RxSight(US:RXST)2025-11-05 22:30Financial Data and Key Metrics Changes - RxSight generated third-quarter revenue of $30.3 million, down 14% compared to $35.3 million in the year-ago quarter, and down 10% compared to $33.6 million in the second quarter of 2025 [8] - GAAP net loss in the third quarter of 2025 was $9.8 million, or a loss of $0.24 per share, compared to a GAAP net loss of $6.3 million, or $0.16 per share in the third quarter of 2024 [11] - Gross margin in the third quarter of 2025 was 79.9%, an increase from 71.4% in the year-ago period [9] Business Line Data and Key Metrics Changes - Sold 26,045 Light Adjustable Lenses (LALs), generating $25.7 million in LAL revenue, up 6% compared to the third quarter of 2024 [8] - Sold 25 Light Delivery Devices (LDDs) in the quarter, down 68% from 78 units in the prior year period [8] - LAL revenue represented 85% of total revenue in the third quarter, an increase from 69% in the third quarter of 2024 [8] Market Data and Key Metrics Changes - Approximately 1,100 LDDs are in the field, representing a 25% increase year-over-year [9] - More than 2,000 ophthalmologists implanted the LAL, representing roughly one-fifth of the estimated total number of U.S. cataract surgeons [4] Company Strategy and Development Direction - The company is focusing on strengthening commercial execution in the U.S. while laying groundwork for global growth, particularly in Asia and Europe [4][5] - New practice development and clinical engagement programs have been launched to optimize LAL workflow and enhance clinical confidence [4] - The company aims to strategically expand its base of LDDs and implanting surgeons while positioning customers for sustained growth [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in building a strong foundation for future growth despite challenges, including a decline in Medicare's physician fee for cataract surgery [16] - The company is narrowing its full-year 2025 revenue guidance to $125 million-$130 million, implying a year-over-year decline of 11%-7% [12] - Management anticipates continued interest in premium IOL options, particularly the LAL, as practices adapt to changing reimbursement rates [16] Other Important Information - SG&A expenses in the third quarter of 2025 were $27.3 million, a 7% increase year-over-year, primarily due to rising personnel costs [10] - R&D expenses rose 3% to $9.1 million compared to the third quarter of 2024 [10] Q&A Session Summary Question: What metrics will be used to evaluate the changes being implemented? - The key metric is the number of LAL procedures, along with the number of physicians implanting each quarter [20][21] Question: How will new entrants in the market impact demand for LAL? - Lower reimbursement for traditional cataract surgery is expected to be a tailwind for premium IOLs, with modest long-term impact from new entrants [22][23] Question: What is driving the increase in active surgeons? - The increase is attributed to new LDD sales and existing practices adopting LAL procedures [27][28] Question: What is the outlook for 2026? - While specific guidance for 2026 is not provided, management expects sequential growth in LAL procedures [36] Question: How does the company view the health of the underlying IOL market? - The premium segment is expected to remain strong, while the monofocal segment may be more affected by economic pressures [42] Question: What is the potential for LALs in post-refractive patients? - Post-refractive cases represent 10%-20% of the patient population, indicating a significant opportunity [52][54] Question: How does the company view its penetration in practices? - Some practices have already achieved standard of care with LALs, and the company aims to deepen its presence in existing accounts [57][58]