RxSight (NASDAQ: RXST) reported Q2 2026 revenue of $33.7 million, essentially unchanged from $33.6 million a year earlier, while its GAAP diluted loss per share remained $0.29. The headline revenue and gross margin benefited from $6.5 million of Alcon collaboration revenue, while product sales fell 19% and the adjusted net loss widened.

Core financial results

The quarter’s revenue mix changed materially. Product sales declined to $27.2 million because of heightened competitive trialing and continued pressure on consumer sentiment, but collaboration revenue kept total revenue slightly above the prior-year level.

The Alcon revenue carried no cost of sales in the company’s disclosed reconciliation. That contribution increased total gross profit and helped offset a modest rise in operating expenses, resulting in a slightly narrower operating loss.

Adjusted results exclude stock-based compensation of $7.5 million in Q2 2026 and $8.5 million in Q2 2025.

Product business and strategic collaboration

RxSight sold 24,917 Light Adjustable Lens units and 12 Light Delivery Devices during the quarter. The company did not provide prior-year unit volumes in the release, but the 19% decline in total product sales indicates continued pressure on its commercial business. Management attributed the weakness to more competitive product trialing and softer consumer sentiment.

The Alcon collaboration contributed $6.5 million of revenue during the quarter. The agreement covers the development and commercialization of light-adjustable, presbyopia-correcting intraocular lenses and provides for up to $200 million in upfront and milestone payments, along with potential future royalties.

RxSight also formally announced development of its next-generation Light Adjustable Technology platform. The planned LAL, LAL+ and LAL Toric products are intended to improve clinical workflow and reduce the number of required postoperative office visits.

Alcon revenue lifted reported margin, but product margin weakened

Total gross margin increased to 76.7% from 74.9%, but that improvement did not come from better product economics. Excluding the Alcon collaboration, product gross margin fell to 71.2% from 74.9%, primarily because of inventory-related costs and the flow-through of higher-cost inventory.

Collaboration revenue generated $6.5 million of gross profit under the reported accounting, allowing total gross profit to rise by approximately $0.7 million despite the product sales decline. With operating expenses rising by approximately $0.5 million, the operating loss narrowed modestly. Net loss still widened slightly because interest and other income decreased to $1.8 million from $2.3 million.

Profitability and balance sheet

Operating expenses were $39.7 million, compared with $39.2 million one year earlier. Higher professional services fees were the principal source of the increase, partially offset by lower compensation and other employee-related costs. Within operating expenses, selling, general and administrative spending was $30.4 million, while research and development spending was $9.2 million.

RxSight ended June with $208.8 million in cash, cash equivalents and short-term investments, down from a combined $228.1 million at the end of 2025. Inventory increased to $37.1 million from $31.6 million over the same period, an increase of approximately 18%.

The balance sheet also included a $60 million receivable from the collaboration partner and a $50 million refund liability, neither of which was present at year-end. Total liabilities consequently increased to $89.4 million from $36.1 million.

Leadership transition leaves no formal 2026 outlook

RxSight appointed Aziz Mottiwala as president and chief executive officer and withdrew its 2026 guidance in connection with the leadership transition. Management plans to resume formal guidance in early 2027.

Mottiwala said underlying trends remained generally consistent with the company’s previous expectations, but the withdrawal provides flexibility while he conducts a comprehensive business review. His stated priorities are strengthening commercial execution, increasing adoption across the installed base and allocating resources among the core business, product pipeline and Alcon collaboration.

Risks investors need to watch

• Product demand remains under pressure. Competitive trialing and weaker consumer sentiment contributed to a 19% product sales decline, making stabilization of the commercial business an important operating test.
• Core product margins have deteriorated. Inventory-related costs and higher-cost inventory reduced product gross margin by 3.7 percentage points, even though collaboration revenue lifted the consolidated margin.
• The withdrawn outlook reduces near-term visibility. RxSight does not plan to resume formal guidance until early 2027, leaving investors without a quantified company outlook during the business review.
• Losses remain substantial. The company recorded a $12.1 million GAAP net loss, while its cash and short-term investments declined from the end of 2025.

Summary

RxSight’s Q2 2026 headline revenue and gross margin were supported by the Alcon collaboration, while the underlying product business contracted and generated a lower margin. The next indicators of operating progress will be product demand, the movement of higher-cost inventory through cost of sales, and the outcome of the new CEO’s business review before formal guidance resumes in early 2027.

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