Sight Sciences, Inc. Q3 FY2025 earnings call

• Surgical Glaucoma segment saw 6% revenue growth in Q3 2025, with progress in reinforcing competitive position, making commercial investments, accelerating adoption of OMNI Edge, and expanding stand-alone OMNI opportunity. Ordering accounts reached a record high for the second quarter in a row.
• Dry Eye segment saw $0.2 million revenue in Q3, down from $1.5 million, as focus was on achieving reimbursed market access for TearCare procedures. In October, Novitas and First Coast established jurisdiction-wide pricing for TearCare, with an estimated 10.4 million Medicare-covered lives in those areas.
• Management changes include Ali Bauerlein promoted to Chief Operating Officer and Jim Rodberg to Chief Financial Officer. Ali will focus on scaling the TearCare franchise and overseeing day-to-day operations. Jim brings strong finance background for continued execution.
• OMNI was included in UnitedHealthcare's expanded coverage of glaucoma surgical treatments effective October 1, 2025, which is expected to drive growth in the Surgical Glaucoma segment.

In the third quarter of 2025, total revenue was $19.9 million. Surgical Glaucoma revenue was $19.7 million, a 6% increase compared to the third quarter of 2024. Dry Eye revenue was $0.2 million, a decrease from $1.5 million. Gross margin was 86%, up from 84%. Surgical Glaucoma gross margin was 87%, flat compared to 87%, while Dry Eye gross margin was 38% compared to 48%. Surgical Glaucoma revenue contribution was significant due to growth in ordering accounts and average selling prices, offset by lower account utilization. Dry Eye revenue was low due to focus on achieving reimbursed market access for TearCare procedures.

• Raised full year 2025 revenue guidance to $76 million to $78 million, up from prior guidance of $72 million to $76 million. Fourth quarter revenue for Dry Eye is expected to be $0.5 million to $1 million.
• Adjusted operating expense guidance for full year 2025 lowered to $90 million to $92 million, representing a 9% to 11% decrease compared to 2024. This includes investments in market development and R&D, and reflects savings from the August reduction in force.
• Surgical Glaucoma segment's tariff exposure for full year 2025 is expected to be between $1 million to $1.5 million.

• Tariff costs impacting cost of goods sold for Surgical Glaucoma. $0.4 million in Surgical Glaucoma cost of goods sold was associated with tariffs in Q3 2025.
• Potential impact of recently requested ex parte reexaminations on patent infringement case against Alcon and the relief that may be awarded.
• Uncertainty regarding future tariff rates affecting cost of goods sold.

Q: Congrats on a really good quarter and congrats on the TearCare news on coverage. I was at [ AO ] and it was really fun to see the excitement around it. And also get my TearCare procedure. That was very exciting as well. And I loved it. My question is for Ali. Actually, congratulations on the new role. I guess just at a high level, as Chief Operating Officer, what's going to be your primary focus over the next 6 to 12 months? And where do you think you see the most potential for near-term change to drive improving performance? I guess where are you going to be spending most of your time? And what do you think -- like what are areas you think you can really have a near-term impact?

A: Yes. And we're really excited about where we are from a development perspective here at Sight Sciences. I will really be focused on accelerating our growth, increasing the oversight on the day-to-day operations, but most importantly, really working with the team to drive the successful scale-up of the TearCare franchise. And I am very excited about the TearCare potential. This is a new category of reimbursed interventional Dry Eye that we are establishing and now having our first payer pricing established at appropriate rates really allows us to go approach the market. And we have a very unique value proposition here. This is something that is great for payers, great for providers, great for patients. And all of that leads to a great opportunity to drive this market over time. And it's a large market. We have a product that has great clinical efficacy. This is a recurring revenue business. And we're very excited about establishing TearCare as a leading interventional dry eye treatment company and category. So that's really what I'll be focused on primarily and really excited to be taking on this new role at Sight Sciences.

Q: Congrats on the quarter. And Ali and Jim, congrats on the new roles. I got 2, one on glaucoma, one on Dry Eye, starting with glaucoma. So it looks like one of your competitors has kind of repositioned their product in a different sales force. So just wanted to get your thoughts on kind of how you see that opportunity? Have you seen any benefit from that yet? Or what are your thoughts on kind of what you could do with that opportunity in 2026?

A: Yes, David, this is Paul. I'll take that one. We've been focused since the LCDs went into effect over the past year, we're finally about to lap those headwinds. But as surgeons were forced to choose 1 MIGS procedure because of the restrictions that prevented surgeons from doing 2 MIGS procedures in a single surgical setting, our team has done a great job working with their surgeon customers and reminding them of the comprehensive efficacy of OMNI, the durable clinical outcomes, the consistent clinical outcomes that have been proven time and time again with lots of clinical studies. So they've done a great job winning that business as it converts from 2 MIGS to 1 MIGS. We're seeing the results of that this year. We're going to continue focusing on selling the benefits of OMNI and winning as much of that business as we can. As we head into 2026, the MIGS market will return to growth. We've been focusing internally with our team on doing as well as we could commercially. I think we've done a great job. Team has done a great job this year to position ourselves as strongly as possible entering 2026 to capture as much of that growth as possible. So does some disruption at competitors allow for further opportunity for us? It should. But I think we're doing a great job regardless. We're looking forward to the MIGS market getting back to growth in '26 and Sight Sciences and OMNI capturing as much of that growth as possible.