Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $19.9 million, a 1% decrease compared to the same period in the prior year [22] - Surgical glaucoma revenue was $19.7 million, an increase of 6% year-over-year and up 3% sequentially [22][24] - Dry eye revenue decreased to $0.2 million from $1.5 million, aligning with expectations due to a focus on reimbursed market access for TearCare [22][24] - Gross margin improved to 86%, up from 84% [23] - Net loss was $8.2 million, or $0.16 per share, compared to a net loss of $11.1 million, or $0.22 per share in the prior year [24] Business Line Data and Key Metrics Changes - Surgical glaucoma segment showed strong performance with increased ordering accounts and average selling prices, despite lower account utilization [22][24] - Dry eye segment is transitioning towards a focus on TearCare, with significant advancements in reimbursement coverage [9][10] - The company anticipates a revenue contribution from the dry eye segment of $500,000 to $1 million for Q4 2025 [25] Market Data and Key Metrics Changes - The establishment of fee schedules for TearCare by Novitas and First Coast is expected to cover approximately 10.4 million Medicare-covered lives [9][10] - The company estimates around 6,500 eye care providers as potential adopters of TearCare procedures [10][11] Company Strategy and Development Direction - The company is focused on expanding its market presence in both surgical glaucoma and dry eye segments, particularly through the commercialization of TearCare [21][26] - Strategic priorities include securing additional reimbursement coverage for TearCare and accelerating commercial momentum in both segments [20][21] - The management team has undergone restructuring to enhance operational efficiency and drive growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained long-term growth driven by recent advancements in reimbursement for TearCare and strong performance in surgical glaucoma [8][21] - The company is optimistic about returning to growth in both business segments in 2026 [21][40] Other Important Information - The company has reduced its adjusted operating expense guidance for the full year 2025 to $90-$92 million, reflecting a decrease of 9%-11% compared to 2024 [26] - The company ended the quarter with $92.4 million in cash and cash equivalents and $40 million in debt [24] Q&A Session Summary Question: What will be the primary focus for the new COO in the next 6 to 12 months? - The COO will focus on accelerating growth and scaling the TearCare franchise, leveraging the newly established reimbursement rates [30] Question: How does the company view the opportunity from competitors repositioning their products? - The company believes it can capture growth as the MIGS market returns to growth in 2026, focusing on the benefits of its Omni product [32] Question: What initiatives are in place to build engagement and utilization for TearCare? - The company is focused on education, identification, and activation of accounts, with strong engagement from both existing and new customers [35] Question: How should investors think about the contribution of TearCare next year? - The growth rate for TearCare is expected to be significantly larger than that of the surgical glaucoma business due to its small revenue base and recurring revenue model [40] Question: What is the strategy for expanding coverage with other payers? - The company is actively engaging with other MACs and commercial payers, with a focus on Medicare Advantage plans in the same states as the established fee schedules [44]