RxSight, Inc. Announces Preliminary First Quarter 2025 Revenue and Revised 2025 Guidance

Rhea-AI Summary

RxSight (NASDAQ: RXST) announced preliminary Q1 2025 revenue of $37.9 million, showing 28% year-over-year growth but a 6% decrease from Q4 2024. The company reported selling 27,579 Light Adjustable Lenses, a 36% increase from Q1 2024, and 73 Light Delivery Devices, expanding the installed base to 1,044 LDDs (43% growth year-over-year).

Due to headwinds in the premium IOL market and broader economy, RxSight revised its 2025 guidance downward. The new full-year revenue guidance is $160.0-175.0 million (down from $185.0-197.0 million), representing 14-25% growth. Operating expenses are now projected at $150.0-160.0 million, reduced from $165.0-170.0 million, including non-cash stock-based compensation of $27.0-30.0 million.

Positive

• 36% increase in Light Adjustable Lens procedure volume year-over-year
• 43% expansion in LDD installed base compared to Q1 2024
• 28% year-over-year revenue growth in Q1 2025
• Reduced operating expense guidance showing cost control measures

Negative

• 6% sequential revenue decline from Q4 2024
• Significant downward revision in 2025 revenue guidance ($25M reduction at midpoint)
• Increased stock-based compensation expense guidance
• Headwinds affecting premium IOL market impacting LAL procedures

Insights

Financial Analyst

RxSight's preliminary Q1 revenue of $37.9 million shows 28% year-over-year growth but masks concerning trends that prompted a significant guidance reduction. The company has slashed its 2025 revenue forecast from $185-197 million to $160-175 million – representing a 13.5% reduction at the midpoint.

The 6% sequential revenue decline from Q4 2024 is particularly troubling given the expanding installed base of Light Delivery Devices (LDDs). This divergence between installed base growth (43% YoY) and revenue trajectory suggests deteriorating device utilization rates – a critical metric for recurring revenue streams in medical device business models.

Management's operating expense guidance reduction from $165-170 million to $150-160 million indicates cost-containment measures being implemented to protect margins amid slower growth. However, this approach could potentially constrain commercial execution capabilities when the company most needs to overcome market headwinds.

The revised guidance implies a significant growth deceleration, with projected 2025 growth now at 14-25%, substantially below what was previously expected. While still positive, this represents a material reset of expectations that will likely trigger valuation multiple compression as investors recalibrate RxSight's growth profile and path to profitability.

Medical Device Market Specialist

RxSight's guidance reduction reveals emerging challenges in premium ophthalmic procedure adoption that warrant serious investor attention. Despite expanding their LDD installed base to 1,044 units and growing LAL procedure volume by 36% year-over-year, the company is experiencing decelerating momentum that suggests fundamental market resistance.

CEO Ron Kurtz's reference to "headwinds affecting the overall premium IOL market" indicates this isn't merely a company-specific issue but rather a broader market dynamic. Premium intraocular lens procedures typically carry higher out-of-pocket costs for patients compared to standard cataract surgery, making them more susceptible to macroeconomic pressures affecting elective healthcare spending.

RxSight's strategic response – refining clinical education, supporting new customer business models, and advancing international expansion – addresses the right levers but will take time to yield results. The company's technology remains differentiated in allowing post-surgical adjustments, but clearly faces adoption hurdles beyond simply placing devices in practices.

The sequential decline in revenue despite continued installation of new systems suggests existing customers aren't achieving expected procedure volumes. This utilization gap represents the central challenge for RxSight's growth trajectory and will require enhanced practice integration support to overcome current market resistance in premium cataract procedures.

ALISO VIEJO, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- (NASDAQ: RXST) – RxSight, Inc., an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery, today announced select preliminary revenue results for the first quarter 2025 and revised full-year 2025 guidance. The Company will host a conference call on Thursday, April 3, 2025, at 8:00 a.m. Eastern Time.

Preliminary First Quarter 2025 Results

• Preliminary first quarter 2025 revenue is expected to be approximately $37.9 million, representing growth of 28% compared to the prior year period, and a decrease of 6% compared to the fourth quarter of 2024, driven by:
  • The sale of 27,579 Light Adjustable Lenses (LAL™/LAL+^®); representing a 36% increase in procedure volume compared to the first quarter of 2024; and
  • The sale of 73 Light Delivery Devices (LDD™s), bringing the installed base to 1,044 LDDs as of March 31, 2025, which represents a 43% expansion compared to the installed base of 732 LDDs at end of the first quarter of 2024.
    

“Given RxSight’s more significant installed base of surgeons and practices, we now must navigate headwinds affecting the overall premium IOL market and broader economy that were less impactful when our commercial footprint was much smaller,” said Dr. Ron Kurtz, Chief Executive Officer and President of RxSight. “Despite these dynamics, that particularly affected LAL procedures, we continued to make progress in the quarter by further expanding our installed base to 1,044 LDDs. To address current market conditions, as well as our long-term opportunity to transform the practice of premium cataract surgery, we will continue to refine our clinical education and practice adoption programs, support new customer business models, drive innovative product enhancements and advance international expansion.”

Revised 2025 Guidance

The company decreased its 2025 full-year revenue and operating expense guidance as follows:

• Revenue in the range of $160.0 million to $175.0 million, a decrease from the previous guidance range of $185.0 million to $197.0 million, representing implied growth of 14% to 25% compared to 2024;
• Operating expenses in the range of $150.0 to $160.0 million, a decrease from the previous guidance range of $165.0 million to $170.0 million and now representing an implied increase of 10% to 18% compared to 2024;
• Operating expenses also include non-cash stock-based compensation expense, which is now projected to be in the range of $27.0 million to $30.0 million, compared to the previous range of $22.0 million to $25.0 million.
  

The foregoing financial and operational results are preliminary estimates and complete, unaudited financial results for the first quarter of 2025 are expected to be announced on Wednesday, May 7, 2025.

Conference Calls

On Thursday, April 3, 2025, at 8:00 a.m. Eastern Time, the company will host a conference call to discuss its preliminary first quarter 2025 revenue results and revised full year guidance. To participate in the conference call, please dial (800) 715-9871 or (646) 307-1963 and enter the conference code: 4020145.

Separately, the company plans to report unaudited financial results for the first quarter of 2025 after the market close on Wednesday, May 7, 2025. Management will discuss these more comprehensive results during a conference call shortly following the announcement.

Both conference calls will also be broadcast live in listen-only mode via a link on the company’s investor relations website at https://investors.rxsight.com/. An archived recording of the calls will be available through the same link shortly after their completion.

About RxSight, Inc.

RxSight, Inc. is an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery. The RxSight^® Light Adjustable Lens system, comprised of the RxSight Light Adjustable Lens^® (LAL™/LAL+^®, collectively the “LAL”), RxSight Light Delivery Device (LDD™) and accessories, is the first and only commercially available intraocular lens (IOL) technology that can be adjusted after surgery, enabling doctors to customize and deliver high-quality vision to patients after cataract surgery. Additional information about RxSight can be found at www.rxsight.com.

Forward-Looking Statements

This press release contains forward-looking statements, including: statements concerning: headwinds affecting the overall premium IOL market and broader economy and the impact of a larger installed base on growth; the anticipated implementation of targeted actions to address current market conditions, including with respect to educational efforts, supporting new customer business models, driving innovative product enhancements and advancing international expansion; statements concerning the Company’s preliminary first quarter 2025 financial and operational results and the anticipated timing of announcing unaudited first quarter 2025 financial results; LDD and LAL sales growth trends; and the Company’s revised projected revenue, gross margin and operating expenses in 2025. Such statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, including those risks described in the Company’s prior press releases and the Company’s filings with the Securities and Exchange Commission (SEC), including in Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K for the year-ended December 31, 2024, filed with the SEC on February 25, 2025, and any subsequent filings with the SEC. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue” or the negative of such terms and other same terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.

The foregoing financial and operational results are preliminary estimates. RxSight is in the process of finalizing its financial statements for the first quarter of 2025, and its actual results remain subject to completion of those financial statements and their review by its independent registered public accounting firm. These preliminary estimates are based on information available to management as of the date of this press release and certain related assumptions, which could prove incorrect. RxSight’s actual, reported results of operations could differ based on completion of our quarter end closing procedures, final adjustments and developments that may arise prior to completion of its quarterly financial statements, and adjustments arising from the review by its independent registered public accounting firm. You should carefully review RxSight’s unaudited, consolidated financial statements for the first quarter of 2025 when they become available.

Company contact:
Shelley B. Thunen
Chief Financial Officer
sthunen@rxsight.com

Investor Relations Contact:
Oliver Moravcevic
VP, Investor Relations
omoravcevic@rxsight.com

FAQ

What is RxSight's (RXST) projected revenue growth for 2025?

RxSight projects 14-25% revenue growth for 2025, with revised guidance of $160.0-175.0 million, down from the previous $185.0-197.0 million range.

How many Light Adjustable Lenses did RXST sell in Q1 2025?

RxSight sold 27,579 Light Adjustable Lenses in Q1 2025, representing a 36% increase compared to Q1 2024.

What is RXST's current Light Delivery Device (LDD) installed base as of March 2025?

RxSight's LDD installed base reached 1,044 units as of March 31, 2025, representing 43% growth from 732 units in Q1 2024.

How much did RXST reduce its operating expense guidance for 2025?

RxSight reduced its 2025 operating expense guidance to $150.0-160.0 million from the previous $165.0-170.0 million range.

What was RXST's Q1 2025 revenue performance compared to previous quarters?

RXST reported Q1 2025 revenue of $37.9 million, showing 28% growth year-over-year but a 6% decrease from Q4 2024.