Executive Summary

Q1 2025 revenue grew 34% year over year to $14.16M, beating S&P Global consensus of $13.40M; worldwide procedure volumes rose 33% and LENSAR’s systems performed ~22% of total U.S. procedures in the quarter . Revenue consensus: $13.40M; actual: $14.159M*.
Normalized EPS materially beat consensus (-$0.155 vs. -$0.0639*), while GAAP diluted EPS was -$2.32 due to a large non-cash warrant liability revaluation tied to the stock price appreciation; adjusted EBITDA was $0.2M as acquisition-related costs ($4.225M) and warrant fair value changes were excluded .
14 ALLY systems were placed, installed base reached ~150 ALLY and ~395 total systems (+26% YoY), with 24 systems in backlog; recurring revenue was $11.53M (81% of total) as system sales mix increased .
No earnings call was hosted due to the announced definitive agreement to be acquired by Alcon; terms include $14.00 per share in cash plus a $2.75 CVR tied to 614,000 cumulative procedures in 2026–2027, with a $10M deposit received in Q1 .

What Went Well and What Went Wrong

What Went Well

Strong topline and volume momentum: Revenue +34% YoY to $14.16M, worldwide procedure volumes +33%; 14 ALLY placements; installed base ~395 (+26% YoY). Quote: “We had a solid start to 2025… 34% increase in revenue… worldwide procedure volumes were 33% above first quarter 2024” .
Recurring revenue foundation growing: Procedure revenue $8.29M (+31%), service $1.36M (+12%); recurring revenue $11.53M (+21%) as trailing twelve-month recurring revenue growth continues .
Strategic positioning and share: LENSAR systems performed ~22% of total U.S. procedures in Q1; cumulative installed base of ALLY ~150 supports continuing volume leverage .

What Went Wrong

GAAP net loss widened to -$27.35M, driven predominantly by a $21.71M unfavorable change in warrant liabilities amid a 58% stock price increase; SG&A up 64% YoY on $4.23M merger-related costs .
Recurring revenue mix fell to 81% from 90% YoY as system sales proportion rose, temporarily dampening margin mix .
No earnings call or fresh guidance update in Q1 due to pending Alcon transaction, limiting near-term visibility; integration and transaction risks called out in forward-looking statements .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$13.539	$16.731	$14.159
GAAP Diluted EPS ($USD)	-$0.13	-$1.61	-$2.32
Normalized EPS ($USD)	—	—	-$0.0639*
Gross Margin %	46%	42%	50.3% (calc: 7.125/14.159)
Operating (EBIT) Margin %	-9.2% (calc: -1.245/13.539)	-7.7% (calc: -1.290/16.731)	-40.9% (calc: -5.790/14.159)
EBITDA ($USD Millions)	-$0.649	-$17.745	-$26.428
EBITDA Margin %	-4.8% (calc: -0.649/13.539)	-106.1% (calc: -17.745/16.731)	-186.6% (calc: -26.428/14.159)

Notes: Normalized EPS from S&P Global; Values retrieved from S&P Global.*

YoY and QoQ context:

Revenue YoY: Q1 2025 $14.159M vs Q1 2024 $10.588M (+34%)
Revenue QoQ: Q1 2025 $14.159M vs Q4 2024 $16.731M (-15%)

Segment Revenue Breakdown

Revenue Component ($USD Thousands)	Q1 2025	Q1 2024
System	$2,632	$1,090
Procedure	$8,286	$6,343
Lease	$1,884	$1,947
Service	$1,357	$1,208
Total Recurring Revenue	$11,527	$9,498
Total Revenue	$14,159	$10,588
Recurring Revenue %	81%	90%

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Procedure Volume (units)	42,231	45,586	52,347
ALLY Placements (units)	24	31	14
Installed Base (ALLY / Total)	>100 / ~355	>135 / ~385	~150 / ~395
Backlog (systems pending install)	24	16	24
U.S. Procedure Share (approx.)	~20%	>20%	~22%

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Topline Revenue Growth	FY 2025	“Above 27% achieved in 2024”	No update provided (no call)	Maintained (implicit)
Seasonality	FY 2025	Q1 lowest; Q4 highest	No update provided	Maintained
Q1 Revenue Growth	Q1 2025	~27% YoY growth expected	Actual +34% YoY	Beat prior view
Adjusted EBITDA	FY 2025	Positive expected	No update provided	Maintained
Corporate Events	Near-term	N/A	No earnings call due to Alcon merger ; $10M deposit received	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Product performance & market share	ALLY momentum; U.S. share ~20% (gain of 3.5% YoY)	Record quarter; U.S. share ~21%	Systems performed ~22% of U.S. procedures; installed base expanded	Improving
International expansion	EU/Taiwan clearances; 11 OUS sales; distributor model	Expect ~10–11 OUS systems in Q4	No new OUS guidance; merger focus	Steady to pause
Placement mix strategy	Focus on competitive replacements; 70–85% new customers targeted	60% sales vs placements clarifications	14 placements; backlog 24	Continued execution
SG&A cadence	SG&A investment to support growth; ERC impacts	SG&A ~$8.4M; investing in commercial ops	SG&A $11.1M (merger costs drove increase)	Near-term elevated (transaction)
Recurring revenue scaling	TTM ~$38M; procedures drive RR	Recurring ~$10.8M in Q4; 64% of revenue	Recurring $11.53M; 81% of revenue	Strong base; mix variable with system sales
Corporate events	N/A	Provided 2025 guidance	No call due to Alcon agreement; merger terms disclosed	M&A driven shift

Management Commentary

“We had a solid start to 2025, as we successfully placed 40% more ALLY Systems… 34% increase in revenue and our worldwide procedure volumes were 33% above first quarter 2024” — Nick Curtis, President & CEO .
“Following the recent announcement of LENSAR’s definitive agreement to be acquired by Alcon, the Company will not be hosting an earnings conference call.” .
Merger terms: $14.00 cash per share plus one $2.75 CVR tied to achieving 614,000 cumulative procedures in 2026–2027; $10M deposit committed; voting agreement covers ~45.8% voting power .

Q&A Highlights

Note: No Q1 2025 call was held. Highlights below reference Q4/Q3 calls for trend context.

Placement mix and customer targeting: 75% of 2024 U.S. placements were new-to-LENSAR; strategy prioritizes competitive replacements, then LLS upgrades, then femto-naive accounts .
Sales vs placements and OUS distribution: Aggregate ~60% sales mix in 2024; OUS via distributors with 10–11 systems expected in Q4; consideration of direct presence only selectively .
SG&A trajectory: Continued investment in commercial infrastructure; expect SG&A to tick up without prior-year administrative offsets .
Seasonality and procedures: Q4 globally highest procedure quarter; hurricane impacts noted; installations and training drive revenue recognition timing .

Estimates Context

Revenue: Beat. Consensus $13.40M vs actual $14.159M; +5.7% surprise*.
Normalized EPS: Beat. Consensus -$0.155 vs actual -$0.0639; materially better than expected*.
Implications: Strength in Q1 (seasonally lowest) vs prior guidance (~27% YoY) suggests upward pressure on topline assumptions for subsequent quarters; however, GAAP EPS volatility from warrant liability and merger-related costs complicates comparability .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Operational execution remains robust: Q1 revenue and procedures exceeded expectations, with continued expansion of the installed base and backlog supporting recurring revenue growth in 2025 .
Mix effects matter: System sales increased, temporarily lowering recurring revenue percentage and pressuring margins despite strong topline; expect mix normalization as placed systems ramp utilization .
GAAP earnings volatility is non-operational: Warrant liability revaluation (-$21.71M) and merger costs (+$4.23M) drove the GAAP net loss; adjusted EBITDA turned positive ($0.2M), indicating underlying operational improvement .
M&A is the near-term narrative: Alcon transaction (cash + CVR) shifts focus to closing dynamics and CVR milestone (614,000 procedures, 2026–2027); $10M deposit received provides deal certainty signals; assess regulatory/timing risks and potential termination fee scenarios .
Share capture remains a catalyst: U.S. procedure share ~22% and rising as ALLY penetrates high-volume practices; international expansion via EU/Taiwan distributors adds optionality post-close .
Estimates likely edge higher on revenue strength: Q1 beat vs consensus and prior guidance suggests upward revisions to FY topline; monitor recurring revenue trajectory as newly installed systems reach steady-state .
Trading implications: With merger terms set, the spread may be driven by regulatory timeline/closing risk and CVR probability linked to procedure growth; near-term fundamentals support confidence in recurring revenue ramp, but GAAP volatility remains due to warrant liability accounting .

Appendix: Additional Data

Reconciliation and Balance Sheet Highlights

Adjusted EBITDA reconciliation: EBITDA -$26.428M; add stock comp $0.654M, change in warrant liabilities +$21.714M, acquisition-related costs +$4.225M → Adjusted EBITDA $0.165M .
Cash, cash equivalents, and investments: $25.2M as of 3/31/25 vs $22.5M at 12/31/24; includes $10M Alcon deposit .
Statements of operations and balance sheet detail provided in Exhibit 99.1 and 8-K filing .

LENSAR, Inc. (LNSR)·Q1 2025 Earnings Summary