LENSAR (LNSR) AI Stock Analysis

• Market Cap: $164.97M
• Dividend Yield: N/A
• Average Volume (3M): 220.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 26.87%
• EPS Growth: -104.94%
• Country: US
• Employees: 140
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): -2.72
• Shares Outstanding: 11,792,156
• 10 Day Avg. Volume: 129,778
• 30 Day Avg. Volume: 220,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 6.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

LNSR's overall stock score reflects strong growth potential driven by significant revenue increases and strategic corporate developments, such as the merger with Alcon. However, ongoing profitability challenges and valuation concerns temper the outlook. The company's technical indicators suggest a strong upward momentum, while the earnings call and corporate events provide additional support for a positive future trajectory.

Positive Factors

Acquisition

The announced acquisition by Alcon is seen as a positive outcome for both Lensar and Alcon, with Lensar experiencing strong adoption of its ALLY System in the cataract surgery market.

Market Expansion

LNSR highlighted that ~75% of US FY24 placements have come from new customers, indicating strong market expansion and competitive positioning.

Market Performance

The company reported Q4 revenue of $16.7M, which was 38% higher than the previous year and above market expectations.

Negative Factors

Growth Challenge

Lensar is required to achieve substantial procedure growth to meet the terms of the acquisition agreement, which may pose challenges.

Profitability

Gross margins are lower due to higher capital sales, which impacts the company's profitability.

Valuation

The stock is rated as Neutral because the implied takeout value is seen as fairly valued, indicating limited upside potential.

LENSAR Business Overview & Revenue Model

Company Description

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. Its LENSAR Laser System incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company was incorporated in 2004 and is headquartered in Orlando, Florida.

How the Company Makes Money

LENSAR makes money primarily through the sale and lease of its laser systems to medical facilities and ophthalmic surgeons. The company generates revenue from the initial sale or ongoing leasing agreements of its LENSAR Laser Systems. Additionally, LENSAR capitalizes on recurring revenue streams from the sale of consumables and maintenance services required for the operation of its systems. These revenue streams are supported by strategic partnerships with healthcare providers and institutions that endorse and utilize LENSAR's technology in their surgical procedures.

LENSAR Financial Statement Overview

Summary

LENSAR is experiencing robust revenue growth but continues to struggle with profitability and operational efficiency. The income statement shows strong top-line growth, while the balance sheet indicates low leverage but limited equity. Cash flow has improved, yet challenges persist in maintaining positive operational cash flow.

Income Statement

LENSAR has demonstrated strong revenue growth, with a notable increase from $42.16 million in 2023 to $53.49 million in 2024, representing a growth rate of approximately 26.85%. However, the company remains unprofitable, with a negative net profit margin and EBIT margin, reflecting ongoing challenges in cost management.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, indicating modest leveraging. However, the negative net income has resulted in a negative return on equity. The equity ratio stands at approximately 7.33%, suggesting limited equity financing compared to total assets.

Cash Flow

LENSAR's free cash flow improved from -$9.90 million in 2023 to -$2.43 million in 2024, highlighting a significant reduction in cash outflows. The operating cash flow to net income ratio indicates ongoing operational cash challenges, though there is a positive trend in reducing cash burn.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.49M	42.16M	35.36M	34.46M	26.38M
	Gross Profit
25.85M	21.11M	19.95M	17.83M	14.07M
	EBIT
-5.97M	-12.23M	-20.18M	-19.65M	-18.50M
	EBITDA
-5.97M	-8.71M	-16.77M	-16.89M	-15.87M
	Net Income Common Stockholders
-31.40M	-14.38M	-19.65M	-19.65M	-21.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.45M	24.06M	14.67M	31.64M	40.60M
	Total Assets
66.30M	69.58M	55.84M	66.47M	79.12M
	Total Debt
2.61M	2.31M	2.80M	2.80M	3.31M
	Net Debt
-13.65M	-18.31M	-11.87M	-28.83M	-37.28M
	Total Liabilities
61.44M	22.41M	13.86M	11.59M	11.91M
	Stockholders Equity
4.86M	47.18M	41.98M	54.88M	67.21M
Cash Flow		Free Cash Flow
-2.43M	-9.89M	-14.97M	-9.32M	-14.16M
	Operating Cash Flow
-2.27M	-9.66M	-14.86M	-8.97M	-13.79M
	Investing Cash Flow
-2.16M	-4.16M	-115.00K	-354.00K	-326.00K
	Financing Cash Flow
78.00K	19.76M	-1.99M	361.00K	50.00M

LENSAR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNSR, the sentiment is Positive. The current price of 14.05 is above the 20-day moving average (MA) of 13.79, above the 50-day MA of 13.64, and above the 200-day MA of 8.34, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 64.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNSR.

LENSAR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	79 Outperform	$197.24M	30.53	16.11%	―	15.35%	71.35%
LNSR	70 Neutral	$164.97M	―	-95.42%	―	26.87%	-104.94%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
MYO	51 Neutral	$169.10M	―	-36.69%	―	69.17%	39.01%
CVRX	50 Neutral	$190.74M	―	-81.58%	―	30.53%	-35.97%
SGHT	47 Neutral	$159.22M	―	-49.59%	―	-1.47%	9.99%
CTSO	44 Neutral	$63.24M	―	-120.52%	―	-2.08%	40.07%

LENSAR Corporate Events

LENSAR Announces Merger Agreement with Alcon

On March 23, 2025, LENSAR, Inc. entered into a merger agreement with Alcon Research, LLC, where LENSAR will become a wholly owned subsidiary of Alcon. The agreement involves Alcon acquiring all outstanding shares of LENSAR for $14.00 per share in cash, with an additional contingent value right of $2.75 per share based on achieving certain milestones. This acquisition aims to strengthen Alcon’s cataract equipment portfolio and expand the use of LENSAR’s advanced femtosecond laser technology globally. The transaction, valued at up to $430 million, is expected to close in mid-to-late 2025, pending regulatory and stockholder approvals.