RxSight, Inc.

Previous wording

We compete primarily in the IOL market in the U.S. The LAL is a premium IOL which is partially reimbursable under Medicare, and in some cases by private payors. Premium IOLs are sold at a higher price point than conventional IOLs, as they provide refractive correction of vision unlike a conventional IOL that only replaces the natural lens with a clear lens (which is the standard for Medicare reimbursement). Our RxSight system is approved in the U.S., Europe, Canada and Mexico for improving uncorrected visual acuity by adjusting the LAL power to correct residual postoperative refractive error. We may selectively pursue commercial expansion in these or other geographies that accept these approvals in the future, with a priority on markets where we see significant potential opportunities. New approvals may also be sought in large foreign cataract markets with more complex regulatory processes such as Asia and Europe.

Current wording

We compete primarily in the IOL market in the U.S. The LAL is a premium IOL which is partially reimbursable under Medicare, and in some cases by private payors. Premium IOLs are sold at a higher price point than conventional IOLs, as they provide refractive correction of vision unlike a conventional IOL that only replaces the natural lens with a clear lens (which is the standard for Medicare reimbursement). Our RxSight system is approved in the U.S., the European Union, South Korea, Singapore, Canada and Mexico for improving uncorrected visual acuity by adjusting the LAL power to correct residual postoperative refractive error. We may selectively pursue commercial expansion in these or other geographies that accept these approvals in the future, with a priority on markets where we see significant potential opportunities. New approvals may also be sought in large foreign cataract markets with more complex regulatory processes such as Asia and Europe.

Previous wording

We are a Delaware corporation headquartered in Aliso Viejo, California with one wholly owned subsidiary located in Amsterdam, Netherlands. The wholly owned subsidiary has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany.

Current wording

We are a Delaware corporation headquartered in Aliso Viejo, California with two wholly owned subsidiaries located in Hong Kong (“RxSight, Limited”) and in Amsterdam, Netherlands (“RxSight, B.V.”). RxSight, B.V. has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany (“RxSight GmbH”).

Previous wording

Our commercial efforts began in 2019 and have been primarily focused in the United States, where we are building a “razor and razor blade” business model to drive new customer adoption and ongoing LAL volume growth. Our United States commercial organization includes a direct sales team of LDD sales personnel and LAL account managers, as well as clinical specialists, field service engineers and marketing personnel. Our sales efforts are concentrated on the roughly 3,500 U.S. cataract surgeons that perform 70%-80% of all premium IOL procedures. As of March 31, 2025, we had established an installed base of 1,044 LDDs in ophthalmology practices and, since our inception through March 31, 2025, surgeons have implanted approximately 223,000 LALs.

Current wording

Our commercial efforts began in 2019 and have been primarily focused in the United States, where we are building a “razor and razor blade” business model to drive new customer adoption and ongoing LAL volume growth. Our United States commercial organization includes a direct sales team of LDD sales personnel and LAL account managers, as well as clinical specialists, field service engineers and marketing personnel. Our sales efforts are concentrated on the roughly 3,500 U.S. cataract surgeons that perform 70%-80% of all premium IOL procedures. As of June 30, 2025, we had established an installed base of 1,084 LDDs in ophthalmology practices and, since our inception through June 30, 2025, surgeons have implanted approximately 250,000 LALs.

Previous wording

We believe this business model provides an attractive and concentrated market opportunity addressable with a focused sales force. We intend to continue to make significant investments in our sales and marketing organization. We believe selectively increasing the number of sales representatives, practice development personnel and clinical trainers will help facilitate further adoption of our products among existing customer accounts as well as broaden awareness of our products to new accounts. We plan to grow our business primarily by expanding the size of our LDD installed base and driving increased utilization of our LAL through heightened awareness of the superior clinical outcomes that our RxSight system provides patients. To continue to strengthen our competitive position in the premium IOL market, our research and development activities are focused primarily on programs that improve clinical outcomes, improve customer experience, expand our indications for use, reduce manufacturing costs and lifecycle management.

Current wording

We believe this business model provides an attractive and concentrated market opportunity addressable with a focused sales force. We intend to continue to make significant investments in our sales, marketing, clinical and practice development organizations. We recently realigned our commercial structure by unifying our LAL sales and clinical support personnel into a single Customer Success Organization. Each team within the Customer Success Organization is responsible for a defined group of doctors and practices, managing the customer experience from onboarding through long-term LAL utilization growth. The majority of employees in our approximately 200-person commercial organization are in the Customer Success Organization. Our LDD sales team remains focused on selling to new high-potential accounts. Once onboarded, new RxSight customers are transitioned to the Customer Success Organization, that is responsible for clinical education and execution and sustained growth in LAL use. We plan growing our business by both increasing the adoption of the LAL and expanding the size of our LDD installed base. To further strengthen our competitive position in the premium IOL market, our research and development activities are focused primarily on programs that aim to improve clinical outcomes, improve customer experience, expand our indications for use, reduce manufacturing costs and support lifecycle management.

Previous wording

We intend to continue to make investments in our sales and marketing organization, primarily sales representatives, clinical applications specialists and technical service personnel to support new customers and upgrades and LAL account managers to facilitate adoption of use of our LALs among existing accounts. We will expand our marketing efforts with additional print and digital, social media and other customer tools to expand their local advertising. We will also continue to make significant investments in research and development and clinical expenses to make enhancements in our current products. Additionally, as a public company, we have incurred and expect to continue to incur increased costs for employee-related expenses, director and officer insurance premiums, audit fees (including costs for compliance with Section 404(b) of the Sarbanes-Oxley Act), legal fees, investor relations fees, fees to members of our Board of Directors, and expenses for compliance with public-company reporting requirements. Because of these and other factors, we expect to continue to incur net losses and negative cash flows from operations in the near future.

Current wording

We intend to continue to make investments in our sales and marketing organization, including personnel in clinical applications, practice development, sales and technical service personnel. We will expand our marketing efforts though additional print and digital, social media, education and other customer tools to drive further adoption of the RxSight system. We will also continue to make significant investments in research and development and clinical expenses to make enhancements in our current products. Additionally, as a public company, we have incurred and expect to continue to incur increased costs for employee-related expenses, director and officer insurance premiums, audit fees, costs for compliance with Section 404(b) of the Sarbanes-Oxley Act, legal fees, investor relations fees, fees to members of our Board of Directors, and expenses for compliance with public-company reporting requirements. Because of these and other factors, we expect to continue to incur net losses and negative cash flows from operations in the near future.

Previous wording

During the quarter ended March 31, 2025, we had increased LDD sales of 7 and increased LAL sales of 7,361 when compared to the quarter ended March 31, 2024 from strong adoption of our RxSight technology by practices and doctors combined with an increased LDD installed base.

Current wording

During the quarter ended June 30, 2025, we sold 40 LDD's which was a decrease of 38 when compared to the prior year period due to slower adoption of our RxSight technology by practices and doctors. LAL sales increased by 3,166 when compared to the quarter ended June 30, 2024 primarily due to an increased LDD installed base.

Previous wording

Our sales consist of the sale of LALs used in cataract surgeries, the LDDs for delivering light to the LALs to adjust the lens post-surgery, as needed, and service and accessories. Revenue is derived from sales of products primarily in the United States. Customers are primarily comprised of ophthalmic practices (LDD sales) and ambulatory surgery centers (LAL sales). We expect revenue to increase in absolute dollars as we expand our sales organization and sales territories, add customers, expand the base of doctors that are trained to use our products, and expand awareness of our products with new and existing customers and as doctors perform more procedures using our products.

Current wording

Our sales consist of the sale of LALs used in cataract surgeries, the LDDs for delivering light to the LALs to adjust the lens post-surgery, as needed, and service and accessories. Revenue is derived from sales of products mainly in the United States. Customers are primarily comprised of ophthalmic practices (LDD sales) and ambulatory surgery centers (LAL sales). While sales declined in the first and second quarters of 2025 following several years of rapid growth, we expect to return to revenue growth in absolute dollars. In order to increase LAL use at our current customers, we recently realigned our commercial structure by unifying our LAL sales and clinical support personnel into a single Customer Success Organization. Each team within the Customer Success Organization is responsible for a defined group of doctors and practices, overseeing customer experience from initial onboarding through ongoing efforts to drive long-term utilization growth. Our LDD sales team remains focused on acquiring new high-potential accounts, that are subsequently transitioned to the Customer Success Organization for clinical support, education, and to maximize long-term utilization and growth and LAL use. We also plan to continue to grow our business by expanding the size of our LDD installed base.

Previous wording

LALs are held at customer sites on consignment. Revenue is recognized for LALs upon customer notification that the LALs have been implanted in a patient.

Current wording

In the U.S. LALs are held at customer sites on consignment. Revenue is recognized for LALs upon customer notification that the LALs have been implanted in a patient. Outside the U.S., generally, LALs are held at distributor sites and distributor customer locations, with revenue recognized for LALs upon the distributor notification that the LALs have been implanted in a patient.

Previous wording

For the three months ended March 31, 2025 and 2024, revenue from contracts with customers consisted of the following (in thousands):

Current wording

For the three and six months ended June 30, 2025 and 2024, revenue from contracts with customers consisted of the following (in thousands):

Previous wording

For the three months ended March 31, 2025 and 2024 we did not have any one customer who individually accounted for more than 10% of revenue.

Current wording

For the three and six months ended June 30, 2025 and 2024 we did not have any one customer who individually accounted for more than 10% of revenue.

Previous wording

Our LDD, as is typical of many medical device capital equipment products, has a low gross margin, as the material cost of the LDD is a significant portion of the total cost to manufacture. In addition, we do not mark up our LDD substantially because LDDs, once sold, can generate LAL procedures. Our LAL gross margin is higher, with low material cost but high fixed overhead costs. As our manufacturing volume of the LAL increases, we expect gross margin may improve significantly.

Current wording

Our LDD, as is typical of many medical device capital equipment products, has a low gross margin, as the material cost of the LDD is a significant portion of the total cost to manufacture. In addition, we do not mark up our LDD substantially because LDDs, once sold, can generate LAL procedures. Our LAL gross margin is higher, with low material cost but high fixed overhead costs. When our manufacturing volume of the LAL increases, we expect improved gross margin.

Previous wording

SG&A expenses increased by $5.3 million, or 22.8%, to $28.6 million for the three months ended March 31, 2025, from $23.3 million for the three months ended March 31, 2024. This increase was primarily attributable to an increase in selling and marketing costs of $4.7 million mainly due to $1.7 million from increased salaries from increased headcount of 51, $1.7 million due to additional post market study costs and $0.9 million of increased stock-based compensation expense, in each case when compared to the three months ended March 31, 2024. General and administrative expenses increased $0.6 million primarily due to increased stock-based compensation expenses of $0.6 million, when compared to the three months ended March 31, 2024.

Current wording

SG&A expenses increased by $4.7 million, or 19.3%, to $29.0 million for the three months ended June 30, 2025, from $24.3 million for the three months ended June 30, 2024. This increase was primarily attributable to an increase in selling and marketing costs of $4.3 million, mainly due to increased compensation and benefits of $1.1 million from increased headcount of 26, $0.9 million of increased stock-based compensation expense and $0.7 million primarily due to additional post market studies, in each case when compared to the three months ended June 30, 2024. General and administrative expenses increased $0.4 million due to increased stock-based compensation of $0.6 million partially offset by $0.3 million of lower audit and audit related expenses in each case when compared to the three months ended June 30, 2024.

Previous wording

Research and development expenses increased by $2.3 million, or 29.1%, to $10.4 million for the three months ended March 31, 2025, from $8.0 million for the three months ended March 31, 2024. This increase was primarily attributable to $1.4 million due to increased facility costs, $0.7 million from increased stock-based compensation and $0.9 million in increased personnel costs which were partially offset by $0.6 million in lower post-market study costs when compared to the three months ended March 31, 2024.

Current wording

Research and development expenses increased by $1.9 million, or 23.2%, to $10.2 million for the three months ended June 30, 2025, from $8.2 million for the three months ended June 30, 2024. This increase was primarily attributable to $1.0 million due to increased overhead costs, $0.7 million from increased stock-based compensation and $1.1 million in increased personnel costs when compared to the three months ended June 30, 2024.

Previous wording

Cost of sales increased by $0.7 million, or 8.4%, to $9.5 million for the three months ended March 31, 2025, from $8.8 million for the three months ended March 31, 2024, primarily due to the increase in the number of LALs and LDDs sold during the period. Gross margin increased to 74.8% in the three months ended March 31, 2025, from 70.1% for the three months ended March 31, 2024, primarily due to improved operating leverage, favorable product mix from a greater percentage of revenue from LAL sales, and increased margins on our LDD due to lower material costs.

Current wording

Cost of sales decreased by $1.5 million, or 7.5%, to $18.0 million for the six months ended June 30, 2025 from $19.5 million for the six months ended June 30, 2024, primarily due to the decrease in the number of LDDs sold during the period. Gross margin increased to 74.8% for the six months ended June 30, 2025 from 69.8% for the six months ended June 30, 2024, primarily due to favorable product mix from a greater percentage of revenue from LAL sales and increased margins on our LDD due to lower material costs.

Previous wording

Other income (expense), net, increased $0.9 million to income of $2.5 million for the three months ended March 31, 2025, compared to income of $1.5 million for the three months ended March 31, 2024. The increase was primarily due to increased interest income of $0.9 million from increased cash and short-term investment balances.

Current wording

Other income (expense), net, was $4.8 million for the six months ended June 30, 2025, as compared to income of $3.8 million for the six months ended June 30, 2024. The increase was primarily due to increased interest income between periods of $0.9 million from higher short-term investment balances.

Previous wording

As of March 31, 2025, we had cash, cash equivalents and short-term investments of $229.3 million. Our losses from operations were $10.7 million for the three months ended March 31, 2025, and March 31, 2024, respectively. We had an accumulated deficit of $630.3 million as of March 31, 2025.

Current wording

As of June 30, 2025, we had cash, cash equivalents and short-term investments of $227.5 million. For the six months ended June 30, 2025, and 2024, our loss from operations were $24.7 million and $19.0 million, respectively. We had an accumulated deficit of $642.1 million as of June 30, 2025.

Previous wording

Net cash used in operating activities for the three months ended March 31, 2024, was $9.3 million, consisting primarily of a net loss of $9.1 million and a change in operating assets and liabilities of $4.7 million, partially offset by non-cash stock-based compensation of $4.7 million and depreciation and amortization of $1.1 million.

Current wording

Net cash used in operating activities for the six months ended June 30, 2025, was $13.2 million, consisting primarily of a net loss of $20.0 million and a change in operating assets and liabilities of $7.2 million, partially offset by non-cash stock-based compensation of $15.7 million and depreciation and amortization of $1.6 million.

Previous wording

Net cash used in operating activities for the three months ended March 31, 2025, was $8.8 million, consisting primarily of a net loss of $8.2 million and a change in operating assets and liabilities of $6.2 million and amortization of discount on short-term investments of $2.4 million, partially offset by non-cash stock-based compensation of $7.1 million and depreciation and amortization of $0.8 million.

Current wording

Net cash used in operating activities for the six months ended June 30, 2024, was $13.3 million, consisting primarily of a net loss of $15.2 million and a change in operating assets and liabilities of $7.5 million, partially offset by non-cash stock-based compensation of $10.8 million and depreciation and amortization of $1.9 million.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2025, was $20.9 million, consisting of net maturities of short-term investments of $21.4 million, partially offset by purchases of property and equipment of $0.6 million.

Current wording

Net cash provided by investing activities for the six months ended June 30, 2025, was $35.5 million, consisting of net maturities of short-term investments of $37.6 million and was partially offset by purchases of property and equipment of $2.1 million.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2024, was $24.3 million, consisting of net maturities of short-term investments of $26.2 million, partially offset by purchases of property and equipment of $2.0 million.

Current wording

Net cash used in investing activities for the six months ended June 30, 2024, was $91.4 million, consisting of net purchase of short-term investments of $87.9 million and purchases of property and equipment of $3.5 million.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2024, was $8.0 million consisting primarily of proceeds from issuances of common stock of $10.2 million partially offset by payments for employee taxes related to stock compensation of $2.1 million.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025, was $1.3 million consisting of proceeds from issuance of common stock from stock option exercises of $2.7 million, partially offset by tax payments for employee stock compensation of $1.4 million.

Previous wording

Net used in financing activities for the three months ended March 31, 2025, was $0.7 million consisting primarily of payments for employee taxes related to stock compensation of $1.4 million, partially offset by proceeds from issuance of common stock of $0.7 million.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2024, was $119.5 million consisting primarily of proceeds from issuances of common stock from the May 2024 public offering of $108.1 million, proceeds from issuance of common stock from stock option exercises of $14.0 million partially offset by tax payments for employee stock compensation of $2.1 million.

Previous wording

We rely on third parties, including single and sole source suppliers, to manufacture certain components and subcomponents of our products and to provide raw materials, primarily chemicals for our LAL. We do not have long-term supply agreements with, or guaranteed commitments from our suppliers, including single and sole source suppliers. We utilize purchase orders or blanket orders covering the medium term of 18–24 months for the majority of our supplier base. While we depend on our suppliers to provide us and our customers with materials in a timely manner that meet our and their quality, quantity and cost requirements, vendors will miss delivery dates, extend delivery dates or in some circumstances cancel purchase orders because these suppliers may encounter problems during manufacturing for a variety of reasons, any of which could delay or impede their ability to meet our demand. The expansion of global lead times has resulted in the lack of availability of raw materials, including semiconductors, computers, monitors electronic parts, metals, packaging, adhesives, chemicals, resins and subcontract painted components. Certain suppliers have passed on higher prices, surcharges and expedited shipping fees to defray the higher commodity prices they are paying due to short supply and pushed out delivery dates.

Current wording

We rely on third parties, including single and sole source suppliers, to manufacture certain components and subcomponents of our products and to provide raw materials, primarily chemicals for our LAL. We do not have long-term supply agreements with, or guaranteed commitments from our suppliers, including single and sole source suppliers. We utilize purchase orders or blanket orders covering the medium term of 18–24 months for the majority of our supplier base. While we depend on our suppliers to provide us and our customers with materials in a timely manner that meet our and their quality, quantity and cost requirements, vendors will miss delivery dates, extend delivery dates or in some circumstances cancel purchase orders because these suppliers may encounter problems during manufacturing for a variety of reasons, any of which could delay or impede their ability to meet our demand. The expansion of global lead times has resulted in the lack of availability of raw materials, including semiconductors, computers, monitors electronic parts, metals, packaging, adhesives, chemicals, resins and subcontract painted components. Certain suppliers have passed on higher prices, surcharges and expedited shipping fees to defray the higher commodity prices they are paying due to short supply and pushed out delivery dates. Additionally, we identify and qualify new suppliers to mitigate risk due to single and sole source suppliers and to alleviate supply chain constraints we will identify and qualify new vendors or substitute components which requires testing, validations and documentation adding to internal costs and diverting engineering resources from other projects. While we have taken measures to mitigate business continuity risk, including increasing standard lead times, payment of expedite fees, issuance of a limited number of non-cancelable purchase orders, advance delivery of critical components ahead of normal delivery dates and second sourcing, our suppliers may cease producing the components we purchase from them or otherwise decide to cease doing business with us. Any supply interruption from our suppliers or failure to obtain additional suppliers for any of the components or subcomponents used in our products would limit our ability to manufacture our current and new products and could have a material adverse effect on our business, financial condition and results of operations.

Previous wording

Uncertain macroeconomic conditions including recent inflationary pressures and the rise in interest rates have created significant uncertainty in the U.S. economy and capital markets, which may continue through the remainder of 2025 and beyond and could negatively impact our financial results and liquidity.

Current wording

Uncertain macroeconomic conditions including recent inflationary pressures and tariffs have created significant uncertainty in the U.S. economy and capital markets, which may continue through the remainder of 2025 and beyond and could negatively impact our financial results and liquidity.