0001860742-26-000062
SEC filingRevenue grew 9.4% to $1.24B and operating income swung to $33M from -$83M, driven by premium IOL mix and lapping the prior-year enVista recall.
Revenue increased 9.4% to $1.24 billion in Q1 2026, compared to $1.14 billion in the prior-year quarter. The growth was driven by favorable foreign currency impact, net realized pricing gains, and incremental sales from acquisitions, partially offset by lower volumes. The shift to premium intraocular lenses (IOLs) and the lapping of the enVista® recall in 2025 contributed to higher gross profit.
Operating income improved significantly to $33 million from a loss of $83 million in Q1 2025, reflecting a 139.8% year-over-year increase. The improvement was primarily due to revenue growth and higher gross profit from the premium IOL mix and the recall impact. Net loss narrowed 66.5% to $71 million, and diluted EPS improved to -$0.20 from -$0.60.
Net cash provided by operating activities turned positive at $32 million, compared to a use of $25 million in the prior year. However, capital expenditures of $100 million resulted in negative free cash flow of $68 million. The elevated capex reflects ongoing investments in capacity and innovation.
While management did not provide explicit quantitative guidance in this filing, the performance-based restricted share unit agreements reference a "2028 Adjusted EBITDA" performance metric, signaling a multi-year focus on earnings growth. The company's recent launch of Blink® NutriTears® in the OTC dry eye market and the expansion of its premium IOL portfolio suggest continued investment in high-growth categories. The primary risk remains the high debt load and the need to sustain operating momentum to generate sufficient free cash flow for deleveraging. Investors should monitor the trajectory of operating margins and free cash flow conversion in coming quarters.