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LENSAR (LNSR)
NASDAQ:LNSR
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LENSAR
(NASDAQ:LNSR)
70Neutral
Positive Factors
Financial Performance
The company reported Q4 revenue of $16.7M, which was 38% higher than the previous year and above market expectations.
International Expansion
LNSR's expansion into the EU and Southeast Asia is expected to drive international growth.
Market Adoption
Lensar has been seeing strong adoption of its ALLY technology, with a significant portion of new system placements coming from new customers.
Negative Factors
Growth Challenge
Lensar is required to achieve substantial procedure growth to meet the terms of the acquisition agreement, which may pose challenges.
Profitability
Gross margins are lower due to higher capital sales, which impacts the company's profitability.
Valuation
The stock is rated as Neutral because the implied takeout value is seen as fairly valued, indicating limited upside potential.
LENSAR (LNSR) vs. S&P 500 (SPY)
Market Cap
$166.72M
Dividend YieldN/A
Average Volume (3M)189.42K
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth26.87%
EPS Growth-104.94%
CountryUS
Employees140
SectorHealthcare
Sector Strength64
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.72
Shares Outstanding11,790,440
10 Day Avg. Volume302,304
30 Day Avg. Volume189,424
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.27
Price to Cash Flow (P/CF)11.90
P/FCF Ratio11.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside6.08% Upside
Rating ConsensusHold
Number of Analyst Covering2
LENSAR Business Overview & Revenue Model
Company DescriptionLENSAR, Inc. (LNSR) operates in the medical technology sector, specializing in advanced laser systems for cataract surgery. The company's flagship product, the LENSAR Laser System, is designed to assist ophthalmologists in performing precise and efficient cataract surgeries. By offering innovative solutions that enhance surgical outcomes and patient satisfaction, LENSAR positions itself as a leader in the ophthalmic laser market.
How the Company Makes MoneyLENSAR makes money primarily through the sale and lease of its laser systems to medical facilities and ophthalmic surgeons. The company generates revenue from the initial sale or ongoing leasing agreements of its LENSAR Laser Systems. Additionally, LENSAR capitalizes on recurring revenue streams from the sale of consumables and maintenance services required for the operation of its systems. These revenue streams are supported by strategic partnerships with healthcare providers and institutions that endorse and utilize LENSAR's technology in their surgical procedures.
LENSAR Financial Statement Overview
Summary
LENSAR is experiencing robust revenue growth but continues to struggle with profitability and operational efficiency. The income statement shows strong top-line growth, while the balance sheet indicates low leverage but limited equity. Cash flow has improved, yet challenges persist in maintaining positive operational cash flow.Income Statement
LENSAR has demonstrated strong revenue growth, with a notable increase from $42.16 million in 2023 to $53.49 million in 2024, representing a growth rate of approximately 26.85%. However, the company remains unprofitable, with a negative net profit margin and EBIT margin, reflecting ongoing challenges in cost management.65
Positive
Balance Sheet
The company maintains a relatively low debt-to-equity ratio, indicating modest leveraging. However, the negative net income has resulted in a negative return on equity. The equity ratio stands at approximately 7.33%, suggesting limited equity financing compared to total assets.58
Neutral
Cash Flow
LENSAR's free cash flow improved from -$9.90 million in 2023 to -$2.43 million in 2024, highlighting a significant reduction in cash outflows. The operating cash flow to net income ratio indicates ongoing operational cash challenges, though there is a positive trend in reducing cash burn.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 53.49M | 42.16M | 35.36M | 34.46M | 26.38M | Gross Profit |
| 25.85M | 21.11M | 19.95M | 17.83M | 14.07M | EBIT |
| -5.97M | -12.23M | -20.18M | -19.65M | -18.50M | EBITDA |
| -5.97M | -8.71M | -16.77M | -16.89M | -15.87M | Net Income Common Stockholders |
| -31.40M | -14.38M | -19.65M | -19.65M | -21.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.45M | 24.06M | 14.67M | 31.64M | 40.60M | Total Assets |
| 66.30M | 69.58M | 55.84M | 66.47M | 79.12M | Total Debt |
| 2.61M | 2.31M | 2.80M | 2.80M | 3.31M | Net Debt |
| -13.65M | -18.31M | -11.87M | -28.83M | -37.28M | Total Liabilities |
| 61.44M | 22.41M | 13.86M | 11.59M | 11.91M | Stockholders Equity |
| 4.86M | 47.18M | 41.98M | 54.88M | 67.21M |
| Cash Flow | Free Cash Flow | |||
| -2.43M | -9.89M | -14.97M | -9.32M | -14.16M | Operating Cash Flow |
| -2.27M | -9.66M | -14.86M | -8.97M | -13.79M | Investing Cash Flow |
| -2.16M | -4.16M | -115.00K | -354.00K | -326.00K | Financing Cash Flow |
| 78.00K | 19.76M | -1.99M | 361.00K | 50.00M |
LENSAR Technical Analysis
Positive
14.14
Price Trends
11.88
Positive
9.72
Positive
7.22
Positive
Market Momentum
0.83
Positive
53.30
Neutral
2.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNSR, the sentiment is Positive. The current price of 14.14 is below the 20-day moving average (MA) of 14.58, above the 50-day MA of 11.88, and above the 200-day MA of 7.22, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 2.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNSR.
LENSAR Risk Analysis
LENSAR disclosed 64 risk factors in its most recent earnings report. LENSAR reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LENSAR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $166.72M | ― | -95.42% | ― | 26.87% | -104.94% | |
60 Neutral | $12.09B | 29.22 | 11.26% | ― | 3.54% | -3.41% | |
55 Neutral | $1.04B | ― | -3.24% | ― | -11.45% | 57.20% | |
53 Neutral | $3.54B | ― | -5.76% | ― | 5.28% | -292.14% | |
51 Neutral | $861.22M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
49 Neutral | $6.86B | 0.72 | -52.93% | 2.49% | 20.83% | 1.11% | |
48 Neutral | $406.19M | ― | -43.42% | ― | -5.97% | -25.87% |
* Healthcare Sector Average
Performance Comparison
LNSR
LENSAR
14.13
10.75
318.05%
ALGN
Align Tech
159.21
-160.44
-50.19%
ICUI
ICU Medical
140.16
34.73
32.94%
EYPT
EyePoint Pharmaceuticals
5.83
-14.44
-71.24%
STAA
Staar Surgical
17.79
-21.25
-54.43%
EYE
National Vision Holdings
12.82
-8.75
-40.57%
LENSAR Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 49.31% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in 2024, with record-breaking revenue growth, significant market share gains, and positive adjusted EBITDA. However, there is a notable decrease in recurring revenue percentage and a substantial net loss due to a non-cash charge. The company remains optimistic about future growth and market expansion.Highlights
Record-Breaking Revenue Growth
Fourth quarter top line revenue increased to $16.7 million, representing growth of 38% over Q4 2023. Full year revenue growth was 27% over 2023.
Significant Increase in ALLY System Placements
A total of 31 ALLY Systems were placed in the fourth quarter, with 20 in the U.S. This marks a new quarterly high for LENSAR.
Expansion into New Markets
Expansion in laser placements into Europe and Southeast Asia continued, with 24 systems placed since launching ALLY outside the U.S. after mid-August 2024.
Substantial Market Share Gain
LENSAR added an additional 7.5% share in procedures in the U.S., bringing the total share to almost 21%.
Positive Adjusted EBITDA
Achieved positive adjusted EBITDA of $478,000 in Q4 2024, marking the second consecutive quarter of positive adjusted EBITDA.
Strong Demand and Future Outlook
Confident in delivering strong financial results in 2025 with top line revenue growth expected to exceed 27%.
Lowlights
Decrease in Recurring Revenue Percentage
Recurring revenue was approximately 64% of total revenue in Q4 2024, down from 73% in Q4 2023, due to increased ALLY System sales.
Net Loss Due to Non-Cash Charge
GAAP net loss of $18.7 million in Q4 2024, largely attributed to a $17.6 million noncash charge related to the increase in fair value of outstanding warrant liabilities.
Company Guidance
During the call, LENSAR provided an optimistic outlook for 2025, anticipating revenue growth exceeding the 27% achieved in 2024. The company reported a record fourth-quarter revenue of $16.7 million, marking a 38% increase from Q4 2023, driven by 31 ALLY System placements, including a U.S. record of 20 installations. The full-year revenue saw a 27% rise over 2023, with procedure volumes increasing 24% globally. LENSAR's market share in U.S. procedures grew by 7.5% over two years, reaching nearly 21%. The company ended 2024 with a backlog of 16 ALLY Systems expected to generate recurring revenue in 2025. LENSAR aims to achieve positive adjusted EBITDA for the full year of 2025, supported by strategic investments in commercial operations and a continued focus on expanding its market presence both domestically and internationally.LENSAR Corporate Events
M&A Transactions
LENSAR Announces Merger Agreement with Alcon
Positive
Mar 24, 2025
On March 23, 2025, LENSAR, Inc. entered into a merger agreement with Alcon Research, LLC, where LENSAR will become a wholly owned subsidiary of Alcon. The agreement involves Alcon acquiring all outstanding shares of LENSAR for $14.00 per share in cash, with an additional contingent value right of $2.75 per share based on achieving certain milestones. This acquisition aims to strengthen Alcon’s cataract equipment portfolio and expand the use of LENSAR’s advanced femtosecond laser technology globally. The transaction, valued at up to $430 million, is expected to close in mid-to-late 2025, pending regulatory and stockholder approvals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.