RxSight Q2 Earnings Call Highlights

RxSight NASDAQ: RXST reported second-quarter revenue of $33.7 million, including $6.5 million recognized under its strategic collaboration with Alcon, while management withdrew its full-year 2026 financial guidance as new Chief Executive Officer Aziz Mottiwala conducts a broader assessment of the business. Excluding the Alcon-related revenue, product sales were $27.2 million, down 19% from the prior-year period. The company said the decline reflected heightened competitive trialing and broader marketplace headwinds. Light Adjustable Lens, or LAL, unit volume fell 9% year over year to 24,917 units. LAL procedure volume generated $24.5 million in second-quarter sales, representing 90% of RxSight product revenue. The company placed 12 Light Delivery Device, or LDD, units during the quarter, generating $1.3 million in revenue, and ended the period with an installed base of 1,166 LDD units. Excluding collaboration revenue, gross margin was 71.2%, compared with 74.9% a year earlier. Chief Financial Officer Mark Wilterding said the year-over-year decline primarily resulted from higher inventory-related costs associated with slower-than-expected inventory flow-through. Including the collaboration revenue, gross margin was 76.7%. Selling, general and administrative expense rose 5% year over year to $30.4 million, primarily due to legal and consulting expenses connected to the Alcon collaboration. Research and development expense declined to $9.2 million from $10.2 million, mainly because of lower personnel-related costs. RxSight reported a net loss of $12.1 million, or $0.29 per basic and diluted share, based on 41.5 million weighted average shares outstanding. Stock-based compensation was $7.5 million, resulting in an adjusted net loss of $4.6 million, or $0.11 per share. The company ended the quarter with approximately $209 million in cash equivalents and short-term investments. That figure did not include the $60 million upfront payment from the Alcon agreement, which RxSight received after the quarter ended. Mottiwala, who recently joined the company after serving as chief commercial officer at Tarsus Pharmaceuticals, said RxSight is evaluating its commercial model, execution capabilities and strategy to improve adoption and utilization of the LAL platform. “While underlying trends remain generally consistent with what we've previously guided,” Mottiwala said, “this work will require time, and we should not allow our prior outlook to constrain actions we may ultimately determine are appropriate.” Management said it will resume formal guidance when it reports fourth-quarter 2026 results in early 2027. Wilterding added that the company expects to recognize between $30 million and $40 million of revenue from the Alcon strategic agreement during 2026.