STAAR Surgical Reports Second Quarter 2025 Results

LAKE FOREST, Calif.--(BUSINESS WIRE)--STAAR Surgical Company (NASDAQ: STAA), the global leader in phakic IOLs with the EVO family of Implantable Collamer® Lenses (EVO ICL™) for vision correction, today reported results for the second quarter ended June 27, 2025.

Second Quarter 2025 Financial Overview

• Net sales of $44.3 million down 55% Y/Y due to planned reduction of channel inventory in China
• Net sales excluding China of $39.0 million up 10% Y/Y
• Gross margin at 74.0% vs. 79.2% year ago due to the decrease in sales volume, but up from 65.8% in Q1 of this year
• Net loss of $(16.8) million or $(0.34) per share, down from net income of $7.4 million or $0.15 per share year ago, but up from a net loss of $(54.2) million or $(1.10) per share in Q1 2025
• Adjusted EBITDA¹ loss of $(14.9) million or $(0.30) per share, down from Adjusted EBITDA income of $22.5 million or $0.45 per share year ago, but up from an Adjusted EBITDA loss of $(26.4) million or $(0.53) per share in Q1 2025

Second Quarter 2025 Results

Net sales were $44.3 million for the second quarter of 2025 compared to $99.0 million in the prior year quarter and $42.6 million in the first quarter of 2025. The year-over-year decrease was mainly driven by a notable decline in revenue from China, as the Company’s distributors in the region made minimal purchases during the quarter, opting to utilize existing in-country inventory to meet procedural demand. This decline was partially offset by growth in other regions. Excluding China, net sales were $39.0 million, an increase of 10% as compared to the prior-year period.

Gross profit margin for the second quarter of 2025 was 74.0% of total net sales compared to the prior year quarter of 79.2% of total net sales and 65.8% of total net sales in the first quarter of 2025. The decline in gross profit margin versus the same period last year was primarily attributable to a decrease in sales volume.

Total operating expenses for the second quarter of 2025 were $62.8 million, compared to $66.5 million in the prior-year quarter. Excluding restructuring, impairment, and related charges, operating expenses for the second quarter of 2025 were $57.5 million down from $62.7 million in the first quarter of 2025. The year-over-year decrease in operating expenses was driven by ongoing cost optimization efforts that continued throughout the second quarter. General and administrative expenses were $21.0 million compared to $23.6 million in the prior-year quarter and $24.5 million in the first quarter of 2025. The year-over-year decrease was primarily due to decreased outside services expenses. Selling and marketing expenses were $26.3 million compared to $31.0 million in the prior-year quarter, and $26.9 million in the first quarter of 2025. The year-over-year decrease is due to lower marketing, promotional and advertising activities, partially offset by increased compensation-related charges. Research and development expenses were $10.3 million compared to $11.9 million in the prior-year quarter and $11.3 million in the first quarter of 2025. The year-over-year decrease is due primarily to lower salary-related expenses.

During the second quarter, the Company incurred $5.2 million for restructuring, impairment and related charges, primarily for severance associated with the realignment of the Company’s leadership structure and its cost control initiatives, and fixed asset and operating lease impairment. Including these charges, operating loss for the second quarter of 2025 was $(30.0) million compared to $11.9 million for the second quarter of 2024. Net loss for the second quarter of 2025 was $(16.8) million or $(0.34) per diluted share compared with net income of $7.4 million or $0.15 per diluted share for the prior-year quarter. The year-over-year decrease in net income was primarily attributable to lower net sales and restructuring charges, partially offset by reduced operating expenses.

Cash, cash equivalents and investments available for sale at June 27, 2025, totaled $189.9 million, compared to $222.8 million at the end of the first quarter of 2025. The Company had no outstanding debt.

During the second quarter of 2025, the Company repurchased approximately 261,000 shares of its common stock for a total cost of approximately $4.5 million under its $30 million share repurchase program announced in May 2025. The average purchase price per share was $17.17. As of June 27, 2025, approximately $25.5 million remained available under the current authorization. Through August 1, 2025, the Company has purchased 376,000 shares for a total of $6.5 million, with an average purchase price of $17.17.

Due to the pending acquisition of the Company by Alcon Inc., the Company will not host a conference call to review its second quarter 2025 results.

Use of Non-GAAP Financial Measures

To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense and for restructuring, impairment and related charges. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. The Company believes that restructuring, impairment and related charges are not indicative of the underlying operating expense profile for the Company. These charges, which include costs related to severance, reduction in force and consulting expenses, impairment expenses on leasehold improvements and machinery and equipment, impairment on real property right-of use assets, and impairment of internally developed software, are anticipated to be completed within a finite period of time and can vary significantly in any specific period. The Company believes that excluding restructuring, impairment and related charges from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business operations and better assess the Company’s current and future continuing operations.

The Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company’s results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the “constant currency” rate to sales or expenses in the current period as well.

In the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income (loss) and net income (loss) per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency.

About STAAR Surgical

STAAR Surgical (NASDAQ: STAA) is the global leader in implantable phakic intraocular lenses, a vision correction solution that reduces or eliminates the need for glasses or contact lenses. Since 1982, STAAR has been dedicated solely to ophthalmic surgery, and for 30 years, STAAR has been designing, developing, manufacturing, and marketing advanced Implantable Collamer® Lenses (ICLs), using its proprietary biocompatible Collamer material. STAAR ICLs are clinically-proven to deliver safe long-term vision correction without removing corneal tissue or the eye’s natural crystalline lens. Its EVO ICL™ product line provides visual freedom through a quick, minimally invasive procedure. STAAR has sold more than 3 million ICLs in over 75 countries. Headquartered in Lake Forest, California, the company operates research, development, manufacturing, and packaging facilities in California and Switzerland. For more information about ICL, visit www.EVOICL.com. To learn more about STAAR, visit www.staar.com.

We intend to use our website as a means of disclosing material non-public information about the Company and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections at investors.staar.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the Email Alerts section at investors.staar.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as “anticipate,” “believe,” “expect,” “plan,” “estimate,” “project,” “continue,” “will,” “should,” “may,” and similar terms. All statements in this press release that are not statements of historical fact are forward-looking statements. These forward-looking statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: our ability to continue our growth and profitability trajectory; our reliance on independent distributors in international markets; a slowdown or disruption to the Chinese economy; global economic conditions; disruptions in our supply chain; fluctuations in foreign currency exchange rates; international trade disputes (including involving tariffs) and substantial dependence on demand from Asia; changes in effective tax rate or tax laws; any loss of use of our principal manufacturing facility; competition; potential losses due to product liability claims; our exposure to environmental liability; data corruption, cyber-based attacks or network security breaches and/or noncompliance with data protection and privacy regulations; acquisitions of new technologies; climate changes; the willingness of surgeons and patients to adopt a new or improved product and procedure; extensive clinical trials and resources devoted to research and development; compliance with government regulations; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; laws pertaining to healthcare fraud and abuse; changes in FDA or international regulations related to product approval; product recalls or failures; the timing of, and completion of, or failure to complete, the pending acquisition of the Company by Alcon Inc.; risks related to disruption of management’s attention from the Company’s ongoing business operations due to the pending acquisition of the Company by Alcon Inc.; the effect of the announcement of the acquisition of the Company by Alcon Inc. on our ability to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business, or on its operating results and business generally; and other important factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 27, 2024 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Information” section of the Company’s website under the heading “SEC Filings,” as any such factors may be updated from time to time in the Company’s other filings with the SEC.

Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.