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    RXST
    Earnings call· Jun 2026(Q2 FY26)

    RxSight Q2 FY26 earnings call RXST

    Aug 5, 2026 Source

    Executive summary

    RxSight Q2 FY26 — Guidance Withdrawn Amid Strategic Review and Alcon Collaboration

    RxSight reported mixed Q2 FY26 results, with total revenue boosted by the Alcon collaboration but core product sales and LAL unit volumes declining year-over-year. The new CEO initiated a comprehensive business assessment, leading to the withdrawal of full-year guidance, with a commitment to resume formal guidance in early 2027. The company plans to double its US sales force and advance its next-generation lens pipeline, aiming to drive deeper utilization of its light adjustable lens technology.

    Highlights

    4

    • Total revenue reached $33.7 million, including $6.5 million from the Alcon collaboration.

    • Ended the quarter with strong cash, cash equivalents, and short-term investments of approximately $209 million.

    • Alcon collaboration provides $200 million in upfront and potential future milestone payments, with $60 million received post-quarter end.

    • Plans to double the US sales team over time to expand reach and support existing customers, funded by reallocation without meaningfully increasing overall operating expenses.

    Concerns

    4

    • Full-year 2026 financial guidance was withdrawn to allow for a thorough business assessment.

    • Product sales, excluding Alcon revenue, were $27.2 million, down 19% compared to the prior year period.

    • LAL unit volumes decreased 9% year-over-year to 24,917 units.

    • Gross margin, excluding the Alcon partnership, declined to 71.2% from 74.9% in the prior year period due to higher inventory-related costs.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2026 Financial Guidance
    Withdrawn
    high materiality
    High
    Revenue from Alcon Strategic Agreement
    $30 million to $40 million
    medium materiality
    High
    Formal Financial Guidance
    Will resume
    high materiality
    High

    Operational metrics

    16
    Total Company Revenue
    $33.7 million
    Q2 FY26

    Includes $6.5 million recognized in connection with the strategic collaboration agreement with Alcon.

    Product Sales
    $27.2 milliondown 19% compared to the prior year period
    Q2 FY26

    Reflecting heightened competitive trialing as well as broader marketplace headwinds.

    LAL Unit Volumes
    24,917down 9% compared to the prior year period
    Q2 FY26
    LAL Procedure Volume Sales
    $24.5 million
    Q2 FY26
    LDD Unit Placements
    12
    Q2 FY26
    Installed Base LDD Units
    1,166
    End of Q2 FY26
    Gross Margin
    71.2%compared with 74.9% in the prior year period
    Q2 FY26

    The year-over-year decline primarily reflected higher inventory-related costs due to slower-than-expected inventory flow-through.

    Gross Margin
    76.7%
    Q2 FY26

    Includes the favorable contribution of collaboration revenue.

    SG&A Expense
    $30.4 millionup 5% compared to the prior year period
    Q2 FY26

    Primarily reflecting legal and consulting expenses associated with the collaboration.

    R&D Expense
    $9.2 millioncompared to $10.2 million in the prior year period
    Q2 FY26

    Primarily due to lower personnel-related expenses.

    Net Loss
    $12.1 million
    Q2 FY26
    EPS (Basic and Diluted)
    $0.29
    Q2 FY26
    Adjusted Net Loss
    $4.6 million
    Q2 FY26
    Adjusted EPS
    $0.11
    Q2 FY26
    Cash, Cash Equivalents, and Short-term Investments
    $209 million
    End of Q2 FY26

    This amount does not include the $60 million upfront payment related to the partnership agreement that was received after quarter end.

    US Sales Team Size
    double
    Over time

    Expected to be funded primarily by reallocating resources within the organization and without meaningfully increasing overall operating expenses.

    Industry KPIs

    5
    MetricValueDetails
    System utilizationnot yet driving the level of procedure volume and utilization that we believe this platform is capable of achieving
    Procedure volume growthdown 9%%
    Installed base system placements1,166units
    Sales force commercial capacity builddoublecount
    Pivotal trial clinical evidence milestonesPhase four registry published in the Journal of Cataract and Refractive Surgery

    Deals & partnerships

    1
    AlconStrategic collaboration agreement for licensed intellectual property related to adjustable IOL technology.$200 million in upfront and potential future milestone paymentsLong-term royalties

    Provides external validation of RxSight's technology and broader potential, aiming to expand the offering of adjustability across a wider range of lenses and patients.

    Risks & headwinds

    5
    Heightened competitive trialing and ongoing product trialingQ2 FY26 and expected to influence performance through the remainder of the year.

    Contributed to 19% YoY decline in product sales (ex-Alcon) and 9% YoY decline in LAL unit volumes in Q2 FY26.

    Mitigation: New CEO's assessment to strengthen commercial team and drive deeper utilization.

    Broader marketplace headwindsQ2 FY26 and expected to influence performance through the remainder of the year.

    Contributed to 19% YoY decline in product sales (ex-Alcon) and 9% YoY decline in LAL unit volumes in Q2 FY26.

    Mitigation: New CEO's assessment to strengthen commercial team and drive deeper utilization.

    Typical Q3 seasonalityQ3 FY26

    Expected to influence performance.

    Mitigation: Not explicitly stated, but implied by strategic review and focus on long-term growth.

    Higher inventory-related costs due to slower-than-expected inventory flow-throughQ2 FY26

    Contributed to a decline in gross margin (ex-Alcon) to 71.2% from 74.9% YoY.

    Mitigation: Not explicitly stated, but likely part of the broader operational assessment.

    Patient affordabilityOngoing

    Discussed as a real factor affecting quarterly performance.

    Mitigation: Not explicitly stated, but implied by strategic review and focus on long-term growth.

    What to watch in Q3 FY26

    5

    Business Assessment Progress and Strategic Priorities

    Next quarterly update
    CurrentOngoing assessment by new CEO
    TargetGreater clarity regarding strategic priorities, actions, and milestones

    Why it matters

    This assessment will define the company's future direction and growth strategy, impacting all aspects of the business.

    As this work advances, we will provide greater clarity regarding our strategic priorities, the actions we're taking, and the milestones we will use to evaluate progress. We expect to provide more specificity in our next quarterly update.

    Q&A highlights

    6

    What attracted Aziz Motivala to RxSight, given his background in eye care?

    Motivala was drawn to RxSight's unique technology, which is considered a breakthrough in cataract surgery, and its potential to build a new category in eye care by transforming cataract surgery through adjustability. He noted similarities to his past experience in building new categories and the strong belief in the technology among thought leaders.

    “this is one of the biggest breakthroughs in cataract surgery technology... it's really solidified my belief that this is the future of cataract surgery.”

    asked by Robert Marcus · answered by Unknown Speaker

    2 min read6 chapters

    Detailed Narrative

    01

    New CEO's Initial Observations and Strategy

    Aziz Motivala, the new President and CEO, shared his initial observations after two weeks, emphasizing the compelling value of adjustability and physicians' high confidence in the technology. His immediate priorities include a thorough assessment of the business and commercial model, strengthening the commercial team, elevating execution and operating discipline, and advancing the internal pipeline of next-generation adjustable lenses.

    02

    Alcon Collaboration as Strategic Validation

    The recently announced collaboration with Alcon is highlighted as a major milestone, providing external validation of RxSight's technology and its broader potential. It also brings meaningful non-dilutive capital through $200 million in upfront and potential future milestone payments, along with significant long-term royalties. The focus is on achieving development milestones and advancing next-generation products to commercialization.

    03

    Withdrawal of Full-Year Guidance

    The company withdrew its full-year 2026 financial guidance to allow the new CEO flexibility to evaluate the business thoroughly and make decisions in the best long-term interest of the company. While underlying trends remain generally consistent with prior expectations, the assessment requires time, and formal guidance will resume in early 2027.

    04

    Core Business Performance and Headwinds

    Excluding the Alcon collaboration, Q2 product sales were $27.2 million, down 19% year-over-year, and LAL unit volumes were 24,917, down 9%. This decline was attributed to heightened competitive trialing and broader marketplace headwinds. The company noted quarter-to-date trends in Q3 are encouraged, but competitive activity, product trialing, and typical Q3 seasonality are expected to influence performance.

    05

    Focus on Driving Depth and Sales Force Expansion

    Management believes there's an opportunity to significantly enhance strategy and execution, particularly in driving procedure volume and utilization within the existing installed base. To address this, plans are approved to double the US sales team over time⏳, funded primarily by reallocating resources within the organization without meaningfully increasing overall operating expenses.

    06

    Future Product Pipeline and Market Opportunity

    The company continues to advance its internal pipeline of next-generation adjustable lenses designed to improve workflow, enhance performance, and expand the range of patients who can benefit. The CEO believes the market opportunity is significant, with patients increasingly demanding precise visual outcomes, which RxSight's technology is uniquely positioned to deliver.

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