STAAR SURGICAL CO (STAA): Results of Operations and Financial Condition
STAAR SURGICAL CO (STAA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 STAAR Surgical Reports Second Quarter 2026 Results Net Sales of $93.5 million, up 111% Y/Y Net Income of $8.1 million, with GAAP EPS of $0.16 Adjusted EBITDA 1 of $20.0 million, or $0.39 per diluted share Earnings Call and Webcast Today at 5:30 PM Eastern LAKE FOREST
How this was made
The 30-second read
Why it matters
The filing discloses quarterly financial performance (revenue, net income, gross margin, adjusted EBITDA, and cash) and provides management’s near-term demand and mix outlook, especially for China and EVO+ adoption.
Market read
Traders can update near-term expectations for STAAR based on the magnitude of Y/Y growth, margin level, and the China-driven demand narrative.
What to watch
Management cites no excess distributor or hospital inventory in China, but traders may still scrutinize channel inventory, ASP sustainability, and the impact of the one-time $25.9M order booked in Q3 2025 on year-over-year comparisons.
STAAR Surgical Reports Second Quarter 2026 Results Net Sales of $93.5 million, up 111% Y/Y
Net sales rose 111% Y/Y, the company returned to GAAP net income, adjusted EBITDA was positive, and gross margin improved versus the year-ago quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $93.5 million | – | up 111% Y/Y |
| Net sales excluding ChinaGAAP | $41.2 million | – | up 6.0% Y/Y |
| China salesGAAP | $52.3 million | 10% sequentially | up over 100% |
| Gross marginGAAP | 74.5% | – | – |
| Net incomeGAAP | $8.1 million | – | – |
| Diluted earnings per shareGAAP | $0.16 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $20.0 million | – | – |
| Adjusted EBITDA per diluted sharenon-GAAP | $0.39 per diluted share | – | – |
| Cash, cash equivalents, and investments available for saleother | $181.5 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ChinaSales benefited from gains in market share, volume growth, ASP expansion, increased EVO+ adoption, increased overall EVO ICL procedure volume, and a favorable shift towards toric lenses. | $52.3 million | 10% sequentially | up over 100% |
What drove it
- China represented over 50% of revenue, with sales supported by market-share gains, volume growth, ASP expansion, EVO+ adoption, and higher toric-lens mix.
- APAC sales were up 189% Y/Y, while APAC sales excluding China were up 7% Y/Y.
- Americas sales were up 12% Y/Y, supported by the second consecutive quarter of more than $6 million in U.S. net sales.
- EMEA was down 1% Y/Y, while EMEA excluding the Middle East was up 12% Y/Y.
- Japan demand was supported by direct-to-consumer awareness activities that began in November 2025.
- Gross-margin expansion occurred despite additional investments in ERP, supply chain, and production efficiency.
Concerns
- Third-quarter volumes in China typically step down from the first-half peak because the third quarter marks the end of peak season.
- The third quarter of 2025 included recognition of $25.9 million related to a one-time order placed in 2024, which elevated reported net sales to $94.7 million.
- The fourth quarter is described as an off-season and consistently the smallest quarter.
- The company incurred additional costs related to implementation and fine-tuning of its new ERP system.
- Broader APAC demand varies by market and is affected by product availability, foreign-currency dynamics, and affordability.
- The broader laser refractive market in the U.S. has declined at double-digit rates for several years.
What to watch
- Third-quarter 2026 performance relative to the adjusted base of $68.8 million cited for third-quarter 2025, excluding the one-time $25.9M order.
- Whether China maintains growth through increased EVO+ mix, overall EVO ICL procedure volume, toric-lens mix, and adoption lower down the diopter curve.
- Whether fourth-quarter results grow year over year from the stated fourth-quarter 2025 clean comparison base of $57.8 million.
- The return on incremental direct-to-consumer funding in Japan and continued commercial growth in the Americas and EMEA excluding the Middle East.
- The effect of ERP, supply-chain, and production-efficiency investments on operating leverage and incremental revenue-to-adjusted EBITDA conversion.
Balance sheet and cash flow
- Cash, cash equivalents, and investments available for sale at July 3, 2026, totaled $181.5 million, compared to $163.9 million at the end of the first quarter of 2026.
Analysis
STAAR reported a strong second quarter, led by net sales of $93.5 million, up 111% Y/Y, and a return to GAAP profitability. Net income was $8.1 million, or $0.16 per diluted share, compared with a net loss of $(16.8) million, or $(0.34) per diluted share, a year ago. Adjusted EBITDA was $20.0 million, or $0.39 per diluted share, compared with an Adjusted EBITDA loss of $(14.8) million, or $(0.30) per diluted share, a year ago. Gross margin improved to 74.5% from 74.0% a year ago.
China was the central growth engine. China sales were $52.3 million, up over 100% and 10% sequentially, while net sales excluding China were $41.2 million, up 6.0% Y/Y. Management attributed China performance to market-share gains, volume growth, ASP expansion, successful EVO+ adoption, and a favorable shift toward higher-ASP toric lenses. The company stated that it saw no evidence of excess ICL inventory at distributors or hospitals in China.
Regional performance outside China was constructive but uneven. APAC sales rose 189% Y/Y, with APAC excluding China up 7% Y/Y. Americas sales increased 12% Y/Y and management cited the second consecutive quarter of more than $6 million in U.S. net sales. EMEA declined 1% Y/Y, although EMEA excluding the Middle East grew 12% Y/Y. Japan demand was supported by direct-to-consumer awareness activities, and the company shifted incremental funding toward Japan during the year.
Profitability improved while STAAR continued investing in ERP, supply chain, and production efficiency. Management characterized these outlays as foundational to improving operating leverage and the incremental revenue-to-adjusted EBITDA conversion ratio. Liquidity increased, with cash, cash equivalents, and investments available for sale totaling $181.5 million at July 3, 2026, compared with $163.9 million at the end of the first quarter of 2026. No repurchases, dividends, debt balances, operating cash flow, or free cash flow were reported in the provided filing text.
The forward setup is shaped by China seasonality and a difficult reported third-quarter comparison. Management said first and second quarters are the new peak revenue quarters in China, with third-quarter volumes typically stepping down. It directed shareholders to use an adjusted third-quarter 2025 base of $68.8 million because reported third-quarter 2025 net sales of $94.7 million included a one-time $25.9 million order. The company also described fourth quarter as seasonally softer, but stated it is planning for year-over-year growth. No formal quantitative revenue, margin, expense, or tax-rate guidance was provided in the supplied text.
Not in the filing
stated, not guessed- Prior-year net sales amount
- Prior-quarter net sales amount
- Prior-quarter gross margin
- GAAP operating income or loss
- Non-GAAP operating income or loss
- Operating expenses
- Tax rate
- Operating cash flow
- Free cash flow
- Debt balance
- Share repurchases
- Dividends
- Revenue amounts for APAC, APAC excluding China, Americas, EMEA, EMEA excluding the Middle East, Japan, and U.S.
- Prior-year and prior-quarter revenue amounts for China
- Formal quantitative forward guidance for revenue, gross margin, operating expenses, tax rate, or other metrics
- Named executive quotations in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 reporting STAAR Surgical’s second quarter 2026 results and CEO/CFO commentary.
Ticker impact
STAAR reported Q2 2026 net sales of $93.5M (+111% Y/Y) and net income of $8.1M, plus cash of $181.5M at July 3, 2026.
Near-term bias positive as traders price in accelerating China/EVO+ adoption and improving margin trajectory.
The filing provides concrete quarterly financials (sales, net income, gross margin, EBITDA, cash) and qualitative drivers (EVO+ launch mix, toric lens ASP, no excess inventory), which can move expectations for subsequent quarters.
Market effects
Supports the broader narrative of growth in lens-based refractive surgery and potential share shift versus laser-based procedures in China.
Highlights China as the key growth engine (over 50% of revenue) with sequential improvement and APAC ex-China strength.
Reinforces demand durability for implantable collamer lenses, which may influence sentiment toward ophthalmic medtech peers with China exposure.
Counterpoint
The results may be heavily influenced by China-specific dynamics and mix shifts, so investors should watch whether growth sustains through the typical Q3 seasonal step-down.
Key entities
- issuerSTAAR Surgical Company
Reports Q2 2026 results, including +111% Y/Y net sales, profitability improvement, and cash balance at July 3, 2026.
- product_familyEVO+
Management cites successful EVO+ launch in Q1 2026 as supporting product mix and China growth in Q2.
- executiveDeborah Andrews
Continues as CFO and becomes Executive Vice President, per CEO commentary in the filing.
