Sight Sciences' Q1 2025: Unpacking Contradictions in TearCare, OMNI Dynamics, and Tariff Strategies

TearCare reimbursement progress, OMNI's market position and usage dynamics, device intensive status eligibility, tariff exposure mitigation strategies are the key contradictions discussed in Sight Sciences' latest 2025Q1 earnings call.



Surgical Glaucoma Performance:
- Sight Sciences reported $17.1 million in Surgical Glaucoma revenue for Q1 2025, a 6% decrease from the prior year.
- This decline was due to a 10% drop in account utilization, primarily caused by the impact of new Medicare LCD changes restricting multiple MIGS procedures.

Tariff Impact and Manufacturing Strategy:
- The company expects tariff increases to raise its cost of goods sold by between $3.5 million and $4.5 million for full year 2025.
- To mitigate this, Sight Sciences is establishing third-party manufacturing lines outside of China, with a new manufacturing line for OMNI Edge expected within 9 to 12 months.

Dry Eye Market Access:
- Dry Eye revenue in Q1 2025 was $0.4 million, down from $1 million in the same period last year.
- This decrease was due to a price increase on SmartLids to better reflect the value of TearCare procedures, with focus now on achieving reimbursement coverage.

Financial Guidance and Expense Reduction:
- Sight Sciences reaffirmed its 2025 revenue guidance of approximately $70 million to $75 million.
- Adjusted operating expenses for 2025 are expected to increase by 0% to 4% compared to 2024, reflecting ongoing fiscal discipline and cost controls to offset tariff impacts.