RxSight, Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
RXST$4.540.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001193125-26-335153
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001193125-26-445381
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 127 current paragraphs.
83 unchanged; 33 reworded; 11 added; 4 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Option Exchange. On August 10, 2026, we filed with the SEC a Tender Offer Statement on Schedule TO defining the terms and conditions of a one-time voluntary stock option exchange to our employees of certain options to purchase up to an aggregate of 4,088,496 shares of the Company’s common stock (the “Option Exchange”). On September 4, 2026, the completion date of the Option Exchange, stock options covering an aggregate of 3,756,461 shares of common stock were tendered by eligible employees, and we granted 757,513 restricted stock units at a grant date fair value of $6.375 and 1,643,324 options at an exercise price of $6.375, the closing stock price on September 4, 2026, covering an aggregate of 2,400,837 shares of common stock under the 2021 Equity Incentive Plan.
Current report
Inducement Plan Grants. On October 23, 2026, inducement stock options to purchase a total of 236,456 shares of the Company's common stock were granted to two new non-executive officer employees in connection with the commencement of their employment with RxSight. We also agreed to grant inducement RSUs covering a total of 637,449 shares of our common stock to the same employees in connection with the commencement of their employment, which RSUs are anticipated to be granted on or about November 3, 2026. See Note 9 for further details.
Current report
LDD sales have declined in recent periods, and we currently hold LDD inventory in excess of near-term demand. In response, we paused LDD manufacturing during the third quarter of 2026 and expect to fulfill demand from existing inventory for a period of time. Our ability to realize the carrying value of this inventory depends on future LDD sales, placements under rental arrangements and international expansion, which may not occur at the levels or on the timeline we anticipate. If demand does not improve as expected, or if changes in technology, regulatory requirements or customer preferences reduce the marketability of our existing LDDs, we may be required to record inventory write-downs. In addition, while production is paused, certain fixed manufacturing costs will be expensed as incurred rather than included in the cost of inventory, and resuming production in the future may involve additional costs, delays or challenges, including retaining or rehiring qualified manufacturing personnel and requalifying suppliers. Any of these factors could adversely affect our gross margin and results of operations.
Current report
SG&A expenses of $27.4 million for the three months ended September 30, 2026 were consistent with the three months ended September 30, 2025, on a net basis. However, commercial expenses decreased by $3.2 million during the three months ended September 30, 2026, as compared to the same period in 2025. The decrease in commercial costs was primarily driven by lower compensation and benefit costs of $0.9 million, lower clinical study costs of $1.2 million and lower stock-based compensation expense of $1.4 million. Offsetting the decrease in commercial expenses was an increase in general and administrative costs of $3.3 million during the three months ended September 30, 2026, as compared to the same period in 2025. The increase was driven by higher compensation and benefit costs of $1.2 million, higher share-based compensation costs of $1.2 million and higher professional services costs of $1.1 million.
Current report
Research and development expenses slightly increased by $0.2 million, or 1.7%, to $9.2 million for the three months ended September 30, 2026, from $9.1 million for the three months ended September 30, 2025. This increase was not material.
Current report
Other income (expense), net, of $2.3 million for the three months ended September 30, 2026, was consistent with the three months ended September 30, 2025.
Current report
Comparison of the nine months ended September 30, 2026 and 2025
Current report
Impairment of long-lived assets
Current report
All long-lived assets are reviewed for impairment whenever circumstances such as events or changes in the business indicate that an asset or asset group’s carrying value may not be recoverable based on undiscounted future operating cash flows to be derived from their use. Factors that are considered important that could trigger an impairment review include a current period operating or cash flow loss or a history of operating or cash flow losses and a projection or forecast that demonstrates continuing losses or insufficient income associated with the use of a long-lived asset or asset group. Other factors include a significant change in the manner of the use of the asset or a significant negative industry or economic trend. This evaluation is performed based on estimated undiscounted future cash flows from operating activities compared with the carrying value of the related assets. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized, measured by the difference between the carrying value and the estimated fair value of the assets.
Current report
Fair value is determined primarily using the discounted cash flows expected to be generated from the use of assets. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of an asset group requires us to make assumptions and estimates regarding our future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax considerations, discount rates, growth rates, and other market factors. If current expectations of future growth rates and margins are not met, if market factors outside of our control, such as discount rates, change, or if management’s expectations or plans otherwise change, then our long-lived assets might become impaired in the future.
Current report
During the three months ended September 30, 2026, we identified indicators of potential impairment of its long-lived assets, including a sustained decline in its market capitalization and lower LDD sales volumes. We performed a recoverability test of its long-lived assets, which represent a single asset group, and concluded that the carrying amount was recoverable. As a result, no impairment was recorded.
Removed paragraphs (4)
Previous report
o
Previous report
SG&A expenses increased by $1.4 million, or 5.0%, to $30.4 million for the three months ended June 30, 2026, from $29.0 million for the three months ended June 30, 2025. This increase was primarily attributable to higher professional services fees of approximately $3.3 million, partially offset by lower clinical and regulatory expenses of $1.2 million as a significant number of projects concluded in late 2025, and lower stock based compensation expense of approximately $1.0 million primarily driven by the recent departures of certain company executives.
Previous report
Comparison of the six months ended June 30, 2026 and 2025
Previous report
Research and development expenses decreased by $1.9 million, or 9.1%, to $18.7 million for the six months ended June 30, 2026, from $20.6 million for the six months ended June 30, 2025. This decrease was primarily due to lower compensation and other employee-related costs of $3.2 million, primarily driven by reduced headcount and allocations of certain employees to manufacturing during the second quarter of 2025, which were partially offset by higher professional services fees of $0.3 million and higher research and development project expenses of $0.9 million.
Reworded paragraphs (33)
Previous wording
We are a Delaware corporation headquartered in Aliso Viejo, California with two wholly owned subsidiaries located in Hong Kong (“RxSight, Hong Kong”) and in Amsterdam, Netherlands (“RxSight, Netherlands”). RxSight, Netherlands has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany (“RxSight, Germany”).
Current wording
We are a Delaware corporation headquartered in Aliso Viejo, California with two wholly owned subsidiaries located in Hong Kong and in Amsterdam, Netherlands ("RxSight Netherlands"). RxSight, Netherlands has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany.
Previous wording
Our commercial efforts began in 2019, and have been primarily focused in the U.S., where we are building a “razor and razor blade” business model to drive new customer adoption and ongoing LAL volume growth. Our sales efforts are concentrated on the approximately 4,000 U.S. cataract surgeons that perform approximately 60% of all premium IOL procedures. As of June 30, 2026, we have established a global installed base of 1,166 LDDs in ophthalmology practices and, since our inception through June 30, 2026, surgeons have implanted approximately 357,000 LALs.
Current wording
Our commercial efforts began in 2019, and have been primarily focused in the U.S., where we are building a “razor and razor blade” business model to drive new customer adoption and ongoing LAL volume growth. Our sales efforts are concentrated on the approximately 4,000 U.S. cataract surgeons that perform approximately 60% of all premium IOL procedures. As of September 30, 2026, we have established a global installed base of 1,170 LDDs in ophthalmology practices and, since our inception through September 30, 2026, surgeons have implanted approximately 380,000 LALs.
Previous wording
Adoption of the RxSight, Inc. 2026 Inducement Equity Incentive Plan. On July 13, 2026, the Board adopted the RxSight, Inc. 2026 Inducement Equity Incentive Plan (the “Inducement Plan”), pursuant to which we may from time to time make equity grants to new employees as a material inducement to their employment. The Board reserved 3,500,000 shares of our common stock for issuance under the Inducement Plan. The Inducement Plan was adopted without stockholder approval pursuant to Nasdaq Listing Rule 5635(c)(4) and will be administered by the Compensation Committee of the Board.
Current wording
Adoption of the RxSight, Inc. 2026 Inducement Equity Incentive Plan and Additional Share Increase. On July 13, 2026, the Board adopted the RxSight, Inc. 2026 Inducement Equity Incentive Plan (the “Inducement Plan”), pursuant to which we may from time to time make equity grants to new employees as a material inducement to their employment. The Board reserved 3,500,000 shares of our common stock for issuance under the Inducement Plan. The Inducement Plan was adopted without stockholder approval pursuant to Nasdaq Listing Rule 5635(c)(4) and will be administered by the Compensation Committee of the Board. On September 27, the Board reserved an additional 750,000 shares of the Company's common stock for issuance under the Inducement Plan. The additional shares are expected to be registered with the SEC during the first week of November 2026.
Previous wording
Next-generation LAL+, designed to improve intermediate vision for everyday activities while preserving high-quality optical performance, with adjustability enabling precise refractive targeting; and
Current wording
Next-generation LAL+, designed to improve intermediate vision for everyday activities while preserving high-quality optical performance, with adjustability enabling precise refractive targeting; and o
Previous wording
Our results are influenced by several key factors, including: (i) our LDD installed base; (ii) the utilization of that installed base for LAL procedures, measured by the number of LALs implanted per installed LDD; (iii) product mix between LALs and LDDs, which affects our overall gross margins; (iv) manufacturing cost trends; and (v) seasonal and external factors that may affect cataract surgery volumes, including, among other things, competition (including the effect of recent competitive trialing activity associated with new product launches), physician reimbursement trends, and consumer sentiment which affects procedure timing. We believe the number of LDDs installed and LALs implanted are the strongest indicators of the adoption of our technology and our ability to generate revenue. We monitor average monthly utilization, which we define as the number of LALs implanted during a quarter divided by the LDD installed base at the end of the prior quarter. This fluctuates due to seasonality, practice ramp, and external disruptions (including severe weather events).
Current wording
Our results are influenced by several key factors, including: (i) the utilization of that installed base for LAL procedures, measured by the number of LALs implanted per installed LDD; (ii) our LDD installed base; (iii) product mix between LALs and LDDs, which affects our overall gross margins; (iv) manufacturing cost trends; and (v) seasonal and external factors that may affect cataract surgery volumes, including, among other things, competition (including the effect of recent competitive trialing activity associated with new product launches), physician reimbursement trends, and consumer sentiment which affects procedure timing. We believe the number of LALs implanted are the strongest indicators of the adoption of our technology and our ability to generate revenue.
Previous wording
During the quarter ended June 30, 2026, we sold 11 LDDs and placed 1 LDD on rental, a decrease of 28 units from 40 LDDs sold during the quarter ended June 30, 2025, due to slower LDD placements. LAL sales decreased by 2,463 when compared to the quarter ended June 30, 2025, primarily driven by fewer LALs being used in cataract surgeries.
Current wording
During the quarter ended September 30, 2026, we sold 3 LDDs and placed 1 LDD on rental, a decrease of 22 units from 25 LDDs sold during the quarter ended September 30, 2025, due to slower LDD placements. LAL sales decreased by 2,917 when compared to the quarter ended September 30, 2025, primarily reflecting ongoing competitive pressures.
Previous wording
Our sales consist 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 U.S. and select international markets. Customers are primarily comprised of ophthalmic practices (LDD sales) and ambulatory surgery centers (LAL sales). Following several years of rapid growth, sales moderated in 2025 and continued to decline through the second quarter of 2026, however, we expect our commercial realignment initiatives to position the company for renewed revenue growth. We plan to drive continued expansion by supporting existing practices and strategically expanding our LDD installed base and helping new adopters in achieving early success and sustained long-term growth.
Current wording
Our sales consist 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 U.S. and select international markets. Customers are primarily comprised of ophthalmic practices (LDD sales) and ambulatory surgery centers (LAL sales). Following several years of rapid growth, sales moderated in 2025 and continued to decline through the third quarter of 2026, however, we expect our commercial realignment initiatives to position the company for renewed revenue growth. We plan to drive continued expansion by supporting existing practices and helping new adopters in achieving early success and sustained long-term growth.
Previous wording
Our LDD contracts contain multiple performance obligations bundled into one transaction price, with all obligations generally satisfied within one year. Revenue for the LDD capital asset is recognized at a point in time either at installation and acceptance or upon shipment to our international distributors. Revenue for training is also recorded at a point in time, generally 60 days after installation. Revenue for the device service is recognized ratably over time after installation, generally 12-36 months. After the first year, service contracts can be purchased separately on a standalone basis. Revenue for such service agreements will be recognized ratably over the term of each contract.
Current wording
Our LDD sales contracts contain multiple performance obligations bundled into one transaction price, with all obligations generally satisfied within one year. Revenue for the LDD capital asset is recognized at a point in time either at installation and acceptance or upon shipment to our international distributors. Revenue for training is also recorded at a point in time, generally 60 days after installation. Revenue for the device service is recognized ratably over time after installation, generally 12-36 months. After the first year, service contracts can be purchased separately on a standalone basis. Revenue for such service agreements will be recognized ratably over the term of each contract.
Previous wording
We accounted for the RxSight-Alcon Collaboration Agreement under ASC Topic 606 and ASC Topic 808. We identified the following performance obligations under the agreement; (a) a license of our intellectual property; (b) Phase I Feasibility and Phase II Regulatory Activities required to achieve project milestones; and (c) material rights related to the commercial supply of Collaboration Products. We expect to satisfy the feasibility and regulatory performance obligations over an estimated development period of several years, and the material rights will be satisfied upon exercise or expiration.
Current wording
We accounted for the RxSight-Alcon Collaboration Agreement under ASC Topic 606 and ASC Topic 808. We identified the following performance obligations under the agreement; (a) a license of our intellectual property; (b) Phase I Feasibility and Phase II Regulatory Activities required to achieve project milestones; and (c) material rights related to the commercial supply of Collaboration Products. Milestone payments that are not within our control, such as approvals from regulators or where attainment of the specified event is dependent on the development activities of a third party, are not considered probable of being achieved until those approvals are received or the specified event occurs. Revenue is recognized when the underlying performance obligation has been met. The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses or other promises, we utilize judgment to assess the nature of the performance obligation to determine whether the performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition.
Previous wording
At inception, the transaction price was $10.0 million, consisting of the non-refundable portion of the $60.0 million upfront payment. The remaining $50.0 million of the upfront payment is refundable if the agreement is terminated within the first 120 days of the effective date.
Current wording
At inception, the transaction price was $10.0 million, consisting of the non-refundable portion of the $60.0 million upfront payment. The remaining $50.0 million of the upfront payment was refundable if the agreement is terminated within the first 120 days of the effective date. On October 28, 2026 the 120-day period lapsed, see Note 9, Subsequent Events, for further information.
Previous wording
The transaction price excludes (i) potential milestone payments and (ii) sales-and usage-based royalties. The milestone payments represent variable consideration that is fully constrained under ASC 606-10-32-11 through 32-13, because achievement of the underlying feasibility and regulatory milestones is contingent on factors outside our control and it is not probable that a significant reversal of cumulative revenue would not occur. The royalties are excluded under the sales-and usage-based royalty exception in ASC 606-10-55-65 and will be recognized as the related sales or usage occur. We will reassess the estimate of constrained consideration at each reporting date, and amounts will be included in the transaction price when it becomes probable that a significant revenue reversal will not occur.
Current wording
The transaction price excludes (i) potential milestone payments and (ii) sales- and usage-based royalties. The milestone payments represent variable consideration that is fully constrained under ASC 606, because achievement of the underlying feasibility and regulatory milestones is contingent on factors outside our control and it is not probable that a significant reversal of cumulative revenue would not occur. The royalties are excluded under the sales- and usage-based royalty exception in ASC 606 and will be recognized as the related sales or usage occur. We will reassess the estimate of constrained consideration at each reporting date, and amounts will be included in the transaction price when it becomes probable that a significant revenue reversal will not occur.
Previous wording
We have elected the optional exemptions in ASC 606-10-50-14 and 50-14A and therefore does not disclose the value of the remaining performance obligations for (i) variable consideration allocated to wholly unsatisfied performance obligations and (ii) consideration in the form of sales- and usage-based royalties.
Current wording
We have elected the optional exemptions in ASC 606 and therefore do not disclose the value of the remaining performance obligations for (i) variable consideration allocated to wholly unsatisfied performance obligations and (ii) consideration in the form of sales- and usage-based royalties.
Previous wording
•Project Activities— At inception of an arrangement that includes milestone-based payments, We evaluated whether each milestone is probable of being achieved and estimates the amount to include in the transaction price using the most-likely-amount method, subject to the constraint. Because achievement of the milestones is not within our control, we recognize the associated consideration when the milestone is probable of being achieved.
Current wording
•Project Activities— At inception of an arrangement that includes milestone-based payments, we evaluated whether each milestone is probable of being achieved and estimates the amount to include in the transaction price using the most-likely-amount method, subject to the constraint. Because achievement of the milestones is not within our control, we recognize the associated consideration when the milestone is probable of being achieved. For performance obligations that are satisfied over time, we recognize revenue based on progress made towards completion of the project milestone. Progress is estimated using the input method under ASC 606 and is measured based on actual costs incurred relative to the total estimated project costs for that milestone. We expect to satisfy the feasibility and regulatory performance obligations over an estimated development period of several years, and the material rights will be satisfied upon exercise or expiration.
Previous wording
•Material Rights to Product Supply — When a contract grants the customer an option to acquire additional goods or services at a price other than their standalone selling price, We assesses whether the option represents a material right. Material rights are accounted for as separate performance obligations, with revenue recognized when the right is exercised or expires.
Current wording
•Material Rights to Product Supply — When a contract grants the customer an option to acquire additional goods or services at a price other than their standalone selling price, we assess whether the option represents a material right. Material rights are accounted for as separate performance obligations, with revenue recognized when the right is exercised or expires.
Previous wording
During the second quarter of 2026, we recorded a receivable for the full $60.0 million upfront payment (subsequently received on July 1, 2026). Of the $10.0 million initial transaction fee, $6.5 million was allocated to the license of intellectual property and recognized as revenue on the effective date of the agreement, and the remaining $3.5 million was allocated to the other performance obligations and recorded as deferred revenue in our condensed consolidated balance sheet as of June 30, 2026. The remaining $50.0 million is recorded as a refund liability and is not included in the transaction price.
Current wording
In the second quarter of 2026, we recognized $6.5 million in license and collaboration revenue, which represented the portion of the $10.0 million nonrefundable upfront payment that was allocated to the license of intellectual property upon commencement of the RxSight-Alcon Collaboration Agreement. The remaining $3.5 million was allocated to the other performance obligations and recorded as deferred revenue and the remaining $50.0 million recorded as a refund liability and is not included in the transaction price in the condensed consolidated balance sheet. In the third quarter of 2026, we recognized additional collaboration revenue based on the estimated progress towards completion of the project milestones using the input method described above. On October 29, 2026, the $50.0 million became unconstrained, see Note 9 for further information.
Previous wording
For the three and six months ended June 30, 2026 and 2025, revenue from contracts with customers consisted of the following (in thousands):
Current wording
For the three and nine months ended September 30, 2026 and 2025, revenue from contracts with customers consisted of the following (in thousands):
Previous wording
Selling, general and administrative (“SG&A”), expenses consist primarily of personnel-related expenses, including wages, incentive bonuses, stock-based compensation and benefits related to administrative, selling and marketing functions, education programs for doctors, commercial operations and analytics, finance, information technology and human resource functions. Other SG&A expenses include sales commissions, travel expenses, promotional activities, marketing initiatives, market research and analysis, conferences and trade shows, training for doctors, professional services fees such as legal, patent registration costs, accounting, audit fees (including costs for compliance with Section 404(b) of the Sarbanes-Oxley Act), tax fees, board of directors’ expenses, insurance costs, general corporate expenses and facilities-related expenses. We expect SG&A expenses to continue to increase in absolute dollars as we expand our international sales and marketing organization and infrastructure.
Current wording
Selling, general and administrative (“SG&A”), expenses consist primarily of personnel-related expenses, including wages, incentive bonuses, stock-based compensation and benefits related to administrative, selling and marketing functions, education programs for doctors, commercial operations and analytics, finance, information technology and human resource functions. Other SG&A expenses include sales commissions, travel expenses, promotional activities, marketing initiatives, market research and analysis, conferences and trade shows, training for doctors, professional services fees such as legal, patent registration costs, accounting, audit fees (including costs for compliance with Section 404(b) of the Sarbanes-Oxley Act), tax fees, board of directors’ expenses, insurance costs, general corporate expenses and facilities-related expenses. We expect SG&A expenses as a percentage of revenue to vary over time depending on the timing and level of investment in personnel-related spending.
Previous wording
Total revenue for the three months ended June 30, 2026, was $33.7 million, an increase of $0.1 million, or 0.3%, compared to $33.6 million for the three months ended June 30, 2025. Product sales decreased by $6.4 million, or 19.0%, to $27.2 million for the three months ended June 30, 2026, from $33.6 million for the three months ended June 30, 2025. The decrease in product sales was primarily due to lower unit sales of both LDDs and LALs, reflecting, among other things, increased competition in the IOL market, including recent widespread competitive trialing activity for new product launches. Collaboration revenue was $6.5 million for the three months ended June 30, 2026, which relates to the upfront licensing fee for our LAL intellectual property.
Current wording
Total revenue for the three months ended September 30, 2026, was $24.6 million, a decrease of $5.8 million, or 19.0%, compared to $30.3 million for the three months ended September 30, 2025. The decrease in product sales was primarily due to lower unit sales of both LDDs and LALs, reflecting, among other things, increased competition in the IOL market, including recent widespread competitive trialing activity for new product launches.
Previous wording
Cost of sales decreased by $0.6 million, or 7.0%, to $7.9 million for the three months ended June 30, 2026, from $8.4 million for the three months ended June 30, 2025, primarily due to the decreased number of LDDs and LALs sold during the period as compared to the same period in the prior year. Product gross margin decreased to 71.2% in the three months ended June 30, 2026, from 74.9% for the three months ended June 30, 2025. The decrease is primarily due to higher-cost inventory and higher inventory-related costs.
Current wording
Cost of sales increased by $0.4 million, or 6.1%, to $6.5 million for the three months ended September 30, 2026, from $6.1 million for the three months ended September 30, 2025, primarily due to increased reserves for excess and obsolete inventory, partially offset by decreased number of LDDs and LALs sold during the period as compared to the same period in the prior year. Product gross margin decreased to 73.6% in the three months ended September 30, 2026, from 79.9% for the three months ended September 30, 2025. The decrease is primarily due to increased reserves for excess and obsolete inventory and higher-cost inventory, partially offset by favorable product mix.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 together with the dollar increase or decrease and percentage change in those items:
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025 together with the dollar increase or decrease and percentage change in those items:
Previous wording
Total revenue for the six months ended June 30, 2026, was $64.6 million, a decrease of $6.9 million, or 9.6%, compared to $71.5 million for the six months ended June 30, 2025. The decrease was primarily driven by reduced product sales of $13.4 million, or 18.7%, to $58.1 million for the six months ended June 30, 2026, from $71.5 million for the six months ended June 30, 2025. The decrease in product sales was primarily due to lower unit sales of both LDDs and LALs, reflecting, among other things, increased competition in the IOL market, including recent widespread competitive trialing activity for new product launches. The overall decrease in total revenue was partially offset by contract revenues from the RxSight-Alcon Collaboration Agreement of $6.5 million, which relate to the upfront licensing fee for our LAL intellectual property.
Current wording
Total revenue for the nine months ended September 30, 2026, was $89.2 million, a decrease of $12.7 million, or 12.4%, compared to $101.9 million for the nine months ended September 30, 2025. The decrease was primarily driven by reduced product sales of $19.2 million, or 18.8%, to $82.7 million for the nine months ended September 30, 2026, from $101.9 million for the nine months ended September 30, 2025. The decrease in product sales was primarily due to lower unit sales of both LDDs and LALs, reflecting, among other things, increased competition in the IOL market, including recent widespread competitive trialing activity for new product launches. The overall decrease in total revenue was partially offset by contract revenues from the RxSight-Alcon Collaboration Agreement of $6.5 million, which relate to the upfront licensing fee for our LAL intellectual property.
Previous wording
Cost of sales decreased by $2.8 million, or 15.3%, to $15.3 million for the six months ended June 30, 2026 from $18.0 million for the six months ended June 30, 2025, primarily due to the decrease in the number of units sold during the period as compared to the same period in the prior year. Product gross margin decreased to 73.8% in the six months ended June 30, 2026, from 74.8% for the six months ended June 30, 2025, primarily due to higher-cost inventory and higher inventory-related costs.
Current wording
Cost of sales decreased by $2.4 million, or 9.9%, to $21.7 million for the nine months ended September 30, 2026 from $24.1 million for the nine months ended September 30, 2025, primarily due to the decrease in the number of units sold during the period as compared to the same period in the prior year, partially offset by increased scrap and reserve expense. Product gross margin decreased to 73.7% in the nine months ended September 30, 2026, from 76.3% for the nine months ended September 30, 2025, primarily due to higher-cost inventory and increased reserves for excess and obsolete inventory, partially offset by favorable product mix.
Previous wording
SG&A expenses increased by $4.7 million, or 8.1%, to $62.3 million for the six months ended June 30, 2026, from $57.6 million for the six months ended June 30, 2025. This increase was primarily attributable to higher professional services fees of $6.7 million. Additional increases were due to higher compensation and other employee-related costs of $1.7 million and higher office and other expenses of $0.2 million. These increases were partially offset by lower clinical and regulatory expenses of $3.1 million as most projects concluded in late 2025 and lower marketing and customer acquisition expenses of $0.5 million.
Current wording
SG&A expenses increased by $4.7 million, or 5.6%, to $89.7 million for the nine months ended September 30, 2026, from $85.0 million for the nine months ended September 30, 2025. This increase was primarily attributable to higher professional services fees of $7.8 million. Additional increases were due to higher compensation and other employee-related costs of $2.0 million. These increases were partially offset by lower post-market clinical study expenses of $3.9 million as most projects concluded in late 2025 and lower marketing, lower office and other expenses of $0.8 million, lower stock-based compensation of $0.5 million and customer acquisition expenses of $0.4 million.
Previous wording
Research and development expenses decreased by $1.0 million, or 9.6%, to $9.2 million for the three months ended June 30, 2026, from $10.2 million for the three months ended June 30, 2025. This decrease was primarily attributable to lower compensation and other employee-related costs of approximately $0.9 million primarily driven by reduced headcount as well as allocations of certain employees to manufacturing during the second quarter of 2025.
Current wording
Research and development expenses decreased by $1.7 million, or 5.8%, to $27.9 million for the nine months ended September 30, 2026, from $29.6 million for the nine months ended September 30, 2025. This decrease was primarily due to lower compensation and other employee-related costs of $1.7 million, primarily driven by reduced headcount and allocations of certain employees to manufacturing during the second quarter of 2025.
Previous wording
Other income (expense), net, decreased by $1.0 million to income of $3.7 million for the six months ended June 30, 2026, as compared to income of $4.7 million for the six months ended June 30, 2025. The decrease was primarily due to lower cash and short-term investment balances.
Current wording
Other income (expense), net, decreased by $1.1 million to income of $6.0 million for the nine months ended September 30, 2026, as compared to income of $7.1 million for the nine months ended September 30, 2025. The decrease was primarily due to lower cash and short-term investment balances prior to receipt of the upfront payment for the RxSight-Alcon Collaboration Agreement at the beginning of the third quarter of 2026.
Previous wording
As of June 30, 2026, we had cash, cash equivalents and short-term investments of $208.8 million. For the six months ended June 30, 2026, and 2025, our losses from operations were $31.6 million and $24.7 million, respectively.
Current wording
As of September 30, 2026, we had cash, cash equivalents and short-term investments of $254.7 million. Our current liabilities as of September 30, 2026 included a $50.0 million refund liability, representing the portion of the upfront payment under the RxSight-Alcon Collaboration Agreement that was refundable if the agreement was terminated within 120 days of its effective date. The 120-day period ended on October 28, 2026 without termination of the agreement, and such amount is no longer refundable. For the nine months ended September 30, 2026, and 2025, our losses from operations were $50.1 million and $36.9 million, respectively.
Previous 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.
Current wording
Net cash provided by operating activities for the nine months ended September 30, 2026, was $24.8 million, consisting primarily of a net loss of $44.2 million, add backs for stock based compensation and depreciation of $23.0 million and $2.8 million, respectively, and a change in operating assets and liabilities of $45.4 million, which included receipt of the $60.0 million upfront payment for the RxSight-Alcon Collaboration Agreement.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2026, was $20.4 million, consisting primarily of a net loss of $28.0 million and a change in operating assets and liabilities of $7.4 million, partially offset by non-cash stock-based compensation of $15.4 million and depreciation and amortization of $1.8 million.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2025, was $14.4 million, consisting primarily of a net loss of $29.8 million and a change in operating assets and liabilities of $5.5 million, partially offset by non-cash stock-based compensation of $23.8 million and depreciation and amortization of $2.4 million.
Previous 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.
Current wording
Net cash provided by investing activities for the nine months ended September 30, 2026, was $21.4 million, consisting of net maturities of short-term investments of $25.3 million and was partially offset by purchases of property and equipment of $3.9 million.
Previous wording
Net cash provided by investing activities for the six months ended June 30, 2026, was $13.5 million, consisting of net maturities of short-term investments of $16.2 million and was partially offset by purchases of property and equipment of $2.7 million.
Current wording
Net cash provided by investing activities for the nine months ended September 30, 2025, was $26.5 million, consisting of net maturities of short-term investments of $29.2 million and was partially offset by purchases of property and equipment of $2.7 million.
Previous 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.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2026, was $0.5 million, consisting of proceeds from issuance of common stock of $1.0 million, partially offset by tax payments for employee stock compensation of $0.5 million.
Previous wording
Net cash provided by financing activities for the six months ended June 30, 2026, was $0.3 million, consisting of proceeds from issuance of common stock from stock option exercises of $0.8 million, partially offset by tax payments for employee stock compensation of $0.5 million.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2025, was $0.8 million, consisting of proceeds from issuance of common stock from stock option exercises of $2.9 million, partially offset by tax payments for employee stock compensation of $2.1 million.
Previous wording
United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, which may affect our future financial statement presentation, financial condition, results of operations and cash flows. Our significant accounting policies are more fully described in the notes to our financial statements included in our Annual Report on Form 10-K filed with the SEC on February 25, 2026. We believe that the accounting policies we use are critical to the process of making significant judgments and estimates in the preparation of our financial statements and understanding and evaluating our reported financial results.
Current wording
Our management’s discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, which may affect our future financial statement presentation, financial condition, results of operations and cash flows. Our significant accounting policies are more fully described in the notes to our financial statements included in our Annual Report on Form 10-K filed with the SEC on February 25, 2026. We believe that the accounting policies we use are critical to the process of making significant judgments and estimates in the preparation of our financial statements and understanding and evaluating our reported financial results.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Other income (expense), net, decreased by $0.5 million to income of $1.8 million for the three months ended June 30, 2026, compared to income of $2.3 million for the three months ended June 30, 2025. The decrease was primarily due to lower cash and short-term investment balances.
Previous report — wording carried elsewhere
Our management’s discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the