Sight Sciences, Inc.

Previous wording

Our initial product development has focused on the treatment of two of the world’s most prevalent and underserved eye diseases, glaucoma and dry eye disease (“DED”). We have commercialized products in each of our two reportable operating segments, Surgical Glaucoma and Dry Eye. Our Surgical Glaucoma revenue consists of sales of our OMNI® Surgical System family of products ("OMNI"), currently comprised of our Ergo Series OMNI Surgical System and OMNI Edge Surgical System, and the SION® Surgical Instrument ("SION"), while our Dry Eye revenue consists of sales of the TearCare® System ("TearCare"), and related components and accessories. Each product is primarily sold through a highly involved direct sales model that offers intensive education, training and customer service. We believe this model not only enables us to differentiate our products and company from competitors, but also expands our addressable market by educating ECPs, patients and other stakeholders on our products and evolving treatment paradigms. Outside of the U.S., we have established direct commercial operations in the United Kingdom and Germany. We also sell OMNI in several other countries in Europe through distributors.

Current wording

Our initial product development has focused on the treatment of two of the world’s most prevalent and underserved eye diseases, glaucoma and dry eye disease (“DED”). We have commercialized products in each of our two reportable operating segments, Surgical Glaucoma and Dry Eye. Our Surgical Glaucoma revenue consists of sales of our OMNI® Surgical System family of products (“OMNI”), currently comprised of our Ergo Series OMNI Surgical System and OMNI Edge Surgical System, and the SION® Surgical Instrument (“SION”), while our Dry Eye revenue consists of sales of the TearCare® System (“TearCare”), and related components and accessories. Each product is primarily sold through a highly involved direct sales model that offers intensive education, training and customer service. We believe this model not only enables us to differentiate our products and company from competitors, but also expands our addressable market by educating ECPs, patients and other stakeholders on our products and evolving treatment paradigms. Outside of the U.S., we have established direct commercial operations in the United Kingdom and Germany. We sell OMNI directly in the United Kingdom and Germany, and indirectly in several other countries in Europe through distributors.

Previous wording

We sell OMNI and SION to facilities where ophthalmic surgeons perform outpatient procedures, such as ambulatory surgery centers ("ASCs") and hospital outpatient departments ("HOPDs"), which are typically reimbursed by Medicare or private payors for procedures using our products. We are focused on educating surgeons on the clinical benefits of earlier interventions with the comprehensive OMNI procedure, engagement efforts with accounts in light of reimbursement clarity, enhanced competitive counter selling, investments in targeted commercial resources, pseudophakic standalone market development, and the recent launch of our OMNI Edge Surgical System, an expansion of the OMNI family.

Current wording

We sell OMNI and SION to facilities where ophthalmic surgeons perform outpatient procedures, such as ambulatory surgery centers (“ASCs”) and hospital outpatient departments (“HOPDs”), which are typically reimbursed by Medicare or private payors for procedures using our products. We are focused on educating surgeons on the clinical benefits of earlier interventions with the comprehensive OMNI procedure, engagement efforts with accounts in light of reimbursement clarity, enhanced competitive counter selling, investments in targeted commercial resources, pseudophakic standalone market development, and the recent launch of our OMNI Edge Surgical System in the second quarter of 2025, an expansion of the OMNI family.

Previous wording

We sell TearCare to ECPs. Currently, there is no meaningful reimbursement coverage by Medicare or private payors for DED procedures, including TearCare, and patients typically pay out-of-pocket for TearCare, although some payors may agree to provide case-based coverage outside of a formal policy. We are continuing our controlled commercial launch and are focused on our comprehensive, clinical data-driven, long-term market development plan that aims to improve awareness and patient access to TearCare. In the fourth quarter of 2024, we instituted a price increase for our TearCare products to reflect the clinical value of our technology as part of our strategy to establish broader coverage with commercial payors and Medicare. This increase materially reduced customer demand for

Current wording

We are continuing our commercial launch of TearCare and are focused on our comprehensive, clinical data-driven, long-term market development plan that aims to improve awareness and patient access to TearCare. In addition, in the areas where we have achieved some level of reimbursement coverage and/or payment decision, we will focus our commercial resources on supporting providers in these specific geographies to drive utilization. Our strategy is focused on driving adoption and utilization through our experienced sales, marketing, and customer support teams who are already dedicated to the dry eye market, and the ECP customers who have previously purchased TearCare SmartHubs in these states. We will also target new ECP customers in these states based on their current treatment approaches to DED, and also focus on our Surgical Glaucoma customers in these states who may also benefit from adding TearCare to their treatment offerings. In the fourth quarter of 2024, we instituted a price increase for our TearCare products to reflect the clinical value of our technology as part of our strategy to establish broader coverage with commercial payors and Medicare. This increase materially reduced customer demand for TearCare in the fourth quarter of 2024 and through the third quarter of 2025. However, with the pricing established by Novitas and FCSO, we believe demand will increase beginning in the fourth quarter of 2025.

Previous wording

We have dedicated meaningful resources to execute our commercial strategy, while also seeking to reduce operating expenses and improve cost efficiencies to better align our operating structure for long-term, profitable growth. The overall success of our approach to eyecare to date is evidenced by over 330,000 estimated uses of Surgical Glaucoma products and their predicates in over 2,200 hospitals and ASCs in the U.S. and Europe, and over 70,000 estimated uses of TearCare in over 1,500 eyecare facilities in the U.S. through June 30, 2025.

Current wording

The overall success of our approach to eyecare to date is evidenced by over 350,000 estimated uses of Surgical Glaucoma products and their predicates in over 2,200 hospitals and ASCs in the U.S. and Europe, and over 70,000 estimated uses of TearCare in over 1,500 eyecare facilities in the U.S. through September 30, 2025.

Previous wording

Revenue in our Surgical Glaucoma segment for the six-months ended June 30, 2025 and 2024 was $36.3 million and $38.5 million, respectively, with gross margins for the same periods of 86.1% and 88.0%, respectively. Revenue in our Dry Eye segment for the six-months ended June 30, 2025 and 2024 was $0.7 million and $2.1 million, respectively, with gross margins for the same periods of 55.8% and 44.4%, respectively. For the six-months ended June 30, 2025, we generated more than 90% of our revenue from customers in the U.S.

Current wording

Revenue in our Surgical Glaucoma segment for the nine-months ended September 30, 2025 and 2024 was $56.1 million and $57.1 million, respectively, with gross margins for the same periods of 86.3% and 87.6%, respectively. Revenue in our Dry Eye segment for the nine-months ended September 30, 2025 and 2024 was $0.9 million and $3.7 million, respectively, with gross margins for the same periods of 52.1% and 45.8%, respectively. For the nine-months ended September 30, 2025, we generated more than 90% of our revenue from customers in the U.S.

Previous wording

Our Surgical Glaucoma revenue was down for the six months ended June 30, 2025 compared to the same period in 2024 due to a number of factors, including reimbursement coverage changes and increased competition from other MIGS devices. We expect to continue to experience adverse revenue impacts arising out of the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five Medicare Administrative Contractors (“MACS”) that issued the local coverage determinations (“LCDs”) containing such restrictions, which restrictions became effective in the fourth quarter of 2024. We believe that these restrictions have led to a decrease in the number of overall MIGS devices used in procedures that are being performed, including procedures utilizing our OMNI technology. In addition, we expect our Surgical Glaucoma gross margins will be adversely impacted in 2025 by the tariffs imposed by the U.S. on China, since most of our OMNI and SION products are currently produced and assembled by a Taiwan-based manufacturer in China. In the six months ended June 30, 2025, we incurred increased cost of goods sold associated with tariff-related expenses of $0.1 million.

Current wording

Our Surgical Glaucoma revenue was down for the nine months ended September 30, 2025 compared to the same period in 2024 due to a number of factors, including reimbursement coverage changes and increased competition from other minimally invasive glaucoma surgery (“MIGS”) devices. We expect to continue to experience adverse revenue impacts arising out of the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five MACs that issued the local coverage determinations (“LCDs”) containing such restrictions. We believe that these restrictions, which became effective in the fourth quarter of 2024, have led to a decrease in the number of overall MIGS devices used in procedures that are being performed, including procedures utilizing our OMNI technology. In addition, our Surgical Glaucoma gross margins have been adversely impacted in 2025, and we expect that they will continue to be adversely impacted in the near term, by the tariffs imposed by the U.S. on China, since most of our OMNI and SION products are currently produced and assembled by a Taiwan-based manufacturer in China. In the nine months ended September 30, 2025, we incurred increased cost of goods sold associated with tariff-related expenses of $0.6 million.

Previous wording

Our Dry Eye revenue was down for the six months ended June 30, 2025 compared to the same period in 2024 due to lower demand in the Dry Eye segment resulting from our increase in TearCare component pricing which took effect on October 1, 2024, as part of our strategy to achieve reimbursed market access for the TearCare procedure, though there is no guarantee as to the timing of reimbursement decisions or the amount of reimbursement. Given the earlier stage of TearCare’s commercial development, we expect our Dry Eye segment’s gross margins to be lower than our Surgical Glaucoma segment’s gross margins for the near- and medium-term due to the allocation of fixed labor and overhead costs to the segment's cost of goods sold. In addition, our Dry Eye gross margins could be adversely impacted in future periods by the tariffs imposed by the U.S. on China, since most of our TearCare SmartLids, are produced and assembled by a Taiwan-based manufacturer in China. However, there was no tariff impact for the six months ended June 30, 2025 due to our usage of inventory purchased prior to the implementation of these tariffs.

Current wording

Our Dry Eye revenue was down for the nine months ended September 30, 2025 compared to the same period in 2024 due to lower demand in the Dry Eye segment resulting from our increase in TearCare component pricing which took effect on October 1, 2024. While we have established pricing with two MACs as of October 2025, there is no guarantee as to the timing of reimbursement decisions or the amount of reimbursement, if any, with other payors. Given the earlier stage of TearCare’s commercial development, we expect our Dry Eye segment’s gross margins to be lower than our Surgical Glaucoma segment’s gross margins for the near- and medium-term due to the allocation of fixed labor and overhead costs to the segment's cost of goods sold. In addition, we expect our Dry Eye gross margins will be adversely impacted in future periods by the tariffs imposed by the U.S. on China, since most of our TearCare SmartLids are produced and assembled by a Taiwan-based manufacturer in China. However, tariff impact for the nine months ended September 30, 2025 was immaterial due to our usage of inventory purchased prior to the implementation of these tariffs.

Previous wording

further demonstrate our products’ clinical effectiveness and safety to potential customers, patients, payors and regulators, including (i) establishing OMNI and SION as standards of care of interventional glaucoma treatment among MIGS-trained surgeons, (ii) developing a standalone market segment with a focus on pseudophakic patients whose IOP is not well-controlled on two or more medications and who are at risk of disease progression, and (iii) increasing customer advocacy and pursuing equitable reimbursement including establishing coverage and/or payment rates for TearCare;

Current wording

further demonstrate our products’ clinical effectiveness and safety to potential customers, patients, payors and regulators, including (i) establishing OMNI and SION as standards of care of interventional glaucoma treatment among MIGS-trained surgeons, (ii) developing a standalone interventional glaucoma market segment with a focus on pseudophakic patients whose IOP is not well-controlled on two or more medications and who are at risk of disease progression, and (iii) increasing customer advocacy and pursuing reimbursement including establishing coverage and/or payment rates for TearCare;

Previous wording

enhance and improve upon our existing product technologies;

Current wording

enhance and improve upon our existing product technologies; and

Previous wording

As a result, we intend to continue to invest in product development, market access, sales and marketing, clinical studies, and education initiatives. Because of these and other factors, we expect to continue to incur net losses for at least the next several years, and we may seek additional debt and equity financing to fund our operations and planned growth.

Current wording

As a result, we intend to continue to invest in product development, market access, sales and marketing, clinical studies, and education initiatives. Because of these and other factors, we expect to continue to incur net losses for at least the next several years, and we may seek additional debt and/or equity financing to fund our operations and planned growth.

Previous wording

To date, our primary sources of capital have been private placements of redeemable convertible preferred stock, debt financing agreements, the sale of common stock in our initial public offering (“IPO”), and revenue from the sale of our products. As of June 30, 2025, we had cash and cash equivalents of $101.5 million, an accumulated deficit of $372.4 million and an outstanding interest-bearing term loan balance of $40.0 million plus a $2.4 million final payment under the Hercules Loan Agreement (excluding debt discount and amortized debt issuance costs).

Current wording

To date, our primary sources of capital have been private placements of redeemable convertible preferred stock, debt financing agreements, the sale of common stock in our initial public offering (“IPO”), and revenue from the sale of our products. As of September 30, 2025, we had cash and cash equivalents of $92.4 million, an accumulated deficit of $380.6 million and an outstanding interest-bearing term loan balance of $40.0 million plus a $2.4 million final fee payment due at maturity under the Hercules Loan Agreement (excluding debt discount and amortized debt issuance costs).

Previous wording

We currently derive the majority of our U.S. revenue from the sale of our OMNI and SION products to ASCs and HOPDs and from the sale of our TearCare products to ECPs. To date, the revenue from our Surgical Glaucoma segment has accounted for over 90% of our total revenue, substantially all of which was generated from sales within the U.S. Our Surgical Glaucoma customers place orders based on their expected procedure volume and reorder as needed, typically on a biweekly, monthly or bimonthly basis. Our TearCare customers typically purchase a TearCare System which consists of one or more TearCare SmartHubs® (“SmartHubs”), multiple single-use TearCare SmartLids® (“SmartLids”) and other accessories. After utilizing their initial inventory, customers can reorder SmartLids as needed. No single customer accounted for 10% or more of our revenue for the six months ended June 30, 2025 and 2024.

Current wording

We currently derive the majority of our U.S. revenue from the sale of our OMNI and SION products to ASCs and HOPDs and from the sale of our TearCare products to ECPs. To date, the revenue from our Surgical Glaucoma segment has accounted for over 90% of our total revenue, substantially all of which was generated from sales within the U.S. Our Surgical Glaucoma customers place orders based on their expected procedure volume and reorder as needed, typically on a biweekly, monthly or bimonthly basis. Our TearCare customers typically purchase a TearCare System which consists of one or more TearCare SmartHubs® (“SmartHubs”), multiple single-use TearCare SmartLids® (“SmartLids”) and other accessories. After utilizing their initial inventory, customers can reorder SmartLids as needed. No single customer accounted for 10% or more of our revenue for the nine months ended September 30, 2025 and 2024.

Previous wording

We intend to use our design, engineering and manufacturing know-how and capabilities to further advance and improve the efficiency of our suppliers’ manufacturing processes, which we believe will reduce costs and increase our gross margins. However, we expect our gross margins will be adversely impacted by the tariffs imposed by the U.S. on China and other manufacturing countries of origin for our products for as long as the tariffs are in effect. Most of our OMNI and SION products, as well as our TearCare SmartLids, are currently produced and assembled by a Taiwanese manufacturer out of its China manufacturing facilities; however we expect that a portion of our product volumes will be produced in additional manufacturing facilities outside of China starting with our OMNI Edge product line in the first quarter of 2026, with additional products added in 2026.

Current wording

We intend to use our design, engineering and manufacturing know-how and capabilities to further advance and improve the efficiency of our suppliers’ manufacturing processes, which we believe will reduce costs and increase our gross margins. However, our gross margins will be adversely impacted by the tariffs imposed by the U.S. on China and other manufacturing countries of origin for our products for as long as the tariffs are in effect. Most of our OMNI and SION products, as well as our TearCare SmartLids, are currently produced and assembled by a Taiwanese manufacturer out of its China manufacturing facilities; however we expect that a portion of our product volumes will be produced in additional manufacturing facilities outside of China starting with our OMNI Edge product line in the first quarter of 2026, with additional products added in 2026.

Previous wording

Research and development ("R&D") expenses consist primarily of costs associated with engineering, product development, clinical studies to develop and support our products, including clinical trial design, clinical trial site initiation and study costs, internal and external costs associated with our regulatory compliance and quality assurance functions, medical affairs, cost of products used for clinical trials and other costs associated with products and technologies that are in development. These expenses also include personnel expenses, including salaries, benefits and stock-based compensation, supplies, consulting, prototyping, testing, materials, travel expenses, depreciation expenses for equipment and an allocation of information technology ("IT") and facility overhead expenses.

Current wording

Research and development ("R&D") expenses consist primarily of costs associated with engineering, product development, clinical studies to develop and support our products, including clinical trial design, clinical trial site initiation and study costs, internal and external costs associated with our regulatory compliance and quality assurance functions, medical affairs, cost of products used for clinical trials and other costs associated with products and technologies that are in development. These expenses also include personnel expenses, including salaries, benefits and stock-based compensation related to R&D functions, supplies, consulting, prototyping, testing, materials, travel expenses, depreciation expenses for equipment and an allocation of information technology ("IT") and facility overhead expenses.

Previous wording

Our R&D expenses as a percentage of revenue may vary over time depending on the level and timing of new product development efforts, as well as clinical development, clinical trial and other related activities. We expect our R&D expenses to increase for the next several years as we continue to invest in our active clinical trial programs, develop new products, and improve our existing products.

Current wording

Our R&D expenses as a percentage of revenue may vary over time depending on the level and timing of new product development efforts, as well as clinical development, clinical trial and other related activities. We expect to continue to make key investments in our R&D initiatives as we continue to invest in our active clinical trial programs, develop new products, and enhance our existing products.

Previous wording

Our SG&A expenses as a percentage of revenue may vary over time depending on the level and timing of commercial expansion efforts. We expect our SG&A expenses to increase for the next several years as we continue to invest in our commercial team and market access initiatives and launch new products.

Current wording

Our SG&A expenses as a percentage of revenue may vary over time depending on the level and timing of commercial expansion efforts. We expect to continue to make strategic investments in our SG&A expenses as we continue to invest in our commercial team, market access initiatives and launch new products to enable growth.

Previous wording

Other income (expense), net primarily consists of income and expenses that do not originate from our primary business.

Current wording

Other (expense) income, net primarily consists of income and expenses that do not originate from our primary business.

Previous wording

Revenue. Revenue was $19.6 million during the three months ended June 30, 2025, a decrease of $1.8 million, or 8.5% compared to $21.4 million in the prior year comparable period. Our Surgical Glaucoma revenue for the three months ended June 30, 2025 was $19.2 million, a decrease of $1.0 million, or 5.0%, from the prior year comparable period. The overall decrease in Surgical Glaucoma revenue was primarily attributable to a decrease in the number of OMNI units sold in the comparable periods. This decrease was primarily driven by a decrease in unit utilization per ordering facility, primarily due to the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five MACS that issued the LCDs containing such restrictions, which restrictions became effective in the fourth quarter of 2024.

Current wording

Revenue. Revenue was $19.9 million during the three months ended September 30, 2025, a decrease of $0.3 million, or 1.2% compared to $20.2 million in the prior year comparable period. Our Surgical Glaucoma revenue for the three months ended September 30, 2025 was $19.7 million, an increase of $1.1 million, or 5.8%, from the prior year comparable period. The overall increase in Surgical Glaucoma revenue was primarily attributable to an increase in the number of OMNI and SION units sold in the comparable periods and an increase in average selling prices. This increase was primarily driven by an increase in ordering facilities, partially offset by a decrease in unit utilization per ordering facility, primarily due to the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five MACS that issued the LCDs containing such restrictions, which restrictions became effective in the fourth quarter of 2024.

Previous wording

Our Dry Eye revenue for the three months ended June 30, 2025 was $0.3 million, a decrease of $0.8 million, or 70.4%, from the prior year comparable period. The overall decrease in Dry Eye revenue was primarily due to decreased volumes of SmartLids purchased, and fewer new customers added in the period, which led to lower SmartHub revenue. The primary reason that fewer products were sold was due to our focus on the next phase of our commercial strategy for the Dry Eye segment, which involves achieving reimbursed market access for our TearCare products instead of generating sales through a cash-pay model.

Current wording

Our Dry Eye revenue for the three months ended September 30, 2025 was $0.2 million, a decrease of $1.3 million, or 87.7%, from the prior year comparable period. The overall decrease in Dry Eye revenue was primarily due to decreased volumes of SmartLids purchased, and fewer new customers added in the period, which led to lower SmartHub revenue. The primary reason that fewer products were sold was due to impact of our continued focus on the next phase of our commercial strategy for the Dry Eye segment, which involves achieving reimbursed market access for our TearCare products.

Previous wording

Cost of Goods Sold. Cost of goods sold was $3.0 million during the three months ended June 30, 2025, flat compared to $3.0 million in the prior year comparable period. Our Surgical Glaucoma cost of goods sold increased $0.3 million as compared to the prior year comparable period. The increase was primarily driven by higher overhead costs per unit, tariff costs, and product sales mix, partially offset by higher average selling prices. Our Dry Eye cost of goods sold decreased $0.4 million in the three months ended June 30, 2025 compared to the prior year comparable period, primarily driven by lower revenue.

Current wording

Cost of Goods Sold. Cost of goods sold was $2.7 million during the three months ended September 30, 2025, a decrease of $0.5 million, or 16.6%, from $3.3 million in the prior year comparable period. Our Surgical Glaucoma cost of goods sold increased $0.1 million as compared to the prior year comparable period. The increase was primarily driven by tariff costs, higher overhead costs per unit, and product sales mix. Our Dry Eye cost of goods sold decreased $0.7 million in the three months ended September 30, 2025 compared to the prior year comparable period, primarily driven by lower revenue.

Previous wording

Gross Profit and Gross Margin. Our total gross profit was $16.6 million in the three months ended June 30, 2025, a decrease of $1.8 million from the prior year comparable period. Our gross margin for the three months ended June 30, 2025 decreased to 84.8%, from 85.8% in the prior year comparable period. Gross margin in our Surgical Glaucoma segment was 85.6% for the three months ended June 30, 2025, a decrease from 88.0% for the prior year comparable period, primarily due to higher overhead costs per unit, tariff costs, and product sales mix. In our Dry Eye segment, gross margin decreased from 46.5% for the three months ended June 30, 2024 to 38.4% for the three months ended June 30, 2025, primarily driven by product sales mix and higher overhead costs per unit associated with lower sales volumes.

Current wording

Gross Profit and Gross Margin. Our total gross profit was $17.2 million in the three months ended September 30, 2025, an increase of $0.3 million from the prior year comparable period. Our gross margin for the three months ended September 30, 2025 increased to 86.4%, from 83.9% in the prior year comparable period. Gross margin in our Surgical Glaucoma segment was 86.9% for the three months ended September 30, 2025, an increase from 86.8% for the prior year comparable period, primarily due to higher average selling prices, partially offset by overhead costs per unit, tariff costs, and product sales mix. In our Dry Eye segment, gross margin decreased from 47.7% for the three months ended September 30, 2024 to 37.8% for the three months ended September 30, 2025, primarily driven by higher overhead costs per unit associated with lower sales volumes, partially offset by higher average selling prices.

Previous wording

Selling, General, and Administrative Expenses. SG&A expenses were $23.9 million for the three months ended June 30, 2025, a decrease of $2.8 million from the prior year comparable period. The decrease was primarily driven by a $2.3 million decrease in legal expenses, a $0.6 million decrease in stock-based compensation expenses, and a $0.3 million decrease in commissions and bonuses. Partially offsetting these expense decreases was a $0.4 million increase in payroll-related expenses.

Current wording

Selling, General, and Administrative Expenses. SG&A expenses were $21.8 million for the three months ended September 30, 2025, a decrease of $1.6 million from the prior year comparable period. The decrease was primarily driven by a $1.3 million decrease in legal expenses, a $1.4 million decrease in stock-based compensation expenses, and a $1.3 million decrease in commissions and bonuses. Partially offsetting these expense decreases was a $1.6 million increase in payroll-related expenses. SG&A expenses for the three months ended September 30, 2025 included $1.8 million of restructuring costs.

Previous wording

Interest Expense. Interest expense increased $0.1 million during the three months ended June 30, 2025 compared to the prior year comparable period, due to higher outstanding principal balances on the Hercules Loan Agreement.

Current wording

Interest Expense. Interest expense increased $0.2 million during the three months ended September 30, 2025 compared to the prior year comparable period, due to a higher outstanding principal balance under the Hercules Loan Agreement.

Previous wording

Other Income (Expense), Net. Other income (expense), net was income of less than $0.1 million for the three months ended June 30, 2025, compared to expense of less than $0.1 million for the prior year comparable period.

Current wording

Other (Expense) Income, Net. Other expense, net was less than $0.1 million for the three months ended September 30, 2025, compared to other income, net of less than $0.1 million for the prior year comparable period.

Previous wording

Comparison of the Six Months Ended June 30, 2025 and 2024 (dollars in thousands)

Current wording

Comparison of the Nine Months Ended September 30, 2025 and 2024 (dollars in thousands)

Previous wording

Revenue. Revenue was $37.1 million during the six months ended June 30, 2025, a decrease of $3.6 million, or 8.8% compared to $40.6 million in the prior year comparable period. Our Surgical Glaucoma revenue for the six months ended June 30, 2025 was $36.3 million, a decrease of $2.2 million, or 5.6%, from the prior year comparable period. The overall decrease in Surgical Glaucoma revenue was primarily attributable to a decrease in the number of OMNI units sold in the current period compared to the prior year comparable period. This decrease was primarily driven by a decrease in unit utilization per ordering facility, primarily due to the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five MACS that issued the LCDs containing such restrictions, which restrictions became effective in the fourth quarter of 2024.

Current wording

Revenue. Revenue was $57.0 million during the nine months ended September 30, 2025, a decrease of $3.8 million, or 6.3% compared to $60.8 million in the prior year comparable period. Our Surgical Glaucoma revenue for the nine months ended September 30, 2025 was $56.1 million, a decrease of $1.1 million, or 1.9%, from the prior year comparable period. The overall decrease in Surgical Glaucoma revenue was primarily attributable to a decrease in the number of OMNI units sold in the current period compared to the prior year comparable period, partially offset by increased average selling prices. This decrease in units sold was primarily driven by a decrease in unit utilization per ordering facility, primarily due to the restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in the jurisdictions administered by the five MACS that issued the LCDs containing such restrictions, which restrictions became effective in the fourth quarter of 2024, partially offset by an increase in ordering facilities.

Previous wording

Our Dry Eye revenue for the six months ended June 30, 2025 was $0.7 million, a decrease of $1.4 million, or 65.9%, from the prior year comparable period. The overall decrease in Dry Eye revenue was primarily due to decreased volumes of SmartLids purchased after our TearCare System price increases that went into effect on October 1, 2024 and fewer new customers added in the period, which led to lower SmartHub revenue. The primary reason that fewer products were sold was due to our focus on the next phase of our commercial strategy for the Dry Eye segment, which involves achieving reimbursed market access for our TearCare products instead of adding customers through a cash-pay model.

Current wording

Our Dry Eye revenue for the nine months ended September 30, 2025 was $0.9 million, a decrease of $2.7 million, or 75.0%, from the prior year comparable period. The overall decrease in Dry Eye revenue was primarily due to decreased volumes of SmartLids purchased after our TearCare System price increases that went into effect on October 1, 2024 and fewer new customers added in the period, which led to lower SmartHub revenue. The primary reason that fewer products were sold was due to our focus on the next phase of our commercial strategy for the Dry Eye segment, which involves achieving reimbursed market access for our TearCare products.

Previous wording

Cost of Goods Sold. Cost of goods sold was $5.4 million during the six months ended June 30, 2025, a decrease of $0.4 million from $5.8 million in the prior year comparable period. Our Surgical Glaucoma cost of goods sold increased $0.4 million as compared to the prior year comparable period. The increase was primarily driven by higher overhead costs per unit, tariff costs, and product sales mix.

Current wording

Cost of Goods Sold. Cost of goods sold was $8.1 million during the nine months ended September 30, 2025, a decrease of $1.0 million from $9.1 million in the prior year comparable period. Our Surgical Glaucoma cost of goods sold increased $0.6 million as compared to the prior year comparable period. The increase was primarily driven by tariff costs, higher overhead costs per unit, and product sales mix.

Previous wording

Our Dry Eye cost of goods sold decreased $0.9 million in the six months ended June 30, 2025 compared to the prior year comparable period, primarily driven by lower revenue resulting from the shift in pricing strategy, partially offset by higher average selling prices.

Current wording

Our Dry Eye cost of goods sold decreased $1.6 million in the nine months ended September 30, 2025 compared to the prior year comparable period, primarily driven by lower revenue resulting from the shift in strategy.

Previous wording

Gross Profit and Gross Margin. Our total gross profit was $31.7 million in the six months ended June 30, 2025, a decrease of $3.1 million from the prior year comparable period. Our gross margin for the six months ended June 30, 2025 decreased to 85.5%, from 85.7% in the prior year comparable period. Gross margin in our Surgical Glaucoma segment was 86.1% for the six months ended June 30, 2025, a decrease from 88.0% for the prior year comparable period, primarily due to product sales mix and higher overhead costs per unit. In our Dry Eye segment, gross margin increased from 44.4% for the six months ended June 30, 2024 to 55.8% for the six months ended June 30, 2025, primarily driven by the price increase for our TearCare SmartLids.

Current wording

Gross Profit and Gross Margin. Our total gross profit was $48.9 million in the nine months ended September 30, 2025, a decrease of $2.8 million from the prior year comparable period. Our gross margin for the nine months ended September 30, 2025 increased to 85.8%, from 85.1% in the prior year comparable period. Gross margin in our Surgical Glaucoma segment was 86.3% for the nine months ended September 30, 2025, a decrease from 87.6% for the prior year comparable period, primarily due to product sales mix and higher overhead costs per unit, partially offset by higher average selling prices. In our Dry Eye segment, gross margin increased from 45.8% for the nine months ended September 30, 2024 to 52.1% for the nine months ended September 30, 2025, primarily driven by the higher average selling prices, partially offset by higher overhead costs per unit.

Previous wording

Selling, General, and Administrative Expenses. SG&A expenses were $48.4 million for the six months ended June 30, 2025, a decrease of $4.8 million from the prior year comparable period. The decrease was primarily driven by a $5.3 million decrease in legal expenses, a $1.0 million decrease in stock-based compensation expenses, and a $0.7 million decrease in commissions and bonuses. These declines were partially offset by a $1.1 million increase in sales training and marketing costs, and a $1.0 million increase in payroll-related expenses.

Current wording

Selling, General, and Administrative Expenses. SG&A expenses were $70.1 million for the nine months ended September 30, 2025, a decrease of $6.5 million from the prior year comparable period. The decrease was primarily driven by a $5.2 million decrease in legal expenses, a $2.5 million decrease in stock-based compensation expenses, and a $2.0 million decrease in commissions and bonuses. These declines were partially offset by a $2.6 million increase in payroll-related expenses and a $1.3 million increase in sales training and marketing costs. Included in SG&A expenses for the nine months ended September 30, 2025 was $1.8 million of restructuring costs.

Previous wording

Investment Income. Investment income was $2.2 million for the six months ended June 30, 2025, a decrease of $1.0 million from the prior year comparable period, due to lower investment balances as well as lower yields on held-to-maturity investments during the current period.

Current wording

Investment Income. Investment income was $3.1 million for the nine months ended September 30, 2025, a decrease of $1.5 million from the prior year comparable period, due to lower investment balances as well as lower yields on held-to-maturity investments during the current period.

Previous wording

Interest Expense. Interest expense increased $0.2 million during the six months ended June 30, 2025 compared to the prior year comparable period, due to higher outstanding principal balances associated with the Hercules Loan Agreement.

Current wording

Interest Expense. Interest expense increased $0.4 million during the nine months ended September 30, 2025 compared to the prior year comparable period, due to a higher outstanding principal balance associated with the Hercules Loan Agreement.

Previous wording

Loss on Debt Extinguishment. There was no loss on debt extinguishment for the six months ended June 30, 2025. We recognized loss on debt extinguishment of $2.0 million for the six months ended June 30, 2024, associated with refinancing the indebtedness under our prior secured credit facility (the “Prior Loan Agreement”).

Current wording

Loss on Debt Extinguishment. There was no loss on debt extinguishment for the nine months ended September 30, 2025. We recognized loss on debt extinguishment of $2.0 million for the nine months ended September 30, 2024, associated with refinancing the indebtedness under our prior secured credit facility (the “Prior Loan Agreement”).

Previous wording

Other Income (Expense), Net. Other expense, net was expense of $0.1 million for the six months ended June 30, 2025, compared to expense of less than $0.1 million for the prior year comparable period.

Current wording

Other (Expense) Income, Net. Other expense, net was expense of $0.1 million for the nine months ended September 30, 2025, compared to expense of less than $0.1 million for the prior year comparable period.

Previous wording

Net Cash Used in Operating Activities. Net cash used in operating activities for the six months ended June 30, 2025 was $19.1 million, consisting primarily of a net loss of $26.1 million, as well as a net change in our operating assets and liabilities of $2.2 million, partially offset by non-cash charges of $9.1 million. The net change in our operating assets and liabilities was primarily due to a $4.5 million decrease in accrued compensation. This change was partially offset by a $1.1 million decrease in accounts receivable, a $0.4 million increase in accounts payable, and a $0.1 million decrease in our inventory balance. The non-cash charges primarily consisted of $8.1 million related to stock-based compensation expense, $0.5 million of accretion of debt discount and debt issuance costs, $0.3 million of depreciation and amortization, and $0.2 million of noncash operating lease expense.

Current wording

Net Cash Used in Operating Activities. Net cash used in operating activities for the nine months ended September 30, 2025 was $27.9 million, consisting primarily of a net loss of $34.3 million, as well as a net change in our operating assets and liabilities of $5.9 million, partially offset by non-cash charges of $12.0 million. The net change in our operating assets and liabilities was primarily due to a $3.5 million decrease in accrued compensation, a $1.7 million increase in our inventory balance, and a $0.9 million increase in prepaid expenses and other current assets. These changes were partially offset by a $1.0 million decrease in accounts receivable. The non-cash charges primarily consisted of $10.5 million related to stock-based compensation expense, $0.7 million of accretion of debt discount and debt issuance costs, $0.4 million of depreciation and amortization, and $0.4 million of noncash operating lease expense.

Previous wording

Net cash used in operating activities for the six months ended June 30, 2024 was $19.3 million, consisting primarily of a net loss of $28.6 million, as well as a net change in our operating assets and liabilities of $1.4 million, partially offset by non-cash charges of $10.7 million. The net change in our operating assets and liabilities was primarily due to a $5.7 million increase in accounts receivable and a $1.3 million decrease in other noncurrent liabilities. Accrued and other current liabilities increased $1.9 million, while both inventory and prepaid expenses and other current assets increased by $1.2 million. In addition, accrued compensation increased by $0.9 million and accounts payable increased by $0.6 million. The non-cash charges primarily consisted of $8.8 million related to stock-based compensation expense, $1.0 million of noncash loss on the extinguishment of debt, $0.4 million of depreciation and amortization and $0.3 million of noncash operating lease expense.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2024 was $18.9 million, consisting of a net loss of $39.7 million, partially offset by non-cash charges of $15.6 million as well as a net change in our operating assets and liabilities of $5.2 million. The net change in our operating assets and liabilities was primarily due to a $1.4 million decrease in accounts receivable, a $1.9 million decrease in our inventory balance, and a $3.4 million increase in accrued compensation. These were partially offset by a $1.5 million decrease in other noncurrent liabilities. The non-cash charges primarily consisted of $13.1 million related to stock-based compensation expense, $1.0 million of noncash loss on debt extinguishment, $0.5 million of depreciation and amortization, $0.5 million of noncash operating lease expense, and $0.5 million of accretion of debt discount and debt issuance costs.

Previous wording

Net Cash Used in Investing Activities. Net cash used in investing activities for both the six months ended June 30, 2025 and 2024 was $0.2 million. The cash used in both periods was for purchases of property and equipment.

Current wording

Net Cash Used in Investing Activities. Net cash used in investing activities for both the nine months ended September 30, 2025 and 2024 was $0.4 million and $0.2 million, respectively. The cash used in both periods was for purchases of property and equipment.

Previous wording

Net Cash (Used in) Provided by Financing Activities. Net cash provided by financing activities for the six months ended June 30, 2025 was $0.5 million, consisting primarily of proceeds from the exercise of stock options and proceeds from employee stock plan purchases. Net cash used in financing activities for the six months ended June 30, 2024 was $0.5 million, consisting primarily of the costs associated with the refinancing of the outstanding term loan agreement.

Current wording

Net Cash Provided (Used in) by Financing Activities. Net cash provided by financing activities for the nine months ended September 30, 2025 was $0.5 million, consisting primarily of proceeds from the exercise of stock options and proceeds from employee stock plan purchases. Net cash used in financing activities for the nine months ended September 30, 2024 was $0.4 million, consisting primarily of the costs associated with the refinancing of the outstanding term loan agreement.

Previous wording

As of June 30, 2025, we had cash and cash equivalents of $101.5 million, an accumulated deficit of $372.4 million, and an outstanding term loan balance of $40.0 million plus a $2.4 million final payment under the Hercules Loan Agreement (excluding debt discountand amortized debt issuance costs). Based on our current planned operations, we expect our cash and cash equivalents balance, as well as other sources of liquidity, will enable us to fund our operations for at least the next 12 months and the foreseeable future.

Current wording

As of September 30, 2025, we had cash and cash equivalents of $92.4 million, an accumulated deficit of $380.6 million, and an outstanding term loan balance of $40.0 million plus a $2.4 million fee final payment due at maturity under the Hercules Loan Agreement (excluding debt discountand amortized debt issuance costs). Based on our current planned operations, we expect our cash and cash equivalents balance, as well as other sources of liquidity, will enable us to fund our operations for at least the next 12 months and the foreseeable future.