Sight Sciences(US:SGHT)2025-11-06 21:19Revenue Performance - Surgical Glaucoma revenue for the nine months ended September 30, 2025, was $56.1 million, down from $57.1 million in the same period of 2024, with gross margins of 86.3% and 87.6% respectively[119]. - Dry Eye revenue for the nine months ended September 30, 2025, was $0.9 million, a decrease from $3.7 million in 2024, with gross margins of 52.1% and 45.8% respectively[119]. - Total revenue for the three months ended September 30, 2025, was $19.9 million, a decrease of $0.3 million, or 1.2%, compared to $20.2 million in the prior year[143]. - Surgical Glaucoma revenue increased by $1.1 million, or 5.8%, to $19.7 million, primarily due to an increase in the number of units sold and average selling prices[143]. - Dry Eye revenue decreased by $1.3 million, or 87.7%, to $0.2 million, attributed to decreased volumes of SmartLids purchased and fewer new customers[144]. - Revenue for the nine months ended September 30, 2025 was $57.0 million, a decrease of $3.8 million, or 6.3%, compared to $60.8 million in the prior year[153]. - Surgical Glaucoma revenue was $56.1 million, a decrease of $1.1 million, or 1.9%, primarily due to a decrease in the number of OMNI units sold[153]. - Dry Eye revenue was $0.9 million, a decrease of $2.7 million, or 75.0%, attributed to decreased volumes of SmartLids purchased and fewer new customers[154]. Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $92.4 million and an accumulated deficit of $380.6 million[124]. - Cash and cash equivalents amounted to $92.4 million as of September 30, 2025, consisting of bank deposits, money market funds, and U.S. treasury bills[188]. - The company expects its cash and cash equivalents will enable it to fund operations for at least the next 12 months[170]. - The Hercules Loan Agreement includes Term Loans with a total credit facility of $65.0 million, with Tranche 2 of $10.0 million not available due to unmet performance milestones[175][177]. - As of September 30, 2025, the interest rate on the Term Loans is 10.35%, with a final payment fee of 5.95% recognized as a debt discount[178][189]. - The company is required to use commercially reasonable efforts to grant lenders the option to invest up to $3.0 million in the next round of equity financing[181]. - The company has complied with all covenants under the Hercules Loan Agreement as of September 30, 2025, including minimum cash and revenue covenants[180]. - The interest-only period of the Hercules Loan Agreement has been extended to February 1, 2027, following a third amendment[177]. Operational Changes - The company implemented a targeted restructuring plan in Q3 2025, reducing headcount by approximately 20% and cutting operating expenses by delaying R&D spending and limiting marketing costs[116]. - The company does not intend to develop internal manufacturing capabilities and relies on third-party manufacturers, with plans to expand manufacturing capacity starting in Q1 2026[118]. - The company has established direct commercial operations in the UK and Germany, selling OMNI directly in these markets[110]. Expenses and Profitability - Total gross profit was $17.2 million, an increase of $0.3 million from the prior year, with a total gross margin of 86.4%, up from 83.9%[146]. - Research and Development (R&D) expenses were $3.4 million, a decrease of $1.4 million from the prior year, including $1.0 million of restructuring costs[147]. - Selling, General and Administrative (SG&A) expenses were $21.8 million, a decrease of $1.6 million from the prior year, including $1.8 million of restructuring costs[148]. - Total gross profit was $48.9 million, a decrease of $2.8 million from the prior year, with a gross margin of 85.8%, up from 85.1%[157]. - Research and Development expenses were $12.2 million, a decrease of $1.5 million, driven by reductions in consulting, clinical studies, and payroll expenses[158]. - Selling, General, and Administrative expenses were $70.1 million, a decrease of $6.5 million, primarily due to lower legal and stock-based compensation expenses[159]. - Investment income was $1.0 million, a decrease of $0.5 million from the prior year, due to lower investment balances and yields[149]. - Investment income was $3.1 million, a decrease of $1.5 million, due to lower investment balances and yields[160]. - Interest expense increased by $0.2 million due to a higher outstanding principal balance under the Hercules Loan Agreement[150]. Future Outlook - The company plans to continue investing in product development, market access, and clinical studies, expecting to incur net losses for several years and may seek additional financing[123]. - The company expects Dry Eye gross margins to improve over time as market access expands, although improvements may be offset by tariffs[123]. - The company expects to continue investing in R&D initiatives and commercial expansion efforts to drive future growth[136][138]. Miscellaneous - Over 350,000 estimated uses of Surgical Glaucoma products occurred in over 2,200 hospitals and ASCs in the U.S. and Europe, while TearCare had over 70,000 estimated uses in over 1,500 eyecare facilities in the U.S. through September 30, 2025[117]. - The company incurred $0.6 million in increased cost of goods sold due to tariff-related expenses for the nine months ended September 30, 2025[121]. - A hypothetical 1.0% change in interest rates would not have a material impact on the company's financial statements[189]. - The company does not have any off-balance sheet arrangements[183]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2025[192].