Staar Surgical (STAA) Q2 2026 Earnings Report

The call highlighted a strong operational and financial recovery: record first-half revenue, significant YoY top-line growth (Q2 net sales +111%), return to profitability (net income $8.1M; adjusted EBITDA $20M), improved cash balance and strategic progress on product launches (EVO Plus) and ERP deployment. Key risks remain—supply constraints (EVO Plus demand outstripping capacity), tariff-related margin pressure until Swiss manufacturing is fully ramped, regional seasonality and market variability (China seasonality, EMEA/Middle East impacts), and near-term ERP and transition costs. On balance the positive financial turnaround, market share gains in China, and clear roadmap for innovation outweigh the operational headwinds.

The company asked investors to exclude a one‑time $25.9M 2024 order when modeling Q3 (adjusted Q3 2025 base $68.8M) and said it is planning year‑over‑year growth in both Q3 and Q4 despite China seasonality (Q1/Q2 now strongest, Q3 moderately lower than Q2, Q4 softer), expects to be able to supply EVO Plus broadly by the end of Q3, and reiterated that tariffs hurting gross margin (Q2 gross margin 74.5% vs. 74% prior) will abate once 100% of China shipments are Swiss‑made by end of 2026; financially the company highlighted Q2 net sales of $93.5M (+111% YoY; China $52.3M, APAC +189% YoY, ex‑China sales $41.2M +6% YoY), Q2 net income $8.1M ($0.16/sh) and adjusted EBITDA $20M ($0.39/sh) versus prior‑year losses, cash of $181.5M (up from $163.9M) with no debt and an expectation of significant free cash flow in H2 to finish 2026 with well over $200M, while managing 2026 operating spend toward a ~$225M target (with limited targeted investments possible) and anticipating lower ERP consulting expense beginning in Q4.