Strong Revenue Growth
Net sales of $93.5M in Q1 2026, up 119.6% year-over-year, driven primarily by China; China accounted for $47.4M (~50.7% of total net sales). Excluding China, net sales grew 6% YoY.
Staar Surgical
· STAA
May 13th, 2026
Summary
- Earnings Call Date:
- 2026-05-13
- Change Since:
- -1.63%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call conveyed a strong operational and financial turnaround in Q1 2026 highlighted by very strong revenue growth (+119.6% YoY), a return to profitability (adjusted EBITDA $24.4M), improved gross margins (73.6% vs. 65.8%), normalized distributor inventories in China, product launches (EVO+), and scalable Swiss manufacturing to avoid tariffs. Management emphasized cost discipline and a clearer path to sustainable profitability. Offsetting factors include geopolitical and regional headwinds (Middle East, India), near-term pricing pressure (ASP down high single digits), some lingering inventory and higher-cost product roll-through impacts, and conservative disclosure (no formal guidance) due to macro uncertainty and limited near-term visibility. Overall, the positive operational and financial momentum materially outweighs the listed challenges, though dependence on China and macro risks warrant continued monitoring.
Company Guidance
STAAR declined to give formal forward revenue guidance (it would not comment on the ~$311–312M consensus) citing macro and geopolitical uncertainty, saying only that it expects a "good" Q2, is cautious on Q3, and will provide guidance once visibility improves; instead management reiterated operating targets and metrics for 2026: a spending target of $225 million and a gross margin objective around 75% (with hope to exit the year at that level). The company emphasized Q1 results that underpin its outlook—net sales $93.5M (+119.6% YoY) including China $47.4M and U.S. >$6M (+22% YoY), adjusted EBITDA $24.4M (vs. -$26.3M prior), gross margin 73.6% (vs. 65.8%), operating income $8.0M (vs. -$57.4M), net income $5.2M or $0.10/diluted share (vs. -$54.2M or -$1.10), cash and investments $163.9M with no debt, distributor inventory aligned to ~6‑month contractual targets, and plans for Nidau to supply 100% of EVO/EVO+ to China in 2026; management expects to rebuild cash later in the year and will formalize guidance when it has clearer visibility.
Adjusted EBITDA Turned Positive
Adjusted EBITDA of $24.4M in Q1 2026 compared to an adjusted EBITDA loss of $26.3M in the prior-year quarter — a meaningful swing to profitability driven by higher sales and cost actions.
Material Improvement in Profitability and Margins
Gross profit margin improved to 73.6% from 65.8% in the prior-year quarter (+7.8 percentage points). Operating income was $8.0M vs. a loss of $57.4M prior year. Net income was $5.2M ($0.10 diluted EPS) vs. a net loss of $54.2M ($1.10 diluted) in the prior-year quarter.
U.S. Market Progress
U.S. net sales exceeded $6M in Q1 and grew 22% year-over-year. Company received FDA approval expanding EVO ICL indication to ages 45–60, enlarging addressable market.
Product and Manufacturing Milestones
Surpassed 4 million ICLs sold globally. Launched EVO+ ICL in China and began shipping meaningful volumes; early EVO+ demand exceeded expectations. Nidau, Switzerland facility scaling to supply 100% of EVO and EVO+ lenses to China in 2026 to avoid import tariffs.
Inventory Normalization in China
Distributor inventory levels in China normalized and aligned with contractual targets (about six months), with sales to the market approximating end-market sales and inventory levels maintained or slightly reduced during the quarter.
Operating Expense Discipline
Total operating expenses declined to $60.9M from $85.4M year-over-year; excluding restructuring and merger-related costs, OpEx was $51.5M vs. $62.7M prior (-18% YoY). Management re-affirmed a 2026 spending target of $225M.
Strong Cash Position and No Debt
Ended Q1 with $163.9M in cash, cash equivalents and available-for-sale investments and no outstanding debt. Management expects cash build through the remainder of the year after seasonal uses in Q1.
ERP Rollout and Operational Improvements
Oracle ERP rollout progressing with limited disruption to date; focus on scaling Swiss manufacturing and realizing operating leverage from cost reduction efforts initiated in 2025.
Operator
Greetings, and welcome to the STAAR Surgical First Quarter 2026 Results Call and Webcast. [Operator Instructions]. I would now like to turn the call over to Connie Johnson, Director of Investor Relations.
Connie Johnson
Thank you, operator. Good afternoon, and thank you for joining us. On the call today are Warren Foust, Interim Co-CEO, President and Chief Operating Officer of STAAR Surgical; and Deborah Andrews, Interim Co-CEO and Chief Financial Officer of STAAR Surgical. Earlier today, we reported a first quarter 2026 results via a press release and Form 8-K. We posted our results release and shareholder letter to our investor website at investors.staar.com. Today's call is scheduled for 1 hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to ir@staar.com. Before we get started, I want to remind you that during today's call, we will be making forward-looking statements.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. I encourage you to read the disclosures in today's release as well as disclosures in our filings with the SEC. Except as required by law, STAAR assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes. In addition, during today's discussion, we will reference certain non-GAAP financial measures, including adjusted EBITDA and constant currency sales. Please refer to today's release for definitions and reconciliations of ...
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