STAAR Surgical Company (STAA) Q4 2025 earnings summary

Executive summary

• 2025 was a year of transition with leadership changes, cost reductions, and operational restructuring following the terminated Alcon merger.

• Q4 2025 net sales rose 18.1% year-over-year to $57.8 million, driven by a rebound in China, while net sales excluding China fell 2.1%.

• Fiscal year 2025 net sales declined 23.7% year-over-year to $239.4 million, mainly due to inventory reductions in China; excluding China, sales grew 6.6%.

• The company is focused on growth, profitability, and innovation for 2026, with optimism for improved performance in China and globally.

• Expanded product indications and new launches, such as EVO+ in China and the LIOLI injector in EMEA, are expected to drive future growth.

Financial highlights

• Q4 2025 net sales were $57.8M, up from $49M in Q4 2024, driven by a rebound in China and growth in the Americas and APAC ex-China.

• China net sales in Q4 2025 were $17.5M, up from $7.8M in Q4 2024, despite inventory returns and distributor uncertainty.

• Gross margin for Q4 2025 was 75.7%, up from 64.7% in the prior year quarter, and remained stable at 76.2% for the year.

• Adjusted EBITDA was breakeven in Q4 2025 and a loss of $6.6M for the year, compared to positive $23.2M in 2024.

• Ended Q4 2025 with $187.5M in cash equivalents and no debt.

Outlook and guidance

• No formal financial guidance for 2026, but management targets significant sales growth and a return to profitability.

• Expect modest growth in China net sales in 2026, driven by higher ASPs and market share gains.

• Gross margin expected to be slightly lower in 2026 due to higher Swiss manufacturing costs and increased inventory reserves, with improvements anticipated in 2027.

• Cash generation expected to resume in the second half of 2026, ending the year with a higher cash balance.

• Optimism for business performance in 2026, with focus on sustainable profitability and growth.