STAAR Surgical Company (STAA) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net sales of $93.5 million, up 119.6% year-over-year, overcoming prior challenges and marking the highest Q1 sales in company history, driven by strong China performance and the EVO+ ICL launch.

• Returned to profitability with net income of $5.2 million ($0.10 per diluted share), reversing a prior year net loss of $54.2 million, and Adjusted EBITDA turned positive at $24.4 million.

• Surpassed 4 million ICLs sold globally and advanced key business initiatives, including the launch of EVO+ ICL in China and ERP rollout.

• Maintained disciplined spending and improved operational efficiency, with significant cost reductions and operational realignment.

• Operating expenses declined significantly due to lower restructuring, impairment, and merger-related costs.

Financial highlights

• Net sales reached $93.5 million, up 119.6% year-over-year, with China accounting for 51% and APAC region sales up 218%.

• Gross profit margin improved to 73.6% from 65.8% year-over-year, with gross profit at $68.9 million.

• Operating income was $8 million, compared to a loss of $57.4 million in Q1 2025.

• Net income was $5.2 million ($0.10 per diluted share), versus a net loss of $54.2 million ($1.10 per share) last year.

• Ended the quarter with $163.9 million in cash and no debt.

Outlook and guidance

• Management remains optimistic for Q2 and the remainder of 2026 but is not providing formal guidance due to macroeconomic and geopolitical uncertainties.

• Expects to build cash through the rest of the year after Q1 outflows related to bonuses, severance, and agreements.

• Gross margin target for 2026 is about 75%, with improvements expected as Swiss manufacturing scales in the second half.

• Operating expense target for 2026 is $225 million, with spending expected to be linear except for trade show quarters.

• Focus remains on revenue growth, profit expansion, and innovation acceleration for the remainder of 2026.