Tom Stephan

Tom Stephan asked about the key fundamental factors or specific implications that would lead RxSight to achieve the top end of its 2026 revenue guidance range. He also inquired about innovation in the pipeline, seeking updates on development progress and whether any new lenses are on the horizon.

Answer

CFO Mark Wilterding stated that reaching the top end of guidance assumes increased traction from internal initiatives, faster utilization uplift (especially in the second half), and less headwind from competitive trialing. President and CEO Dr. Ron Kurtz affirmed continued innovation on both the lens and LDD sides, as well as ancillary devices, highlighting the company's historical pace of over 20 significant FDA approvals in five years and the potential for many additional applications of adjustability.

Tom Stephan from Stifel Financial Corp. asked about the key fundamental factors that would lead RxSight to achieve the top end of its 2026 revenue guidance range. He also inquired about the innovation pipeline, asking for updates on development progress and if any new lenses are potentially on the horizon from RxSight.

Answer

Mark Wilterding, CFO, stated that reaching the top end of the guidance range assumes increased traction from internal initiatives, faster utilization uplift (especially in H2), and less headwind from competitive trialing. Ron Kurtz, President and CEO, highlighted RxSight's historic pace of innovation with over 20 significant FDA approvals in five years, indicating continued innovation on both the lens and LDD sides, as well as ancillary devices. He emphasized that with over 1,100 systems and 2,500 customers, there's ample opportunity even with existing innovations, and many additional applications for adjustability are still anticipated over the next 10-15 years.

Tom Stephan asked about the potential impact of U.S. cataract physician fee cuts on different business areas like AT-IOLs and capital equipment. He also inquired about confidence in contact lens growth above market and the incremental drivers for next year.

Answer

CEO David Endicott explained that while physician fees decreased, facility fees increased, and AT-IOL penetration rose significantly, suggesting surgeons are opting for better lenses to offset fee changes. He expressed confidence in contact lens growth above market, driven by a focus on both reusables (TOTAL30, PRECISION7) and dailies (Dailies TOTAL1, PRECISION1), despite some drag from older legacy brands.

Tom Stephan asked about the impact of U.S. cataract physician fee cuts on different areas of the business, such as AT-IOLs and capital equipment. He also inquired about the incremental drivers for contact lens growth next year, specifically TOTAL30 and PRECISION7, and confidence in growing above market.

Answer

David Endicott, CEO, explained that while physician fees were cut, facility fees increased, and AT-IOL penetration was up significantly (130 basis points in Q4), suggesting surgeons are driving patients to better lenses to offset fee cuts. For contact lenses, he noted that despite tough Q4 2024 comps, Alcon grew ahead of market in 2025, gaining 70 basis points of global share, driven by TOTAL30 and PRECISION7, and expressed confidence in continued above-market growth by focusing on both reusables and dailies.

Tom Stephan of Stifel inquired about the outlook for Alcon's legacy contact lens portfolio and asked for more detail on the company's confidence in its U.S. IOL market share despite strong competitive momentum.

Answer

CEO David Endicott stated that while legacy contact lenses are a drag, the mix shift to newer, higher-margin products is beneficial for profitability. On U.S. IOL share, he acknowledged some share loss from historical peaks but emphasized the durability of the PanOptix and Vivity brands. He noted that strong international share gains have resulted in a relatively flat overall global share position.

Tom Stephan inquired about the quantitative breakdown of the 2026 revenue guidance across the main product lines and asked about management's confidence in the 6.5%-7.5% long-term revenue CAGR, despite the LRP timeline extension.

Answer

Julie Andrews (CFO) indicated expectations for above-market growth in BGT and Limb Reconstruction, with U.S. Limb Reconstruction returning to double-digit growth in the second half of 2026, and Global Spine performing similarly to its 10% growth in 2025. Massimo Calafiore (President and CEO) expressed high confidence in the long-term CAGR, citing significant investments in commercial channels and innovation, including the upcoming VIRATA launch, TrueLok Elevate, Fitbone, and 7D platform enhancements, all while maintaining financial discipline.

Tom Stephan inquired about the quantitative breakdown of the 2026 revenue guidance across the main product lines and asked for the company's confidence level in achieving the 6.5%-7.5% long-term revenue CAGR, despite the one-year push-out of the long-range plan.

Answer

CFO Julie Andrews stated expectations for above-market growth in BGT and limb reconstruction, with US limb reconstruction returning to double-digit growth in the second half of 2026, and global spine business showing similar performance to its 10% global growth in 2025. President and CEO Massimo Calafiore emphasized a strong focus on commercializing new technologies like VIRATA, Fitbone, and TrueLok, along with 7D penetration and biologics evolution. He expressed high confidence in the long-term CAGR, citing significant investments in commercial channels and innovation, with positive impacts expected from the second half of the year, all while maintaining EBITDA margin expansion and free cash flow discipline.

Tom Stephan asked about the choppiness in MIEBO's Average Selling Price (ASP) year-to-date, specifically why Q3 saw a significant sequential increase in realized ASP, and if this Q3 base is a reliable point for future projections.

Answer

CFO and EVP Sam Eldessouky advised against extrapolating from a single quarter's ASP due to its short 90-day period. He suggested thinking about MIEBO's ASP with gross tenant in the mid-70s on an annual rate for a more accurate perspective.

Tom Stephan inquired about the choppiness of MIEBO's Average Selling Price (ASP) year-to-date, specifically why Q3 saw a significant sequential increase, and whether this Q3 base is a reliable reference point for future projections.

Answer

CFO and EVP Sam Eldessouky advised against extrapolating MIEBO's ASP from a single quarter due to its short 90-day timeframe. He suggested considering an annual run rate, with a gross tenant in the mid-70s, for a more accurate mathematical perspective.