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Staar Surgical
(NASDAQ:STAA)
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Rating:56Neutral
Price Target:
$21.50
▼(-3.97% Downside)
Action:Reiterated
Date:09/10/26
The score is anchored by mixed financial performance—high gross margins and low leverage are positives, but volatile earnings and negative TTM operating/free cash flow are meaningful constraints. The latest earnings call improves the outlook with a sharp revenue/profit rebound and upbeat H2 cash flow expectations, while technicals remain weak-to-neutral and valuation is a major headwind due to the very high P/E.
Positive Factors
Broad Revenue Growth
Q2 sales more than doubled and growth appeared across China, APAC, the Americas and EMEA ex-Middle East. Broad geographic traction, alongside reported China share gains, supports a stronger demand base and reduces reliance on a single regional growth engine over the next several quarters.
Negative Factors
Weak Cash Conversion
Despite the latest rebound, TTM operating and free cash flow are negative, following inconsistent recent periods. If sustained, weak cash conversion could require the balance sheet to fund operations and investment, limiting flexibility even while reported revenue grows.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad Revenue Growth
Q2 sales more than doubled and growth appeared across China, APAC, the Americas and EMEA ex-Middle East. Broad geographic traction, alongside reported China share gains, supports a stronger demand base and reduces reliance on a single regional growth engine over the next several quarters.
Read all positive factors
Staar Surgical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyStaar Surgical (STAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)974.10K
Price to Earnings (P/E)280.9
Beta (1Y)1.10
Revenue Growth51.30%
EPS GrowthN/A
CountryUS
Employees921
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.08
Shares Outstanding50,143,986
10 Day Avg. Volume1,407,909
30 Day Avg. Volume974,098
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)3.40
Price to Sales (P/S)4.89
P/FCF Ratio-29.21
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.14Price Target Upside30.16% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.28
Revenue Forecast (FY)$334.63M
Staar Surgical Business Overview & Revenue Model
Company Description
STAAR Surgical Company, along with its subsidiaries, specializes in ophthalmological solutions, focusing on the design, development, manufacturing, and commercialization of implantable lenses for vision correction, complete with the sophisticated ...
How the Company Makes Money
STAAR Surgical makes money primarily by selling implantable lenses and related ophthalmic products to eye-care customers through a combination of direct sales and distribution partners, depending on the geography. The company’s principal revenue s...
Staar Surgical Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record First-Half Revenue and Strong Q2 Sales
Net sales of $93.5M in Q2 2026, up 111% year-over-year versus $44.3M; company reported the strongest first-half revenue performance in STAAR history. Management called out back-to-back record quarters in the U.S.
Negative Updates
Supply Constraints and Backorders
EVO Plus demand outstripped supply in China and overall demand outpaced manufacturing projections; made-to-order (MTO) production and supply constraints contributed to backorders in some markets (including the U.S.) and required focused scaling efforts.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Revenue and Strong Q2 Sales
Net sales of $93.5M in Q2 2026, up 111% year-over-year versus $44.3M; company reported the strongest first-half revenue performance in STAAR history. Management called out back-to-back record quarters in the U.S.
Read all positive updates
Company Guidance
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.Staar Surgical Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 339.59M | 239.44M | 313.90M | 322.42M | 284.39M | 230.47M |
| Gross Profit | 258.87M | 182.42M | 239.58M | 252.65M | 223.38M | 178.64M |
| EBITDA | 32.05M | -73.53M | -2.16M | 38.82M | 50.06M | 34.98M |
| Net Income | 3.84M | -80.45M | -20.21M | 21.35M | 39.66M | 27.51M |
Balance Sheet | ||||||
| Total Assets | 475.20M | 461.62M | 509.52M | 488.69M | 418.82M | 345.78M |
| Cash, Cash Equivalents and Short-Term Investments | 181.49M | 187.54M | 230.49M | 220.73M | 211.64M | 199.71M |
| Total Debt | 35.94M | 38.35M | 38.74M | 35.83M | 31.04M | 32.06M |
| Total Liabilities | 109.81M | 117.44M | 112.19M | 102.74M | 82.71M | 87.22M |
| Stockholders Equity | 365.40M | 344.18M | 397.33M | 385.95M | 336.11M | 258.56M |
Cash Flow | ||||||
| Free Cash Flow | -6.75M | -40.05M | -7.67M | -3.59M | 17.61M | 30.32M |
| Operating Cash Flow | -3.25M | -34.23M | 15.72M | 14.59M | 35.72M | 43.96M |
| Investing Cash Flow | -13.35M | 46.34M | -59.22M | 74.35M | -156.38M | -13.64M |
| Financing Cash Flow | -2.26M | -4.55M | 5.72M | 7.42M | 8.30M | 17.79M |
Staar Surgical Technical Analysis
Negative
22.39
Price Trends
23.03
Negative
26.03
Negative
23.67
Negative
Market Momentum
-0.43
Negative
51.69
Neutral
88.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STAA, the sentiment is Negative. The current price of 22.39 is above the 20-day moving average (MA) of 21.92, below the 50-day MA of 23.03, and below the 200-day MA of 23.67, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STAA.
Staar Surgical Risk Analysis
Staar Surgical disclosed 42 risk factors in its most recent earnings report. Staar Surgical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Staar Surgical Peers Comparison
UnderperformOutperform
Sector (51)
STAA
Staar Surgical
22.47
-4.67
-17.21%
COO
Cooper Co
56.91
-13.55
-19.23%
BLCO
Bausch + Lomb Corporation
17.11
1.91
12.57%
Staar Surgical Corporate Events
Business Operations and StrategyExecutive/Board Changes
Staar Surgical Reappoints David Bailey to Drive Growth
Positive
Sep 10, 2026
On September 8, 2026, STAAR Surgical appointed former Chief Executive Officer David Bailey as Chief Commercial Officer, returning him to the company’s executive committee with responsibility for driving revenue growth and commercial strategy...
Business Operations and StrategyFinancial Disclosures
Staar Surgical posts strong Q2 growth and profits
Positive
Aug 12, 2026
STAAR Surgical reported strong financial performance for the second quarter ended July 3, 2026, highlighted by net sales of $93.5 million, up 111% year over year, and a swing to net income of $8.1 million from a loss a year earlier. Adjusted EBITD...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Staar Surgical Names Warren Foust Permanent CEO, CFO Promoted
Positive
Aug 6, 2026
On August 4, 2026, STAAR Surgical’s board concluded an extensive global search by appointing Warren Foust as president, chief executive officer and director, formalizing the leadership role he had held on an interim basis since February 2026...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.