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]