STAAR Surgical Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Sales: $93.5 million, up 111% year-over-year (YoY); excluding China, net sales were $41.2 million, a 6% increase YoY.

Net Income: $8.1 million ($0.16 per diluted share), compared to a net loss of $16.8 million in the prior year quarter.

Adjusted EBITDA: $20 million ($0.39 per diluted share), compared to an adjusted EBITDA loss of $14.8 million in the prior year.

Gross Margin: Improved to 74.5% from 74% YoY, aided by lower costs and improved operational efficiency.

Cash Position: Increased to $181.5 million from $163.9 million at the end of Q1 2026, with no debt.

2Strategic Updates and Business Highlights

Product Launch: Successful rollout of EVO Plus in China, contributing to significant market share gains.

Regional Performance: Strong growth in China (100% YoY increase), double-digit growth in the Americas and EMEA (excluding the Middle East), and notable contributions from Japan and Korea.

ERP Implementation: Successfully launched an ERP system to enhance operational efficiency and visibility, with plans to integrate AI capabilities in the future.

Innovation Focus: Plans to diversify product offerings beyond the EVO ICL, with a disciplined innovation roadmap and upcoming first-in-human studies for next-generation products.

3Forward Guidance and Outlook

Q3 Expectations: Anticipated revenue growth despite a seasonal decline in China; planning for year-over-year growth in Q4 as well.

Long-Term Growth: Management believes that STAAR can capture a larger share of the refractive market, with a focus on expanding product availability and addressing unmet demand globally.

4Bad News, Challenges, or Points of Concern

Market Pressures: The broader refractive market remains uneven, particularly in parts of China and APAC, with some procedures under pressure.

Tariff Impacts: Gross margins are affected by tariffs on U.S. manufactured products shipped to China, which will continue until all products are manufactured in Switzerland by the end of 2026.

Inventory Constraints: Demand for EVO Plus has outstripped supply capabilities, leading to potential backorders and customer dissatisfaction in the U.S. market.

Competitive Landscape: While STAAR is gaining share from laser-based procedures, the emergence of domestic competition in China poses a risk to sustaining market gains.

5Notable Q&A Insights

Q3 Revenue Guidance: Management emphasized the need to adjust for a one-time order from Q3 2025 when evaluating Q3 2026 results, with expectations for growth off a lower base.

EVO Plus Performance: By the end of Q2, EVO Plus accounted for approximately one-third of units sold in China, exceeding initial expectations.

U.S. Market Dynamics: Sequential growth in the U.S. has plateaued at around $6 million per quarter, attributed to supply constraints and the overall decline in the laser refractive market.

Future Product Pipeline: Plans to hire a Chief Technology Officer to drive innovation, with a focus on expanding beyond the current product line and leveraging proprietary technology. Overall, STAAR Surgical reported a strong quarter with significant revenue growth and profitability improvements, while also navigating challenges related to market dynamics and supply constraints. The company remains optimistic about its long-term growth potential and strategic initiatives.