STAA · STAAR Surgical Company

STAAR Surgical delivered exceptional Q1 2026 results with net sales surging 119.6% year-over-year to a record $93.5 million, primarily fueled by a strong rebound in China where distributor inventories normalized to targeted levels and in-market demand recovered without buildup. Ex-China sales grew more modestly by 6.0% to $46.1 million, supported by double-digit U.S. growth exceeding $6 million quarterly for the first time, reflecting share gains in a declining laser refractive market. Gross margin expanded significantly to 73.6% from 65.8%, driven by eliminated Switzerland manufacturing ramp costs, reduced advanced manufacturing expenses, lower inventory provisions, and freight efficiencies, though partially offset by prior-year low production volumes. Operating expenses dropped 28.6% to $60.9 million, or 18.0% excluding restructuring to $51.5 million, with declines across G&A (down 30.6%), S&M (down 8.9%), and R&D (down 12.4%) due to lower outside services, advertising, and compensation. This drove operating income of $8.0 million versus a $57.4 million loss last year, and net income of $5.2 million ($0.10 EPS) versus a $54.2 million loss. Adjusted EBITDA swung to $24.4 million ($0.48/share) from a $26.3 million loss. Management highlighted operational progress including Nidau facility scaling for tariff-free China supply, EVO+ ICL premium launch exceeding expectations, ERP rollout with minimal disruption, and U.S. market expansion post-FDA approval for ages 45-60. Cash stood at $163.9 million with no debt, positioning STAAR for sustained profitable growth amid global myopia trends and lens-based refractive shift.