Earnings call transcript: RxSight Q1 2025 sees revenue growth, stock dips

RxSight Inc. reported its Q1 2025 financial results, showing a 28% year-over-year increase in revenue to $37.9 million, despite a 6% sequential decline. The company revised its full-year revenue guidance downward, citing macroeconomic factors and competitive pressures. In premarket trading, RxSight’s stock fell 33.58% to $17.35. According to InvestingPro data, the company maintains strong financial health with a current ratio of 11.36, indicating robust liquidity. The stock has experienced significant volatility, with a 45% decline over the past six months.

Key Takeaways
Revenue grew 28% year-over-year to $37.9 million.
Full-year revenue guidance was reduced to $160-175 million.
Premarket trading saw a 33.58% decrease in stock price.
European regulatory approval achieved for key products.
Premium IOL market facing macroeconomic challenges.

Company Performance
RxSight’s performance in Q1 2025 was marked by significant year-over-year growth, with revenue reaching $37.9 million. The company experienced a 6% sequential decline, partly due to a softening premium intraocular lens (IOL) market and broader economic challenges. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a minimal debt-to-equity ratio of 0.04. The company continues to innovate, with new product enhancements and a strong focus on expanding its European market presence.

Financial Highlights
Revenue: $37.9 million, up 28% year-over-year, down 6% sequentially.
Sold 73 Light Delivery Devices (LDDs), up 11% year-over-year
Sold 27,579 Light Adjustable Lenses (LALs), up 36% year-over-year.
LDD installed base increased to 1,044 units, up 43% year-over-year.

Outlook & Guidance
RxSight revised its 2025 revenue guidance to $160-175 million, down from the previous $185-197 million. The company maintains its gross margin guidance at 71-73% and has reduced its operating expense guidance to $150-160 million. Despite current challenges, RxSight remains optimistic about long-term growth, particularly in the European market. InvestingPro’s Fair Value analysis suggests the stock is currently overvalued, though analyst price targets range from $22 to $56, indicating potential upside opportunity. Get detailed insights and 6 additional ProTips with an InvestingPro subscription.

Executive Commentary
CEO Ron Kurtz expressed confidence in the company’s ability to reshape the premium cataract surgery market, stating, 'We believe RxSight’s adjustable technology will continue to reshape the premium cataract surgery market.' CFO Shelly Tunin reassured investors about the company’s financial health, noting, 'We have more than adequate cash to get to cash flow breakeven and profitability.'

Earnings call transcript: RxSight Q1 2025 sees revenue growth, stock dips

RxSight Inc. reported a 28% year-over-year increase in revenue to $37.9 million in Q1 2025, despite a 6% sequential decline. The company revised its full-year revenue guidance downward to $160-175 million, citing macroeconomic challenges and competitive pressures. The stock fell 33.58% to $17.35 in premarket trading, reflecting significant volatility. European regulatory approval was achieved for key products, and the company remains optimistic about long-term growth, especially in the European market.