LENSAR, Inc. Q1 FY2026 earnings call

Nick mentioned near the end of Q1 they exited the transaction-related holding pattern and began to carve their own path as an independent organization. Generated $13.4 million revenue in Q1, with recurring revenue growth. Placed 7 Ally systems, installed base details. Maintained presence at key ophthalmology meetings, booth traffic was high with over 50 system demos at ASCRS. Shared a surgeon partner example of positive experience with Ally. Tom covered financial results, including revenue, gross margin, operating expenses, net income, adjusted EBITDA, and cash position.

Total revenue in the quarter was $13.4 million, down about 5% from $14.2 million a year ago. The decline was due to lower system capital sales, down roughly $1.8 million year over year, partially offset by increased procedure revenue. Recurring revenue was up 1.1 million, or 9%, compared to Q1 2025, representing 94% of total revenue for Q1 2026. Placed 7 Ally systems during the quarter, bringing Ally installed base to approximately 205 systems, with total installed base of Ally and LLS systems reaching approximately 440, up 12% from Q1 2025. Ally now accounts for nearly half of the global installed base.

Expect recurring revenue growth as system installations and base ramp back up, procedure-based recurring revenue will accelerate further. Upon achieving a rebound of quarterly placements, adjusted EBITDA will return to positive territory and generate cash from operations.

Forward-looking statements subject to known and unknown risks and uncertainties that may cause actual results to differ. Complexities around go-forward commercial dynamic created headwinds. Competition from big players in the industry.

Q: Frank Tekkanen from Lake Street Capital Markets asked for an update on current state of affairs and when the business can get back to prior growth rates.

A: Nick said they've been meeting with distributors, received purchase orders, expect to ship systems outside US this quarter.

Q: Ryan Zimmerman from BTIG asked about US vs international procedure growth this quarter and pace of recovery.

A: Nick explained it takes 30 - 90 days to ramp up a system for productive procedure revenue, Ally has 27% higher procedure numbers on average than competitive devices and 11% increase on upgrades from LLS to Ally. Tom added procedure growth in the quarter is solely related to US activity.