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LENSAR, Inc. (LNSR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue grew 6% year over year to $14.3M but missed Wall Street consensus of $17.8M; GAAP diluted EPS was -$0.31, and S&P “Primary EPS actual” was -$0.11 vs consensus of -$0.08; both were misses. The company did not host an earnings call due to its pending acquisition by Alcon. (consensus values with asterisks from S&P Global)*
  • ALLY adoption remained strong: 18 systems placed in Q3, backlog of 18 pending installation, ALLY installed base ~185 (+77% YoY), total laser installed base ~425 (+20% YoY).
  • Procedure volumes increased ~11% YoY, supporting recurring revenue growth; however, SG&A jumped ~98% YoY driven by ~$5.3M in acquisition-related costs, widening the net loss QoQ.
  • Management now expects the Alcon transaction to close in Q1 2026 (vs “by end of 2025” previously), citing ongoing cooperative work with the FTC—an important stock narrative catalyst.
  • Adjusted EBITDA was approximately breakeven at -$0.3M, aided by non-GAAP adjustments (stock-based comp, warrant liability mark-to-market, acquisition costs). No call was held, limiting live guidance commentary.

What Went Well and What Went Wrong

What Went Well

  • Robust ALLY momentum: “We are pleased with the continued adoption of ALLY both in the U.S. and abroad… We grew the ALLY installed base significantly over the past 12 months and achieved solid growth in procedure volume compared to the third quarter of 2024.” — Nick Curtis, CEO.
  • Strong installed base growth: ALLY installed base ~185 (+77% YoY) and total laser installed base ~425 (+20% YoY), with 18 systems placed and 18 in backlog in Q3.
  • Recurring revenue resilience: Recurring revenue (procedure, lease, service) was $10.8M in Q3 vs $9.9M Q3 2024, supported by ~11% YoY procedure volume growth.

What Went Wrong

  • Revenue and EPS misses vs consensus: $14.3M actual revenue vs $17.8M consensus*; S&P Primary EPS actual -$0.11 vs -$0.08 consensus*, and GAAP diluted EPS -$0.31. (consensus values from S&P Global)*
  • Margin pressure and higher expenses: Sequential gross margin softness and EBITDA margin weakness, plus ~$5.3M acquisition-related SG&A drove net loss to -$3.7M in Q3 vs -$1.8M in Q2. (margin percentages from S&P Global)*
  • Reduced transparency: No earnings call due to pending acquisition limited guidance and Q&A, increasing uncertainty around near-term trajectory.

Financial Results

Quarterly Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$14.159 $13.935 $14.316
Net Loss ($USD Millions)$(27.345) $(1.764) $(3.713)
GAAP Diluted EPS ($USD)$(2.32) $(0.15) $(0.31)

Margins (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Gross Margin %50.3%*50.4%*42.2%*
EBITDA Margin %-3.45%*-7.32%*-8.02%*
EBIT Margin %-11.05%*-15.18%*-16.10%*
Values retrieved from S&P Global.*

Estimates vs Actual (Q3 2025)

MetricQ3 2025 EstimateQ3 2025 Actual
Revenue ($USD)$17.75M*$14.316M
Primary EPS ($USD)-$0.08*-$0.1098*
GAAP Diluted EPS ($USD)N/A-$0.31
Values retrieved from S&P Global.*

Bolded implications: Revenue was a significant miss vs consensus; EPS underperformed on both S&P Primary EPS and GAAP.

Segment Breakdown

Revenue Component ($USD Thousands)Q3 2024Q2 2025Q3 2025
System$3,660 $2,576 $3,546
Procedure$6,918 $8,334 $7,821
Lease$1,724 $1,645 $1,560
Service$1,237 $1,380 $1,389
Total Revenue$13,539 $13,935 $14,316

KPIs

KPIQ1 2025Q2 2025Q3 2025
Worldwide Procedures (units)52,347 52,100 46,811
Operational KPI (Q3 2025)Q3 2025
ALLY Systems placed18
ALLY installed base~185 (+77% YoY)
Total laser installed base~425 (+20% YoY)
Backlog (ALLY pending installation)18
EBITDA and Adjusted EBITDA ($USD Millions)Q1 2025Q2 2025Q3 2025
EBITDA$(26.428) $(0.862) $(2.689)
Adjusted EBITDA$0.165 $(0.254) $(0.298)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Alcon transaction close timingTransaction timing“By end of 2025” “Q1 2026” Deferred
Earnings callQ2/Q3 2025No call held No call held Maintained
Financial guidance (Revenue, EPS, OpEx, etc.)FY 2025None provided None provided Maintained

Earnings Call Themes & Trends

Note: The company did not host earnings calls in Q1, Q2, or Q3 2025 due to the pending Alcon transaction.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
AI/Technology initiativesALLY integrates AI into proprietary imaging/software (About sections) Continued emphasis on ALLY with AI integration (About) Stable emphasis
Regulatory/legal (FTC/process)Q2: Working with FTC; expected closing by end of 2025 Responding to FTC request; expect closing Q1 2026 Increased regulatory engagement; timeline push-out
Product performance & adoptionQ1: 14 placements, +33% procedure growth ; Q2: 18 placements, +23% procedure growth 18 placements; +11% procedure growth Placements steady; procedure growth decelerating
U.S. share of procedures~22% in Q1; >21% in Q2 No new share metric disclosed in Q3 press release Stable to slightly lower prior; no update in Q3
R&D executionR&D ~$1.53M (Q1) ; ~$1.43M (Q2) ~$1.37M (Q3) Modest sequential decrease

Management Commentary

  • “We are pleased with the continued adoption of ALLY both in the U.S. and abroad… We grew the ALLY installed base significantly over the past 12 months and achieved solid growth in procedure volume compared to the third quarter of 2024.” — Nick Curtis, President & CEO.
  • “In association with our pending acquisition by Alcon, we continue to work collaboratively with the U.S. Federal Trade Commission, responding to its request for additional information, and now expect the transaction to close in the first quarter of 2026.” — Nick Curtis.
  • “Our second quarter results reflect the continued, strong momentum of ALLY… We are working cooperatively with the U.S. Federal Trade Commission… and continue to expect the transaction to close by the end of this year.” — Nick Curtis (Q2).

Q&A Highlights

  • No earnings conference call was hosted for Q3 2025 (same for Q1 and Q2 2025) due to the pending Alcon transaction; therefore, no Q&A was available.

Estimates Context

  • Revenue: $14.3M actual vs $17.8M consensus* → bold miss; suggests consensus for near-term revenue may need to be recalibrated lower given decelerating procedure growth. *
  • EPS: S&P Primary EPS actual -$0.11 vs -$0.08 consensus*; GAAP diluted EPS was -$0.31 (press release). Non-GAAP adjustments (warrant liability mark-to-market, acquisition-related costs) meaningfully impacted GAAP loss. * Values retrieved from S&P Global.*

Key Takeaways for Investors

  • ALLY adoption remains strong (18 placements, 18 backlog; installed base +77% YoY), underpinning recurring revenue, but sales mix and expense items led to a revenue and EPS miss vs consensus.
  • SG&A was elevated by ~$5.3M acquisition costs, widening net loss QoQ; monitor transaction-related expenses’ cadence through closing.
  • Margin pressure (lower gross margin sequentially and negative EBITDA margin) points to mix and cost dynamics; watch product vs recurring mix and installation timing. (margin data from S&P Global)*
  • Regulatory timeline extended: closing expectation moved to Q1 2026 as the company responds to FTC requests; this extension is likely to be a key stock narrative driver.
  • Cash, cash equivalents, and investments at quarter-end were $16.9M (down ~$3.4M in Q3); liquidity remains a focus until transaction close.
  • With no earnings call and limited formal guidance, near-term visibility is constrained; traders should watch for regulatory updates and installation pacing.
  • Estimate revisions are likely biased lower on revenue and EPS given the Q3 miss; monitor S&P Global consensus changes and subsequent backlog-to-install conversion rates. *