Rxsight, Inc. ((RXST)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for RxSight, Inc. presented a mixed sentiment, with notable achievements in LAL revenue growth and gross margin improvements. However, these positive developments were tempered by a decline in total revenue, significant reductions in LDD sales, increased expenses, a widened net loss, and a lowered revenue outlook for the year.
LAL Revenue Growth
RxSight reported a 13% increase in LAL revenue compared to the second quarter of 2024, with LAL now representing 80% of total revenue, up from 68% in the previous year. This growth highlights the company’s focus on its core product line and its success in capturing a larger share of the market.
Gross Margin Improvement
The company’s gross margin improved significantly to 74.9% in the second quarter of 2025, up from 69.5% in the same quarter of 2024. This improvement reflects a favorable shift in product mix, with higher-margin LAL sales contributing to the overall profitability.
LDD Installed Base Increase
Despite challenges in LDD sales, RxSight saw a 34% year-over-year increase in its LDD installed base, reaching 1,084 units. This growth indicates potential for long-term expansion and suggests that the company is laying the groundwork for future success in this segment.
Strong Cash Position
RxSight ended the second quarter with a robust cash position, holding $227.5 million in cash, cash equivalents, and short-term investments. This strong balance sheet provides the company with the financial flexibility to pursue strategic initiatives and navigate current market challenges.
International Expansion
The company is making strides in international markets, with regulatory approvals in Europe and Asia, including South Korea and Singapore. These developments are expected to open new growth opportunities and enhance RxSight’s global market presence.
Decline in Total Revenue
RxSight experienced a 4% decline in total revenue for the second quarter, amounting to $33.6 million, compared to the prior year. This decrease was also reflected in an 11% drop from the first quarter of 2025, highlighting ongoing challenges in the market.
LDD Sales Decline
LDD sales saw a significant decline, falling by 49% year-over-year and 45% sequentially. Revenue from LDDs decreased by 50% compared to the second quarter of 2024, underscoring the difficulties faced in this product segment.
Increased Expenses
The company reported increased SG&A expenses by 19% year-over-year and R&D expenses by 23%, driven primarily by higher personnel costs and stock-based compensation. These rising expenses reflect the company’s investment in its workforce and development efforts.
GAAP Net Loss
RxSight reported a GAAP net loss of $11.8 million, compared to a loss of $6.1 million in the second quarter of 2024. This widened loss highlights the operational challenges the company is facing amid its strategic initiatives.
Lowered Revenue Guidance
The company has lowered its full-year revenue guidance, anticipating a decrease of 14% to 7% from 2024. This adjustment reflects expectations of a slower second half due to continued softness in LAL adoption and fewer expected new LDD sales.
Forward-Looking Guidance
RxSight reaffirmed its full-year 2025 guidance, projecting total revenue between $120 million and $130 million, marking a decrease of 7% to 14% from 2024. The company expects gross margins to improve to between 72% and 74%, while operating expenses are projected to increase, ranging from $145 million to $155 million. Despite the challenges, RxSight remains confident in its strategic initiatives to enhance LAL adoption and expand its global market presence.
In summary, RxSight’s earnings call revealed a complex picture of growth and challenges. While the company has made strides in LAL revenue and international expansion, it faces significant hurdles with declining total revenue and LDD sales. The forward-looking guidance suggests cautious optimism as the company navigates these challenges and seeks to strengthen its market position.