RxSight, Inc. Q4 FY2025 earnings call

• 2025 was a year of progress: clinical outcomes with LAL technology remained best in class, adjustable procedures represented about 10% of U.S. premium market by volume and 15% by revenue. - Initiated strategic decisions in 2025 to strengthen clinical and practice expertise, including training, education, and support. - Q4 2025 procedure volumes improved sequentially due to LAL utilization. - Data from post-approval study accepted for publication in Journal of Cataract and Refractive Surgery, showing superior refractive accuracy; data from IOL registry also added compelling evidence. - RxSight remains committed to advancing adjustability, with several new FDA submissions planned over next 18 months. - Internationally, building foundation for long-term success by engaging local clinicians to develop key opinion leaders in Europe, Asia, and Australia.

Fourth quarter 2025 sales were $32.6 million, down 19% year-over-year due to lower LDD sales (25 LDD units sold globally, generating $3 million in revenue; year-ago period had 83 LDD units sold, $11 million in revenue). LALs: 28,611 sold in Q4 2025, down 2% year-over-year but up 10% sequentially; LAL revenue was $28.2 million in Q4 2025, accounting for 86% of total company sales (up from 71% in year-ago period). Gross margin in Q4 2025 was 77.5% vs. 71.6% in year-ago period. Full-year 2025 sales were $134.5 million, up 4% year-over-year (48% decrease in LDD revenue, partially offset by 12% increase in LAL sales). Gross profit margin in 2025 was 76.6% vs. 70.7% in 2024. Net loss in Q4 2025 was $9.2 million, or 22 cents per share; full-year 2025 net loss was $38.9 million, or 95 cents per share.

• Full-year 2026 revenue guidance $120 to $135 million, implies ~5% year-over-year decline at midpoint, driven by lower LDD sales; Q1 2026 expected to be lowest due to seasonality and challenging comparisons. - 2026 gross margin guidance 70% to 72%, down from 2025 levels but consistent with 2024; reflects sell-through of higher cost inventory from 2025 production levels. - 2026 operating expenses expected $150 to $160 million, 1% decrease at low end to 6% increase at high end compared to prior year, reflecting investment in international expansion and U.S. sales/marketing. - R&D spending relatively in line with 2025 levels. - Non-cash stock-based compensation expense in 2026 range $30 to $32 million.

Q: Curious about 2026 guide and market health progression.

A: Saw Q4 uptick, guide takes that into account; year-to-date trends factored in, difficult comparisons from year ago considered.

Q: Follow-up on gross margin, 2027 and beyond potential.

A: Longer term still believe high 70s margin possible, depends on mix profile; international ramp early but could factor into long-term gross margin.

Q: Guidance philosophy, LDD placements and LAL volume growth.

A: Guidance based on bottoms up forecast, realistic and prudent; LDD placements expected to slightly accelerate from 2025 exit rate, Q1 lowest for LDD sales; LAL unit growth low single-digit range.

Q: Gross margin manufacturing variances persistence.

A: Higher cost inventory to flow through second quarter and beyond, 70-72% gross margin prudent for full year.

Q: Traction with commercial pivot.

A: Seeing early success stories with structured program focusing on individual practices.

Q: Durability of initiatives and competitive environment.

A: Early to comment on durability, practices dynamic; monitor competitive environment, new premium IOL announcements episodic.

Q: Utilization assumptions for LALs and premium market growth.

A: LAL unit growth low single-digit implies utilization stabilizes around 8 lenses per LDD per month; premium segment growth attributable to LAL appealing to patients not wanting to compromise on vision, trends like younger demographics seeking earlier cataract surgery continuing.

Q: Key factors for top end of 2026 revenue guidance.

A: Increased traction from internal initiatives, faster utilization uplift in second half, less headwind from competitive trialing.

Q: Innovation pipeline.

A: Continue to innovate on lens, LDD, and ancillary devices; over 20 significant product-related FDA approvals in past five years, plan to continue penetrating market with existing and new innovations