RxSight Analyst Flags Growth Slowdown As Revised Outlook Misses Expectations

RxSight, Inc. RXST on Wednesday disclosed first-quarter 2025 preliminary results and revised its FY25 outlook.

The ophthalmic medical device company expects first-quarter revenue of around $37.9 million, up 28% year over year and down 6% quarter over quarter, and below the consensus of $40.14 million.

Revised FY2025 Outlook: The company lowered the revenue outlook to $160.0 million—$175.0 million (vs. the consensus of $188.9 million) from $185.0 million—$197.0 million earlier.

On Thursday, BofA Securities analyst Craig Bijou downgraded the stock from Buy to Underperform.

“We see RXST as a relative underperformer on slowing growth and we don’t see path to 2025 upside,” he wrote.

The analyst writes lower 2025 guidance likely surprised investors.

Bijou said RxSight likely needs multiple quarters of reaccelerating top-line growth to restore investor confidence and for the stock to re-rate. BofA has lowered the price target from $36 to $22.

RxSight projects the sale of 27,579 Light Adjustable Lenses (LAL/LAL+) in the first quarter, missing Street estimates by 9%. The year over year growth of 36% decelerated significantly from 60% in the fourth quarter of 2024 and 78% for fiscal year 2024.

The company installed 73 Light Delivery Devices (LDD), beating expectations by 6%. However, for the first quarter, the year-over-year growth in LAL procedures (+36%) lagged behind the growth of installed devices (+43%), suggesting that new LDD placements may not drive LAL sales as effectively as in previous years.

Price Action: RXST stock is down 38.2% at $16.15 at last check Thursday.

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