Sight Sciences, Inc.

Good day, everyone, and welcome to Psych Sciences' fourth quarter 2025 earnings results. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. To participate, you will need to press star-1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star-1-1 again. Please note, this conference is being recorded. Now it's my pleasure to turn the call over to Tripp Taylor with Investor Relations. Please proceed.

Thank you for participating in today's call. Presenting today are Site Sciences co-founder and Chief Executive Officer Paul Badawi and Chief Financial Officer Jim Rodberg. Also in attendance is Site Sciences Chief Operating Officer, Allie Ballerline. Earlier today, Site Sciences released its financial results for the fourth quarter ended December 31st, 2025, and initiated its revenue guidance and adjusted operating expense guidance for full year 2026. 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, including statements about material business considerations, 2026 outlook and financial guidance. These statements are based on plans and expectations as of today, which may change over time. In addition, actual results could differ materially from projected results due to a number of risks and uncertainties. For discussion of factors that may affect the company's future financial results in business, please refer to the earnings release issued prior to this call and the company's most recent SEC filings. We undertake no obligation to publicly update or revise any forward-looking statements except as required by law. Also on this call, management refers to certain financial measures that were not prepared in accordance with generally accepted accounting principles in the United States, including adjusted operating expenses. We believe that 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 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, Tripp. We ended 2025 with solid execution across our business, highlighted by fourth quarter revenue growth in both segments, strong gross margins, and continued operating expense discipline and cash management. In 2026, we're building on this momentum with a clear strategy to return to double-digit growth while maintaining our operational rigor and financial discipline. Before reviewing the quarter, I want to frame our discussion around the size and significance of the markets we serve and why we're confident in our long-term opportunity. Our flagship interventional technologies, Omni and TierCare, address two of the most prevalent anterior segment diseases, glaucoma and dry eye disease. Glaucoma remains the leading cause of irreversible blindness globally, and dry eye disease continues to be one of the most common reasons patients seek care from eye care providers. With proprietary, minimally invasive technologies designed to comprehensively address the root underlying causes of disease, we are expanding both the role of interventional solutions in the markets we serve and the markets themselves. These two increasingly interventional categories offer substantial runway for continued growth in the years ahead. Consistent with that strategy, we've updated the way we describe our businesses. What we previously referred to as surgical glaucoma and dry eye, we now call interventional glaucoma and interventional dry eye, reflecting our focus on elevating the standards of care with earlier procedure-based interventions. We believe this interventional focus positions us to participate in an important part of the treatment continuum, and over time creates multiple durable growth drivers across both glaucoma and dry eye. We believe there is significant customer and patient overlap in these two categories that can unlock synergistic commercial value. Many patients who suffer from glaucoma also suffer from dry eye disease and meibomian gland dysfunction. which can be exacerbated by continued use of glaucoma medications, a known cause of ocular surface disease. In addition, many practices have dedicated eye care providers managing patients with both diseases, creating a natural synergy in care pathway and treatment. With strong collaboration between our interventional glaucoma and interventional dry eye teams, we have the potential to enhance our customer engagement, support adoption across both businesses, and strengthen the scalability of our interventional eye care strategy. With proven technologies, experienced teams, strong customer relationships, and a track record of execution, we believe we are well positioned to drive meaningful value as we continue building a leading interventional eye care company. Now, turning to our segments, I'll begin with interventional dry eye, where we recently achieved a very important reimbursement milestone. In the fourth quarter, two masks, Novitas Solutions, and First Coast Service Options established pricing for CPT code 0563T, the code associated with our care care procedure. This marks a turning point for our care care business model, and we are now executing our strategy with the goal of pioneering the reimbursed interventional dry eye treatment market. We were very encouraged by the commercial traction we generated with a variety of dry eye customers in the fourth quarter. As pre-announced in January, interventional dry eye revenue in the fourth quarter was 0.7 million, up both sequentially and compared to the prior year. Revenues were driven by the sale of approximately 700 smart lids to approximately 80 accounts, roughly 30 of which were new account engagements. The sequential and year-over-year revenue growth in the quarter was largely driven by sales in the Novitas and First Coast regions, where customer engagement with TierCare has been strong. and reflects positive momentum in the reimbursed business model. A portion of new customers are existing glaucoma customers of ours who are excited to partner further on the tear care treatment opportunity. The increasing engagement across accounts as they establish their interventional dry eye practices and validate successful processing and payment of their first claims is promising. This progress is particularly notable given our small but growing sales team and the limited time since our reimbursed launch. As part of our commercialization strategy, we are focused on high volume dry eye prescribers where TierCare presents a clear and compelling clinical and economic value proposition. In parallel, we are engaging new eye care providers in states where fee schedules have been newly established based on existing dry eye treatment activity. And we continue to expand our outreach to glaucoma customers in these markets. where tier care is a natural complement to their current practice offerings. Early interest from new providers and renewed engagement from existing providers underscore growing demand for tier care and interventional dry eye procedures. In order to scale this business and fuel growth, we are making additional investments in our interventional dry eye commercial organization. These investments are intended to strengthen provider engagement and expand commercialization in markets with established reimbursement. We added resources in the fourth quarter, and we'll continue building out our commercial infrastructure to drive growth in 2026. Expanding market access also remains a critical pillar of our growth strategy. As we deepen our engagement with additional MACs and commercial payers throughout 2026, we believe we can accelerate adoption and expand access for patients. We have built a strong foundation on clinically differentiated technology, initial market access fee schedules, and early commercial validation, positioning us to pioneer the reimbursed interventional dry eye market for years to come. Turning to interventional glaucoma. The fourth quarter marked an important milestone in 2025 as we fully lapped the LCD changes, restricting multiple mixed procedures in combination with cataract surgery. These LCDs reduced the number of devices used and caused meaningful headwinds to market growth in 2025. Despite these headwinds, our Omni technology once again demonstrated its importance in the glaucoma treatment paradigm in this single MIGS environment. In the fourth quarter, we built on our strong third quarter performance and generated another quarter of growth compared to the prior year. Revenue was 19.7 million, up 5% year over year, and flat sequentially. at the top end of our pre-announced revenue range provided in January. Ordering accounts increased 2% compared to the prior year, driven by a combination of reactivating accounts and adding new accounts. Utilization remained healthy, down only slightly after a particularly strong third quarter. Additionally, we saw continued benefit from higher OmniEdge utilization, which drove higher average selling prices in the quarter. With the interventional mindset increasingly impacting the glaucoma treatment algorithm, we are focused on developing the standalone market with Omni. We are investing in targeted commercial resources to drive pseudophagic education and activation with surgeons and clinic staff. With similarities to the office-based cataract evaluation workflow that is familiar to most ophthalmic and optometric practices, we have designed an interventional glaucoma evaluation workflow that we believe represents a significant opportunity to expand omni adoption and standalone interventions and support a meaningful source of revenue growth over time. In 2026, our interventional glaucoma strategy focuses on disciplined execution to drive share gains, expansion of the combo cataract segment, and further development of the under-penetrated standalone market. Driven by our experienced commercial team, clinically differentiated technology and our investment in our dedicated pseudophagic market development team, we are positioned for a return to sustainable growth in interventional glaucoma. In closing, our strong fourth quarter performance reflects consistent execution across the organization and reinforces the momentum we are carrying into 2026. We believe we are well positioned to return to durable revenue growth in both segments as we leverage our differentiated technologies, experienced teams and the synergies of these two opportunities to continue building a leading interventional eye care company.