Sight Sciences Reports First Quarter 2025 Financial Results and Reaffirms Full Year 2025 Revenue Guidance

MENLO PARK, Calif., May 08, 2025 (GLOBE NEWSWIRE) -- Sight Sciences, Inc. (Nasdaq: SGHT), an eyecare technology company focused on developing and commercializing innovative, interventional technologies intended to transform care and improve patients' lives, today reported financial results for the first quarter ended March 31, 2025, reaffirms revenue guidance for full year 2025, and announces improved adjusted operating expenses guidance for full year 2025.

Recent Financial and Business Highlights

   -- Generated first quarter 2025 total revenue of $17.5 million, a decrease 
      of 9% compared to the same period in the prior year. This decline was 
      primarily due to lower revenue from the Company's Surgical Glaucoma 
      segment, which decreased 6% compared to the same period in the prior 
      year. The expected decrease was primarily due to the new Medicare LCDs 
      that restricted Medicare coverage for multiple MIGS procedures when 
      performed at the same time as a cataract procedure. 
 
   -- Achieved total gross margin of 86% of revenue in the first quarter of 
      2025, which is equal to total gross margin in the same period in the 
      prior year. 
 
   -- Reduced total operating expenses to $29.0 million in the first quarter of 
      2025, representing a 7% decrease compared to $31.2 million in the same 
      period in the prior year. 
 
   -- Launched OMNI Edge at the American Society of Cataract and Refractive 
      Surgery (ASCRS) Annual Meeting in April. OMNI Edge with TruSync$(TM)$ 
      technology builds on the proven performance of the OMNI$(R)$ Surgical 
      System and is designed to deliver significantly more viscodilation while 
      maintaining the consistency and safety of the OMNI platform. 

Management Commentary

"Our team continues to execute well in this dynamic market environment, and we remain committed to effectively serving interventional eyecare providers and their patients with our innovative technologies. We are methodically progressing each of our strategic initiatives, including building commercial momentum in MIGS, establishing equitable reimbursement for TearCare(R), publishing new clinical and economic data, and advancing our robust product pipeline, as we demonstrated with the recent successful launch of OMNI Edge," said Paul Badawi, Co-Founder and Chief Executive Officer of Sight Sciences. "Together, these initiatives are intended to enable future growth as we work to address the unmet needs in two of the largest markets in eyecare, glaucoma and dry eye. Our customers are progressively adopting an interventional mindset that aligns with increased utilization of our technologies, and we are confident that our consistent execution against our strategic initiatives will make this a transformational year for our business."

First Quarter 2025 Financial Results

Revenue for the first quarter of 2025 was $17.5 million, a decrease of 9% compared to the same period in the prior year. Surgical Glaucoma revenue was $17.1 million, a decrease of 6% compared to the same period in the prior year. This expected decline was due to a decrease in account utilization, which decreased by 10%, primarily due to restrictions on the performance of multiple MIGS procedures in combination with cataract surgery for Medicare patients in most states. Dry Eye revenue was $0.4 million, a decrease from $1.0 million in the same period in the prior year, primarily due to fewer SmartLids(R) sales, which was a result of the Company's focus on achieving reimbursed market access for TearCare procedures instead of cash pay procedures.

Gross profit for the first quarter of 2025 was $15.1 million compared to $16.5 million in the same period in the prior year. Gross margin for the first quarter of 2025 was 86%, which was flat relative to the same period in the prior year. Surgical Glaucoma gross margin in the first quarter of 2025 declined slightly to 87%, compared to 88% in the same period in the prior year, primarily due to product sales mix and higher overhead costs per unit. Dry Eye gross margin in the first quarter of 2025 increased to 71%, from 42% in the same period in the prior year, primarily due to higher average selling prices.

Total operating expenses were $29.0 million in the first quarter of 2025, representing a 7% decrease compared to $31.2 million in the same period in the prior year, primarily due to lower legal expenses. Research and development expenses were $4.4 million in the first quarter of 2025 compared to $4.6 million in the same period in the prior year, representing a 4% decrease. Selling, general, and administrative expenses were $24.5 million in the first quarter of 2025, compared to $26.6 million in the same period in the prior year, representing an 8% decrease. Adjusted operating expenses(i) (,2) were $24.7 million in the first quarter of 2025, down from $26.6 million in the same period in the prior year, representing a 7% decrease.

Net loss was $14.2 million, or a loss of $0.28 per share, in the first quarter of 2025, compared to a net loss of $16.3 million, or a loss of $0.33 per share, in the same period in the prior year.

Cash and cash equivalents totaled $108.8 million and total long-term debt was $40.0 million (before unamortized discount and debt issuance costs) as of March 31, 2025, compared to $120.4 million and $40.0 million, respectively, as of December 31, 2024. Cash used in the first quarter of 2025 totaled $11.6 million, compared to $10.8 million in the same period in the prior year, primarily due to higher annual cash incentive payments in the first quarter of 2025.

2025 Financial Guidance

Sight Sciences reaffirms revenue guidance expectations for full year 2025 of approximately $70.0 million to $75.0 million, representing a 6% to 12% decline compared to full year 2024 revenue. This guidance range reflects the expected impacts to the MIGS market associated with the new Medicare LCDs that became effective in most states in mid-November 2024, which restrict Medicare coverage for multiple MIGS procedures when performed at the same time as a cataract procedure. This guidance range also assumes revenue of approximately $1.0 million for full year 2025 for the Dry Eye segment and does not contemplate achievement of positive reimbursement coverage or payment decisions for TearCare in 2025.

The Company is announcing improved expense guidance and now expects adjusted operating expenses(1,3) for full year 2025 to be approximately $101.0 million to $105.0 million, representing an increase of 0% to 4% compared to adjusted operating expenses for full year 2024, versus prior adjusted operating expenses guidance of $105.0 million to $107.0 million. The reduction reflects ongoing expense controls put in place to partially offset the cost of goods sold impact associated with tariffs on our business.

The Company has exposure to the tariffs imposed by the U.S. on China because most of its products are produced and assembled in China. Based on the current China tariff rate, revenue expectations by product, and inventory levels, the Company expects its Surgical Glaucoma segment's unmitigated tariff exposure would increase the segment's cost of goods sold by between approximately $3.5 million and $4.5 million for full year 2025. The impact is expected to be larger in the second half of 2025 versus the first half of 2025.

The Company's full year 2025 financial guidance is forward-looking in nature, reflecting management's expectations as of this press release, and is subject to significant risks and uncertainties that limit its ability to accurately forecast results. This outlook assumes no meaningful changes to the Company's business or prospects, or to the risks and uncertainties identified by management that could impact future results, which include, but are not limited to: incremental or unanticipated changes in tariff policies or rates impacting our products or the medical device industry; changes to reimbursement coverage, payment decisions or reimbursement rates for our products; changes to product pricing or market share resulting from the evolving competitive landscape; impacts from new changes in policies impacting tariffs on our products and the medical device industry generally; and disruptions to or increased costs associated with our supply chain, including as a result of having a limited number of suppliers.

(1) "Adjusted operating expenses" is a financial measure not prepared in accordance with generally accepted accounting principles in the United States (GAAP), and therefore such a measure, is a "non-GAAP financial measure", and is calculated as operating expenses less stock-based compensation expense, depreciation and amortization, restructuring costs, and other one-time or non-recurring costs. Please see the "Non-GAAP Financial Measures" section below for additional information.

(2) A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures has been provided in the table titled "Non-GAAP to GAAP Reconciliation" attached to this press release.

(3) Consistent with Securities and Exchange Commission $(SEC.UK)$ regulations, the Company has not provided a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in reliance on the "unreasonable efforts" exception set forth in the applicable regulations, because there is substantial uncertainty associated with predicting any future adjustments that may be made to the Company's GAAP financial measures in calculating the non-GAAP financial measures.

Non-GAAP Financial Measures

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May 08, 2025 16:06 ET (20:06 GMT)