RxSight Earnings Call: Mixed Signals Amid Growth and Challenges

Rxsight, Inc. ((RXST)) has held its Q3 earnings call. Read on for the main highlights of the call.

RxSight, Inc. recently held its earnings call, revealing a mixed sentiment among investors and analysts. While the company has achieved notable improvements in its gross margin and seen growth in Light Adjustable Lens (LAL) revenue, it faces challenges with an overall revenue decline and a significant drop in Light Delivery Device (LDD) sales. The global expansion efforts and positive market reception of the LAL are encouraging, yet the increased net loss and revenue challenges remain concerning.

Gross Margin Improvement

RxSight reported a significant improvement in its gross margin for Q3 2025, reaching 79.9%. This represents an 844 basis point increase compared to Q3 2024 and a 496 basis point increase from Q2 2025. The improvement was primarily driven by a higher mix of LAL products and reduced unit costs, indicating efficient operational strategies.

LAL Revenue Growth

The revenue from Light Adjustable Lenses (LAL) saw a 6% increase compared to Q3 2024, now accounting for 85% of the company’s total revenue, up from 69% in the previous year and 80% in the previous quarter. This growth underscores the increasing market demand and acceptance of the LAL technology.

Strategic Global Expansion

RxSight has made successful strides in its global expansion, particularly in Asia and Europe. The company has established regulatory infrastructure and commercial initiatives that support multiyear expansion across priority global markets, positioning itself for long-term growth.

Positive Market Reception

The Light Adjustable Lens has received strong clinical and market enthusiasm globally, with growing interest at international meetings such as the ESCRS and AAO. This positive reception highlights the potential for increased adoption and market penetration of RxSight’s innovative lens technology.

Overall Revenue Decline

Despite the positive developments, RxSight faced a 14% decline in overall revenue for Q3 2025 compared to Q3 2024, with total revenue amounting to $30.3 million. This decline also reflects a 10% drop from Q2 2025, indicating challenges in maintaining consistent revenue growth.

Significant Decrease in LDD Sales

Sales of Light Delivery Devices (LDDs) experienced a sharp decline, down 68% year-over-year and 38% sequentially, generating only $3.2 million in revenue. This represents a 69% decrease compared to Q3 2024, posing a significant challenge for the company.

Increased Net Loss

The company’s financial performance was further impacted by an increased GAAP net loss of $9.8 million in Q3 2025, compared to a net loss of $6.3 million in Q3 2024. The non-GAAP net loss was $1.7 million, contrasting with a net gain of $200,000 in the same period last year.

Forward-Looking Guidance

Looking ahead, RxSight has updated its guidance for fiscal year 2025, narrowing revenue expectations to a range of $125 million to $130 million, up from the previous range of $120 million to $130 million. The company anticipates a gross margin between 76% to 77%, an increase from prior guidance. For the fourth quarter, revenues are expected to be between $23 million and $28 million, with an implied year-over-year decline of 11% to 7%. Operating expenses are projected to be between $145 million and $155 million, with a focus on expanding LAL adoption as a key growth metric.

In conclusion, RxSight’s earnings call highlighted a complex financial landscape. While there are promising developments in gross margin improvement and LAL revenue growth, the overall revenue decline and significant drop in LDD sales present challenges. The company’s strategic global expansion and positive market reception of the LAL offer hope for future growth, but financial hurdles remain. Investors will be closely watching how RxSight navigates these challenges in the coming quarters.