Sight Sciences, Inc.

Good day, and thank you for standing by. Welcome to SightScience's third quarter 2025 earnings results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone, and you'll then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Hannah Jeffrey, Investor Relations. Please go ahead.

Thank you for participating in today's call. Presenting today are SightScience's co-founder and chief executive officer, Paul Badawi, and chief financial officer, Jim Rodberg. Also in attendance is SiteScience's Chief Operating Officer, Allie Bauerlein. Earlier today, SiteScience has released financial results for the third quarter and did September 30, 2025, and raised its revenue guidance and lowered its adjusted operating expense guidance for the full year 2025. A copy of the press release is available on our website at investors.sitesciences.com. I would like to remind everyone that comments made by management today and answers to questions will include forward-looking statements within the meeting of the federal securities laws. These forward-looking statements include statements related to our 2025 revenue and adjusted operating expense guidance and the primary factors impacting our ability to achieve our guidance, our outlook for the fourth quarter 2025 and into 2026, the impact of tariff costs on our cost of goods sold, Our plans to expand our manufacturing lines to additional manufacturing locations and the expected timelines and related costs. Our marketing, commercialization, and growth strategy, in particular for our tier care segment. Our ability to achieve our current and long-term strategic objectives and value drivers. The benefits we expect to realize from our recent executive management restructuring. Our market opportunity and ability to compete and capture market share. the continued adoption of our products by surgeons, our product reimbursement coverage and strategy, including our ability to achieve broader positive reimbursement coverage and or payment decisions for care care, expectations regarding commercial momentum, account utilization, and customer engagement, our pipeline of interventional glaucoma and dry eye technologies, our clinical trial strategy and results, our investments in market development and research and development projects, and expectations regarding the relief that we may ultimately be awarded and the potential impact of recently request ex parte reexaminations on such relief in connections with our patent infringement case against Alcon. Forward-looking statements are based on estimates and assumptions as of today, and neither promises nor guarantees and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by these statements. A description of some of these risks and uncertainties can be found in our public filings with the Securities and Exchange Commission, including the risk factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements except as required by law. On this call, management refers to certain financial measures that were not prepared in accordance with generally accepted accounting principles of the United States including adjusted operating expenses. We believe these non-GAAP financial measures are important indicators of the company's operating performance because they exclude items that are unrelated to and may not be indicative of its core operating results. See our earnings release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as additional information about our reliance on non-GAAP financial measures. I will now turn the call over to Paul.

Thanks, Hannah. Our proven interventional technologies continue to have a profound impact, shaping the treatment landscapes for glaucoma and dry eye disease. Glaucoma remains the world's leading cause of irreversible blindness, and dry eye disease is one of the leading causes for a visit to an eye care provider. Both conditions are the result of obstructed anatomy in the anterior segment where the standard of care, topical prescription eye drops, often fail to address the underlying cause of disease. With two clinically proven, efficacious, and reimbursed interventional technologies for these two major anterior segment diseases, we believe that we have a unique opportunity across functionally leveraged team, market, and disease synergies to create proprietary value and build a leading interventional eye care company. Our strong third quarter results were driven by excellent performance by our surgical glaucoma team, where we returned to growth in the quarter, both versus the same period in the prior year and sequentially. Our third quarter revenue of $19.9 million was driven primarily by adoption of our omnisurgical glaucoma technology, and we continue to deliver operational excellence, achieving solid gross margins and improved expense management. In addition, we anticipate that our recent achievement of the carrier price fee schedules established for tier care by first co-service options and Novita solutions, will allow us to pioneer the reimbursed market for interventional dry eye procedures and expand care for patients. Our momentum in surgical glaucoma and the new fee schedules established for tear care will be instrumental in driving sustained long-term growth. This progress further strengthens our outlook for 2025, and as a result, we are raising our full-year 2025 revenue guidance to 76 to 78 million. I want to start with our dry eye business, where we have seen important advancements. In October, two MACs, Novitas and First Coast, each established jurisdiction-wide pricing for CPT code 0563T, which describes the procedure performed with our tier care system. The fee schedules were made retroactive for all dates of service on and after January 1st, 2025. Within the areas covered by these two MACs, we estimate there are 10.4 million Medicare-covered lives. By securing appropriate fee schedule amounts for tier care in these two MAC regions, we are beginning to realize our vision of pioneering the reimbursed interventional dry eye treatment market. We are seeing results from the deliberate phased approach that started with the development of best-in-class technology, demonstrated strong long-term clinical and health economic outcomes, And now we are focused on building customer advocacy, expanding market access, and commercialization. The payment rate established within these fee schedules is approximately $1,142 for participating providers in these areas and represents real value for all stakeholders including Medicare, providers, patients, and site sciences when considering the clinical value of the procedure. These MAC fee schedules are an important benchmark as we pursue additional coverage and fee schedules with other MACs and commercial payers in the coming periods. We estimate there are approximately 6,500 eye care providers nationwide, including both ophthalmologists and optometrists, identified as potential adopters of tear care procedures based on high utilization of alternative dry eye disease treatments. We estimate an existing footprint of approximately 200 professional eye care providers, who have previously purchased TierCare smart hubs in these states with Medicare fee schedules established. With at least 15% dry eye disease prevalence estimated in the Medicare population, an established customer base in these regions, and a tenured sales team eager to support clinicians and patients, we are ramping targeted TierCare commercialization efforts. We are now focusing our commercial resources on supporting providers in these specific geographies and are expanding the use of our site access portal to streamline insurance authorizations and reimbursement. Our strategy is focused on facilitating provider adoption through the foundation of our experience, sales, marketing, and customer support teams already dedicated to the dry eye market. We will also target new eye care providers in these states based on their current treatment of dry eye disease and focus on our surgical glaucoma customers in these states who may also benefit from adding TierCare to their treatment offerings. While it has been just three weeks since receiving confirmation that fee schedules were established, we have seen strong new customer interest in learning more about TierCare and good re-engagement with existing accounts. We are pleased with this enthusiastic customer engagement early on and expect this activity to continue to increase through the rest of 2025 and into 2026. There is significant patient need that we believe will lead to substantial revenue growth over time as the pioneer of reimbursed interventional dry eye treatments. Turning to our surgical glaucoma segment. We've now completed the third full quarter operating within the new MIGS environment where Medicare coverage in most states restricts performing multiple MIGS procedures in combination with cataract surgery. And we are very pleased with our execution. Our performance this year demonstrates that Omni is a foundational component of many MIG surgeons' treatment algorithms. In the third quarter of 2025, our surgical glaucoma revenue was 19.7 million, up 6% compared to the third quarter of 2024, and up 3% sequentially. Importantly, the sequential growth comes off the typically seasonally high second quarter. Our strategic priorities include reinforcing our competitive position, making focused commercial investments, accelerating adoption of OmniEdge, and expanding the standalone Omni opportunity in pseudophagic patients. Throughout the third quarter, we made meaningful progress across each of these initiatives, which was reflected in ordering accounts, utilization, and average selling prices. For the second quarter in a row, we reached a record high for ordering accounts. In the third quarter, ordering accounts were up 2% sequentially and 8% versus the same period in the prior year. This was driven by both re-engagement efforts with accounts who had ordered previously but had gone dormant and also new accounts ordering for the first time. Utilization was also strong, delivering a flat sequential performance versus typical seasonal declines from the second quarter to the third quarter. In addition, Our average selling price increased versus the same period in the prior year with increased omni edge utilization, which continues to be well received by surgeons. These metrics represent our core growth drivers and main focus of our commercial team, and we are very pleased that we continue to see strong progress. Additionally, we believe there are market and tactical synergies across our surgical glaucoma and dry eye segments. There is customer overlap, as most glaucoma surgeons treat dry eye disease and have many glaucoma patients talking to them about their ocular surface disease symptoms. There is also disease overlap because some glaucoma eye drops can cause or exacerbate dry eye and damage the ocular surface, including prostaglandin analogs, or PGAs, the most frequently prescribed medication for glaucoma. Long-term PGA use has been associated with obstructive meibomian gland disease. We expect our surgical glaucoma team to be a partner to our ocular surface sales team as they create awareness for the benefits of tear care treatments. As discussed before, we believe there is a significant unmet need among pseudophagic patients and that this patient population is well-suited for a standalone procedure with Omni. We believe that our efforts to grow this segment with a targeted approach that prioritizes education efforts aimed at surgeons and their staff are yielding positive results and that by targeting this segment, we will drive Omni adoption that can be a meaningful growth driver for us. The strength of the third quarter highlights the progress we are making, and we recently hit another milestone that we believe will further drive growth within our surgical glaucoma segment. In September, it was announced that Omni was included in UnitedHealthcare's expanded coverage of glaucoma surgical treatments, effective October 1, 2025. We believe that this will be a growth driver starting in the fourth quarter and beyond. Lastly, I want to comment on the management changes that we announced today. I am very excited for the latest evolution of the Site Sciences Management Team with the promotion of Ali Bauerlein to Chief Operating Officer and Jim Rodberg to Chief Financial Officer. Both Ali and Jim have been critical members of the team for multiple years. and they have each made many contributions over their tenure at Sight Sciences. We have all been working very closely together in that time to advance our strategic priorities and drive our results. I'm confident that their unique skill sets directly align with our vision of the future of eye care and the needs of the organization. As Chief Operating Officer, Allie will have direct responsibility for the successful scale-up of our tear care franchise, and increased oversight over our day-to-day operations. Allie has a proven track record of leading a rapidly growing medtech organization through multiple phases of growth. As we achieve more tier care market access wins over the coming quarters and years, we are poised to create a new standard of care and significant new category in eye care, reimbursed procedural dry eye. We are confident that Allie's promotion to a COO role right now is a timely one, helping to ensure that our company maintains its daily cross-functional execution discipline and that our tier care business scales reliably and predictably and achieves its fullest potential. Jim is also a great fit for our CFO role as Allie transitions to COO. Like Allie, Jim has also been a top performer at site for many years, and we are very pleased to recognize his demonstrated impact, leadership capabilities, and significant potential with his promotion to CFO. Having served as our interim CFO in 2023 and having worked closely with Ali and me for the past two years, Jim brings a strong finance background from a leading medtech organization that will be critical to our continued execution and predictable growth in the coming years. We expect our ability to drive growth while maintaining operational discipline to continue under Jim's leadership and are very pleased to welcome him to our executive leadership team. We believe this will be a seamless transition as our cohesive management team continues to execute against our priorities. As we look ahead, our strategy is focused on several key priorities, which include securing additional reimbursement coverage and or payment decisions for TierCare, accelerating commercial momentum in MIGS and DryEye, deepening customer engagement through ongoing education initiatives, generating new clinical and economic evidence to support broader adoption of our technologies, and progressing our robust product pipeline. We believe that we are well positioned to finish the year strongly and thereby set ourselves up nicely for a return to growth in both business segments in 2026. We intend to continue to elevate our market leadership position in MIGS and drive momentum in surgical glaucoma with Omni. and to begin to scale the reimbursed interventional dry eye category we are creating with TierCare. It's an exciting time at Sight Sciences, given the significant patient impact we are positioned to make over the coming years by enabling our customers to treat two major obstructive ophthalmic diseases with proven procedural interventions. I will now turn the call over to Jim to discuss our third quarter financial results and updated guidance for 2025.