STAAR Surgical Company

What they do

STAAR makes foldable, reversible phakic lenses from its proprietary Collamer collagen copolymer, implanted without removing the eye's natural crystalline lens; the myopia line is marketed as the EVO family (EVO ICL, EVO+ ICL, EVO Visian ICL, and EVO Viva with an extended depth of focus optic), with Visian ICL for hyperopia and toric (TICL) versions for astigmatism. Products are sold in more than 85 countries, direct in Japan, the U.S., Germany, Spain, Singapore, Canada and the U.K., and via direct plus independent distribution in China, Korea, India, France, Benelux and Italy. Manufacturing and operations sit in Monrovia, Aliso Viejo, Tustin and Lake Forest, California, plus Brügg and Nidau, Switzerland, and Japan. The cataract IOL line has been phased out.

Revenue drivers

• China ICL sales — Largest market at over 50% of revenue; Q2 2026 China sales were $52.3 million, up over 100% year over year and 10% sequentially, helped by EVO+ adoption, procedure volume and toric mix.
• APAC ex-China (Japan, Korea) — Japan and Korea are cited as meaningful revenue contributors; APAC sales rose 189% year over year in Q2 2026, though the release attributes much of that to China.
• Americas and EMEA — Q2 2026 Americas sales up 12% and EMEA down 1% (up 12% excluding the Middle East); total net sales excluding China were $41.2 million, up 6.0%.
• EVO+ and toric mix — EVO+ launched in China in the first quarter of 2026; a favorable shift toward higher-ASP toric lenses supported ASP expansion and gross margin of 74.5% in Q2 2026.

Recent performance

Q2 2026 (ended July 3, 2026) net sales were $93.5 million, up 111% year over year, with net income of $8.1 million, or $0.16 per diluted share, versus a net loss of $16.8 million, or $0.34 per share, a year earlier. Adjusted EBITDA was $20.0 million, or $0.39 per diluted share, compared with a loss of $14.8 million a year ago. Gross margin was 74.5% versus 74.0%. Fiscal 2025 net sales were $239.4 million, down 23.7% from $313.9 million in fiscal 2024, with a net loss of $80.4 million versus a $20.2 million loss in fiscal 2024. Cash, cash equivalents and investments available for sale totaled $181.5 million at July 3, 2026.

Strategy

Management's stated agenda is Revenue Growth, Profit Expansion and Innovation Acceleration, pursued through EVO+ mix, market-share gains in China, surgeon training and awareness, and geographic expansion. The company is investing in ERP, supply chain and production efficiency, and has said it is working to manufacture and supply 100% of EVO and EVO+ ICLs for China from Switzerland. It describes a largely fixed cost base intended to convert incremental revenue into adjusted EBITDA. Governance and leadership changed after stockholders voted down the Alcon merger on January 6, 2026; STAAR incurred $17.1 million of merger-related professional fees in fiscal 2025 and entered a January 14, 2026 cooperation agreement with Broadwood that included reimbursement of approximately $7.0 million of expenses.

Risks

• China concentration — China represents over 50% of revenue, and prior results were hurt by a significant fourth-quarter 2024 decline in ICL sales in China tied to a sluggish economy and weak consumer consumption.
• Return to growth not assured — STAAR reported revenue declines and net losses in fiscal 2025 and 2024 ($239.4 million sales and an $80.4 million net loss in fiscal 2025), ending a run of over ten years of annual sales growth and profitability since 2018.
• Distributor dependence — International sales rely on independent distributors alongside STAAR representatives in markets including China, Korea, India, France, Benelux and Italy, and the company cites reliance on independent distributors as a risk.
• Supply, trade and ERP execution — Risks include supply chain disruption, international trade disputes including tariffs, foreign currency fluctuation, loss of the principal manufacturing facility, and outcomes and timing of the ERP implementation.

Outlook

The Q2 2026 release states that current demand dynamics should continue throughout the remainder of the year, and management points to continued increases in EVO+ mix in China and market-share gains from laser-based procedures. It also says it sees no evidence of excess ICL inventory at distributors or hospitals in China. No numeric revenue or earnings guidance is given in the excerpt, and the company disclaims any obligation to update forward-looking statements.