RxSight sales drop 20% as Alcon deal adds $60M upfront

Key Takeaways:

Preliminary Q2 revenue fell 20% year over year to about $27 million
Alcon collaboration contributed $5 million to $7 million in the quarter
Full-year 2026 guidance raised to $140 million to $160 million

RxSight's preliminary second-quarter sales fell 20 percent from a year earlier to about $27 million, as competitive trialing activity and weaker consumer sentiment weighed on adoption of its Light Adjustable Lens system, the company said July 10. The Aliso Viejo, California-based medical device company reported total revenue of $32 million to $34 million for the period ended June 30, including $5 million to $7 million from a newly announced strategic collaboration with Alcon.

"We experienced near-term challenges in the second quarter after several quarters of relatively stable utilization trends," Ron Kurtz, president and chief executive officer of RxSight, said on a conference call. He attributed the retrenchment to "widespread competitive trialing activity associated with new product launches" and said the heightened competitive environment is expected to remain active through year-end.

RxSight sold 24,917 LAL units during the quarter, a 10 percent decline from the prior-year period, and placed 11 Light Delivery Devices plus one rental unit, bringing its installed base to 1,166. The company ended the quarter with about $209 million in cash and short-term investments. Gross margin guidance was raised to 73 percent to 75 percent from 70 percent to 72 percent, reflecting a favorable product mix, while operating expenses are expected at the high end of the $150 million to $160 million range.

The Alcon deal, announced July 6, provides a $60 million upfront payment to RxSight, with up to $140 million in additional development and regulatory milestones. Under the non-exclusive agreement, the companies will co-develop adjustable presbyopia-correcting intraocular lenses combining RxSight's post-operative light-adjustable technology with Alcon's PCIOL optical designs. Alcon will lead global commercialization while RxSight handles development and manufacturing and receives royalties on net sales. Kurtz described the opportunity as within the company's typical five-year planning period, noting that most LAL patients currently come from monofocal or monofocal Toric lenses, with less than a quarter from presbyopia-correcting IOLs.

Pipeline and Competitive Positioning

RxSight is developing next-generation LAL and LAL+ products, as well as LAL Toric, a lens combining built-in Toric correction with postoperative refinement of residual sphere and cylinder. Kurtz said current use averages about one and a half adjustments and two lock-in treatments, and the company aims to reduce that to a single lock-in treatment. The company also plans to accelerate investments in its U.S. LAL sales force to deepen penetration within existing accounts.

The competitive landscape includes Johnson & Johnson's Tecnis and Bausch + Lomb's enVista platforms, neither of which offers post-operative adjustability. RxSight's LAL system, which received FDA approval and holds a CE Mark, remains the only commercially available intraocular lens technology that can be adjusted after implantation using ultraviolet light. The company's full, unaudited second-quarter results are expected Aug. 5.

For investors, the mixed signals create a complex picture. RxSight shares face near-term pressure from the 20 percent sales decline and competitive headwinds, while the Alcon partnership provides a $60 million cash infusion and a pathway into the presbyopia-correcting IOL market — a segment RxSight does not currently serve. The company's raised gross margin guidance suggests improving unit economics, but elevated operating expenses tied to sales force expansion and collaboration costs may delay profitability.

This article is for informational purposes only and does not constitute investment advice.