STAAR Surgical Company (STAA) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales were $313.9 million, down 2.6% year-over-year, primarily due to a sharp decline in China sales in Q4 amid weak consumer sentiment and macroeconomic headwinds.

• ICL sales excluding China grew 13% for the year and 17% in Q4, with strong performance in the Americas, EMEA, and APAC (excluding China); U.S. ICL sales rose 19% and Japan 14%.

• China ICL sales were $161 million for 2024, down 13% year-over-year, with Q4 sales only $7.5 million, an 82% drop, due to weak demand and delayed revenue recognition.

• A $27.5 million order shipped to China in December was not recognized as revenue due to extended payment terms; this revenue is expected to be recognized by Q3 2025.

• The company ended 2024 with $230.5 million in cash and investments and no debt.

Financial highlights

• Net loss for fiscal 2024 was $20.2 million, compared to net income of $21.3 million in 2023; Q4 net loss was $34.2 million.

• Gross margin for 2024 was 76.3%, down from 78.4% in 2023; Q4 gross margin was 64.7%.

• Adjusted EBITDA for 2024 was $23.2 million, with a sharp Q4 loss of $20.8 million.

• Operating expenses increased 12% to $252.2 million, mainly due to higher compensation, outside services, and facilities costs.

• Cash and investments at year-end were $230.5 million, nearly flat year-over-year.

Outlook and guidance

• Fiscal 2025 ICL sales guidance: $165–$175 million ex-China (9–15% growth), China ICL sales $75–$125 million, with minimal China sales expected in H1 2025 and a rebound anticipated in H2.

• Full-year adjusted EBITDA loss expected between $50 million and $15 million; cash balance projected at $150–$175 million by year-end.

• Gross margin expected to be ~75% for 2025, with H1 in the low 70s% and H2 in the mid-to-high 70s%.

• Q1 and Q2 2025 net sales expected at ~$40 million per quarter.

• Vision 2026 Target Sales and Operating Model no longer expected to be achieved.