Sign in

You're signed outSign in or to get full access.

LI

LENSAR, Inc. (LNSR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $13.94M (+10% YoY) with worldwide procedure volumes +23% YoY; the company placed 18 ALLY systems and ended Q2 with 18 systems in backlog .
  • Street comparison: revenue missed ($13.94M actual vs $16.55M consensus)* and EPS missed (-$0.15 GAAP vs -$0.075 consensus); EBITDA was below consensus as well (actual -$0.86M vs $0.10M).
  • Operating backdrop improved: net loss narrowed to $1.76M from $9.04M YoY, aided by favorable warrant liability marks, while SG&A rose 72% YoY on $4.17M merger-related costs .
  • Catalyst: merger with Alcon progressing; shareholder approval secured and FTC second request being addressed, with management still targeting close by year-end .
  • No earnings call this quarter due to the pending Alcon transaction, limiting real-time guidance/clarifications .

Values retrieved from S&P Global*

What Went Well and What Went Wrong

What Went Well

  • Strong procedural momentum and placements: “continued, strong momentum of ALLY with 18 systems placed in the quarter and an additional 18 systems in backlog,” with worldwide procedure volumes +23% YoY .
  • Installed base expansion: ALLY installed base ~165 (+107% YoY) and total combined installed base ~410 (+23% YoY) as of June 30, 2025 .
  • Loss narrowing: net loss improved to -$1.76M from -$9.04M YoY; Adjusted EBITDA was -$0.25M vs $0.03M in Q2 2024, reflecting better underlying performance excluding non-cash charges and acquisition costs .

What Went Wrong

  • Revenue and profit vs Street: revenue and EPS both missed consensus in Q2 2025*, and EBITDA came in below consensus*, likely tied to merger costs and lower system sales vs estimates.
  • Sequential pressure vs Q1: revenue fell sequentially ($13.94M vs $14.16M in Q1), and SG&A surged 72% YoY due to $4.17M merger-related costs .
  • Limited disclosure cadence: no earnings call was held, curtailing Q&A and detailed guidance updates amid ongoing FTC review of the Alcon merger .

Values retrieved from S&P Global*

Financial Results

Revenue, EPS, Margins vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD)$16.73M $14.16M $13.94M
GAAP Net Loss ($USD)$(18.70)M $(27.35)M $(1.76)M
GAAP Diluted EPS ($USD)$(1.61) $(2.32) $(0.15)
Gross Profit Margin %42.48%*50.32%*50.41%*
EBITDA Margin %-9.28%*-3.45%*-7.32%*
Net Income Margin %-111.78%*-193.13%*-12.66%*

Values retrieved from S&P Global*

Vs Wall Street Consensus (S&P Global)

MetricQ4 2024 Estimate*Q4 2024 Actual*Q1 2025 Estimate*Q1 2025 Actual*Q2 2025 Estimate*Q2 2025 Actual*
Revenue ($USD)$14.95M$16.73M$13.40M$14.16M$16.55M$13.94M
Primary EPS ($USD)$(0.18)$(0.0981)$(0.155)$(0.0639)$(0.075)$(0.0968)
EBITDA ($USD)$0.10M$(1.552)M$(0.30)M$(0.489)M$0.10M$(1.020)M
  • Q2 2025: Revenue miss, EPS miss, EBITDA miss vs consensus*.
  • Note: Company-reported GAAP EPS differs from S&P Global Primary EPS actuals due to methodology and adjustments; e.g., Q4 2024 GAAP EPS was $(1.61) versus S&P Primary EPS actual $(0.0981)*.

Values retrieved from S&P Global*

Segment and Recurring Mix

Revenue Component ($USD ‘000s)Q2 2024Q1 2025Q2 2025
System$2,654 $2,632 $2,576
Procedure$6,880 $8,286 $8,334
Lease$1,952 $1,884 $1,645
Service$1,150 $1,357 $1,380
Total Revenue$12,636 $14,159 $13,935
Recurring %79% 81% 82%

KPIs

KPIQ4 2024Q1 2025Q2 2025
Worldwide Procedure Volume (units)45,586 52,347 52,100
ALLY Systems Placed (period)31 14 18
ALLY Installed Base (approx)>135 ~150 ~165
Total Combined Installed Base (approx)~385 ~395 ~410
U.S. Procedure Share>20% FY 2024 ~22% (Q1) >21% (Q2)
Backlog (ALLY)16 (year-end 2024) 24 (as of 3/31/25) 18 (as of 6/30/25)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Topline Revenue GrowthFY 2025Accelerate beyond 27% achieved in 2024 No update provided in Q2; no call Maintained/Not updated
Revenue SeasonalityFY 2025Q1 lowest; Q4 highest No update provided in Q2 Maintained
Adjusted EBITDAFY 2025Positive Adjusted EBITDA in 2025 No update provided in Q2 Maintained
Transaction TimelineFY 2025Merger announced 3/23–3/24/25; pending regulatory review Expect close by year-end; responding to FTC Second Request Clarified timeline, maintained expectation

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Product Performance (ALLY)31 Q4 placements; over 80 in FY24; strong recurring base 14 placements; installed base ~150; +33% procedures YoY 18 placements; backlog 18; installed base ~165; +23% procedures YoY Improving/stable growth
Regional Trends & ShareU.S. share >20% (Market Scope) ~22% of U.S. procedures in Q1 >21% of U.S. procedures in Q2 Stable >20%
Regulatory/LegalFY25 outlook post EU/Taiwan clearances Merger announced; proxy process FTC Second Request; expect close by year-end Advancing review
R&D ExecutionQ4 R&D $1.3M; FY24 $5.3M Q1 R&D $1.53M Q2 R&D $1.43M Steady spend
AI/TechnologyALLY integrates AI imaging/software (About) Reinforced AI integration (About) Reinforced AI integration (About) Consistent messaging
Supply Chain/Tariffs/MacroNot specifically discussedNot specifically discussedNot specifically discussedNo change

Management Commentary

  • “Our second quarter results reflect the continued, strong momentum of ALLY with 18 systems placed in the quarter and an additional 18 systems in backlog… worldwide procedure volumes increasing 23% over second quarter 2024 levels.” — Nick Curtis, President & CEO .
  • “The proposed merger was overwhelmingly approved… over 80% of our outstanding shares were voted, with over 99% of the votes cast in favor… working cooperatively with the FTC… expect the transaction to close by the end of this year.” — Nick Curtis .
  • Prior quarter context: “We successfully placed 40% more ALLY Systems in the first quarter of 2025… 34% increase in revenue and worldwide procedure volumes were 33% above first quarter 2024 levels.” — Nick Curtis .

Q&A Highlights

  • No earnings call was hosted in Q2 2025 due to the pending Alcon transaction; consequently, no analyst Q&A or granular guidance updates were provided .
  • Transaction clarifications: FTC Second Request extends HSR waiting period until 30 days after substantial compliance; LENSAR and Alcon expect prompt response and continue to target closing in H2 2025 .
  • Tone: management emphasized operational momentum and confidence in transaction closing by year-end .

Estimates Context

  • Q2 2025: Revenue $13.94M vs $16.55M consensus (miss); EPS -$0.15 GAAP vs -$0.075 consensus (miss); EBITDA -$0.86M vs $0.10M consensus (miss)*.
  • Q1 2025: Revenue $14.16M vs $13.40M consensus (beat); EPS heavily below consensus due to warrant liability impacts; EBITDA below consensus*.
  • Q4 2024: Revenue beat vs consensus; EPS differs materially between GAAP (-$1.61) and S&P Primary EPS actual (-$0.0981)*—reflecting methodological adjustments.
  • Implication: Street models likely need to reflect recurring revenue strength and procedure growth, while capturing non-cash warrant liability volatility and merger-related expenses in near-term profitability.

Values retrieved from S&P Global*

Key Takeaways for Investors

  • Procedural and installed base momentum remains robust (ALLY placements, +23% worldwide procedures YoY), underpinning recurring revenue durability .
  • Q2 results missed Street on revenue, EPS, and EBITDA*, with SG&A elevated by $4.17M merger-related costs—near-term profitability optics are merger-affected .
  • Sequential revenue softness vs Q1 ($13.94M vs $14.16M) suggests the importance of H2 seasonal lift and continued placements to meet FY trajectory .
  • Merger with Alcon is the dominant stock catalyst: shareholder approval obtained; FTC Second Request underway; management still guides to year-end close .
  • Valuation/estimates should separate recurring growth from non-cash warrant volatility; expect estimate adjustments to reflect higher procedure volumes and merger costs*.
  • Without an earnings call, monitor upcoming SEC filings and merger updates for guidance granularity and any operational changes .
  • Inventory and accounts payable levels rose into Q2 (inventories $19.24M; AP $11.31M), consistent with scaling deployments; monitor working capital given transaction timing .

Notes:

  • Values retrieved from S&P Global*