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    LNSR
    Earnings call· Jun 2026(Q2 FY26)

    LENSAR Q2 FY26 earnings call LNSR

    Aug 13, 2026 Source

    Executive summary

    LENSAR Q2 FY26 — Strong Revenue Growth and Record Adjusted EBITDA

    LENSAR delivered a strong second quarter, demonstrating resilience and renewed momentum following the terminated merger. The company achieved robust top-line growth, driven by expanding recurring revenue and increased utilization of its ALLY system, leading to record adjusted EBITDA. Management is focused on strategic investments in commercial efforts to further expand its installed base and recurring revenue business, positioning for sustainable long-term growth despite anticipated Q3 seasonality.

    Highlights

    6

    • Total revenue grew 18% year-over-year to $16.5 million.

    • Recurring revenue increased 20% year-over-year to $13.7 million, representing 83% of total revenue.

    • Procedure revenue increased 23% year-over-year to $10.2 million, driven by 13% procedure volume growth to 58,682 procedures.

    • Adjusted EBITDA reached a record $3.6 million, reflecting improved profitability and operating leverage.

    • U.S. procedure market share expanded to 24.1% in Q2 FY26, up from 23.4% in Q1 FY26 and 21.4% in Q2 FY25.

    • Placed 10 ALLY systems, increasing the ALLY installed base to approximately 215 systems worldwide, with 13 ALLY systems in backlog.

    Concerns

    2

    • Operating expenses are expected to trend modestly higher, approaching historical levels, as the company increases investment in commercial efforts.

    • Historically, cataract surgery procedures are lowest in Q3 due due to extended holidays and summer vacations, which may impact near-term volume.

    Operational metrics

    19
    Cash and cash equivalents
    $13.6 millioncompared to $18 million at the end of 2025
    Q2 FY26

    Balance sheet item.

    Gross margin
    59%compared to 50% in Q2 FY25
    Q2 FY26

    Reported gross margin, including tariff refund benefit.

    Gross margin (excluding tariff refund)
    52%
    Q2 FY26

    Gross margin adjusted for the $1.1 million tariff refund benefit.

    Tariff refund benefit
    $1.1 million
    Q2 FY26

    Benefit recorded in cost of goods sold.

    SG&A expenses
    $6.1 milliondeclined significantly year-over-year
    Q2 FY26

    Reflects the absence of $4.2 million of merger-related costs incurred during the prior year period.

    Operating expenses (total)
    $7.6 milliondeclined
    Q2 FY26

    Total operating expenses.

    Operating expenses trend
    modestly higher, approaching historical levels
    future quarters

    Expected trend due to increased investment in commercial efforts to support continued growth.

    R&D spending
    —
    Q2 FY26

    Remained focused on supporting the innovation pipeline.

    GAAP net income
    $3.5 millioncompared to a net loss of $1.8 million in Q2 FY25
    Q2 FY26

    Partially offset by lower noncash income associated with the change in the fair value of warrant liabilities.

    Adjusted EBITDA
    $3.6 millionstrongest quarterly adjusted EBITDA performance to date
    Q2 FY26

    Driven by higher revenue, lower operating expenses, and the $1.1 million tariff refund.

    Installed base (ALLY)
    approximately 215up 30% from a year ago
    Q2 FY26

    ALLY systems installed globally.

    Installed base (total)
    445up 9% year-over-year
    Q2 FY26

    Combined ALLY and legacy LENSAR laser systems, up from approximately 410 systems a year ago.

    ALLY systems placed
    10up from 7 placements in Q1 FY26
    Q2 FY26

    New ALLY system placements during the quarter.

    ALLY systems in backlog
    13
    end of Q2 FY26

    ALLY systems pending installation, providing visibility into future placements.

    ALLY share of total installed base
    nearly half
    Q2 FY26

    Significant milestone reflecting continued adoption of the next-generation platform.

    Procedures performed
    58,682up 13% from Q2 FY25 and 8% over Q1 FY26
    Q2 FY26

    Total procedures performed, reinforcing the strength of the recurring revenue model.

    Procedures per system (LENSAR laser systems)
    31%more procedures
    Q2 FY26

    Compared to MarketScope's stated national average of installed systems.

    U.S. procedure market share
    24.1%compared to 23.4% in Q1 FY26 and 21.4% in Q2 FY25
    Q2 FY26

    Market share expansion driven by installed base growth and utilization.

    Cataract surgery procedures (Q3 seasonality)
    lowest of the year
    Q3 FY26

    Historically, due to extended holidays in various regions and summer vacations in the U.S.

    Industry KPIs

    5
    MetricValueDetails
    Tariff impact$1.1 millionUSD
    System utilization31%%
    Procedure volume growth13%%
    Installed base system placements10 ALLY systems placedsystems
    Consumables recurring revenue mix$13.7 millionUSD

    Risks & headwinds

    2
    Operating expenses expected to trend higherfuture quarters

    modestly higher, approaching historical levels

    Mitigation: Strategic investments in commercial efforts to support continued growth.

    Seasonal slowdown in cataract surgery proceduresthird quarter

    lowest of the year

    What to watch in Q3 FY26

    5

    Operating Expense Trend

    next several quarters
    Current$7.6 million in Q2 FY26
    Targetmodestly higher, approaching historical levels

    Why it matters

    Management plans to increase investment in commercial efforts, which will impact profitability and growth trajectory.

    Looking ahead, we expect operating expenses to trend modestly higher, approaching historical levels as we begin to increase investment in commercial efforts to support continued growth.

    Q&A highlights

    5

    Inquired about the geographic split (US/OUS) of the 13 ALLY systems in backlog and whether US systems are sales or placements, and how this impacts Q3/Q4 expectations.

    Nicholas Curtis stated the backlog is a mix of OUS (primarily Q4 delivery due to holidays) and US systems (some sold, some placed). US installations are sometimes delayed by new facility construction.

    “So it's -- with everything. It's a little bit of both. We have some backlog with POs, as I may have mentioned in the previous quarter conference call for primarily fourth quarter delivery OUS, given the sort of the holiday season and whatnot that I mentioned towards the end of my remarks. And then some backlog in the U.S. with a few sold and placed systems.”

    asked by Frank Takkinen · answered by Nicholas Curtis

    2 min read6 chapters

    Detailed Narrative

    01

    Post-Merger Reset and Strategic Focus

    LENSAR successfully reset its operations as an independent company after the Alcon merger termination in Q1 FY26. The company is now focused on rebuilding commercial momentum, expanding its installed base, increasing utilization, growing recurring revenue, and strengthening surgeon relationships. Q2 performance, including 18% total revenue growth and record adjusted EBITDA, reflects this renewed focus and the team's diligence in quickly resetting operations.

    02

    Recurring Revenue and Utilization Growth

    A key highlight was the continued growth of recurring revenue, which increased 20% year-over-year to $13.7 million, comprising 83% of total revenue. This was driven by a 23% increase in procedure revenue to $10.2 million and a 13% rise in procedure volume to over 58,600 procedures. LENSAR laser systems performed 31% more procedures than MarketScope's stated national average of installed systems, reinforcing the strength of the recurring revenue model.

    03

    Market Share Expansion and ALLY Adoption

    LENSAR expanded its U.S. procedure market share to 24.1% in Q2 FY26, up from 23.4% in Q1 FY26 and 21.4% in Q2 FY25. The ALLY system continues to drive this growth, with 10 new placements in the quarter, bringing the ALLY installed base to approximately 215 systems worldwide. ALLY now accounts for nearly half of the global installed base, reflecting the continued adoption and technology differentiation surgeons are seeing from the next-generation platform.

    04

    Financial Performance and Profitability

    The company reported total revenue of $16.5 million, an 18% increase year-over-year. Gross margin was 59%, or 52% excluding a $1.1 million tariff refund. GAAP net income was $3.5 million, a significant improvement from a net loss of $1.8 million in Q2 FY25. Adjusted EBITDA reached a record $3.6 million, demonstrating operating leverage and disciplined cost management, despite lower noncash income from warrant liabilities.

    05

    Commercial Investments and Future Outlook

    Management plans to gradually increase operating expenses to support commercial efforts and growth initiatives, reflecting confidence in long-term opportunities. While Q3 is historically a weaker quarter for cataract procedures due to extended holidays and summer vacations, the company remains focused on expanding its installed base and recurring revenue model to drive sustainable growth and shareholder value. The current backlog of 13 ALLY systems provides visibility into future placements.

    06

    International Market Focus

    LENSAR is expanding its presence in Europe, including attending ESCRS in Q3 FY26, to educate surgeons and increase interest in the ALLY system. This investment highlights Europe's potential as an increasingly important market for the company, as it seeks to rebuild and accelerate its OUS distributor relationships, which were impacted by the terminated merger.

    AI-generated summary of the company’s earnings call. Not investment advice.