LENSAR, Inc.

Good morning and thank you for your participation. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. As a reminder, this conference call will be recorded. I would now like to turn the call over to Lee Roth, President of Burns McClellan, Investor Relations Advisor to Lenzar. Mr. Roth, please go ahead.

Thanks, Josh. Once again, good morning, everyone, and welcome to the Ledzar fourth quarter and full year 2025 financial results and strategic update conference call. Earlier this morning, the company issued a press release providing an overview of its financial results for the fourth quarter of 2025. This release is available in the investor relations section of the company's website at www.ledzar.com. Joining me on the call today is Nick Curtis, Chief Executive Officer of and Tom Staub, Chief Financial Officer of Lensar, who will provide an overview of recent developments, our go-forward strategy, and our Q4 financial results. Following these prepared remarks, we'll turn the call back over to the operator to answer your questions. Before we begin, I'd like to remind you all that today's conference call will contain forward-looking statements, including statements regarding our future results, unaudited and forward-looking financial information, as well as information on the company's future performance and or achievements. These statements are subject to known and unknown risks and uncertainties, which may cause our actual results, performance, or achievements to be materially different from any future results or performance expressed or implied on this call. We caution you not to place any undue reliance on these forward-looking statements. For additional information, including a detailed discussion of the risk factors, please refer to our documents filed with the Securities and Exchange Commission which can be accessed on the website. In addition, this call contains time sensitive information accurate only as of the date of this live broadcast, March 31st, 2026. LENZAR undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this live call. With that said, it's now my pleasure to turn the call over to Nick Curtis, Chief Executive Officer of LENZAR. Nick.

Thank you, Lee. Good morning, everyone. I appreciate you joining us today. It is no doubt an understatement to say 2025 was a unique and unprecedented year for Lensar. We take great satisfaction knowing that the leading eye care company in the world, Alcon, publicly recognized the value of Ally and Lensar, given the joint acquisition announcement made in March of 2025. This validates our statement that Ally is the best next-generation technology. delivering significant and relevant performance improvements in each of the critical elements of laser-assisted cataract surgery, including advanced ergonomics, efficiencies, imaging, and automated treatment planning with a dual-modality laser. Ally is the only system that employs machine learning and compute power during treatment planning and optimized treatment to deliver outcomes that are better than any first-generation competitor. The termination of the acquisition agreement was a mutual pragmatic decision made after a year of focused effort and considerable expense from both sides. While this acquisition was approved overwhelmingly by our stockholders, ultimately we made the decision to terminate because the Federal Trade Commission would seek to enjoin the merger. While both parties worked towards offering acceptable accommodation to allow it to close, it became clear the FTC was not open to changing their position. We were disappointed in the outcome. However, the upside of this process is the validation of the Ally robotic laser cataract system superiority compared to all other first-generation lasers available today, as well as the value attributed to Lensar based on the success the product has achieved since its launch and its future potential. Therefore, with new resolve and new purpose, we're excited to emerge and re-engage as an independent company picking up where we left off 12 months ago. We've spent the last two weeks working on initiatives and jump-starting relationships with key stakeholders. I'll briefly discuss the last two weeks and share our high-level go-forward strategy today. Relationships are important. And before I present our strategy, I would like to take a minute to thank our partner vendors, agents, and suppliers, who not only provided excellent support and counsel, ultimately shared that disappointment and financial burden with us through granting reductions in fees as well as extended payment terms. These partnerships are beneficial in Lensar returning to our prior operating cadence, allocating more of our financial resources and attention to operations. We can immediately start getting back to our business as usual and smooth return to focusing on growth and expanding our presence with increased install base and procedures. We appreciate their collaboration and contribution to our future success. Additionally, In association with the termination of the acquisition, we received the $10 million transaction deposit that had been in escrow. In the last three quarters of 2025, we operated with an increasing degree of uncertainty among our partner customers, potential partner customers, and distributors regarding our future, and the timing of the close of the acquisition. Despite the uncertainty that delayed U.S. customer decision-making on Ally and Lensar, and halted OUS distributor activities and purchasing systems. We expanded the Ally install base by nearly 50% compared to year end 2024, while achieving 20 plus percent year over year growth in procedure volume for both the fourth quarter and full year 2025. There's no question the last nine months of 2025 were negatively impacted by the acquisition process and extended timeline, and not just by the increased SG&A expenses associated with supporting the transaction. While our 2025 results include a 9% revenue growth, I need to be transparent and clear. We expect, through the next several quarters of 2026, a gradual return to our historical operating performance. When you consider our longer-term growth metrics, the trajectory has been impressive. Our full-year 2025 procedure volumes are up 50%, compared to 2023, the first full year of Ally commercial availability. By reflecting on a longer term vantage point, you get a much better picture of what we see as the future opportunity for LensR and Ally. Since the launch in August of 2022, we grew our installed base to approximately 200 Ally systems and grew our procedure volume, gaining market share from 14% procedure share in the U.S. to 23.4% as of the end of 2025. I want to say we gained almost 9.5% of market share points in three and a half years. These market share gains come from three specific areas. First, it comes from competitive accounts. Replacing first-generation lasers with our Ally robotic laser cataract system counts for the largest gain in share. The gain in share is demonstrated by what happens after we replace a competitive system. Lensar, on average, performs 27% more procedures annually than the national average per laser, providing evidence that we are growing the overall market for robotic laser cataract procedures. Third, nearly 50% of our systems in Q4 2025 were from Fentonaive surgeons. further expansion of expanding the market for laser cataract-assisted surgery. The data provides evidence LENZAR is addressing the shortcomings of the first-generation laser-assisted cataract surgical lasers by delivering the most technologically advanced next-generation robotic laser for cataract surgery in multiple ways, significantly improving efficiencies in patient throughput, allowing for more procedures with faster treatments, and fewer staff interactions, leading to the potential for fewer mistakes, less anxiety, and a better overall patient experience. Second, customizing precise, specific, reproducible treatments optimized by utilizing features such as machine learning and surface anatomy recognition, imaging, and optimizing data for treatments by communicating with preoperative devices in the surgeon offices, leading to better outcomes in refractive cataract surgery using astigmatism management. To put in perspective, our competitors have the ability to bundle more products using cataract procedures, more feet on the street, and much deeper financial, human, and operational resources. Despite this, we've been incredibly successful in increasingly growing Ally's market share. Why? Lensar is a small, nimble, and resilient organization We're known for innovation that aligns with surgeons' practices and patients' objectives. Lensar is and always will be a surgeon and practice-centric organization. We have extensive clinical evidence that is giving surgeons the confidence to make the decision to implement Ally in their practice. Over the last three years, Ally's performance, placements, and procedure volume speaks for itself. All I can say as we start the second quarter of 2026 We expect to compete as we have in the past. Listen here, we're back. I'd like to spend a few moments talking about our business outside the United States. As a reminder, while Lensar started commercializing Ally in the U.S. in August of 2022, it wasn't until two years later that we received the European certification and began to sell Ally internationally. Looking at the timeline, Ally had been on the market outside the United States for roughly seven months when the transaction was announced. The uncertainty over the post-acquisition Ally distribution landscape had a greater impact on our outside United States distributors than our US customers, and that uncertainty caused a meaningful slowdown in our international business expansion over the last year. With our distributors, the Ally launch got off to a very successful start. quickly gaining acceptance with new sites and meaningful momentum, which came to a hard stop. After meeting with the distributors post-acquisition termination announcement, I believe we will begin to return to significant system growth in these international markets over time. Most if not all the distributors were both happy and relieved with the termination of the merger. Although they have all indicated their enthusiasm and are ready to support the business going forward, Their conservative immediate forecasts indicate this will take some time. We will work together on the transition timing to regain the lost momentum and begin to contribute to an increase in worldwide system and procedure market share. I'm confident in our ability to drive long-term success and create value for our surgeon partners in the United States, our distribution partners overseas, our global customers, the patients they serve, and our shareholders. We also continue to rely on our long-term existing physician partners and private equity groups as they are our partners in success. These partners recognize we are working hard to deliver and provide the most responsive service, support, and best product in the market. Going forward, we'll be focusing on a few key areas. Continuing to grow our procedure volumes and recurring revenue will be critical to our success. This will come through a combination of additional system placements, and increased utilization on the 200 allied systems currently in the field. Our procedure revenue is recurring in nature. It is stable, it has a predictable trajectory following an install, and importantly, carries a significantly higher margin than system revenue. The acceleration of system growth discussed in my remarks will contribute to significant long-term growth in procedure volumes, which will further strengthen our recurring revenue base. An important statistic to consider here is system utilization rates, another area where we are well positioned for success and driving overall market growth. Once again, Lensar systems in the U.S. perform an average of 27% more procedures than the national annual average of lasers currently installed. There is not another robotic femtosecond laser available in the marketplace. We're excited to speak with you, answer your questions, and we appreciate the confidence and support you put into the LNZAR team. Now let me turn the call over to Tom, and he'll cover our financial highlights for the quarter. Tom?