STAAR Surgical Company (STAA) Q3 2026 earnings summary

Executive summary

• Record 9M net sales of $270.5M and net income of $18.8M; Q3 sales grew 21.1% excluding the prior-year China shipment.

• EVO adoption and lens-based vision correction growth support expansion, while manufacturing efficiency, supply availability and product innovation remain priorities.

Financial highlights

• Q3 net sales were $83.4M, down 12.0% reported YoY but up 21.1% versus the $68.8M base excluding $25.9M of prior-year deferred China sales.

• Q3 net income was $5.6M, or $0.11 diluted EPS; Adjusted EBITDA was $14.4M, or $0.28 per diluted share. 9M net income was $18.8M and Adjusted EBITDA $58.8M.

• Q3 operating income was $5.5M versus $18.5M; 9M operating income was $23.5M versus a $68.9M loss, including prior-year restructuring and impairment charges.

• Q3 operating expenses were $53.7M versus $59.4M; excluding $6.0M of prior-year restructuring and merger-related costs, expenses were flat YoY.

• Q3 free cash flow was $26.4M versus $1.8M; 9M free cash flow was $23.4M versus $34.5M used in the prior year.

Outlook and guidance

• Q4 gross margin is expected to exceed Q3, aided by lower tariffs, smaller inventory provisions, increased production and freight consolidation; the 75% 2026 margin target is not expected to be reached.

• Unit costs may remain elevated through year-end as Q2-produced inventory sells through; margin improvement is expected in 2027 with both manufacturing facilities at full capacity.

• Q4 China sales are expected to grow YoY but decline sequentially on seasonality; the $225M adjusted operating expense target remains on track.

• Strong full-year GAAP net income and continued cash generation are expected; liquidity is expected to meet needs for at least 12 months from issuance of the financial statements.

• First-in-human enrollment for two presbyopia products is expected in the coming months, subject to required regulatory authorizations.