RxSight Inc. (NASDAQ:RXST) reported fourth‑quarter 2025 results that beat analyst expectations, posting an adjusted earnings per share of $(0.03) versus a consensus estimate of $(0.33). Revenue reached $32.607 million, outpacing the $30.117 million consensus estimate. The earnings beat was largely driven by a surge in Light Adjustable Lens (LAL) sales, which accounted for an all‑time high of 86% of total company revenue, while Light Delivery Device (LDD) revenue fell 72% year‑over‑year.
LAL sales growth was supported by a 12% increase in unit sales for the full year and a 1% decline in Q4, reflecting strong demand from surgeons and patients. In contrast, LDD revenue declined sharply as the company shifted focus to higher‑margin consumables. The LDD installed base grew to 1,134 units, up 17% from 971 units at the end of 2024, but the revenue contribution from the segment remained flat, underscoring the transition in the business model.
Gross margin for the quarter expanded to 77.5%, up from 71.6% in Q4 2024, driven by the higher mix of LAL products and improved operational leverage. The margin improvement offset the decline in LDD revenue and helped the company achieve a positive earnings beat despite a 19% year‑over‑year revenue decline.
Management reiterated its 2026 guidance, maintaining a full‑year revenue outlook of $120 million to $135 million, implying a roughly 5% year‑over‑year decline at the midpoint. The company also projected a 2026 gross margin of 70% to 72%, a modest compression from 2025, citing lower production levels and higher cost inventory. These guidance figures signal caution about the LDD segment while affirming confidence in the recurring LAL business.
"Based on our fourth quarter results, we believe that the commercial initiatives implemented in the second half of 2025 are showing early signs of progress. While there is still more work ahead, full year LAL growth reflected strong adoption as physicians and patients recognize the value of the company's differentiated therapy. Our team remains committed to driving the disciplined execution that supports doctors as they deliver the benefits of high‑quality customized vision to their patients," said President and CEO Ron Kurtz. "The enthusiasm we saw at AAO and ESCRS, the two largest ophthalmic conferences in the U.S. and Europe, underscored the continued interest from surgeons, highlighted by the quality of peer‑to‑peer discussions and the growing recognition of RxSight's clinical value to both patients and practices," added Kurtz. CFO Mark Wilterding noted, "RxSight reported fourth quarter 2025 sales of $32.6 million, down 19% year‑over‑year due to lower LDD sales... we exited 2025 with an LDD installed base of 1,134 units, up 17% from the 971 units installed at the end of 2024." He also said, "Fourth quarter 2025 SG&A expenses were $27.7 million, down 2% compared to the prior year period, and we reported a net loss in the fourth quarter of 2025 of $9.2 million or $0.22 per basic and diluted share." Wilterding added, "Full year revenue guidance of $120 million to $135 million implies a year‑over‑year decline of approximately 5% at the midpoint of the range, primarily driven by lower LDD sales versus the year‑ago period." He further explained, "Gross margin guidance for 2026 was set at 70% to 72%, with Wilterding stating, 'We've taken a prudent view... to reflect the sell‑through of higher cost inventory due to lower than originally anticipated production levels in 2025.'"
"Investors reacted cautiously to the results, noting that while the earnings and revenue beats were encouraging, the guidance for 2026 signals a modest revenue decline and lower gross margins, reflecting ongoing challenges in the LDD segment and a shift toward a more recurring revenue model.'
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