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RxSight (RXST)
NASDAQ:RXST
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RxSight
(NASDAQ:RXST)
51Neutral
Positive Factors
Financial Performance
RXST increased its gross margin from 43.5% to 70.7%, driven by higher-margin LAL sales, indicating strong financial performance.
International Expansion
RXST's planned launch in certain international markets positions the company to capitalize on faster adoption of premium IOLs outside the U.S.
Market Competition
RXST is the only company with an adjustable IOL on the market for several years, as Alcon is unlikely to have a competing product until at least 2030.
Negative Factors
Growth Deceleration
For 2025, RXST's sales estimates have been trimmed to $192M, suggesting a deceleration in both LDD placements and LAL utilization.
Stock Performance
RXST shares have decreased by 61% since reaching all-time highs, influenced by inline Q3/Q4 results and a challenging macro environment for high-growth, not yet profitable medtech companies.
Utilization Concerns
Investors are concerned about RXST's healthy utilization, as productivity growth has slowed from mid-teens to 6.7% year-over-year.
RxSight (RXST) vs. S&P 500 (SPY)
Market Cap
$1.08B
Dividend YieldN/A
Average Volume (3M)594.40K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth57.08%
EPS Growth49.93%
CountryUS
Employees498
SectorHealthcare
Sector Strength72
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.71
Shares Outstanding40,490,543
10 Day Avg. Volume536,534
30 Day Avg. Volume594,401
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.19
Price to Cash Flow (P/CF)-59.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.75Price Target Upside49.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
RxSight Business Overview & Revenue Model
Company DescriptionRxSight, Inc. (RXST) is a medical technology company specializing in the development and commercialization of advanced intraocular lens systems for cataract surgery. The company's flagship product, the RxSight Light Adjustable Lens (LAL), is the first and only FDA-approved intraocular lens that can be adjusted post-surgery to improve refractive outcomes. RxSight operates primarily in the ophthalmology sector, focusing on innovative solutions that enhance visual acuity for patients undergoing cataract procedures.
How the Company Makes MoneyRxSight generates revenue through the sale of its Light Adjustable Lens (LAL) and the associated Light Delivery Device (LDD) used to customize vision correction after cataract surgery. The company's revenue model is based on direct sales to ophthalmic surgeons and medical institutions, where they provide both the lens and the necessary equipment to perform the post-operative adjustments. RxSight also benefits from partnerships and collaborations with eye care professionals and clinics, which help expand its market reach and drive adoption of its technology. Additionally, the company may engage in research collaborations and licensing agreements to further enhance its product offerings and revenue potential.
RxSight Financial Statement Overview
Summary
RxSight shows promising revenue and gross profit growth, with a sound equity position. However, profitability and cash flow generation remain significant challenges, which the company needs to address to ensure long-term financial health. Investors should monitor the company's progress in achieving profitability and improving cash flow dynamics.Income Statement
RxSight has demonstrated strong revenue growth, with a 57% increase from 2023 to 2024. The gross profit margin improved to 70.7%, indicating efficient production and sales processes. However, the company remains unprofitable, with negative net and EBIT margins, pointing to ongoing challenges in controlling operating expenses.65
Positive
Balance Sheet
The balance sheet is characterized by a high equity ratio of 88.3%, suggesting strong capitalization. However, the company has no net debt, which is a positive sign, but the negative stockholders' equity in earlier years and fluctuating liabilities present potential risks, despite recent improvements in equity.55
Neutral
Cash Flow
Cash flow metrics highlight concerns, with zero operating cash flow in 2024, indicating challenges in generating cash from operations. Despite this, the company has managed to secure financing to support its activities, evidenced by positive financing cash flows. The absence of free cash flow growth is a concern for long-term sustainability.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 139.93M | 89.08M | 49.01M | 22.59M | 14.68M | Gross Profit |
| 98.94M | 53.77M | 21.33M | 4.52M | 1.71M | EBIT |
| -36.86M | -50.09M | -63.32M | -52.79M | -35.41M | EBITDA |
| -23.76M | -41.04M | -57.78M | -41.01M | 32.15M | Net Income Common Stockholders |
| -27.45M | -48.61M | -66.76M | -48.69M | 27.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 237.22M | 127.18M | 105.80M | 159.33M | 68.97M | Total Assets |
| 318.56M | 182.55M | 150.16M | 192.72M | 100.68M | Total Debt |
| 12.30M | 3.01M | 44.99M | 44.93M | 30.75M | Net Debt |
| -4.41M | -6.68M | 33.16M | 20.57M | 16.76M | Total Liabilities |
| 37.33M | 22.19M | 60.26M | 54.48M | 398.21M | Stockholders Equity |
| 281.24M | 160.36M | 89.90M | 138.24M | -297.53M |
| Cash Flow | Free Cash Flow | |||
| -22.39M | -46.41M | -61.24M | -46.65M | -37.74M | Operating Cash Flow |
| -16.95M | -41.59M | -58.85M | -44.71M | -35.20M | Investing Cash Flow |
| -99.31M | -22.13M | 39.95M | -81.91M | 15.59M | Financing Cash Flow |
| 123.32M | 61.52M | 6.33M | 137.34M | 25.24M |
RxSight Technical Analysis
Negative
26.56
Price Trends
29.01
Negative
34.75
Negative
43.19
Negative
Market Momentum
-1.02
Negative
40.99
Neutral
68.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXST, the sentiment is Negative. The current price of 26.56 is above the 20-day moving average (MA) of 25.54, below the 50-day MA of 29.01, and below the 200-day MA of 43.19, indicating a bearish trend. The MACD of -1.02 indicates Negative momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXST.
RxSight Risk Analysis
RxSight disclosed 87 risk factors in its most recent earnings report. RxSight reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RxSight Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.35B | 25.33 | 7.24% | 0.85% | 3.84% | -9.29% | |
73 Outperform | $16.75B | 40.51 | 5.25% | ― | 7.15% | 41.96% | |
60 Neutral | $11.66B | 28.25 | 11.26% | ― | 3.54% | -3.41% | |
55 Neutral | $1.01B | ― | -3.24% | ― | -11.45% | 57.20% | |
51 Neutral | $1.08B | ― | -12.43% | ― | 57.08% | 49.93% | |
51 Neutral | $877.50M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% |
* Healthcare Sector Average
Performance Comparison
RXST
RxSight
25.25
-25.17
-49.92%
ALGN
Align Tech
158.86
-153.21
-49.09%
COO
Cooper Co
84.35
-13.71
-13.98%
STAA
Staar Surgical
17.63
-21.92
-55.42%
ZBH
Zimmer Biomet Holdings
113.18
-14.16
-11.12%
EYE
National Vision Holdings
12.78
-8.15
-38.94%
RxSight Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -9.07% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue growth, gross margin expansion, and positive adjusted net income. However, the company continues to face net losses and increased operating expenses. The introduction of new product features and FDA approvals positions the company well for future growth.Highlights
Record Growth in Revenue and Sales
Fourth quarter 2024 revenue was $40.2 million, up 41% year-over-year. Full-year 2024 revenue grew by 57% to $139.9 million. A record 29,069 LALs were sold in Q4 2024, up 61% from Q4 2023.
Strong Gross Margin Expansion
Gross margin for Q4 2024 expanded to 71.6%, compared to 61.8% in Q4 2023. Full-year gross profit margin increased to 70.7% from 60.4% in 2023.
Significant Increase in Installed Base
Ended 2024 with an LDD installed base of 971 units, up 46% compared to 666 units at the end of 2023.
Successful Stock Raise
Raised $107.5 million net of fees and expenses from a confidentially marketed public offering, ending 2024 with $237.2 million in cash, cash equivalents, and short-term investments.
Positive Adjusted Net Income
Adjusted net income for Q4 2024 was $1.3 million or $0.03 per basic and diluted share.
FDA Approvals and New Product Features
Received FDA approval for an additional LDD functionality that allows customization of asphericity of LAL, scheduled for release in the second half of 2025.
Lowlights
Net Loss Reported
Net loss in Q4 2024 was $5.9 million, or $0.15 per share. Full-year 2024 net loss was $27.5 million, though improved from $48.6 million in 2023.
Increased Operating Expenses
Total operating expenses for full-year 2024 increased by 31% to $135.8 million, driven by higher SG&A and R&D expenses.
Company Guidance
During the fourth quarter of 2024 earnings call, RxSight, Inc. provided guidance for 2025, projecting full-year revenue to range between $185 million and $197 million, representing a year-over-year growth of 32% to 41%. The company expects its gross margin to be between 71% and 73%, reflecting an increase in revenue mix from higher-margin Light Adjustable Lens (LAL) procedures. Operating expenses are anticipated to rise by 22% to 25%, ranging from $165 million to $170 million, with significant investments in sales, marketing, and research and development, including stock-based compensation expenses of $22 million to $25 million. RxSight, Inc. aims to expand its presence in the premium cataract market, with continued growth driven by increased adoption of its adjustable intraocular lens technology and new advancements in its product offerings.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.