RxSight Collapses: Massive Revenue Cut Triggers Market Meltdown

📌 RxSight ($RXST) — Major Guidance Cut Sends Stock Crashing After Hours

📌 RxSight ($RXST) — Major Guidance Cut Sends Stock Crashing After Hours

📊 Key Facts:

• Q2 Revenue Estimate: ~$33.6M
  → Below last year’s $35M and down 11% from Q1
  → Missed consensus ($39.78M) by ~$6.2M

• Full-Year Revenue Guidance Slashed:
  From $160M–$175M ➝ $120M–$130M
  → That’s 7%–14% below last year’s actuals
  → Consensus was $167.56M — now trailing by $37M–$47M

• Stock Reaction: -24% after-hours

CEO comment:
“We’re evolving our commercial approach to focus more on supporting success within existing and new practices.”

• Margins:
  → Gross margin guidance raised to 72%–74% (from 71%–73%)
  → Operating expenses projected to rise 7%–14% YoY

• Cash position: Stable at $227.5M vs. $229.3M last quarter

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💡 Why It Matters:

A triple negative event:

• Q2 revenue miss

• Massive FY24 guidance cut

• Shift away from growth mode ➝ toward maintenance

• Market shock: -24% in after-hours isn’t a correction — it’s a revaluation of the business model

No clear explanation from management: silence on demand, competition, or product issues increases uncertainty

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⚖️ RxSight vs Centene — Same Drop, Different Reasons

Both saw ~-35% drops, but:

Centene (CNC):

• Clear reason: miscalculated health risk revenue

• Concrete plan: tariff revision, date for new report, recovery strategy

• Market lost trust — but knows the path forward

RxSight (RXST):

• Abrupt shortfall in quarterly and annual revenue

• Vague reasoning: “re-alignment” without detail

• No recovery plan, and growth expectations were shattered

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🧠 Final Takeaway:

RxSight blindsided the market with a soft Q2 and slashed FY guidance — now over 25% below Street expectations. The revenue drop, shift in commercial strategy, and unclear narrative rattled investors. Improved margins offer little relief in light of lost credibility. Until the official Q2 earnings on August 7, investors are left in the dark. Unlike Centene, there’s no defined recovery path — only hope that internal focus can reverse the damage.