LENSAR’s ALLY Gains 23.4% Market Share as Margins Slide to 46%
LENSAR’s ALLY Robotic Laser Cataract System captured 23.4% US market share in 2025, up from 14% in 2024, while full-year gross margin fell to 46% from 48% due to inflation and tariffs. Operating expenses are expected to rise 10% to $38-39 million in 2026 as distributor re-engagement delays revenue growth.
1. Distributor Re-engagement Impact
Distributors outside the US hesitated to engage in tenders during the acquisition uncertainty, delaying order placement and system revenue. Management expects several quarters of re-engagement efforts to rebuild momentum to match late-2024 levels.
2. Margin and Recurring Revenue Performance
Full-year 2025 gross margin declined to 46% from 48% in 2024, pressured by inflationary cost increases and tariffs. Recurring revenue reached $46 million in 2025 and is forecast to approach $50 million as installed ALLY units perform about 600 procedures annually.
3. 2026 Operating Expense Guidance
Operating expenses for 2026 are projected to increase by 10% over the 2025 base, targeting $38 million to $39 million of cash-based spending. Management plans to balance expense growth against distributor re-engagement and expansion initiatives.
4. ALLY Market Share and International Expansion
The ALLY system’s US market share rose from 14% to 23.4% by year-end 2025. Post-acquisition termination, the company is exploring new markets in Australia, New Zealand, Europe and Southeast Asia to displace older competitive systems.