RxSight, Inc. Q3 FY2025 earnings call

• During the third quarter, RxSight strengthened commercial execution in the U.S., aligning clinical and sales teams for an integrated approach. Launched MasterClass and Elevate programs to help practices optimize LAL workflow. Over 2,000 ophthalmologists implanted the Light Adjustable Lens, and there were 1,100 LDDs in the field.
• Internationally, made steady progress in Asia and Europe, with an Executive Vice President of International added to lead expansion.
• Financials: Q3 2025 revenue was $30.3 million, down 14% y-o-y. Gross margin was 79.9%, up from 71.4% in Q3 2024. SG&A expenses were $27.3 million, up 7% y-o-y but down 6% sequentially. R&D expenses were $9.1 million, up 3% y-o-y but down 11% sequentially. GAAP net loss was $9.8 million.

In the third quarter of 2025, RxSight's LAL segment generated revenue of $25.7 million, which was up 6% compared to the third quarter of 2024 and accounted for 85% of total revenue. The LDD segment had revenue of $3.2 million, down 69% year-over-year and making up 11% of total revenue. Additionally, the LDD installed base totaled 1,109 units as of September 30, 2025, representing a 25% increase year-over-year.

• Narrowed full-year 2025 revenue guidance to $125 million to $130 million from the prior range of $120 million to $130 million.
• Increased gross margin guidance, with a range of 76% to 77%.
• Reiterated operating expense guidance, with operating expenses expected to remain in the range of $145 million to $155 million.

• Uncertainties in forward-looking statements as actual results may differ materially from implied ones.
• Risks detailed in SEC filings and press release, including competitive landscape and reimbursement changes.

Q: I wanted to start off with kind of the commercial changes and the new practice development programs. Ron, maybe for you, can you just elaborate a bit on, I guess, what exactly is going well and resonating with customers? And then I guess, more importantly, like how much runway do you have with these initiatives taking hold across your entire installed base? Kind of just wondering if we're maybe only in, call it, like the first or second inning with the impact of these changes in the commercial approach.

A: We're focused on increasing the efficiency and confidence of our user base in our technology. The programs use peer-to-peer learning. The runway is extensive with 1,100 LDDs out there, and we're in the early innings of leveraging the installed base.

Q: Your next question comes from the line of Robbie Marcus with JPMorgan. K. Gong: This is Allen on for Robbie. I just had a quick one, again, kind of on just how to think about 2026. I fully understand you're not guiding. But given it sounds as though fourth quarter isn't exactly the right run rate to use going forward. You said you're looking at LALs and LDDs a little bit more holistically. Should we think about just the back half of the year on average as being kind of the right place to be from an LDD and LAL perspective? Just wanted to get a little help thinking about that.

A: The second half of 2025 provides a baseline of the business model shift. We're moving away from LDD sales as the leading indicator and focusing on optimizing with LAL sales from existing customers. The second half is a good way to look at the start of 2026.