STAAR Surgical Company (STAA) Q2 2026 earnings summary

Executive summary

• Net sales reached $93.5 million in Q2 2026, a 111% year-over-year increase, driven by strong China sales, EVO+ adoption, and market share gains in key regions.

• Returned to profitability with net income of $8.1 million ($0.16 per diluted share), reversing a prior year net loss.

• Adjusted EBITDA was $20 million ($0.39 per diluted share), compared to a loss of $14.8 million in the prior year quarter.

• Gross margin improved to 74.5% from 74.0% year-over-year, reflecting cost reductions and manufacturing efficiencies.

• Implemented a new ERP system, enhancing operational scalability and supporting future AI-enabled capabilities.

Financial highlights

• Q2 2026 net sales were $93.5 million, up 111% year-over-year; China sales grew over 100% to $52.3 million, up 10% sequentially.

• Excluding China, net sales were $41.2 million, up 6% year-over-year; Americas grew 12%, U.S. delivered consecutive ~$6 million quarters.

• Gross profit was $69.7 million; operating income was $10.1 million, compared to a loss of $29.9 million in Q2 2025.

• Cash, cash equivalents, and investments totaled $181.5 million at quarter-end, up from $163.9 million sequentially.

• Adjusted EBITDA margin was 21.4% of sales; net income margin was 8.6%.

Outlook and guidance

• Expecting continued year-over-year growth in Q3 and Q4, with Q3 revenue moderately lower than Q2 due to seasonality in China.

• Margin expansion anticipated as production shifts to Switzerland, reducing tariff impacts by year-end 2026.

• Guidance for Q3 2026 should use an adjusted base due to a one-time $25.9 million order in Q3 2025.

• Planning to end 2026 with well over $200 million in cash and significant free cash flow generation in the second half.

• Ongoing investments in ERP, supply chain, and production efficiency to support future growth.