Rxsight Inc (RXST) 2025 Q3 法說會逐字稿

Hello everyone.

Thank you for standing by My name is and I'll be operator for today. At this time, I would like to welcome each and every one of you to the RX site 3rd quarter to a 25 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press car followed by the number one on a telephone keypad.

I will now send the call over to Mr. Oliver Mora Moravi, Vice President of Infra relations. Please go ahead.

Thank you, operator. Presenting today are RXI President and Chief Executive Officer Dr. Ron Kurtz and Chief Financial Officer Shelley Tunan.

Earlier today, RXI released its financial results for the 3 months ending September 30, 2025 and updated its full year guidance. A copy of the press release is available on the company's website.

Before we begin, I would like to inform you that comments and responses to questions during today's call reflect management's views as of today, November 5, 2025, and will include forward-looking and opinion statements including predictions, estimates, plans, expectations, and other information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today and in our filings with the Securities and Exchange Commission or SC.

Our SEC filings can be found on our website or the SEC's website.

Investors are cautioned not to place undue reliance on forward-looking statements, and we disclaim any obligation to update or revise these forward-looking statements. We will also discuss certain non-GAAP financial measures. Disclosures regarding non-GAAP financial measures, including reconciliations with the most comparable GAAP measures can be found in the press release. Please note that this conference call will be available for audio replay on our investor relations website. With that, I will turn the call over to our President and Chief Executive Officer, Dr. Ron Kurtz. Ron.

Good afternoon everyone, and thank you for joining us.

During the 3rd quarter we've made meaningful progress strengthening our commercial execution in the US while laying the groundwork for our broader global growth.

We aligned our clinical and sales teams to create a more integrated approach for customers, enabling us to improve training and engagement, an approach that we continue to view as the most consistent driver for both future LAL and LDD growth.

We launched the first of several new practice development and clinical engagement programs, including the masterclass and Eleva programs that are designed to share learnings from over 250,000 LAL cases, helping practices optimize LAL workflow, enhance clinical confidence, and accelerate their path to becoming experts in postoperative adjustability.

During the quarter, more than 2000 ophthalmologists implanted the light adjustable lens, representing roughly 1/5 of the estimated total number of US cataract surgeons. With approximately 1,100 LDDs in the field, we have ample opportunities to expand access to the LAL to more patients, and we continue to see healthy demand and growing interest from new doctors and practices.

Our focus is on strategically expanding our base of LDDs and implanting surgeons while positioning our customers for success and sustained growth.

Internationally we're making steady progress on our deliberate and focused rollouts in Asia and Europe with key regulatory infrastructure and commercial initiatives underway to support our multi-year expansion across priority global markets. During the 3rd quarter, we also added an executive Vice President of International to lead this expansion.

We recognize there's more work ahead, but the engagement we're seeing across our customer base gives us confidence that we are building a strong foundation for the future. With that, I'll hand it over to Shelly, who will review our third quarter financials and updated guidance.

Thank you, Ron. Good afternoon, everyone. Our site generated third quarter revenue of $30.3 million down 14% compared to $35.3 million in the year go quarter and down 10% compared to the $33.6 million in the second quarter of. 2025. During the quarter we sold 26,45 LALs generating $25.7 million in LAL revenue, up 6% compared to the third quarter of 2024 and down 5% compared to the seasonally stronger quarter.

Of 2025. In the third quarter of this year, LAL revenue represented 85% of total revenue, an increase from 69% in the third quarter of 2024 and an increase from 80% in the second quarter of 2025. We sold 25 LDVs in the quarter, down 68% from 78 units in the prior year period. And down 38% from the 40 units in the second quarter of 2025. During the quarter, LDD sales generated revenue of $3.2 million down 69% compared to the third quarter of 2024 and down 38% versus the second quarter of 2025.

As of September 30, 2025, our LDD installed base totalled 1,109 units, representing a 25% increase year over year.

Gross margin in the third quarter of 25 was 79.9% representing an 844 basis point increase compared to 71.4% in the year ago period and a 496 basis point increase compared to 74.9% in the second quarter of 2025. The increase primarily reflects the shift in product mix with higher margins. LAL revenue rising to 85% total revenue in the third quarter combined with lower period costs as compared to the second quarter of 2025. In addition, lower unit costs each for both the LAL and LDD contributed to 3rd quarter gross margin improvement compared to the same period last year.

SG&A expenses in the third quarter of 2025 with $27.3 million representing an increase of $1.7 million or 7% versus $25.6 million in the year ago quarter. This year over year increase was primarily due to a rise in personnel costs, stock-based compensation, expense, and marketing studies.

On a sequential basis, SG&A expenses decreased 6% due primarily to lower marketing studies and trade show expenses.

During the third quarter of this year, R&D expenses rose 3% to $9.1 million compared to $8.8 million in the third quarter of 2024. This year over year change primarily reflects an increase in overhead costs offset by lower materials costs. Sequentially, R&D expenses in the third quarter decreased by 11%, primarily driven by a decrease in overhead costs.

We reported a GAAP net loss in the third quarter of 2025 of $9.8 million or a loss of $0.24 per basic and diluted share using weighted average shares outstanding of 41 million shares. This compares to a GAAP net loss of $6.3 million or $0.16 per share on a basic and diluted basis in the third quarter of 2024.

Note also that stock-based compensation in the third quarter of 2025 was $8.1 million.

Therefore, on a non-GAAP basis, we reported a net loss of $1.7 million or a loss of $0.04 per basic and diluted share compared to an adjusted net gain of $200,000 or $0.01 per basic and $0.00 per diluted share in the third quarter of 2024. Please refer to the unaudited non-GAAP reconciliation and disclosure included in today's press release for more comparative information.

We ended the third quarter of 2025 with cash equivalents and short-term investments of $227.5 million unchanged from June 30, 2025.

Moving on now to our 2025 outlook. We are narrowing our full year 2025 guidance for revenue, increasing gross marginal guidance, and reiterating our operating expense guidance as follows.

Based on our Q3 results, more consistent LAL procedure trends and our strategic approach to LDD sales, we are narrowing our full year guidance range to 125 million to 130 million from the prior range of 120 million to 130 million.

Maintaining a conservative outlook, we narrow full your guidance range implies year over year decline of 11% to 7% and Q4 revenues in the range of $23 to $28 million. At the top end of the range, our guidance assumes flat to slightly higher LAL procedures sequentially.

Gross margin of 76 to 77%, an increase from our previous guidance of 72 to 74%, representing an applied increase of 529 to 629 basis points compared to 2024. We estimate gross margin improvement will be driven by a higher LAL and the strategic approach to capital sales Ron mentioned earlier.

Operating expenses are expected to remain in the range of $145 million dollars to $155 million representing an applied increase of 7% to 14% over 2024. We remain disciplined in managing operating expenses as we realign resources and clinical and sales teams to support long-term growth in LAL adoption and support the strategic expansion of our LDD install base. Despite a 6% sequential operating expense decline in Q3, we expect a sequential increase in Q4 driven by the AAO trade show expenses, increased marketing expense, initial international hiring, and stock-based compensation.

Also note that the operating expense estimate includes non-cash stock-based compensation expense between $30.32 million dollars, an increase compared to our previous estimate of $27 to $30 million.

And with that, I'll turn the call back to Ron.

Thank you, Shelly. We continue to see strong global clinical and market enthusiasm for the light adjustable lens. At the September ESCRS meeting in Copenhagen, the level of international interest was the highest we've seen, with physicians recognizing the unique value the light adjustable lens brings to achieving personalized visual outcomes.

Separately, a couple of weeks ago at the AAO meeting in Orlando, the light adjustable lens was again a focal point of discussion, underscoring its growing position within the global premium IOL landscape and the expanding recognition of its differentiated value for patients seeking optimal visual outcomes.

As Medicare's 2026 physician fee for cataract surgery is declining 11%, we expect practices to continue placing greater emphasis on premium IOL options, especially the LAL that improves both patient outcomes and practice economics. Internationally, we are progressing in key markets, building strong relationships with early KOLs and preparing for broader expansion. We expect these efforts to begin contributing more meaningfully over time as procedural volumes grow and local clinical experience deepens.

As always, our R&D team remains focused on improvements that can simplify workflows, broaden the range of patients who benefit from our technology, and continue to extend our leadership in adjustable vision correction.

Before I close, I want to thank all of my RXI colleagues for their continued dedication and adaptability during this period of change. I also want to thank our many partners in clinical practice for their commitment and expertise, bringing a new clinical paradigm to patients worldwide.

Together we're helping to redefine what people can expect from a customized lens replacement solution.

Overall, I'm encouraged by our progress with an aligned organization showing early signs of improved execution toward discipline growth, customer success, and continued innovation to deliver lasting value.

With that, I'll ask the operator to open the call for questions.

At this time, I would like to remind everyone that in order to ask the question, you may press start and the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

So your first question comes from the line of Ryan Zimmerman with BTIG. Your line is open.

Hi Ron Shelley, this is Izzy on for Ian.

Thank you for taking the questions. Just to start out, it looks like you guys had a nice beat to our utilization expectations in the 3rd quarter. I was curious what other metrics you're going to be looking at that'll continue to evaluate that the changes that you're implementing are starting to take hold.

I think that you know the key metric for us and the leading metric for us is the number of LAL procedures, and that to us is an absolute number. We also look at internally, the number of physicians that are implanting each quarter as well and you know. I know that the street has been focused on a number of LALs for LDD. It is certainly a measure we continue to use, but the absolute number of LALs that we have implanted each quarter is a leading indicator because then that of course grows the number of LALs per LDD.

That's helpful.

Thank you and you know there have been a couple of new entrants coming into the market, so I was curious how you're thinking about the potential impacts the demand for the LAL and whether or not you expect to see similar levels of competitive trialing with these lenses, especially when we think of the broader context of reimbursement rates coming down for 2026. Thanks for taking the questions.

Thank you. Maybe I'll take that one. So, I think that the lowered reimbursement for traditional cataract surgery, standard cataract surgery, will generally be continued tailwind for premium mile wales generally, but I, we anticipate that there will be continued entrance into the field for the same reason. However, they're really more of the same, whether they're different manufacturers of Presbyopia correcting IOLs, they're more similar than not. While there is some impact as there's individual incentives to trial the lenses, the overall impact to us, we think over the long-term is modest.

Ron, can I add one thing to that? When we look at the numbers over the last several years of market penetration, if we go back to 2022 versus you know where we're at in 2025, PCIOLs have gone down by about 2%. Obviously we've gone from no market share to about 10%, and Tauric IOLs, which are included in the premium market but are not as much talked about, still remain about 50% of the overall market and so if you think about where we're going, there's still a lot of room for penetration, and our focus, it continues to be the emphasis on total LAL procedures and helping our 1,100 customers grow their practice with the LAL.

Your next question comes from the line of David Jackson with Needham and Company. Please go ahead.

Great, hi, Ron and Shelly, thanks for taking my questions. Congrats on the improvement here in the third quarter. I guess just on the 2000 active surgeons, you called out, I believe last third quarter, active surgeons per LDD was like 1.5 or 1.6. So that is a meaningful increase.

Just considering kind of what you're seeing, so we would love to hear, what's driving that. What are you seeing in terms of the Salesforce realignment and kind of how to think about active surgeons, going forward, especially in the 4th quarter in 2026.

Yeah, so I think that yes, the number of active surgeons has gone up slightly. you know, between 1.7 and 2 depending on the time that we. We measure that and if we think about active surgeons, they really come to us in several different ways. One is that you know we look for surgeons coming into the funnel from new LDD cells, but more importantly, we're looking for new surgeons coming in in an existing practice that may not have been doing the LAL previously. And also, while it's still a very small portion of our business, open access, so open access is typically, doctors that may not have enough volume that go to open access centers and so just like any other new customer, we train them and then they have, they do the surgery themselves and then LDD treatments are done at the open access center.

Okay, thanks for that and then just maybe my second one is just on guidance, so I think so you talked about the top end of the guide implying a sequential increase in LAL volumes. I mean that makes sense just given seasonality, a larger base LDD base and, benefiting some of these initiatives you have going on. I believe that implies pretty much. Like mid single-digit LDD placements, so kind of help us work through like why that would be, especially in the 4th quarter where capital placements should be stronger, how does the LDE pipeline look and kind of how we should think about that implied 4th quarter LDD placement number as we think about 26 placements. Thanks so much.

Yeah, I'll talk about the 25 guidance first, and I think that the way I'm looking at it is a little bit more holistically around the second half.

And so you know with our initial lower guidance of 120 to 130 million and then now we've increased it at the mid of the range by about 2.5 million. I'm kind of looking at at the mid of the guidance that the second half is around 56 million. The top end of the range is a bit higher and The LDD sales, I'm kind of looking holistically at the entire second half, so you're correct, they would be much lower in the 4th quarter, but I'm not reading anything into it other than the strategic imperatives that we set up as to. The type of customers that we're adding and our field personnel what they're doing and so what we're really pushing for them to do is increase volume of LALs in our existing practices and that's important for our future growth as well.

We don't want to, not say that we're going to do LDDs, we've placed 1,100 since we commercialized and that's providing the basis for what we're doing. So yes, you're correct in terms of the math, but I'm also not implying something about that relative to 26 guidance, more just grounding us in the second half of this year. And then Ron, would you add anything to that at all?

Yeah, I think, you've said it well, but I would just reiterate that, our growth model is evolving.

We obviously early on were focused on a classic, playbook that prioritized new systems to build access and awareness of the LAL, but we have a more diversified approach now which Shelley outlined that still includes the strategic addition of new practices and doctors, but that can be through Traditional LDD sales, open access models, or as we just said, more importantly, growing the number of LAL procedures performed by our existing accounts with existing and new doctors. So it's just a much more diversified approach.

Okay great thanks so much guys.

Your next question comes on the line of Larry Belson with Wells Fargo. Please go ahead.

Hi, good afternoon. This is immernon for Larry. Thanks for taking the questions here. Maybe just following up with the prior line of questioning around, sort of Q4 and like what this implies for 2026.

Shelly, the last time we talked you mentioned, as we think about 2026, we should be thinking about sequential growth through the year from Q4.

I guess I'm just trying to understand what kind of a recovery are you seeing here in the quarter and. If you can return to that year over year growth in 2026 given sort of the implied trough in Q4.

Yeah, no, that's a very good question and while we're not getting 2026 guidance yet, I do think that That in 206 what we're looking for is sequential growth and that is really LALs with the strategic direction that we've taken on LDDs and that would be sequential, subject to, some seasonality. I can't predict that a year ahead of time right now, but our goal still is to have a measured pace of growth throughout 2026.

Okay, that's very helpful and congratulations on a really stand out gross margin quarter here.

I guess as we think about the business model evolving from here on out, is a high 70% gross margin sort of a baseline, that we should be thinking about going forward.

I think that's a pretty good assumption, given our results in the second half, so far second quarter and 3rd quarter, I think that it really depends on next, in the last quarter or 3rd quarter, it was really heavy.

LAL at 85% of our total revenue, so it'll depend on that a little bit, but I think the range that we just guided, 77% to 78% is a reasonable range given that kind of mix. Now of course mix could change a little bit. We're really heavy in the third quarter at 80%, but I think that's generally where we want to be.

Got it. That's helpful, thank you.

Thank you.

Your next question comes from the line of Patrick Wood with Morgan Stanley. Please go ahead.

Beautiful, thanks so much for the question, guys.

OU, obviously good to fill the role there, you've talked about a sort of a rational sort of stable launch profile there. Any updated thoughts on like timeline, how we should think about that and contribution over the next year or two?

Well, as we said, Patrick, we're excited about the opportunity outside the US. If you look broadly at the premium market, 2/3 of the premium procedures are performed outside the US in approximately 20 individual markets which we're focused on. And we've made excellent progress, having regulatory access in Europe as well as some of the markets in Asia and are continuing to work on those and then beginning to Introduce the product beyond Canada, where of course we've been for a couple of years, and those those efforts are still at an early stage but making good progress and we would expect those to take a similar course to what we saw in the US where we're establishing. KOL relationships, the clinical value of the technology within each of those markets, data sets that local surgeons can see and experience themselves and then build from there.

Appreciate that, Ron, thanks. The, I guess there's a second and just a quick follow-up. Obviously, we had a bit of noise in Q1 and Q2 in the market overall with monofocal getting kicked out and then monofocal part picking up in Q2, and I know the dangers of looking at this data. In a short-term time horizon, but given all that, how would you characterize the health of the underlying IOL market and the consumer within that? If you see anything that's kind of, better or worse, just trying to get a sense of how you feel about the consumer and the demand structure over and above the reimbursement changes of course that are happening in.

Well, it depends which consumer we're talking about. Typically, the monofocal consumer is going to be more affected by economic headwinds, and so I think that's why we saw some of that earlier in the year and they're still under pressure and with inflation still being relatively high. And so I think that those will still be in play, but at the higher end of the market where we tend to play, I think that we're probably a little bit less impacted and we would hope that our demand would continue to be strong in that end of the market.

Awesome thanks guys.

Thank you.

Your next question comes from the line of Robbie Marcus with JP Morgan. The line is open.

Thanks for the question. This is Alan on for Robbie. I just had a quick one again kind of on just how to think about 2026, fully understand you are not guiding. But given, it sounds as though 4th quarter isn't exactly the right run rate to use going forwards, you said you know you are looking at LAL and LDD is a little bit more holistically. Should we think about, just the back half of the year on average as being kind of the right place to be from an LDD and LAL perspective, just wanted to get a little help thinking about that.

Thank you.

Yeah, I think what you're saying is that is the run rate of the second half of the 2025 indicative of the start of 2026? Is that what you're asking? I just want to make sure I understood. Yeah.

Just like is that the right kind of baseline for us to then maybe forecast, recovery or stability or whatever our assumptions on going into 2026 given, you have this first half or second half dynamic this year.

No, I think it is a good way of looking at it, and I think what it really does is provide the baseline of the way we're thinking about the business for 26, not necessarily the specifics.

So the second half of this year is where we're making a shift in our business model right away from the leading indicator being sales of LDDs. We've built and installed base. We've been successful at that. We now need to optimize the value of that with LAL sales, right? And those coming from our existing customers with, a strategic approach about who we're going to add as customers for LDDs and so I think that approach and the philosophy will guide 26 without specifically trying to get into numbers. So I think it's going to be much heavier in LALs. I'm not so sure it'll be 85% like it was in the third quarter, but I do think that that's important to the way we'll be running the business and how we'll be measuring our own success. Would you add anything about that line?

No, I think that's well said.

Thank you.

Next question comes from the line of Adam Mader with Piper Sandler. Please go ahead.

Hi, Ron and Shelly. Congratulations on the progress and thank you for taking the question. I, I'll keep it to one and one thing that's, I guess come up in our physician checks.

Is the post refractive and LAI patient opportunity and you know it feels like that's a potentially, sizable opportunity for the company to, go after and so I guess from your vantage point, how do you think about the opportunity for LAL in this patient segment, what percent of the volumes go towards these patients today and where can that go over the future?

Thank you.

Well, thank you for the question. So as you pointed out, a number of physicians have recognized the benefits of the LAL more broadly, but in particular for patients who have had previous corneal refractive procedures like LASIK.

Where the ability to predict the outcome of a procedure is more difficult because of the changes that have been made to the cornea and the demands of the patients are quite high since you know they've already demonstrated the desire to have spectacle independence and so that's a natural population, often a place where our customers will start.

It, if you look at the US population, it could represent about 5% of the overall cataract patients but probably represents double that in our customer profile. When we look at our Phase 4 studies, we typically see post refractive cases representing somewhere between 10 and 20% of the patient population, so it's significant, but not, certainly not the majority, but it's a nice, it's a natural place for doctors to begin internationally, of course, that's, there are markets where those percentages are even higher and a nice feature of our technology is that we have the broadest range of Spherical correction as well as spherical powers which from minus 2 to 30 diopters for the stigmatism correcting lens, which means that this can be used over the broadest range of patients as well who would be that population who likely would have undergone corneal raceive procedures.

Your next question comes from the line of Danielle and Telfi with UBS. Please go ahead.

Hey, good afternoon, guys. Thanks so much for taking the question and congrats on making some good headway here this quarter. It's good to see, I was just curious if you could talk a little bit about what you, I appreciate there's a lot of moving parts in the market right now, so maybe this is a little bit of an unfair question, but when you think about your penetration at your highest penetrated practices and Incremental runway you have there. I mean, how are you, how do you feel about some of the statements you made previously, thinking this will get to standard care and premium IOL? Do you still have conviction that's the case? Anything you can add to that that gives you confidence that we'll get there and sort of what needs to happen to accelerate towards that?

Well, just the first part of your question relating to, where we sit at different practices, we've already achieved standard of care at some of our practices where we represent the majority of their premium procedures that Means that the doctors at that practice have made the decision and the commitment to offer this, maybe not exclusively but predominantly to their patients because of the results that they see and I would say that this is consistent with the surveys that we've done of our doctors which indicates that upwards of 80% of them would choose the LAL for their own eyes or for that of their family members.

So, obviously we're not there across our entire base, but that still remains, where we would like to get to over time, but we recognize that. We need to build that over time and you know first our first job was to get the technology out there.

Shelly mentioned earlier, we've had a lot of success for that and now we're focused on going deeper at those accounts to achieve exactly what you were asking about.

Okay, that's helpful and then the commentary on the reduction in reimbursement, I thought that that's important, maybe something, I personally hadn't been thinking about for 2026. I mean,how much of an impact do you think? Do you think that could have, I guess the question is how financially motivated are these physicians, which who isn't financially motivated, but I don't know, is there any, are there any guardrails you can put around how that could swing LAL adoption one way or the other in 2026? Thanks so much.

Well, I think this is just a continued trend that's been going on for the last 25 years. If we look at, reimbursements for cataract surgery in real terms, they're down 80-90%.

Now, in 2026, I think the average Reimbursement is going to be around $450.

There's just, it's just very difficult for practices where cataract surgery still represents, the number one surgical procedure they're doing to be able to just stay profitable at those levels of reimbursement and something that you know that I TRY to convey to my ophthalmology friends, that I, there's a reason why airlines have business class and economy class. The bulk of the revenue comes from that business class, and they are able to service all their customers by servicing abroad, having a diver diversified offering, and so it's really a requirement to be able to offer care to all your patients, to be able to offer premium oil wells to those who desire spectacle independence.

Thank you.

Your final question comes from the line of Tm Stefan with Steel.

Please go ahead.

Great, hey guys, thanks for taking the questions. Wanted to start off with kind of the commercial changes and the new practice development programs. Ron, maybe for you, can you just elaborate a bit on, I guess, what exactly is going well and resonating with customer and then I guess more importantly how much runway do you have with these initiatives taking hold across your entire installed base kind of just wondering if we're maybe only in call it like the first or second inning with the impact of these changes in the commercial approach.

Yeah, thanks for the question. So, I think if I was to put an overall definition around what we're focused on, it's really increasing the efficiency and confidence of our user base in our technology. We've introduced this new capability, a new category in ophthalmology called postoperative adjustability and we expanded very quickly. It's natural that we need to bring a level of expertise and education across our user base, and that's what we're focused on and the programs that we're using, they make use of, peer to peer, primarily peer to peer, which is the way people learn.

Both digital and user groups and other efforts to convey that information that has been learned by our user base by our doctors over the last 4 or 5 years. In terms of what that runway is, it's extensive. I mean, this, as you know we have 1,100 LDDs out there.

We have a lot of room for expansion of utilization, and I would definitely say that we're in the early innings of the efforts that we've put together, most recently in order to leverage that installed base.

That's great. Thanks, Ron. And then my follow-up, I guess is just kind of on the the US installed base. So I think you mentioned 2000 surgeons today. Previously, if I'm not mistaken, kind of 3,000 to 4,000 US surgeons was viewed as sort of the optimal addressable opportunity, if you will. So I guess just given

Call it the more deliberate and measured approach to LDD placements as well as surgeon trainings. Is there any renewed thinking around the surgeon TAM here in the US.

Thanks.

Yeah, I think that I would just refine the numbers a little bit. The total number of cataract surgeons is in the 9,000 to 10,000 range.

We, initially focused our efforts on doctors who were performing the, a larger percentage of premium IOLs since that was Natural target for us. Those were natural practices for us to do, but quite H1 as I was saying earlier, premium oil wells have become an essential part of all practices and therefore, we view the opportunity to you know. More extensive in that in that 90 or 10,000 range and we have a lot of those customers already and they provide in aggregate a significant number of procedures. So you know whether that's through you know whether they're part of practices that are already have access to an LDD or whether they're part of a practice that will eventually acquire an LDD or they make use of an open access center. It really doesn't matter. We want to educate that physician to the benefits of adjustability and make them a customer and successful long-term.

That's great. Thanks, Ron. Congrats on the progress.

Thank you.

Thank you, everyone, and that concludes our Q&A session for today. I will not send the call back over to Mr. Ronford for the programmer.

Please go ahead.

Well, thank you all for your time and attention today. We appreciate your interest in our site and look forward to updating you on our progress in future quarters. Goodbye.

Ladies and gentlemen, that includes today's call.

Thank you all for joining. You may not disconnect. Have a nice day ahead.

Hello everyone.

Thank you for standing by. My name is Gil, and I'll be operator for today. At this time, I would like to welcome each and every one of you to the RX site 3rd quarter to a 25 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answers. If you would like to ask a question during that time, simply press car followed by the number one on a telephone keypad.

I will now send the call over to Mr. Oliver Mora Moravi, Vice President of In investor relations. Please go ahead.

Thank you, operator. Presenting today are RXI President and Chief Executive Officer Dr. Ron Kurtz and Chief Financial Officer Shelley Tunan.

Earlier today, RXI released its financial results for the 3 months ending September 30, 2025 and updated its full year guidance. A copy of the press release is available on the company's website.

Before we begin, I would like to inform you that comments and responses to questions during today's call reflect management's views as of today, November 5, 2025, and will include forward-looking and opinion statements including predictions, estimates, plans, expectations, and other information.

Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today and in our filings with the Securities and Exchange Commission.

Our SEC filings can be found on our website or the SEC's website.

Investors are cautioned not to place undue reliance on forward-looking statements, and we disclaim any obligation to update or revise these forward-looking statements. We will also discuss certain zone GAAP financial measures. Disclosures regarding non-GAAP financial measures, including reconciliations with the most comparable GAAP measures can be found in the press release. Please note that this conference call will be available for audio replay on our investor relations website. With that, I will turn the call over to our President and Chief Executive Officer, Dr. Ron Kurtz. Ron.

Good afternoon everyone, and thank you for joining us.

During the 3rd quarter we've made meaningful progress strengthening our commercial execution in the US while laying the groundwork for our broader global growth.

We aligned our clinical and sales teams to create a more integrated approach for customers, enabling us to improve training and engagement, an approach that we continue to view as the most consistent driver for both future LAL and LDD growth.

We launched the first of several new practice development and clinical engagement programs, including the masterclass and Eleva programs that are designed to share learnings from over 250,000 LAL cases, helping practices optimize LAL workflow, enhance clinical confidence, and accelerate their path to becoming experts in postoperative adjustability.

During the quarter, more than 2000 ophthalmologists implanted the light adjustable lens, representing roughly 1/5 of the estimated total number of US cataract surgeons. With approximately 1,100 LDDs in the field, we have ample opportunities to expand access to the LAL to more patients, and we continue to see healthy demand and growing interest from new doctors and practices.

Our focus is on strategically expanding our base of LDDs and implanting surgeons while positioning our customers for success and sustained growth.

Internationally, we're making steady progress on our deliberate and focused rollouts in Asia and Europe with key regulatory infrastructure and commercial initiatives underway to support our multi-year expansion across priority global markets. During the 3rd quarter, we also added an executive Vice President of International to lead this expansion.

We recognize there's more work ahead, but the engagement we're seeing across our customer base gives us confidence that we are building a strong foundation for the future.

With that, I'll hand it over to Shelly, who will review our third quarter financials and updated guidance.

Thank you, Ron. Good afternoon, everyone. Our site generated third quarter revenue of $30.3 million down 14% compared to $35.3 million in the year go quarter and down 10% compared to the $33.6 million in the second quarter of. 2025. During the quarter we sold 26,045 LALs generating $25.7 million in LAL revenue, up 6% compared to the third quarter of 2024 and down 5% compared to the seasonally stronger quarter.

Of 2025 in the third quarter of this year, LAL revenue represented 85% of total revenue, an increase from 69% in the third quarter of 2024 and an increase from 80% in the second quarter of 2025.

We sold 25 LDDs in the quarter, down 68% from 78 units in the prior year period, and down 38% from the 40 units in the second quarter of 2025. During the quarter, LDD sales generated revenue of $3.2 million down 69% compared to the third quarter of 2024, and down 38% versus the second quarter of 2025.

As of September 30, 2025, our LDD installed base totaled 1,109 units, representing a 25% increase year over year.

Gross margin in the third quarter of 25 was 79.9%. Representing an 844 basis point increase compared to 71.4% in the year ago period and a 496 basis point increase compared to 74.9% in the second quarter of 2025, the increase primarily reflects the shift in product mix. With higher margin LAL revenue rising to 85% total revenue in the third quarter combined with lower period costs as compared to the second quarter of 2025. In addition, lower unit costs each for both the LAL and LDD contributed to 3 quarter gross margin improvement compared to the same period last year.

SG&A expenses in the third quarter of 2025 with $27.3 million representing an increase of $1.7 million or 7% versus $25.6 million in the year ago quarter. This year over year increase was primarily due to a rise in personnel costs, stock-based compensation, expense, and marketing studies.

On a sequential basis, SG&A expenses decreased 6% due primarily to lower marketing studies and trade show expenses.

During the third quarter of this year, R&D expenses rose 3% to $9.1 million compared to $8.8 million in the third quarter of 2024. This year over year change primarily reflects an increase in overhead costs offset by lower materials costs. Sequentially, R&D expenses in the 3rd quarter decreased by 11%, primarily driven by a decrease in overhead costs.

We reported a GAAP net loss in the third quarter of 2025 of $9.8 million or a loss of $0.24 per basic and diluted share using weighted average shares outstanding of 41 million shares. This compares to a GAAP net loss of $6.3 million or $0.16 per share on a basic and diluted basis in the third quarter of 2024.

Note also that stock-based compensation in the third quarter of 2025 was $8.1 million.

Therefore, on a non-GAAP basis, we reported a net loss of $1.7 million or a loss of $0.04 per basic and diluted share compared to an adjusted net gain of $200,000 or 1.

Basic and $0.00 per diluted share in the third quarter of 2024. Please refer to the unaudited non-GAAP reconciliation and disclosure included in today's press release for more comparative information.

We ended the 3rd quarter of 2025 with cash equivalents and short-term investments of $227.5 million unchanged from June 30, 2025.

Moving on now to our 2025 outlook. We are narrowing our full year 2025 guidance for revenue, increasing gross marginal guidance, and reiterating our operating expense guidance as follows.

Based on our Q3 results, more consistent LAL procedure trends, and our strategic approach to LDD sales, we are narrowing our full year guidance range to 125 million to 130 million from the prior range of 120 million to 130 million.

Maintaining a conservative outlook, we narrowed full your guidance range implies year over year decline of 11% to 7% and Q4 revenues in the range of $23 to $28 million. At the top end of the range, our guidance assumes flat to slightly higher LAL procedures sequentially.

Gross margin of 76 to 77%, an increase from our previous guidance of 72 to 74%, representing an applied increase of 529 to 629 basis points compared to 2024. We estimate gross margin improvement will be driven by a higher LALex and the strategic approach to capital sales Ron mentioned earlier.

Operating expenses are expected to remain in the range of $145 million to $155 million representing an applied increase of 7% to 14% over 2024. We remain disciplined in managing operating expenses as we realign resources and clinical and sales teams to Support long-term growth in LAL adoption and support the strategic expansion of our LDD install base. Despite a 6% sequential operating expense decline in Q3, we expect a sequential increase in Q4 driven by the AAO trade show expenses, increased marketing expense, initial international hiring, and stock-based compensation.

Also note that the operating expense estimate includes non-cash stock-based compensation expense between $30.32 million dollars, an increase compared to our previous estimate of $27 to $30 million.

And with that, I'll turning the call back to Ron.

Thank you, Shelly. We continue to see strong global clinical and market enthusiasm for the light adjustable lens. At the September ESCRS meeting in Copenhagen, the level of international interest was the highest we've seen, with physicians recognizing the unique value the light adjustable lens brings to achieving personalized visual outcomes.

Separately, a couple of weeks ago at the AAO meeting in Orlando, the light adjustable lens was again a focal point of discussion, underscoring its growing position within the global premium IOL landscape and the expanding recognition of its differentiated value for patients seeking optimal visual outcomes.

As Medicare's 2026 physician fee for cataract surgery is declining 11%, we expect practices to continue placing greater emphasis on premium IOL options, especially the LAL that improves both patient outcomes and practice economics. Internationally, we are progressing in key markets, building strong relationships with early KOLs and preparing for broader expansion. We expect these efforts to begin contributing more meaningful, more meaningfully over time as procedural volumes grow and local clinical experience deepens.

As always, our R&D team remains focused on improvements that can simplify workflows, broaden the range of patients who benefit from our technology, and continue to extend our leadership in adjustable vision correction.

Before I close, I want to thank all of my RXI colleagues for their continued dedication and adaptability during this period of change. I also want to thank our many partners in clinical practice for their commitment and expertise, bringing a new clinical paradigm to patients worldwide. Together we're helping to redefine what people can expect from a customized lens replacement solution.

Overall, I'm encouraged by our progress with an aligned organization showing early signs of improved execution toward discipline growth, customer success, and continued innovation to deliver lasting value.

With that, I'll ask the operator to open the call for questions.

Just this time, I would like to remind everyone that in order to ask the question, you may press start and the number one on your telephone keypad. We will pause for just a moment to compile the QA roster.

So your first question comes from the line of Ryan Zimmerman with BTIG. Your line is open.

Hi Ron Shelley, this is Izzy on for Ian.

Thank you for taking the questions. Just to start out, it looks like you guys had a nice beat to our utilization expectations in the 3rd quarter. I was curious what other metrics you're going to be looking at that'll continue to evaluate that the changes that you're implementing are starting to take hold.

I think that you know the key metric for us and the leading metric for us is the number of LAL procedures, and that to us is an absolute number. We also look at internally, the number of physicians that are implanting each quarter as well and you know. I know that the street has been focused on a number of LALs for LDD. It is certainly a measure we continue to use, but the absolute number of LALs that we have implanted each quarter is a leading indicator because then that of course grows the number of LALs per LDD.

That's helpful.

Thank you. And you know there have been a couple of new entrants coming into the market, so I was curious how you're thinking about the potential impacts to demand for the LAL and whether or not you expect to see similar levels of competitive trialing with these lenses, especially when we think of the broader context of, reimbursement rates coming down for 2026. Thanks for taking the questions.

Thank you. Maybe I'll take that one. So, I think that the lowered reimbursement for traditional cataract surgery, standard cataract surgery, will generally be continued tailwind for premium oil wells generally, but I, we anticipate that there will be continued entrance into the field for the same reason. However, they're really more of the same, whether they're different manufacturers of Presbyopia correcting IOLs, they're more similar than not. While there is some impact as there's individual incentives to trial the lenses, the overall impact to us, we think over the long-term is modest.

Ron, can I add one thing to that? When we look at the numbers over the last several years of market penetration, if we go back to 2022 versus you know where we're at in 2025, PCIOLs have gone down by about 2%. Obviously we've gone from no market share to about 10%, and Tauric IOLs, which are included in the premium market but are not as much talked about, still remain about 50% of the overall market. And so if you think about where we're going, there's still a lot of room for penetration, and our focus, it continues to be the emphasis on total LAL procedures and helping our 1,100 customers grow their practice with the LAL.

Your next question comes from the line of David Saxon with Needham and Company. Please go ahead.

Great, hi, Ron and Shelly, thanks for taking my questions. Congrats on the improvement here in the third quarter. I guess just on the 2000 active surgeons, you called out, I believe last third quarter active surgeons per LDD was like 1.5 or 1.6. So that is a meaningful increase.

Just considering kind of what you're seeing, so we would love to hear, what's driving that. What are you seeing in terms of the salesforce realignment and kind of how to think about active surgeons, going forward, especially in the 4th quarter in 2026.

Yeah, so I think that yes, the number of active surgeons has gone up slightly. It's, between 1.7 and 2 depending on the time that we. We measure that and if we think about active surgeons, they really come to us in several different ways. One is that you know we look for surgeons coming into the funnel from new LDD cells, but more importantly, we're looking for new surgeons coming in in an existing practice that may not have been doing.

Previously and also while it's still a very small portion of our business, open access, so open access is typically you know doctors that may not have enough volume that go to open access centers and so just like any other new customer, we train them and then they have their, they do the surgery themselves and then LDD treatments are done at the open access center.

Okay.

Thanks for that and then just maybe my second one is just on guidance, so I think Shelly, you talked about the top end of the guide implying a sequential increase in LAL volumes. I mean that makes sense just given seasonality, a larger base LDD base and, benefiting from from some of these initiatives you have going on. I believe that implies pretty much. Like mid single-digit LDD placements, so kind of help us work through like why that would be, especially in in the 4th quarter where capital placements should be stronger, how does the LDE pipeline look, and kind of how we should think about that implied 4th quarter LDD placement number as we think about 26, placements. Thanks so much.

Yeah, I'll talk about the 25 guidance first, and I think that the way I'm looking at it is a little bit more holistically around the second half.

And so, with our initial lower guidance of 120 to 130 million.

And then now we've increased it at the mid of the range by about 2.5 million. I'm kind of looking at at the mid of the guidance that the second half is around 56 million.

The top end of the range is a bit higher, and the LDD sales, I'm kind of looking holistically at the entire second half, so you're correct, they would be much lower in the 4th quarter, but I'm not reading anything into it other than the strategic imperatives that we set up as. To the type of customers that we're adding and our field personnel what they're doing and so what we're really pushing for them to do is increase volume of LALs in our existing practices and that's important for our future growth as well.

We don't want to.

Not say that we're going to do LDDs. We've placed 1,100 since we, commercialized, and that's providing the basis for what we're doing. So yes, you're correct in terms of the math, but I'm also not implying something about that relative to 26 guidance more just grounding us in the second half of this year. And then Ron, would you add anything to that at all?

Yeah, I think, you've said it well, but I would just reiterate that, our growth model is evolving.

We obviously early on were focused on a classic, playbook. That prioritize new systems to build access and awareness of the LAL, but we have a more diversified approach now which Shelley outlined that still includes the strategic addition of new practices and doctors, but that can be through Traditional LDD sales, open access models, or as we just said, more importantly, growing the number of LAL procedures performed by our existing accounts with existing and new doctors. So it's just a much more diversified approach.

Okay great thanks so much guys.

Your next question comes on the line of Larry Belson with Wells Fargo. Please go ahead.

Hi, good afternoon. This is immeron for Larry. Thanks for taking the questions here. Maybe just following up with the prior line of questioning around, sort of Q4 and like what this implies for 2026.

Shelly, the last time we talked you mentioned, as we think about 2026, we should be thinking about sequential growth through the year from Q4.

I guess I'm just trying to understand what kind of a recovery are you seeing here in the quarter and, if you can return to that year over year growth in 2026 given. Sort of the implied trough in in Q4.

Yeah, no, that's a very good question. And while we're not getting 2026 guidance yet, I do think that That in 206 what we're looking for is sequential growth and that is really LALs with the strategic direction that we've taken on LDDs and that would be sequential, subject to, some seasonality. I can't predict that a year ahead of time right now, but our goal still is to have a measured pace of growth throughout 2026.

Okay, that's very helpful, and congratulations on a really stand out gross margin quarter here.

I guess as we think about, the business model evolving from here on out, is a high 70% gross margin sort of a baseline, that we should be thinking about going forward.

I think that that's a pretty good assumption, given our results in the second half, so far second quarter and 3rd quarter, I think that it really depends on next, in the last quarter or 3rd quarter, it was really heavy.

LAL at 85% of our total revenue, so it'll depend on that a little bit, but I think the range that we just guided, 77 to 78% is a reasonable range given that kind of mix. Now of course mix could change a little bit. We're really heavy in the third quarter at 80%, but I think that that's generally where we want to be.

Got it. That's helpful. Thank.

You.

Thank you.

Your next question comes from the line of Patrick Wood with Morgan Stanley. Please go ahead.

Beautiful, thanks so much for the question, guys.

OU, obviously good to fill the role there. You've talked about a sort of a rational sort of stable launch profile there. Any updated thoughts on like timeline, how we should think about that and contribution over the next year or two?

Well, as we said, Patrick, we're excited about the opportunity outside the US. If you look broadly at the premium market, 2/3 of the premium procedures are performed outside the US in approximately 20 individual markets which we're focused on. And we've made excellent progress, having regulatory access in Europe as well as some of the markets in Asia and are continuing to work on those and then beginning to introduce the product beyond Canada where of course we've been for several couple of years and those those efforts are still at an early stage but making good progress. And we would expect those to take a similar course to what we saw in the US where we're establishing, KOL relationships, the clinical value of the technology within each of those markets, data sets that local surgeons and can see and experience themselves and then build from there.

Appreciate that, Ron, thanks. The, I guess there's a second and just a quick follow-up. Obviously, we had a bit of noise in Q1 and Q2 in the market overall with monofocal getting kicked out and then monofocal to picking up in Q2, and I know the dangers of looking at this data.

In a short-term time horizon, but given all that, how would you characterize the health of the underlying IOL market and the consumer within that? If you see anything that's kind of, better or worse, just trying to get a sense of how you feel about the consumer and the demand structure over and above the reimbursement changes, of course, that are happening in.

Well, it depends which consumer we're talking about. Typically, the monofocal consumer is going to be more affected by economic headwinds, and so I think that's why we saw some of that earlier in the year and they're still under pressure and with inflation still being relatively high. And so I think that those those will still be in play, but at the higher end of the market where we tend to play, I think that we're probably a little bit less impacted and, we would hope that that our demand would continue to be strong in that end of the market.

Awesome. Thanks guys.

Thank you.

Your next question comes from the line of Robbie Marcus with JP Morgan. The line is open.

Thanks for the question. This is Alan on for Robbie. I just had a quick one again kind of on just how to think about 2026, fully understand you are not guiding. But given, it sounds as though 4th quarter isn't exactly the right run rate to use going forward, you said you know you're looking at LAL and LEDs a little bit more holistically. Should we think about, just the back half of the year on average as being kind of the right place to be from an LDD and LAL perspective, just wanted to get a little help thinking about that.

Thank you.

Yeah, I think what you're saying is that is the run rate of the second half of 2025 indicative of the start of 206? Is that what you're asking? I just want to make sure I understood. Yeah.

Just like is that the right kind of baseline for us to then maybe forecast, recovery or stability or whatever our assumptions on going into 2026 given, you have this first half versus second half dynamic this year.

No, I think it is a good way of looking at it, and I think what it really does is provide the baseline of the way we're thinking about the business for 26, not necessarily the specifics.

So the second half of this year is where we're making a shift in our business model right away from the leading indicator being sales of LDDs. We've built and installed base. We've been successful at that. We now need to optimize the value of that with.

LAL sales, right? And those coming from our existing customers with, a strategic approach about who we're going to add as customers for LDDs.

And so I think that approach and the philosophy will guide 26 without specifically trying to get into numbers. So I think it's going to be much heavier in LALs. I'm not so sure it'll be 85% like it was in the third quarter, but I do think that that's important to the way we'll be running the business and how we'll be measuring our own success. Would you add anything about that one?

Yeah.

I think that's well said.

Thank you.

Next question comes from the line of Adam Mader with Piper Sandler. Please go ahead.

Hi, Ron and Shelly. Congratulations on the progress and thank you for taking the question. I, I'll keep it to one and one thing that's, I guess come up in our physician checks.

Is the post refractive and LASIK patient opportunity and you know it feels like that's a potentially, sizable opportunity for the company to, go after and so I guess from your vantage point, how do you think about the opportunity for LAL in this patient segment, what percent of the volumes go towards these patients today and where can that go over the future?

Thank you.

Well, thank you for the question. So, as you pointed out, a number of physicians have recognized the benefits of the LAL, more broadly, but in particular for patients who have had previous corneal refractive procedures like LASIK.

Where the ability to predict the outcome of a procedure is more difficult because of the changes that have been made to the cornea and the demands of the patients are quite high since you know they've already demonstrated the desire to have you know spectacle independence.

And so that's a natural population, often a place where our customers will start.

If you look at the US population, it could it could represent about 5% of the overall cataract patients but probably represents double that in our customer profile. When we look at our post I'm sorry, when we look at our Phase 4 studies, we typically see post refractive cases representing somewhere between 10 and 20% of the patient population, so it's significant, but not, certainly not the majority, but it's a nice, it's a natural place for doctors to begin internationally, of course, that's, there are markets where those percentages are even higher. And a nice feature of our technology is that we have the broadest range of Spherical correction as well, spherical powers which from 2 to 30 diopters for the stigmatism correcting lens, which means that this can be used over the broadest range of patients as well who would be that population who likely would have undergone corneal racive procedures.

Your next question comes from the line of Danielle and Telfi with UBS. Please go ahead.

Hey, good afternoon, guys. Thanks so much for taking the question and congrats on making some good headway here at this quarter. It's good to see. Excuse me, Ron, I was just curious if you could talk a little bit about what you, I appreciate there's a lot of moving parts in the market right now, so maybe this is a little bit of an unfair question, but when you think about your penetration at your highest penetrated practices and the incremental runway you have there, I mean, how are you, do you, how do you feel? About some of the statements you made previously, thinking this will get to standard and premium IOL. Do you still have conviction that that's the case, anything you can add to that that gives you confidence that we'll get there and sort of what needs to happen to accelerate towards that.

Well, just the first part of your question relating to you know where we sit at different practices, we've already achieved standard of care at some of our practices where we represent the majority of their premium procedures that means that the doctors at that practice have have made the decision and the commitment to offer this.

Maybe not exclusively, but predominantly to their patients because of the results that they that they see, and I would say that this is consistent with the surveys that we've done of our doctors, which indicates that upwards of 80% of them would choose the LAL for their own eyes or for that of their family members.

So, obviously we're not there across our entire base, but that still remains, where we would like to get to over time, but we recognize that, we need to that, we need to build that over time. And our first job was to get the technology out there.

Shelly mentioned earlier, we've had a lot of success for that and now we're focused on going deeper at those accounts to achieve exactly what you were asking about.

Okay, that's helpful. And then the commentary on the reduction in reimbursement, I thought that was And that's important, maybe something, I personally hadn't been thinking about for 2026. I mean, what kind of, how much of an impact do you think that could have? I guess the question is how financially motivated are these physicians, which there isn't financially motivated, but I don't know, is there any, are there any guardrails you can put around how that could swing LAL adoption one way or the other in 2026. Thanks so much.

Well, I think this is just a continued trend that's been going on for the last 25 years. If we look at, reimbursements for cataract surgery in real terms, they're down, 80-90%.

Now, in 2026, I think the average Reimbursement is going to be around $450.

There's just, it's just very difficult for practices where cataract surgery still represents, the number one surgical procedure they're doing to be able to just stay profitable at those levels of reimbursement. And something that you know that I TRY to convey to ophthalmologists, my ophthalmology friends, that I, there's a reason why airlines have business class and economy class. The bulk of the revenue comes from that business class, and they are able to service all their customers by by.

Servicing abroad, having a diver diversified offering, and so it's really a requirement to be able to offer care to all your patients to be able to offer premium oil wells to those who desire spectacle independence.

Thank you.

Your final question comes from the line of Tom Stefan with Steel. Please go ahead.

Great, hey guys, thanks for taking the questions. Wanted to start off with kind of the commercial changes and the new practice development programs. Ron, maybe for you, can you just elaborate a bit on, I guess, what exactly is going well and resonating with with customers. And then I guess more importantly how much runway do you have with these initiatives taking hold across your entire installed base kind of just wondering if we're maybe only in call it like the first or second inning with the impact of these changes in the commercial approach.

Yeah, thanks for the question. So, I think if I was to put an overall definition around what we're focused on, it's really increasing the efficiency and confidence of our user base in our technology. We've introduced this new capability, a new category in ophthalmology called postoperative adjustability. And we expanded very quickly. It's natural that we need to, bring a level of expertise and education across our user base, and that's what we're focused on. And the programs that we're using, they make use of, peer to peer, primarily peer to peer, which is the way people learn.

Both digital and user groups and other efforts to convey that information that has been learned by our user base by our doctors over the last 4 or 5 years. In terms of what that runway is, it's extensive. I mean this, as we have 1,100 LDDs out there.

We have a lot of room for expansion of utilization and and I would definitely say that we're in the early innings of of the efforts that we've put together, most recently in order to leverage that installed base.

That's great. Thanks, Ron. And then my follow-up, I guess is just kind of on the the US installed base. So I think you mentioned 2000 surgeons today. Previously, if I'm not mistaken, kind of 3,000 to 4,000 US surgeons was viewed as sort of the optimal addressable opportunity, if you will. So I guess just given.

Call it the more deliberate and and measured approach to LDD placements as well as surgeon trainings. Is there any renewed thinking around the surgeon TAM here in the US?

Thanks.

Yeah, I think that I would just refine the numbers a little bit. The total number of cataract surgeons is in the 9,000 to 10,000 range.

We, initially focused our efforts on doctors who were performing the, a larger percentage of premium IOLs since that was. Natural target for us. Those were natural practices for us to do, but quite H1stly, as I was saying earlier, premium oil wells have become an essential part of all practices and therefore, we view the opportunity to you know. More extensive in that in that 90 or 10,000 range and we have a lot of those customers already and they provide in aggregate a significant number of procedures. So you know whether that's through you know whether they're part of practices that are already have access to an LDD or whether They're part of a practice that will eventually acquire an LDD or they make use of an open access center. It really doesn't matter. We want to educate that physician to the benefits of adjustability and you know make them make them a customer and successful long-term.

That's great. Thanks, Ron. Congrats on the progress.

Thank you.

Thank you, everyone, and that concludes our Q&A session for today. I will not send the call back over to Mr. Ronford for the closing remark. Please go ahead.

Well, thank you all for your time and attention today. We appreciate your interest in our site and look forward to updating you on our progress in future quarters. Goodbye.

Ladies and gentlemen, that includes today's call.

Thank you all for joining. You may not disconnect. Have a nice day ahead.