | $1,008 | | Gross Profit | $278 | $424 | | Gross Margin | 70.6% | 42.1% | Supplemental Financial Measures (Unaudited) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Surgical Glaucoma active customers | 1,108 | 1,073 | | Dry Eye lid treatment units sold | 1,029 | 4,011 | | Dry Eye active customers | 75 | 288 | GAAP to Non-GAAP Reconciliation For Q1 2025, GAAP total operating expenses of $29.0 million were reconciled to non-GAAP adjusted operating expenses of $24.7 million, primarily by excluding stock-based compensation GAAP to Non-GAAP Reconciliation (Unaudited, in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Total Operating Expenses (GAAP) | $28,953 | $31,195 | | Less: Stock-based Compensation | (4,128) | (4,400) | | Less: Depreciation and Amortization | (149) | (192) | | Adjusted Operating Expenses (Non-GAAP) | $24,676 | $26,603 |