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STAAR Surgical Reports First Quarter 2026 Results; Issues Shareholder Letter<\/b><\/p>\n
Net Sales of $93.5 million, highest first quarter Net Sales in Company\u2019s history, up 119.6% Y\/Y<\/i><\/b><\/p>\n
Net Income of $5.2 million, with GAAP EPS of $0.10<\/i><\/p>\n
Adjusted EBITDA1<\/sup> of $24.4 million, or $0.48 per diluted share<\/i><\/p>\n Earnings Call and Webcast Today at 5:30 PM Eastern<\/i><\/p>\n LAKE FOREST, Calif.–(BUSINESS WIRE<\/a>)– First Quarter 2026 Financial Overview<\/span><\/b><\/p>\n Fellow Shareholders,<\/b><\/p>\n \nSTAAR is off to a strong start in 2026, as reflected in our first quarter financial results. We have made meaningful advancements against our core objectives of Revenue Growth and Profit Expansion, and we expect to advance Product Innovation over the balance of the year. In the approximately 100 days since we were appointed to lead the Company, our focus has been clear: improve operational execution and position STAAR to deliver sustainable, long-term value creation.<\/p>\n \nWe are encouraged by the continued engagement from employees, surgeons, distributors, and investors, and by how the organization has come together following a challenging 2025. STAAR remains uniquely positioned as the global leader in lens-based refractive surgery, and our recent progress reinforces that long-term opportunity.<\/p>\n Key 2026 Operational Highlights:<\/b><\/p>\n Business Update<\/b><\/p>\n \nOur priority in 2026 is to return STAAR to consistent, profitable growth while maintaining disciplined execution. While several headwinds from prior years have eased, we continue to operate in a dynamic global environment shaped by tariffs, geopolitical uncertainty, and uneven macroeconomic conditions. Operationally, we are making important advancements across several foundational initiatives.<\/p>\n \nWe continue to make strong progress scaling our manufacturing facility in Nidau, Switzerland. We plan for our Nidau facility in 2026 to supply 100% of the EVO ICL and EVO+ ICL lenses we ship to China, without import tariffs.<\/p>\n \nIn parallel, we are in the midst of the rollout of our new Enterprise Resource Planning (ERP) system. This has been a multi-year effort across the organization, and while we remain in the early stages, disruptions to the business have been limited. We are pleased with the progress to date and are grateful for the strong execution and commitment from teams across STAAR in bringing this system live. We expect this platform to enhance visibility, improve coordination, and support more efficient scaling of the business over time.<\/p>\n \nMore broadly, we continue to see a structural shift in the refractive market. Across most major markets globally, laser-based refractive procedures have been flat or declining, while lens-based refractive surgery continues to gain momentum. This shift reflects both evolving patient preferences and increasing surgeon confidence in lens-based solutions, reinforcing the long-term growth opportunity for STAAR.<\/p>\n China<\/b><\/p>\n \nThe launch of EVO+ ICL in China represents an important step forward in our innovation strategy. Early demand has exceeded expectations, supported by strong surgeon adoption and the product\u2019s differentiated clinical profile. EVO+ carries a premium price and is expected to contribute to margin expansion as volumes scale.<\/p>\n \nOperationally, we have made substantial inroads addressing our most significant challenge from 2025\u2014excess channel inventory. Inventories held by distributors are now within targeted ranges with first quarter 2026 units-on-hand comparable to fourth quarter 2025, while in-market sales2<\/sup> and procedures have improved. At the same time, we have significantly enhanced our visibility into downstream inventory, improving our ability to manage the business proactively compared to a year ago. We believe our strong first quarter net sales performance in China was driven by a recovery in in-market demand rather than inventory buildup, positioning us well for the second quarter and the balance of the year.<\/p>\n \nRefractive market conditions in China have improved relative to the volatility experienced from 2022 to 2024. While macroeconomic signals remain mixed, underlying demand for refractive procedures continues to grow at a moderate pace. Over the long term, we believe penetration rates in China have significant room to expand, supported by rising incomes and a high prevalence of myopia.<\/p>\n United States<\/b><\/p>\n \nThe U.S. remains an important growth opportunity for STAAR. While the overall U.S. refractive surgery market has declined in recent years, our business has continued to grow through share gains as adoption of EVO ICL has increased.<\/p>\n \nOur U.S. net sales have grown approximately 54% over the past three years through 2025, including 22% growth in the first quarter of 2026. We exceeded $6 million in quarterly net sales for the first time, reflecting both increased surgeon adoption and improved commercial execution. Our U.S. growth is occurring against a broader refractive market where laser-based procedures\u2014which require the removal of corneal tissue\u2014have declined at double-digit rates since 2022. This divergence underscores a fundamental shift in the U.S., as more surgeons and patients prioritize the reversible, lens-based benefits of the EVO platform over traditional laser vision correction.<\/p>\n \nWe were pleased with the level of surgeon engagement we saw at the recent ASCRS meeting, which reinforced our view that interest in EVO ICL and lens-based refractive surgery continues to build. We also are encouraged by the impact of our updated marketing strategy, which focuses on surgeons who are prioritizing EVO ICL in their practices. Early results indicate improved patient awareness and engagement.<\/p>\n \nThe recent FDA approval expanding the EVO ICL indication to patients aged 45\u201360 further increases our addressable market and supports continued growth.<\/p>\n \nThe U.S. remains meaningfully underpenetrated relative to more mature ICL markets, and we believe this creates a compelling long-term growth opportunity for STAAR.<\/p>\n Global Dynamics and Growth Opportunities<\/b><\/p>\n \nWhile certain regions were impacted by geopolitical disruption during the quarter, these markets represent a relatively small portion of our overall business. The estimated impact on first quarter net sales was less than $2 million.<\/p>\n \nLooking ahead, we remain mindful of ongoing macroeconomic uncertainty, including potential impacts of geopolitical disruption on economies in Europe and parts of Asia. We are managing the business prudently while continuing to invest in growth opportunities.<\/p>\n \nIndia remains a compelling long-term market despite near-term pricing sensitivity and macro volatility driven by geopolitical disruption. We are taking a measured approach to building our presence while positioning STAAR for long-term success. This long-term outlook is supported by a significant global shift in eye health; by 2050, half of the world\u2019s population is projected to have myopia3<\/sup>. As the global leader in lens-based surgery, we believe STAAR is uniquely positioned to address this epidemic with a solution that preserves corneal tissue, does not induce dry eye disease and effectively treats the full spectrum of myopia and astigmatism.<\/p>\n \nAs we pursue these global opportunities, we remain disciplined in how we allocate capital and resources. We are prioritizing markets and commercial programs where we see the strongest potential returns, while continuing to benefit from the cost reduction efforts that we initiated in 2025. We achieved our targeted operating expense run rate in both the fourth quarter of 2025 and the first quarter of 2026. As net sales grow, we expect disciplined spending to drive operating leverage and support a return to double-digit operating margins over time.<\/p>\n Positioned for 2026 and Beyond<\/b><\/p>\n \nWith growing recognition of the advantages of EVO ICL, inventory normalized in China, strong early demand for EVO+ ICL in China, continued advancement in our Swiss manufacturing operations, and foundational systems like Oracle ERP coming online successfully, we believe STAAR is well positioned to deliver improved financial performance.<\/p>\n Our focus remains on three core objectives:<\/span><\/p>\n Revenue Growth<\/b> \u2014 accelerating performance in key markets while expanding into new opportunities<\/p>\n Profit Expansion<\/b> \u2014 maintaining disciplined cost management, focusing on return-driven investments and improving manufacturing efficiency<\/p>\n Innovation Acceleration<\/b> \u2014 advancing near-term product enhancements and strengthening our pipeline<\/p>\n \nSTAAR\u2019s differentiated Collamer\u00ae material, advanced optical design, and growing global adoption position us well within a large and expanding market driven by increasing myopia prevalence.<\/p>\n \nWe are honored to lead STAAR at this important time. Our leadership team, Board, and employees are aligned around a clear strategy and a disciplined approach to execution.<\/p>\n \nWe remain committed to strengthening our partnership with shareholders and delivering long-term value creation.<\/p>\n \nThank you once again for your continued support.<\/p>\n \nSincerely,<\/p>\n Warren Foust<\/b><\/p>\n<\/td>\n Deborah Andrews<\/b><\/p>\n<\/td>\n<\/tr>\n \nInterim Co-Chief Executive Officer<\/p>\n<\/td>\n \nInterim Co-Chief Executive Officer<\/p>\n<\/td>\n<\/tr>\n \nPresident and Chief Operating Officer<\/p>\n<\/td>\n \nChief Financial Officer<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n First Quarter 2026 Financial Results<\/b><\/p>\n \nWe delivered strong financial performance in the first quarter, with meaningful improvement in profitability supported by higher gross margins and disciplined expense management. We remain focused on driving operating leverage as the business scales while continuing to invest in key growth initiatives.<\/p>\n \nNet sales were $93.5 million for the first quarter of 2026, up 119.6% from $42.6 million in the prior year quarter. The year over year increase in net sales primarily reflected strong performance in China, along with double-digit growth in the Americas. Excluding China, net sales were $46.1 million, an increase of 6.0%, as compared to $43.5 million in the prior year quarter. Strong growth in the U.S market was partly offset by the macroeconomic and geopolitical headwinds in the Middle East and India markets.<\/p>\n \nAs previously disclosed, net sales during the first quarter of 2025 were impacted as the Company shipped minimal quantities of EVO ICLs to China while distributors worked through excess inventory. As of the end of the first quarter of 2026, the Company\u2019s distributor inventory appears to be within the targeted range to appropriately service the refractive market.<\/p>\n \nGross profit margin for the first quarter of 2026 was 73.6% of total net sales, compared to 65.8% in the prior year quarter. The year-over-year improvement was primarily driven by the elimination of period costs related to the ramp-up of manufacturing in Switzerland, a reduction in Advanced Manufacturing expenses, lower inventory provisions, and decreased freight and other cost of sales as a percent of sales. These gains were partially offset by higher per unit manufacturing costs resulting from lower production volume in 2025.<\/p>\n \nTotal operating expenses for the first quarter of 2026 were $60.9 million, compared to $85.4 million in the prior year quarter. Excluding restructuring and merger-related costs, operating expenses were $51.5 million, a decrease of 18.0% year over year.<\/p>\n \nGeneral and administrative expenses were $17.0 million, down from $24.5 million in the prior year quarter. The decrease was primarily driven by reduced spending on outside services, including IT and tax consulting, as well as lower compensation-related expenses. The results also reflected a greater allocation of certain costs to manufacturing, including ERP-related initiatives.<\/p>\n \nSelling and marketing expenses were $24.5 million, down from $26.9 million in the prior year quarter. The decrease was primarily due to lower advertising and promotional spending and lower trade show expenses, partially offset by an increase in compensation-related expenses and bad debt expense.<\/p>\n \nResearch and development expenses were $9.9 million, down from $11.3 million in the prior year quarter, reflecting lower compensation-related costs.<\/p>\n \nOperating income for the first quarter of 2026 was $8.0 million compared to an operating loss of $(57.4) million in the prior year quarter. Net income for the first quarter of 2026 was $5.2 million or $0.10 per diluted share, up from net loss of $(54.2) million or $(1.10) per diluted share for the prior year quarter. The year-over-year improvement in net income was primarily attributable to higher gross profit and lower operating expenses. Adjusted EBITDA1<\/sup> for the first quarter of 2026 was $24.4 million or $0.48 per diluted share, up from an Adjusted EBITDA1<\/sup> loss of $(26.3) million or $(0.53) per diluted share in the prior year quarter.<\/p>\n \nCash, cash equivalents, and investments available for sale at April 3, 2026, totaled $163.9 million, compared to $187.5 million at the end of the fourth quarter of 2025. The Company has no outstanding debt.<\/p>\n Earnings Conference Call and Webcast<\/span><\/b><\/p>\n \nThe Company will host an earnings conference call and webcast today, Wednesday, May 13 at 5:30 p.m. Eastern \/ 2:30 p.m. Pacific to discuss its financial results and operational progress. To access the webcast please use the following link: https:\/\/event.choruscall.com\/mediaframe\/webcast.html?webcastid=J3bNAuVd<\/a><\/p>\n \nIn addition to live questions, participants may submit questions by email to ir@staar.com<\/a><\/p>\n \n1<\/p>\n<\/td>\n \nAdjusted EBITDA and Adjusted EBITDA per diluted share are non-GAAP financial measures. For further information on non-GAAP financial measures, please refer to the \u201cUse of Non-GAAP Financial Measures\u201d section of this press release. Please also refer to the tables at the end of this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure.<\/p>\n<\/td>\n<\/tr>\n \nIn-market sales reflect sales from the Company\u2019s distributors to customers and end-users in China. This data is collected and provided by the Company\u2019s distributors and is used by the Company to estimate in-market demand and analyze trends. This data is unaudited by the Company and can be impacted by timing of orders placed, returns, and other factors.<\/p>\n<\/td>\n<\/tr>\n \nHolden BA, Fricke TR, Wilson DA, Jong M, Naidoo KS, Sankaridurg P, Wong TY, Naduvilath TJ, Resnikoff S. Global Prevalence of Myopia and High Myopia and Temporal Trends from 2000 through 2050. Ophthalmology. 2016 May;123(5):1036-42. doi: 10.1016\/j.ophtha.2016.01.006. Epub 2016 Feb 11. PMID: 26875007<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Use of Non-GAAP Financial Measures<\/span><\/b><\/p>\n \nTo supplement the Company\u2019s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA per diluted share and constant currency measures. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company\u2019s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.<\/p>\n \nEBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense, restructuring, impairment and related charges, and commencing with the first quarter ended March 28, 2025, merger transaction and related costs. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company\u2019s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. The Company believes that restructuring, impairment and related charges are not indicative of the underlying operating expense profile for the Company. These charges, which include costs related to severance, reduction in force and consulting expenses, impairment expenses on leasehold improvements and machinery and equipment, impairment on real property right-of-use assets, and impairment of internally developed software, are anticipated to be completed within a finite period of time and can vary significantly in any specific period. The Company believes that excluding restructuring, impairment and related charges from Adjusted EBITDA allows investors to analyze period-to-period financial performance of its core business operations more consistently and better assess the Company\u2019s current and future continuing operations. Similarly, the Company believes that merger transaction and related costs are not indicative of the underlying operating expense profile for the Company and that excluding such costs from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business.<\/p>\n \nThe Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company\u2019s results when reported in U.S. dollars. In order to compare the Company’s performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the \u201cconstant currency\u201d rate to sales or expenses in the current period as well.<\/p>\n \nIn the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income (loss) and net income (loss) per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency.<\/p>\n About STAAR Surgical<\/span><\/b><\/p>\n \nSTAAR Surgical (NASDAQ: STAA) is the global leader in implantable phakic intraocular lenses, a vision correction solution that reduces or eliminates the need for glasses or contact lenses. Since 1982, STAAR has been dedicated solely to ophthalmic surgery, and for 30 years, STAAR has been designing, developing, manufacturing, and marketing advanced Implantable Collamer\u00ae Lenses (ICLs), using its proprietary biocompatible Collamer material. STAAR ICL\u2019s are clinically-proven to deliver safe long-term vision correction without removing corneal tissue or the eye\u2019s natural crystalline lens. Its EVO ICL\u2122 product line provides visual freedom through a quick, minimally invasive procedure. STAAR has sold more than 4 million ICLs in over 85 countries. Headquartered in Lake Forest, California, the company operates research, development, manufacturing, and packaging facilities in California and Switzerland. For more information about ICL, visit www.EVOICL.com<\/a>. To learn more about STAAR, visit http:\/\/www.staar.com<\/a>.<\/p>\n
\nSTAAR Surgical Company (NASDAQ: STAA), the global leader in phakic IOLs with the EVO family of Implantable Collamer\u00ae Lenses (EVO ICL\u2122) for vision correction, today reported results for the first quarter ended April 3, 2026.<\/p>\n\n
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