LENZ Therapeutics, Inc. Q2 FY2026 earnings call

Commercial Launch and Patient Adoption

• Q2 2026 saw continued modest growth for the VIZ launch, with July 2026 posting over 45% month-over-month growth in total prescriptions after the launch of telehealth access and a national TV advertising campaign under the Tide of Reading Glasses Campaign
• Early patient persistence data is encouraging: over 60% of e-pharmacy patients who have purchased VIZ have bought more than one monthly pack. Among mature cohorts (first purchase in Q4 2025 and Q1 2026), repeat patients are tracking to an average of five total monthly packs per year, with the Q2 2026 cohort showing a similar early pattern
• Aided awareness of VIZ among eye care professionals (ECPs) remains in the high 90% range, and unaided awareness exceeds 80%, meeting the company's initial awareness goals for the ECP channel. To date, over 13,000 physicians have prescribed VIZ, with over 75% prescribing multiple times, though most prescribing is currently consumer-initiated

Strategic Commercial Initiatives

• The company launched a telehealth prescribing pathway integrated with its e-pharmacy partner to simplify the patient journey from awareness to treatment, while maintaining clinical safety standards. Telehealth allows interested consumers to complete eligibility screening, get evaluated by an independent licensed ECP, and receive home delivery of VIZ if approved
• The national TV advertising campaign was launched to broaden consumer awareness and drive demand, with the combination of TV advertising and telehealth creating a more seamless path to treatment initiation
• Management is shifting commercial investment priority to stimulating consumer demand, as informed patients requesting VIZ by name are expected to catalyze continued ECP prescription growth

Global Expansion

• The company now has international commercial partnerships covering more than 20 countries across Greater China, Southeast Asia, Canada, the Middle East, and Oceania. In Q2 2026, it added its fifth international partnership, covering Australia and New Zealand with Aerotex Pharmaceuticals
• There are currently nine regulatory submissions for VIZ under review globally, with additional submissions expected by the end of 2026

Financial Position

• The company ended Q2 2026 with approximately $220 million in cash, cash equivalents, and marketable securities. Management has committed to a disciplined approach to capital allocation going forward

Lenz Therapeutics operates a single core commercial segment centered on its presbyopia treatment VIZ, alongside a global partnership licensing segment. For Q2 2026: total revenue was $5.5 million, consisting of $1.7 million (30.9% of total revenue) in product revenue from VIZ sales, and $3.8 million (69.1% of total revenue) in license and milestone revenue from ex-US commercial partnerships. Product revenue grew 9% quarter-over-quarter on a volume basis, with 27,000 monthly packs sold in the quarter. Cost of product sales was $0.3 million, with the company expecting VIZ to reach a 90% direct product gross margin over the long term. The e-pharmacy channel is the dominant sales channel for VIZ, accounting for just over 60% of total prescriptions. Total SG&A expenses were $39.4 million ($34.9 million adjusted for non-cash stock-based compensation), a 14% quarter-over-quarter decline, with 80% of SG&A allocated to sales and marketing. Total R&D expenses were $0 for the quarter. Net loss for Q2 2026 was $31.9 million, or $1.02 per basic/diluted share.

Management did not provide specific numeric revenue or earnings guidance for the full year 2026, but shared the following forward-looking statements:

• The second half of 2026 will provide the first full opportunity to assess long-term patient persistence for VIZ, with early data already providing encouraging proof points for durable adoption
• Management will use Q3 2026 to evaluate the performance of recent commercial initiatives (telehealth and national TV advertising), refine the patient journey, and inform the mix and level of commercial investment for the next phase of the VIZ launch
• Multiple additional international regulatory submissions and potential ex-US regulatory approvals are expected by the end of 2026
• Management will maintain disciplined capital allocation going forward, concentrating resources on initiatives that are demonstrated to drive durable patient growth and aligning investment levels with the current needs of the business

• Forward-looking results, including prescription growth and adoption trends, may differ materially from current expectations due to unforeseen clinical, commercial, or regulatory factors, as disclosed in the company's SEC filings • The current patient journey has multiple sequential steps, with risk of patient drop-off at each stage that could limit adoption even if overall awareness is high • ECP awareness has not yet consistently translated into recurring, routine prescribing behavior, which could slow growth if consumer demand does not catalyze more ECP-initiated prescriptions as expected • Early July 2026 growth trends do not guarantee sustained long-term growth, and the company's ability to maintain momentum from recent initiatives is unproven

Q: How do VIZ's refill dynamics compare to competing presbyopia products, what strategies support retention, what is the safety framework for telehealth, when will national TV drive growth, and what are current commercial investment priorities?

A: Early data for mature VIZ cohorts shows 60% of e-pharmacy patients purchase multiple packs, with repeat patients averaging five packs per year, compared to an estimated 10-12% refill rate for competitor Vuity at its peak. Retention strategies include multi-pack discounted pricing and auto-renew options through the e-pharmacy and telehealth channels. Telehealth uses ECP-developed eligibility screenings and independent physician evaluations, requiring a recent in-person eye exam within 24 months and excluding high-risk patients. The national TV campaign launched July 6, and is already driving increased prescriptions across all channels. Management will assess initiative performance in Q3 to adjust investment mix, focusing resources on activities that deliver durable patient growth.

Q: What share of revenue goes through the e-pharmacy channel, can refill data be tracked for retail, and how will disciplined spending change investment allocation?

A: Just over 60% of VIZ prescriptions currently go through the e-pharmacy channel, which also provides granular patient-level data for analysis, while the company has limited visibility into refill dynamics for the retail channel. All future investment adjustments will be based on Q3 performance data, with investment aligned to initiatives that are actually driving prescription growth, matched to the scale and needs of the business. No final decisions on reallocation have been made yet.

Q: What share of telehealth form submissions lead to a prescription, how long does screening take, and has the patient profile changed since the national TV launch?

A: The company has not publicly released specific conversion numbers for telehealth, but confirms that appropriate patients are screened out as intended (either in the initial questionnaire or during physician evaluation) to maintain safety standards. The screening questionnaire takes only a few minutes to complete, and was designed by ECPs to meet appropriate clinical criteria. There has been no meaningful change in patient mix post-launch: the profile remains ~60% women, 40% men, with the highest interest among 45-55 year olds, declining for patients over 65.

Q: Is the 45% July prescription growth driven primarily by telehealth, and does the five-pack average annual refill apply only to the 60% of patients that purchase multiple packs?

A: The July growth was driven by the combination of national TV advertising and telehealth, with all channels seeing increases, not just telehealth. Telehealth contributed a significant portion of the growth, but not at the expense of traditional ECP and retail channels. The five-pack average is calculated for just the 60% of e-pharmacy patients that purchase multiple monthly packs, leaving 40% of patients with only a single purchase to date.