Sight Sciences(SGHT) - 2025 Q2 - Quarterly Results

Executive Summary Recent Financial and Business Highlights 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 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] - 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] Management Commentary 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] - Strengthening position as the market leader in implant-free MIGS[4] - Reinforced confidence in delivering long-term value and elevating the standard of care for glaucoma and dry eye disease management[4] Second Quarter 2025 Financial Performance Total Revenue 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][7] - Decrease in Surgical Glaucoma account utilization by 11%, partially offset by higher ordering accounts and higher average selling prices[7] - 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][7] Gross Profit and Margin 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] - Dry Eye gross margin decline primarily due to product sales mix and higher overhead costs per unit[8] Operating Expenses 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] Net Loss and Earnings Per Share 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 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 Revenue Guidance Update 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 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 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] - 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] - 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] Non-GAAP Financial Measures Non-GAAP Financial Measures Explanation 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][18] - These measures exclude items such as stock-based compensation, depreciation and amortization, restructuring costs, and other one-time or non-recurring costs[15][18] - 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][18] Company Information About Sight Sciences 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] - Utilizes minimally invasive or non-invasive approaches to target underlying causes of prevalent eye diseases[21] - 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] Forward-Looking Statements 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][24][25] - These statements are based on current expectations and assumptions but are subject to significant risks and uncertainties[23][24][25] - Risks include changes in tariff policies, reimbursement coverage, competitive landscape, regulatory requirements, and supply chain disruptions[23][24][25] Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets 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 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 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 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 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][36] - Dry Eye lid treatment units sold refers to the quantity of TearCare SmartLids® sold[35][36] - Dry Eye active customers are those who ordered lid treatment units[35][36]