Sight Sciences raises 2025 revenue guidance to $76M-$78M while accelerating TearCare commercialization

Earnings Call Insights: Sight Sciences (SGHT) Q3 2025

MANAGEMENT VIEW

* Paul Badawi, Co-Founder, President, CEO & Director, reported, "Our strong third quarter results were driven by excellent performance by our Surgical Glaucoma team, where we returned to growth in the quarter, both versus the same period in the prior year and sequentially." He further announced, "We are raising our full year 2025 revenue guidance to $76 million to $78 million."
* Badawi described the achievement of Medicare fee schedules for TearCare by First Coast Service Options and Novitas Solutions as a major milestone, stating this will "allow us to pioneer the reimbursed market for interventional dry eye procedures and expand care for patients." He emphasized the company's focus is now on accelerating commercialization efforts for TearCare in the covered regions.
* Badawi highlighted recent management changes: "I am very excited for the latest evolution of the Sight Sciences management team with the promotion of Ali Bauerlein to Chief Operating Officer; and Jim Rodberg, to Chief Financial Officer."
* Jim Rodberg, VP of Finance & Corporate Controller, said, "In the third quarter, total revenue was $19.9 million, a 1% decrease. Surgical Glaucoma revenue was $19.7 million, an increase of 6%."

OUTLOOK

* The company raised its full year 2025 revenue guidance to $76 million to $78 million, up from the previous $72 million to $76 million range.
* Revenue guidance includes Dry Eye segment revenue of $0.5 million to $1 million for Q4. Management expects fourth quarter Surgical Glaucoma revenue growth to be in the low single digits at the midpoint versus Q4 2024.
* Adjusted operating expense guidance was reduced to $90 million to $92 million for the year, a decrease of 9% to 11% compared to 2024.
* Management continues to anticipate Surgical Glaucoma segment's tariff exposure of $1 million to $1.5 million for full year 2025.

FINANCIAL RESULTS

* Sight Sciences reported total revenue of $19.9 million for Q3 2025.
* Surgical Glaucoma revenue was $19.7 million, up 6% year-over-year and up 3% sequentially.
* Dry Eye revenue was $0.2 million, compared to $1.5 million in Q3 2024.
* Gross margin was 86%, with Surgical Glaucoma gross margin at 87% and Dry Eye gross margin at 38%.
* Total operating expenses were $25.1 million, down 11% year-over-year; adjusted operating expenses were $19.8 million, down 17%.
* The net loss was $8.2 million or $0.16 per share, compared to a net loss of $11.1 million or $0.22 per share in Q3 2024.
* The company ended the quarter with $92.4 million in cash and cash equivalents and $40 million of debt.

Q&A

* Danielle Antalffy, UBS: Asked about COO priorities and near-term impact areas. Alison Bauerlein responded, "I will really be focused on accelerating our growth, increasing the oversight on the day-to-day operations, but most importantly, really working with the team to drive the successful scale-up of the TearCare franchise."
* David Saxon, Needham & Company: Inquired about competitor changes in glaucoma and TearCare engagement. Badawi explained the team is focused on selling OMNI's benefits and expects to capture growth as the MIGS market returns in 2026. Bauerlein noted, "We've seen heavy engagement both from existing accounts wanting to learn about how they can activate this new payer payment rate and also new interest from new customers."
* Thomas Stephan, Stifel: Asked about Q4 Surgical Glaucoma growth and TearCare contribution modeling. Rodberg stated, "At the midpoint, there still is some year-over-year growth there. Our objective...is to set prudent and achievable guidance." Bauerlein highlighted TearCare's large growth opportunity next year due to its small current base.
* Unknown Analyst, Citi: Questioned timing for commercial and MA contracts for TearCare. Bauerlein said, "We are actively engaging with both other MACs as well as commercial payers...there is a requirement for [Medicare Advantage plans] to cover and match the traditional Medicare plans."
* Adam Maeder, Piper Sandler: Asked about OpEx management and TearCare market awareness strategy. Badawi stated, "The team has been extremely disciplined over the last year to 2 years here and really have driven a lot of OpEx savings throughout the P&L." Bauerlein emphasized increasing payer coverage and customer engagement simultaneously.
* Xuesong Wang, Morgan Stanley: Asked about coverage density momentum for TearCare. Bauerlein said, "Interest has continued to strengthen as we've gotten past those publications. We do feel good that First Coast and Novitas will be the first of many, not just the first."

SENTIMENT ANALYSIS

* Analysts expressed positivity about the TearCare reimbursement milestone and new leadership roles, frequently praising management's expense discipline and growth strategy. Questions focused on execution details and growth modeling rather than skepticism.
* Management's tone was confident during prepared remarks and responsive in Q&A, emphasizing operational discipline and growth readiness. Statements such as "We are confident that Ali's promotion to a COO role right now is a timely one" and "We are poised to create a new standard of care" reflect high confidence.
* Compared to the previous quarter, both analysts and management maintained a positive to slightly more optimistic tone, especially regarding TearCare commercialization and expense control.

QUARTER-OVER-QUARTER COMPARISON

* The Q3 2025 call featured a notable upward revision in revenue guidance versus Q2.
* Management announced the establishment of Medicare fee schedules for TearCare in two MAC regions, a development not present in Q2.
* Operating expense guidance for the full year was reduced, in contrast to Q2 where it was reaffirmed.
* Q3 emphasized the transition and growth in management roles, while Q2 focused more on ongoing operational execution.
* Analyst questions shifted from concerns over reimbursement timing and LCD headwinds in Q2 to details on executing TearCare’s ramp and modeling future growth in Q3.
* Management's confidence in TearCare's market access and commercialization was more pronounced in Q3.

RISKS AND CONCERNS

* Management cited uncertainty in future tariff rates and ongoing exposure, with $1 million to $1.5 million in tariff costs expected for 2025.
* The company is still awaiting any monetary damages from the Alcon patent case.
* Bauerlein noted uncertainty in the timing of additional commercial and MA payer coverage for TearCare but reported progress in conversations.
* The reduction in force led to $2.8 million in restructuring costs in Q3, but management expects $12 million in annualized savings.

FINAL TAKEAWAY

Sight Sciences delivered strong Surgical Glaucoma growth, advanced the market launch of reimbursed TearCare procedures, and raised its 2025 revenue outlook while reducing expense targets. The company highlights sustained operational discipline, strategic leadership changes, and early traction in payer coverage for TearCare, positioning itself for renewed growth across both business segments as it heads into 2026.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/sght/earnings/transcripts]

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