Lensar - W/I | 10-Q: FY2025 Q2 Revenue Misses Estimate at USD 13.94 M

Revenue: As of FY2025 Q2, the actual value is USD 13.94 M, missing the estimate of USD 16.55 M.

EPS: As of FY2025 Q2, the actual value is USD -0.15, missing the estimate of USD -0.075.

Segment Revenue

Product Revenue: $10.91 million for Q2 2025, up from $9.53 million in Q2 2024. For the six months ended June 30, 2025, product revenue was $21.83 million, up from $16.97 million in the same period in 2024.
Lease Revenue: $1.65 million for Q2 2025, down from $1.95 million in Q2 2024. For the six months ended June 30, 2025, lease revenue was $3.53 million, down from $3.90 million in the same period in 2024.
Service Revenue: $1.38 million for Q2 2025, up from $1.15 million in Q2 2024. For the six months ended June 30, 2025, service revenue was $2.74 million, up from $2.36 million in the same period in 2024.
Total Revenue: $13.94 million for Q2 2025, up from $12.64 million in Q2 2024. For the six months ended June 30, 2025, total revenue was $28.09 million, up from $23.22 million in the same period in 2024.

Operational Metrics

Cost of Product Revenue: $4.32 million for Q2 2025, up from $3.85 million in Q2 2024. For the six months ended June 30, 2025, cost of product revenue was $8.78 million, up from $6.44 million in the same period in 2024.
Cost of Lease Revenue: $0.86 million for Q2 2025, up from $0.66 million in Q2 2024. For the six months ended June 30, 2025, cost of lease revenue was $1.69 million, up from $1.27 million in the same period in 2024.
Cost of Service Revenue: $1.74 million for Q2 2025, up from $1.31 million in Q2 2024. For the six months ended June 30, 2025, cost of service revenue was $3.48 million, up from $3.04 million in the same period in 2024.
Total Cost of Revenue: $6.91 million for Q2 2025, up from $5.82 million in Q2 2024. For the six months ended June 30, 2025, total cost of revenue was $13.95 million, up from $10.75 million in the same period in 2024.
Selling, General and Administrative Expenses: $11.66 million for Q2 2025, up from $6.78 million in Q2 2024. For the six months ended June 30, 2025, these expenses were $22.81 million, up from $13.58 million in the same period in 2024.
Research and Development Expenses: $1.43 million for Q2 2025, up from $1.35 million in Q2 2024. For the six months ended June 30, 2025, these expenses were $2.96 million, up from $2.79 million in the same period in 2024.
Amortization of Intangible Assets: $0.23 million for Q2 2025, consistent with Q2 2024. For the six months ended June 30, 2025, amortization was $0.46 million, consistent with the same period in 2024.
Operating Loss: $6.29 million for Q2 2025, compared to $5.28 million in Q2 2024. For the six months ended June 30, 2025, operating loss was $12.08 million, compared to $8.13 million in the same period in 2024.
Net Loss: $1.76 million for Q2 2025, compared to $9.04 million in Q2 2024. For the six months ended June 30, 2025, net loss was $29.11 million, compared to $11.20 million in the same period in 2024.

Cash Flow

Net Cash Used in Operating Activities: $11.94 million for the six months ended June 30, 2025, compared to $9.09 million in the same period in 2024.
Net Cash Used in Investing Activities: $6.96 million for the six months ended June 30, 2025, compared to $3.25 million in the same period in 2024.
Net Cash Provided by (Used in) Financing Activities: $9.78 million for the six months ended June 30, 2025, compared to - $0.001 million in the same period in 2024.

Unique Metrics

Procedure Volume: 52,100 procedures in Q2 2025, compared to 42,203 procedures in Q2 2024. For the six months ended June 30, 2025, total procedure volume was 104,447, compared to 81,689 in the same period in 2024.

Future Outlook and Strategy

Core Business Focus: The company is focused on the commercialization of the ALLY System, which has received regulatory clearance in the U.S., EU, India, Taiwan, South Korea, and certain other countries. The company is also pursuing additional marketing or certification applications through its distributor in China.
Non-Core Business: The company is undergoing a merger with Alcon Research, LLC, which is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals. The merger agreement includes a contingent value right per share, representing the right to receive one contingent payment of $2.75 in cash upon achievement of 614,000 cumulative procedures with the company’s products between January 1, 2026, and December 31, 2027.
Priority: The company aims to increase its installed base of Systems and expand its market presence in the U.S. and internationally, subject to applicable regulatory clearance or certification. The company expects annual revenue and selling, general and administrative expenses to increase from current levels associated with the increase in ALLY System placements.