LENSAR Q2 Earnings Call Highlights

LENSAR (NASDAQ:LNSR) reported second-quarter 2026 revenue growth of 18% as the company continued to rebuild commercial momentum following the termination of its proposed merger with Alcon near the end of the first quarter.

Chief Executive Officer Nick Curtis said the company returned to operating independently during the second quarter with a focus on expanding adoption of its ALLY robotic laser cataract system, increasing utilization across its installed base and growing recurring revenue. “The market demand for ALLY is as strong as ever,” Curtis said.

Total second-quarter revenue was $16.5 million, while recurring revenue increased 20% year over year to $13.7 million and represented 83% of quarterly revenue. Procedure revenue rose 23% to $10.2 million. The company also reported GAAP net income of $3.5 million, compared with a net loss of $1.8 million a year earlier, and adjusted EBITDA of $3.6 million, its strongest quarterly adjusted EBITDA result to date.

Procedure Growth and Installed Base Expansion

LENSAR performed 58,682 procedures during the quarter, up 13% from the prior-year period and 8% sequentially from the first quarter. Curtis said LENSAR Laser Systems performed 31% more procedures than Market Scope’s stated national average for installed systems.

U.S. procedure market share rose to 24.1% in the second quarter, from 23.4% in the first quarter and 21.4% in the second quarter of 2025, according to Curtis. He attributed the gains to installed-base growth, higher utilization at existing customers and placements at accounts that previously had not performed laser-assisted cataract surgery.

The company placed 10 ALLY systems in the quarter, compared with seven in the first quarter, bringing the ALLY installed base to about 215 systems worldwide. LENSAR’s total global installed base, including legacy LENSAR Laser Systems, reached 445 systems, up from about 410 a year earlier. ALLY systems now account for nearly half of the company’s global installed base.

LENSAR exited the quarter with 13 ALLY systems in backlog. In response to an analyst question, Curtis said the backlog includes both international and U.S. systems. Some international purchase orders are primarily intended for fourth-quarter delivery, while certain U.S. placements remain dependent on completion of new customer facilities.

Margins Benefit From Recurring Revenue Mix and Tariff Refund

Interim Chief Financial Officer Michael Rossi said gross profit was about $9.8 million, or a gross margin of about 59%, compared with approximately 50% in the second quarter of 2025. The result included a $1.1 million benefit in cost of goods sold tied to a tariff refund. Excluding that benefit, gross margin was 52%.

Rossi said the margin improvement reflected higher revenue and a greater contribution from higher-margin recurring revenue. During the question-and-answer session, he said the company had previously discussed gross margins in the high-40% range, but that the current low-50% range appeared more sustainable as recurring revenue continues to grow.

Selling, general and administrative expenses declined to $6.1 million, primarily because the prior-year quarter included $4.2 million in merger-related costs. Total operating expenses declined to $7.6 million. Rossi said operating expenses are expected to trend modestly higher toward historical levels as LENSAR increases commercial investments and other growth initiatives.

The company ended the quarter with $13.6 million in cash and cash equivalents, compared with $18 million at the end of 2025. Rossi said cash flow was essentially break-even in the second quarter, after the company used $4.4 million of cash in the first quarter. Positive adjusted EBITDA was offset by inventory and working-capital investments intended to support future growth.

Pricing, Utilization and International Expansion

Discussing ALLY system pricing, Curtis said pricing is expected to remain relatively flat, with variations based on whether systems are sold in the U.S. or through distributors and on purchasing commitments from private-equity-backed customers. He said pricing differences were not material.

For recurring revenue per procedure, Curtis said average selling prices could rise modestly as more U.S. systems are placed because procedures performed through international distributors carry lower pricing. He also noted that new customers that are unfamiliar with femtosecond laser-assisted cataract surgery typically require 60 to 90 days after installation to reach full productivity.

Management said it is also beginning to see legacy LENSAR Laser System customers gradually replace older systems with ALLY platforms. These customers may ramp more quickly because they already have familiarity with the company’s technology, Curtis said.

LENSAR plans to take a direct presence at the European Society of Cataract and Refractive Surgeons meeting in the third quarter. Curtis said Europe could become an increasingly important market and that the company is working to reestablish and accelerate distributor relationships outside the U.S. He cautioned that rebuilding those relationships will take several quarters following the disruption caused by the proposed transaction.

Looking ahead, Curtis said cataract procedures have historically been at their lowest levels in the third quarter because of summer vacations in the U.S. and extended holidays in other regions. Still, he said the company remains focused on expanding its installed base, increasing utilization and building recurring revenue to support long-term growth and operating leverage.

About LENSAR (NASDAQ:LNSR)

LENSAR, Inc, headquartered in Orlando, Florida, is a medical technology company specializing in advanced laser systems for ophthalmic surgery. Its flagship product, the LENSAR Laser System, combines proprietary three-dimensional imaging with precision-guided femtosecond laser delivery to perform critical steps in cataract procedures, including capsulotomy creation, lens fragmentation and corneal incisions.

Founded in 2005, LENSAR has concentrated its research and development efforts on enhancing surgical accuracy and patient outcomes in cataract treatment.

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