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LENSAR (LNSR)
NASDAQ:LNSR
US Market

LENSAR (LNSR) AI Stock Analysis

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LENSAR

(NASDAQ:LNSR)

Rating:48Neutral
Price Target:
$13.00
▼(-0.69%Downside)
LENSAR's overall score reflects a mix of financial instability and potential corporate growth. Financial challenges are significant, but the merger approval offers a promising strategic opportunity. Technical indicators are neutral, and valuation remains constrained by negative earnings.
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.
Financial Performance
The company reported Q4 revenue of $16.7M, which was 38% higher than the previous year and above market expectations.
Market Performance
LENSAR's installed base for the ALLY system grew by 86%, suggesting strong demand and expansion potential.
Negative Factors
Growth Challenges
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 (LNSR) vs. SPDR S&P 500 ETF (SPY)

LENSAR Business Overview & Revenue Model

Company DescriptionLENSAR, Inc. (LNSR) is a medical technology company specializing in the development and commercialization of advanced femtosecond laser systems for cataract surgery. Its flagship product, the LENSAR Laser System, is designed to provide precision and accuracy in cataract treatment, enhancing surgical outcomes and patient safety. The company operates within the healthcare sector, focusing on ophthalmology and leveraging cutting-edge technology to address the needs of eye care professionals and their patients.
How the Company Makes MoneyLENSAR generates revenue primarily through the sale and leasing of its LENSAR Laser System to ophthalmologists, hospitals, and surgical centers. The company also earns money from service agreements and maintenance contracts associated with its laser systems, ensuring continuous support and operational efficiency for its clients. Additionally, LENSAR may engage in strategic partnerships and collaborations with other companies in the ophthalmic industry to expand its market reach and enhance its technological offerings, contributing to its revenue growth.

LENSAR Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q4-2024)
|
% Change Since: -5.35%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in 2024, with record-breaking revenue growth, significant market share gains, and positive adjusted EBITDA. However, there is a notable decrease in recurring revenue percentage and a substantial net loss due to a non-cash charge. The company remains optimistic about future growth and market expansion.
Q4-2024 Updates
Positive Updates
Record-Breaking Revenue Growth
Fourth quarter top line revenue increased to $16.7 million, representing growth of 38% over Q4 2023. Full year revenue growth was 27% over 2023.
Significant Increase in ALLY System Placements
A total of 31 ALLY Systems were placed in the fourth quarter, with 20 in the U.S. This marks a new quarterly high for LENSAR.
Expansion into New Markets
Expansion in laser placements into Europe and Southeast Asia continued, with 24 systems placed since launching ALLY outside the U.S. after mid-August 2024.
Substantial Market Share Gain
LENSAR added an additional 7.5% share in procedures in the U.S., bringing the total share to almost 21%.
Positive Adjusted EBITDA
Achieved positive adjusted EBITDA of $478,000 in Q4 2024, marking the second consecutive quarter of positive adjusted EBITDA.
Strong Demand and Future Outlook
Confident in delivering strong financial results in 2025 with top line revenue growth expected to exceed 27%.
Negative Updates
Decrease in Recurring Revenue Percentage
Recurring revenue was approximately 64% of total revenue in Q4 2024, down from 73% in Q4 2023, due to increased ALLY System sales.
Net Loss Due to Non-Cash Charge
GAAP net loss of $18.7 million in Q4 2024, largely attributed to a $17.6 million noncash charge related to the increase in fair value of outstanding warrant liabilities.
Company Guidance
During the call, LENSAR provided an optimistic outlook for 2025, anticipating revenue growth exceeding the 27% achieved in 2024. The company reported a record fourth-quarter revenue of $16.7 million, marking a 38% increase from Q4 2023, driven by 31 ALLY System placements, including a U.S. record of 20 installations. The full-year revenue saw a 27% rise over 2023, with procedure volumes increasing 24% globally. LENSAR's market share in U.S. procedures grew by 7.5% over two years, reaching nearly 21%. The company ended 2024 with a backlog of 16 ALLY Systems expected to generate recurring revenue in 2025. LENSAR aims to achieve positive adjusted EBITDA for the full year of 2025, supported by strategic investments in commercial operations and a continued focus on expanding its market presence both domestically and internationally.

LENSAR Financial Statement Overview

Summary
LENSAR is experiencing revenue growth, yet struggles with persistent losses and financial instability. The company's negative equity and continuing operational losses pose significant risks, while cash flow issues reflect ongoing challenges in achieving sustainable financial health. The need for strategic improvements in profitability and balance sheet management is clear.
Income Statement
45
Neutral
LENSAR has demonstrated revenue growth, with a TTM increase of approximately 6.68% compared to the previous year. However, the company continues to face profitability challenges, as reflected in negative net profit and EBIT margins, standing at -99.17% and -16.49% respectively for the TTM. The gross profit margin is 47.45%, showing some strength in core operations, but the persistent losses are concerning.
Balance Sheet
30
Negative
The company's financial stability is concerning with a negative stockholders' equity of -$22.14 million, indicating insolvency risk. The debt-to-equity ratio is negative due to negative equity, complicating leverage analysis. The equity ratio is also negative. These factors highlight financial instability, despite manageable total liabilities relative to assets.
Cash Flow
40
Negative
LENSAR's cash flow situation is challenging, with negative free cash flow of -$4.05 million in the TTM and a negative free cash flow growth rate, suggesting cash generation issues. The operating cash flow to net income ratio is 0.069, indicating poor cash conversion of net losses. Continued reliance on financing activities is evident from cash inflows in this segment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.06M53.49M42.16M35.36M34.46M26.38M
Gross Profit27.08M25.85M21.11M19.95M17.83M14.07M
EBITDA-6.63M-5.97M-8.71M-16.77M-16.89M-15.87M
Net Income-56.59M-31.40M-14.38M-19.65M-19.65M-21.18M
Balance Sheet
Total Assets72.96M66.30M69.58M55.84M66.47M79.12M
Cash, Cash Equivalents and Short-Term Investments25.25M22.45M24.06M14.67M31.64M40.60M
Total Debt2.47M2.61M2.31M2.80M2.80M3.31M
Total Liabilities81.32M61.44M22.41M13.86M11.59M11.91M
Stockholders Equity-22.14M4.86M47.18M41.98M54.88M67.21M
Cash Flow
Free Cash Flow-4.05M-2.43M-9.89M-14.97M-9.32M-14.16M
Operating Cash Flow-3.91M-2.27M-9.66M-14.86M-8.97M-13.79M
Investing Cash Flow-404.00K-2.16M-4.16M-115.00K-354.00K-326.00K
Financing Cash Flow9.90M78.00K19.76M-1.99M361.00K50.00M

LENSAR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.09
Price Trends
50DMA
13.41
Negative
100DMA
13.26
Negative
200DMA
10.15
Positive
Market Momentum
MACD
-0.16
Negative
RSI
53.14
Neutral
STOCH
85.79
Negative
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 13.09 is above the 20-day moving average (MA) of 12.72, below the 50-day MA of 13.41, and above the 200-day MA of 10.15, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 85.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNSR.

LENSAR Risk Analysis

LENSAR disclosed 64 risk factors in its most recent earnings report. LENSAR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LENSAR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$182.82M25.4616.56%14.85%64.96%
57
Neutral
$210.43M-52.87%-4.16%12.79%
MYMYO
53
Neutral
$77.71M-35.68%69.17%39.01%
53
Neutral
$157.48M-76.01%25.62%11.86%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
48
Neutral
$152.26M-304.05%28.24%-334.39%
46
Neutral
$80.77M-94.65%-5.86%50.76%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LNSR
LENSAR
13.09
8.62
192.84%
ELMD
Electromed
20.32
6.11
43.00%
CTSO
Cytosorbents
1.00
0.09
9.89%
MYO
Myomo
2.08
-0.79
-27.53%
CVRX
CVRx
6.46
-5.91
-47.78%
SGHT
Sight Sciences
4.16
-2.04
-32.90%

LENSAR Corporate Events

M&A TransactionsShareholder Meetings
LENSAR Stockholders Approve Merger with Alcon Research
Positive
Jul 2, 2025

On July 2, 2025, LENSAR, Inc. held a virtual special meeting where stockholders voted on proposals related to a merger agreement with Alcon Research, LLC. The merger proposal, along with a compensation proposal for executives related to the merger, was approved by the requisite vote. The adjournment proposal was deemed unnecessary as there was a quorum present and sufficient proxies to approve the merger proposal.

The most recent analyst rating on (LNSR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on LENSAR stock, see the LNSR Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
FTC Extends Waiting Period for LENSAR Merger
Neutral
May 22, 2025

On March 23, 2025, LENSAR, Inc. entered into a merger agreement with Alcon Research, LLC, and its subsidiary, VMI Option Merger Sub, Inc., to become a wholly owned subsidiary of Alcon. However, on May 21, 2025, the Federal Trade Commission requested additional information, extending the waiting period for the merger under the Hart-Scott-Rodino Antitrust Improvements Act. LENSAR and Alcon plan to cooperate with the FTC, aiming to complete the merger in the second half of 2025, pending regulatory approval and other conditions.

The most recent analyst rating on (LNSR) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on LENSAR stock, see the LNSR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025