RxSight 2025 Q2 Earnings Wider Losses Amid Revenue Decline

RxSight (RXST) reported its Q2 2025 earnings on August 7, 2025. The company missed expectations with a revenue decline and significantly wider net losses compared to the prior year. RxSight maintained its full-year 2025 revenue guidance despite the underwhelming quarterly results.

Revenue
Total revenue for the quarter fell 3.6% to $33.64 million, compared to $34.89 million in the same period a year ago. The LAL segment remained the primary revenue driver, contributing $27.01 million, while LDD (including training) added $5.13 million. Additionally, the company generated $1.50 million from service warranties, service contracts, and accessories. Together, these segments accounted for the full $33.64 million in revenue.

Earnings/Net Income
Net losses widened considerably in Q2 2025, reaching $11.79 million, or $0.29 per share, compared to a $6.08 million, or $0.16 per share, loss in the prior-year period. This marked an 81.2% increase in per-share losses and a 93.9% rise in net losses. The company continues to post losses in the same quarter for the sixth consecutive year, underscoring persistent financial challenges.

Price Action
Despite the negative earnings report, RXST shares edged up 1.56% on the latest trading day and 0.13% for the week. However, the stock has declined sharply by 39.09% month-to-date.

Post-Earnings Price Action Review
A post-earnings investment strategy based on buying shares after a revenue increase quarter-over-quarter and holding for 30 days has proven highly ineffective over the past three years. This approach has delivered a -38.87% return, significantly underperforming the 51.69% benchmark. The strategy showed no drawdowns but also failed to capture any gains, resulting in a negative CAGR of -15.34% and an excess return of -90.56%.

CEO Commentary
Ron Kurtz, Chief Executive Officer and President of RxSight, emphasized the company’s focus on deepening engagement with its 1,084 installed LDDs and expanding the installed base. He highlighted the launch of a Customer Success Organization to improve onboarding and practice support, along with a realignment of the commercial structure and increased investments in clinical affairs, marketing, and education. Kurtz expressed optimism that these strategic moves will unlock the full clinical value of the LAL and drive long-term growth.

Guidance
RxSight reaffirmed its 2025 full-year revenue guidance of $120.0 million to $130.0 million, representing a 7% to 14% decline from 2024. The company expects gross margins to rise between 72% and 74%, up by 130 to 330 basis points year-over-year. Operating expenses are projected to climb to $145.0 million to $155.0 million, with $27.0 million to $30.0 million in non-cash stock-based compensation.

Additional News
Over the past three weeks, RxSight made several strategic announcements, though no new M&A activity or major executive changes were disclosed. The company is focusing on internal restructuring and operational improvements to enhance long-term performance. Notably, RxSight is not currently pursuing any major share repurchase programs or dividend policies. Instead, management is prioritizing resource reallocation to support clinical and commercial initiatives. These strategic shifts reflect the company’s commitment to addressing ongoing financial pressures while positioning itself for future growth.