LENSAR (LNSR) investor relations material

Executive summary

• Q1 2026 revenue was $13.4 million, down 5% year-over-year due to decreased system sales and market uncertainty following the terminated Alcon merger.

• Net income reached $36.3 million, reversing a $27.3 million loss in Q1 2025, driven by a $23.9 million non-cash gain from warrant liabilities and $10 million in acquisition-related income from the terminated merger.

• Recurring revenue grew 9% year-over-year to $12.6 million, now representing 94% of total revenue.

• The ALLY Robotic Cataract Laser System continues to drive growth, with expanded regulatory clearances and strong industry interest, though future growth depends on additional certifications.

• The company operates in a highly competitive and regulated environment, facing supply chain, inflationary, and tariff pressures impacting margins and capital needs.

Financial highlights

• Product revenue was $10.1 million, lease revenue $1.7 million, and service revenue $1.7 million for Q1 2026.

• Recurring revenue accounted for 94% of total revenue, up from 81% a year ago.

• Gross margin was $6.4 million (48% of revenue), compared to $7.1 million (50%) in Q1 2025, impacted by tariffs and inflation.

• Adjusted EBITDA was negative $311,000, down from positive $165,000 in Q1 2025.

• Cash, cash equivalents, and investments totaled $13.5 million at quarter end.

Outlook and guidance

• Management expects recurring revenue growth as system utilization increases and placements return to historical levels post-merger.

• Operating expenses (SG&A) will increase judiciously from the $6.9 million adjusted figure as the company rebuilds its workforce and supports growth.

• Sufficient liquidity is projected for at least 12 months, but additional capital may be needed for expansion or if macroeconomic pressures persist.