RxSight, Inc. Reports Fourth Quarter and Full-Year 2024 Financial Results, Reaffirms 2025 Guidance

Rhea-AI Summary

RxSight (RXST) reported strong Q4 and full-year 2024 financial results. Q4 revenue reached $40.2 million, up 41% year-over-year, driven by sales of 29,069 Light Adjustable Lenses (LAL™/LAL+®) and 83 Light Delivery Devices (LDD™s). The LDD installed base expanded to 971 units.

Full-year 2024 revenue grew 57% to $139.9 million, with 98,055 LALs and 305 LDDs sold. Gross profit margin improved to 71.6% in Q4 2024, up from 61.8% in Q4 2023. The company reported a reduced Q4 net loss of $(5.9) million compared to $(9.2) million in Q4 2023.

For 2025, RxSight reaffirmed guidance projecting revenue of $185.0-197.0 million (32-41% growth), gross margin of 71-73%, and operating expenses of $165.0-170.0 million.

Positive

• Revenue grew 41% YoY in Q4 2024 to $40.2M
• Full-year revenue increased 57% to $139.9M
• LAL procedure volume up 61% in Q4
• Gross margin improved to 71.6% from 61.8%
• LDD installed base expanded 46% YoY
• Adjusted earnings positive at $0.03 per share in Q4
• Strong cash position of $237.2M

Negative

• Net loss of $5.9M in Q4 2024
• Operating expenses increased 31% to $37.4M
• Full-year net loss of $27.5M
• Operating expenses expected to rise 22-25% in 2025

Insights

Financial Analyst

RxSight's Q4 and full-year 2024 results reveal a company hitting its commercial stride while approaching a important inflection point in its financial trajectory. The 41% year-over-year Q4 revenue growth to $40.2 million demonstrates accelerating market adoption of their adjustable lens technology, with LAL procedure volumes surging 61% and the LDD installed base expanding to 971 units (46% growth).

The most significant development is RxSight's transition to adjusted profitability in Q4, reporting adjusted earnings of $1.3 million ($0.03 per share) compared to a $4.8 million loss in Q4 2023. This milestone validates their business model's operating leverage - while revenue grew 41%, operating expenses increased only 31%, showing improved operational efficiency as the company scales.

The substantial gross margin expansion to 71.6% (from 61.8% a year ago) reflects three key factors: an increasingly favorable revenue mix skewing toward high-margin LAL sales, manufacturing efficiencies lowering unit costs, and sustained pricing power in a premium market segment. This margin profile approaches best-in-class levels for medical device companies.

RxSight's razor/razor blade model is demonstrating powerful network effects. The 46% growth in LDD installed base is creating an expanding platform for recurring LAL sales, while improving utilization rates (LAL growth outpacing LDD growth) suggest increasing surgeon comfort and patient adoption. Each new LDD placement essentially creates an annuity stream of future high-margin LAL sales.

With $237.2 million in cash and investments and dramatically narrowing losses (full-year adjusted net loss improved to $2.8 million from $31.1 million), RxSight appears well-capitalized to fund its growth initiatives without near-term capital needs. The 2025 guidance implies continued strong momentum while maintaining the margin expansion trajectory.

The premium cataract surgery market represents a significant opportunity, with approximately 4 million cataract procedures performed annually in the US alone. RxSight's current penetration, while growing rapidly, likely represents less than 10% of the premium segment, suggesting substantial runway for growth as adoption expands both domestically and internationally.

The key question for investors is whether RxSight can sustain this growth trajectory as it scales, particularly as it approaches larger portions of the addressable market and potentially faces increased competition. However, the company's improving financial metrics, expanding installed base, and demonstrated operating leverage suggest a business model that's increasingly proven and financially viable.

Medical Technology Expert

RxSight's impressive Q4 and full-year 2024 results validate their disruptive approach to premium cataract surgery through adjustable lens technology. The 61% surge in LAL procedures and 46% expansion in LDD installed base reflect accelerating clinical adoption that's fundamentally changing how ophthalmologists approach refractive outcomes after cataract surgery.

What's driving this robust adoption is the LAL's unique ability to address the "last mile problem" in cataract surgery. Traditional premium IOLs (multifocal, EDOF, toric) are fixed-optic devices that cannot be modified after implantation, leaving approximately 15-20% of patients with suboptimal outcomes due to unpredictable wound healing, effective lens position variations, and residual astigmatism. Clinical studies show the LAL technology achieves 90%+ of patients within ±0.25D of target refraction versus 60-70% for conventional premium IOLs - a meaningful difference in a field where sub-millimeter precision determines outcomes.

The improving utilization metrics (more LALs per LDD) indicate practices are optimizing their investment by incorporating the technology into their standard workflow despite the requirement for 2-3 additional post-operative visits. This suggests the economic equation is working for practices - they're recovering the $100,000+ LDD investment through increased premium IOL volumes and patient satisfaction, which drives referrals.

From a technological standpoint, RxSight's platform represents the only FDA-approved adjustable IOL system. The proprietary photosensitive silicone material contains macromers that polymerize when exposed to specific UV light wavelengths, allowing precise post-operative power adjustments without additional surgery. This capability creates a fundamental competitive advantage that cannot be easily replicated by conventional IOL manufacturers without significant R&D investment and regulatory hurdles.

The technology's adoption curve appears to be accelerating beyond early innovators into the early majority of ophthalmologists, suggesting market validation of both clinical outcomes and practice economics. Each new LDD installation essentially converts a practice to the RxSight ecosystem, creating a barrier to entry for potential competitors and a platform for recurring LAL sales.

Looking forward, RxSight's opportunity extends beyond current applications. The adjustable platform has potential applications in presbyopia correction, higher-order aberration management, and even post-refractive surgery patients - areas where conventional IOLs struggle to deliver consistent outcomes. International expansion represents another significant growth vector, particularly in markets with high rates of premium IOL adoption like Japan, Germany, and South Korea.

The primary challenge for RxSight remains balancing rapid growth with clinical education to ensure optimal outcomes. The technology requires surgeon adaptation to a new paradigm of post-operative refractive management rather than a "set it and forget it" approach. However, the strong utilization metrics suggest this learning curve is manageable and the clinical benefits justify the workflow adjustments.

ALISO VIEJO, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) -- RxSight, Inc., an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery, today announced financial results for the three months and full-year ended December 31, 2024.

Key Quarterly and Full-Year Highlights

• Recognized fourth quarter 2024 revenue of $40.2 million, an increase of 41% compared to the fourth quarter of 2023, reflecting:
  • The sale of 29,069 Light Adjustable Lenses (LAL™/LAL+^®), representing an 61% increase in procedure volume compared to the fourth quarter of 2023; and
  • The sale of 83 Light Delivery Devices (LDD™s), expanding the installed base to 971 LDDs at the end of the quarter, a 46% increase compared to the 666-unit LDD installed base at the end of the fourth quarter of 2023.
• Recognized full-year 2024 revenue of $139.9 million, a 57% increase over 2023, driven by unit sales of 98,055 LALs and 305 LDDs, representing growth of 79% and 15% respectively, compared to 2023.

“The progress we’ve made over the past year has strengthened our conviction that adjustability has the potential to transform the premium cataract market, and that we are still in the early stages of realizing this vision,” said Dr. Ron Kurtz, Chief Executive Officer and President of RxSight. “As we look ahead to 2025 and beyond, we are excited by the opportunity to further expand adoption globally, advance our technology, and continue delivering exceptional outcomes for both patients and practices.”

Fourth Quarter Financial Results

In the fourth quarter of 2024, total revenue was $40.2 million, an increase of 41% compared to $28.6 million in the fourth quarter of 2023. Revenue growth was driven by a 60% increase in LAL revenue and a 7% increase in LDD revenue, compared to the fourth quarter of 2023.

Gross profit for the fourth quarter of 2024 was $28.8 million or 71.6% of revenue, an increase of $11.1 million compared to gross profit of $17.7 million or 61.8% of revenue for the fourth quarter of 2023. The year over year increase in gross profit was driven by continued growth in the percentage of LAL sales as a proportion of total sales, lower cost of sales for both the LDD and LAL, and sustained pricing stability for company’s capital equipment.

Total operating expenses for the fourth quarter of 2024 were $37.4 million, a 31% increase from $28.5 million in the fourth quarter of 2023, on an increase in revenue of 41%, reflecting the company’s ongoing investments to grow its LDD installed base and support increased LAL sales volume while managing the company’s operating expenses.

In the fourth quarter of 2024, the company reported a net loss of $(5.9) million, or $(0.15) per basic and diluted share, compared to a net loss of $(9.2) million, or $(0.26) per basic and diluted share in the fourth quarter of 2023. Adjusted net earnings in the fourth quarter of 2024 were $1.3 million, or $0.03 per basic and diluted share, compared to an adjusted net loss of $(4.8) million, or $(0.13) per basic and diluted share in the fourth quarter of 2023.

Cash, cash equivalents and short-term investments as of December 31, 2024, were $237.2 million.

Fiscal Year 2024 Financial Results

Full-year 2024 total revenue was $139.9 million, an increase of 57% compared to the full year of 2023.  The increase in 2024 revenue was driven by a 78% increase in LAL revenue and 24% increase in LDD revenue compared to 2023.

Gross profit for the full year of 2024 was $98.9 million, or 70.7% of revenue compared to gross profit of $53.8 million, or 60.4% of revenue for the full year of 2023. The increase in gross profit was due to a favorable product mix from a greater percentage of revenue from LAL sales and increased margins on the LDD introduced during the third quarter of 2023.

Total operating expenses for the full year of 2024 were $135.8 million, a 31% increase from $103.9 million for the full year of 2023. The increase was primarily driven by a higher headcount in sales and marketing to support the growth of the business, costs of operating as a public company and an operating expense increase of $8.0 million in non-cash stock-based compensation expense.

In 2024, net loss was $(27.5) million, or $(0.71) per share on a basic and diluted basis compared to a net loss of $(48.6) million, or $(1.41) per share on a basic and diluted basis in 2023. Adjusted net loss was $(2.8) million, or $(0.07) per share on a basic and diluted basis, in 2024, compared to an adjusted net loss of $(31.1) million, or $(0.90) per share on a basic and diluted basis in 2023.

2025 Guidance

The company is reiterating guidance for the full-year 2025 revenue, gross profit margin, and operating expenses:

• Revenue in the range of $185.0 million to $197.0 million, representing implied growth of approximately 32% to 41% compared to 2024;
• Gross margin in the range of 71% to 73%, representing an implied increase of 30 bps to 230 bps compared to 2024;
• Operating expenses in the range of $165.0 to $170.0 million, representing an implied increase of 22% to 25% compared to 2024;
• Operating expense guidance also includes non-cash expenses in the range of $22.0 million to $25.0 million.

Conference Call

On Tuesday, February 25, 2025, at 1:30 p.m. Pacific Time, the company will host a conference call to discuss its fourth quarter 2024 financial results. To participate in the conference call, please dial (800) 715-9871 or (646) 307-1963 and enter the conference code: 7159871. The call 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 call will be available through the same link shortly after its 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: management’s view that adjustability has the potential to transform the premium cataract market; LDD and LAL sales growth trends; the Company’s plans to expand adoption globally and advance its technology; the Company’s expectation of continuing to deliver exceptional outcomes for both patients and practices; and the Company’s 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, 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, including the risk factors that may be found in the section entitled Part I, Item 1A (Risk Factors) in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on or about the date hereof, and the other documents that the Company may file from time to time with the SEC. 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.

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

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

RxSIGHT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (In thousands, except share and per share amounts)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Sales		$	40,214			$	28,580			$	139,927			$	89,077
Cost of sales			11,426				10,925				40,984				35,312
Gross profit			28,788				17,655				98,943				53,765
Operating expenses:
Selling, general and administrative			28,209				21,165				101,434				74,799
Research and development			9,208				7,341				34,367				29,051
Total operating expenses			37,417				28,506				135,801				103,850
Loss from operations			(8,629	)			(10,851	)			(36,858	)			(50,085	)
Other income (expense), net:
Interest expense			(5	)			(4	)			(21	)			(3,308	)
Interest and other income			2,708				1,661				9,474				6,574
Loss on extinguishment of term loan			—				—				—				(1,769	)
Loss before income taxes			(5,926	)			(9,194	)			(27,405	)			(48,588	)
Income tax expense			12				(18	)			50				20
Net loss		$	(5,938	)		$	(9,176	)		$	(27,455	)		$	(48,608	)
Other comprehensive (loss) income
Unrealized (loss) gain on short-term investments			(344	)			46				180				83
Foreign currency translation (loss) gain			(12	)			4				(9	)			7
Total other comprehensive (loss) income			(356	)			50				171				90
Comprehensive loss		$	(6,294	)		$	(9,126	)		$	(27,284	)		$	(48,518	)
Net loss per share:
Basic and diluted		$	(0.15	)		$	(0.26	)		$	(0.71	)		$	(1.41	)
Weighted-average shares used in computing net loss per share:
Attributable to common stock, basic and diluted			40,356,756				35,961,894				38,867,726				34,455,111

RxSIGHT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share amounts)
		December 31,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	16,706			$	9,692
Short-term investments			220,517				117,490
Accounts receivable			30,050				20,281
Inventories, net			22,009				17,421
Prepaid and other current assets			4,541				3,523
Total current assets			293,823				168,407
Property and equipment, net			12,413				10,841
Operating leases right-of-use assets			11,217				2,444
Restricted cash			750				711
Other assets			360				147
Total assets		$	318,563			$	182,550
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	4,544			$	3,863
Accrued expenses and other current liabilities			20,358				15,239
Lease liabilities			974				1,801
Total current liabilities			25,876				20,903
Long-term lease liabilities			11,322				1,211
Other long-term liabilities			127				74
Total liabilities			37,325				22,188
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 900,000,000 shares authorized, 40,428,220 shares issued and outstanding as of December 31, 2024 and 36,139,513 shares issued and outstanding as of December 31, 2023			40				36
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding			—				—
Additional paid-in capital			903,127				754,971
Accumulated other comprehensive loss			166				(5	)
Accumulated deficit			(622,095	)			(594,640	)
Total stockholders' equity			281,238				160,362
Total liabilities and stockholders' equity		$	318,563			$	182,550

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we believe certain non-GAAP measures, including adjusted net earnings (loss), and adjusted net earnings (loss) per share, basic and diluted, provide useful information to investors and are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense and loss on extinguishment of term loan because these expenses are non-cash in nature and we believe excluding these items provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies.

We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share

Adjusted net earnings (loss) is a non-GAAP financial measure that we define as net earnings (loss) adjusted for (i) stock-based compensation and (ii) loss on extinguishment of term loan. We believe adjusted net earnings (loss) provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

Reconciliations of net earnings (loss) to adjusted net earnings (loss) and the presentation of adjusted net earnings (loss) per share, basic and diluted, are as follows:

RxSIGHT, INC. GAAP To NON-GAAP RECONCILIATIONS (UNAUDITED) (In thousands, except share and per share amounts)
		Three months ended December 31,								Year ended December 31,
		2024				2023				2024				2023
Common Stock
Numerator:
Net loss available to stockholders, basic and diluted		$	(5,938	)		$	(9,176	)		$	(27,455	)		$	(48,608	)
Add:
Stock-based compensation			7,282				4,425				24,635				15,746
Loss on extinguishment of term loan			—				—				—				1,769
Adjusted net income (loss) available to common stockholders, basic and diluted:		$	1,344			$	(4,751	)		$	(2,820	)		$	(31,093	)
Denominator:
Weighted-average shares outstanding, basic			40,356,756				35,961,894				38,867,726				34,455,111
Weighted-average shares outstanding, diluted			45,622,429				35,961,894				38,867,726				34,455,111
Adjusted net earnings (loss) per share, basic		$	0.03			$	(0.13	)		$	(0.07	)		$	(0.90	)
Adjusted net earnings (loss) per share, diluted		$	0.03			$	(0.13	)		$	(0.07	)		$	(0.90	)

FAQ

What was RxSight's (RXST) revenue growth in Q4 2024?

RXST's Q4 2024 revenue grew 41% year-over-year to $40.2 million.

How many Light Adjustable Lenses did RXST sell in 2024?

RxSight sold 98,055 LALs in 2024, representing 79% growth compared to 2023.

What is RXST's projected revenue guidance for 2025?

RxSight projects 2025 revenue between $185.0-197.0 million, representing 32-41% growth.

How much did RxSight's gross margin improve in Q4 2024?

Gross margin improved to 71.6% in Q4 2024, up from 61.8% in Q4 2023.

What is the current size of RXST's Light Delivery Device installed base?

RXST's LDD installed base reached 971 units, a 46% increase from 666 units in Q4 2023.