RxSight (NASDAQ:RXST) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

RxSight (NASDAQ:RXST) released its earnings results on Tuesday. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.31) by ($0.08), Zacks reports. RxSight had a negative net margin of 36.80% and a negative return on equity of 17.35%. The company had revenue of $24.59 million during the quarter, compared to analysts’ expectations of $27.19 million.

Here are the key takeaways from RxSight’s conference call:

• Third-quarter revenue fell 19% year over year to $24.6 million, while LAL procedure volume declined 11% to 23,128 units amid competitive pressure, seasonality, and internal restructuring disruption. Gross margin also decreased to 73.6%, partly due to higher inventory reserves.
• RxSight is nearly doubling its U.S. sales force and adding experienced commercial leaders to increase physician engagement, improve practice workflow integration, and drive utilization across its existing installed base. Management said high-performing practices demonstrate that stronger sales coverage and training can produce durable volume growth.
• Management expects fourth-quarter LAL sales to be roughly in line with the second quarter, implying mid- to high-single-digit sequential growth, but cautioned that competitive product trialing and restructuring-related disruption will continue through year-end. Formal 2026 guidance remains suspended, with 2027 guidance expected alongside fourth-quarter results.
• The Alcon collaboration passed its initial 120-day milestone, securing the $60 million upfront payment and allowing the companies to continue developing a partnership that management believes could expand postoperative adjustability across most of the premium IOL market.
• A comprehensive restructuring across manufacturing, corporate functions, and international operations is expected to reduce operating expenses in 2027 and beyond while preserving investment in the next-generation LAL pipeline and Alcon partnership. The company ended the quarter with $254.7 million in cash and short-term investments.

RxSight Price Performance

RXST traded up $0.47 during trading on Wednesday, hitting $5.06. The company had a trading volume of 317,837 shares, compared to its average volume of 915,903. RxSight has a 1-year low of $4.11 and a 1-year high of $13.22. The company has a market cap of $210.32 million, a PE ratio of -4.45 and a beta of 1.21. The business has a 50-day moving average of $5.33 and a 200-day moving average of $6.34.

Insider Buying and Selling at RxSight

In other RxSight news, CFO Mark Wilterding sold 7,765 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $6.96, for a total transaction of $54,044.40. Following the sale, the chief financial officer owned 25,049 shares in the company, valued at $174,341.04. This represents a 23.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ronald M. Md Kurtz sold 5,100 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $6.96, for a total value of $35,496.00. Following the transaction, the insider directly owned 71,775 shares in the company, valued at approximately $499,554. This represents a 6.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 16,947 shares of company stock valued at $117,951. 10.05% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RXST. Jefferies Financial Group reduced their target price on RxSight from $6.50 to $5.75 and set a “hold” rating on the stock in a report on Tuesday, September 22nd. Wells Fargo & Company set a $6.00 target price on shares of RxSight in a research note on Wednesday. Wall Street Zen cut shares of RxSight from a “hold” rating to a “sell” rating in a research report on Sunday, October 25th. Bank of America cut their price objective on RxSight from $6.50 to $5.50 and set an “underperform” rating on the stock in a research report on Tuesday, September 22nd. Finally, UBS Group boosted their price target on RxSight from $5.50 to $6.30 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, RxSight presently has an average rating of “Reduce” and a consensus price target of $7.39.

Trending Headlines about RxSight

Here are the key news stories impacting RxSight this week:

• Positive Sentiment: Zacks reported a quarterly loss of $0.21 per share, narrower than its consensus estimate of $0.29, although the loss was larger than a year earlier. Zacks Q3 results
• Neutral Sentiment: Needham kept its Buy rating but cut its price target from $11 to $7. The new target implies 52.5% upside from the cited $4.59 share price, but the reduction signals more cautious expectations. Needham analyst recommendations
• Negative Sentiment: RxSight reported Q3 revenue of $24.59 million, below the $27.19 million analyst estimate and down 19% year over year. Its net loss widened to $16.2 million; reported EPS of a $0.39 loss also missed the $0.31 loss consensus, weighing on the outlook despite the more favorable Zacks loss figure. RxSight Q3 earnings coverage
• Negative Sentiment: The company said its next-generation light-adjustable lens could arrive no earlier than 2028. Although RxSight plans to resume providing 2027 guidance, the product timeline may temper near-term growth expectations. Next-generation lens timing and guidance

About RxSight

RxSight, Inc is a medical technology company focused on improving visual outcomes for patients undergoing cataract surgery. The company develops and commercializes ophthalmic products that allow surgeons to customize a patient’s vision after surgery.

Its primary product is the RxSight Light Adjustable Lens, an intraocular lens implanted during cataract surgery. After implantation, the lens can be adjusted using ultraviolet light treatments delivered by the company’s Light Delivery Device, enabling physicians to refine the lens power based on the patient’s postoperative visual needs.