Lensar (LNSR -1.00%), a medical technology company specializing in robotic laser systems for cataract surgery, reported earnings for the quarter ended June 30, 2025. The headline news: Revenue (GAAP) increased 10% year over year in Q2 2025, but missed analyst forecasts by a wide margin on a GAAP basis in Q2 2025. Total revenue (GAAP) was $13.9 million in Q2 2025, compared to consensus expectations of $17.1 million. Earnings per share (GAAP) also came in below estimates in Q2 2025, as the company reported a GAAP loss of ($0.15) per share in Q2 2025, compared to a consensus GAAP loss of ($0.02). Despite these misses, the Net loss (GAAP) shrank sharply from the prior year in Q2 2025, as recurring revenues and global procedure volumes reached new highs in Q2 2025. This quarter showcased operational traction in its key business line but raised questions on execution and the impact of its pending acquisition by Alcon.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.15) | ($0.02) | ($0.79) | N/A |
| Revenue (GAAP) | $13.9 million | $17.1 million | $12.6 million | 10.3% |
| Worldwide Procedure Volume | 52,100 | 42,203 | 23.4 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Founded as a developer of ophthalmic laser systems, Lensar’s core business is to improve cataract surgery using advanced robotic equipment. Its main offerings include the LENSAR Laser System and the ALLY Robotic Cataract Laser System, both designed to enhance surgical precision and efficiency using imaging, robotics, and artificial intelligence (AI).
The company’s recent strategy centers on driving adoption of the ALLY robotic system in both the United States and international markets. Key success factors are its pace of innovation, the ability to secure regulatory approvals for new markets, robust recurring revenues from its growing installed base, and navigating competitive pressures in the ophthalmic device segment. Both the number of systems placed and procedure volumes are critical measures of commercial traction, as is the mix of recurring revenue from services, leasing, and per-procedure fees.
Quarter in Review: Growth in Procedures, Recurring Revenue, and Merger Developments
In Q2 2025, Lensar saw notable growth in key operational metrics. The installed base for the ALLY Robotic Cataract Laser System more than doubled year over year, rising 107% in Q2 2025 compared to Q2 2024, reaching approximately 165 units as of Q2 2025, while total installed systems (ALLY plus its LENSAR predecessor) climbed to about 410 as of Q2 2025. A total of 18 new ALLY systems shipped in Q2 2025, with another 18 in the backlog at quarter-end. Procedure volume surged 23% in Q2 2025, totaling 52,100 procedures globally. According to the company, its laser systems accounted for over 21% of all U.S. procedures in Q2 2025, up 3 percentage points from the prior year (Q2 2025 vs. Q2 2024).
System (capital equipment) revenue (GAAP) declined 2.9% in Q2 2025 compared to the year-ago quarter. By contrast, recurring revenue accounted for 82% of total revenue in Q2 2025, up from 79% in Q2 2024.
On the cost side, as cost of revenue climbed faster than revenue in Q2 2025. Selling, general, and administrative expenses rose sharply, up 72% to $11.7 million in Q2 2025, driven primarily by $4.2 million in Alcon acquisition-related costs. While Research and development (R&D) spending rose 6% in Q2 2025 (GAAP).
Net loss (GAAP) was $1.8 million in Q2 2025, a marked improvement from a GAAP net loss of $9.0 million in Q2 2024. This was mainly due to changes in the value of the company’s warrant liabilities tied to its stock price, alongside the operational improvement from higher recurring revenues. Adjusted EBITDA (non-GAAP, excluding acquisition and non-cash charges) was ($0.3) million in Q2 2025, signaling that core operations were close to breakeven. There were no new product launches, regulatory updates, or announced changes in segment reporting this quarter.
Looking Ahead: No Guidance Amid Pending Acquisition
Lensar did not provide formal financial guidance for upcoming quarters. The company stated it will not host an earnings conference call this quarter, and highlighted that attention remains focused on completing its merger transaction with Alcon. Leadership stated that shareholders overwhelmingly approved the deal and expects the transaction to close by the end of this year.
The company reported a comfortable working capital position, including $20.3 million in cash, equivalents, and investments as of June 30, 2025 (GAAP). Inventories rose sharply; as of this report, LNSR does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
