STAAR Surgical Returns to Profitability With Record First-Half Revenue as EVO Plus Gains Share in China

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Published Wednesday, Aug. 12, 2026, at 5:30 p.m. ET

STAAR Surgical, maker of the EVO family of implantable Collamer lenses, closed out its strongest first half on record, reporting second-quarter revenue of $93.5 million and returning to profitability as the launch of the EVO Plus lens in China drove market share gains across the company's largest growth market.

Net sales for the quarter rose 111% from $44.3 million in the same period last year, a comparison that was still depressed by distributor inventory workdowns in China. Executives said the underlying momentum was broad-based: China grew sequentially, the Americas posted double-digit growth, and EMEA, excluding the Middle East, also grew at a double-digit rate.

"Six months ago, we stepped into interim co-CEO roles," said Warren Foust, now permanently president and CEO. "Looking back, I'm struck by how much we accomplished together." He cited back-to-back record quarters in the U.S., a successful ERP rollout, and a return to free cash flow generation as evidence that the company is executing on its three stated priorities: revenue growth, profit expansion, and innovation.

Financial highlights

China remained the growth engine. Net sales in the country totaled $52.3 million, up more than 100% year over year and 10% sequentially. Management said the increase was driven by EVO Plus adoption, not channel stocking, and that no evidence of distributor or hospital inventory buildup had emerged. EVO Plus represented about one-third of China unit volume by quarter-end, ahead of the company's initial expectations.

Outside China, APAC sales rose 7% excluding China. Japan unit volume grew 14%, but currency translation limited reported sales growth to 2%. The Americas grew 12%, with the U.S. contributing another roughly $6 million quarter. EMEA slipped 1% overall because of ongoing conflict in the Middle East, but rose 12% ex-Middle East.

Gross margin improved to 74.5% from 74% a year earlier. The company benefited from lower Switzerland ramp-up costs, reduced advanced manufacturing expenses, and lower freight costs, partially offset by tariffs on U.S.-manufactured product shipped into China. STAAR expects those tariffs to remain a margin headwind until all China-bound product is manufactured in Switzerland, which management expects by the end of 2026.

Net income was $8.1 million, or $0.16 per diluted share, compared with a net loss of $16.8 million, or $0.34 per diluted share, in the prior-year quarter. Adjusted EBITDA came in at $20 million, versus an adjusted EBITDA loss of $14.8 million a year earlier.

Cash and investments rose to $181.5 million at quarter-end from $163.9 million at the end of the first quarter. STAAR remains debt-free and said it expects to finish 2026 with more than $200 million in cash.

What the quarter signals

The results mark a meaningful reset after a period in which STAAR was navigating China inventory digestion, restructuring costs, and a resource-intensive enterprise resource planning implementation. The ERP system is now live. Chief Financial Officer Deborah Andrews said the system did not have a material impact on second-quarter revenue, and that the company actually exceeded its internal operating plans in both the first and second quarters.

Management also tried to reset expectations for third-quarter comparisons. Approximately $25.9 million of revenue tied to a 2024 order was recognized in Q3 2025, and that item will not repeat. Excluding it, the comparable Q3 base is $68.8 million. Foust said the company is planning growth from that adjusted base, as well as growth in the seasonally softer fourth quarter. In China, Q1 and Q2 have become the strongest seasonal quarters, with Q3 moderately below Q2 and Q4 softer still, he said.

"The broader refractive market remains uneven," Foust acknowledged. "Recent industry commentary reinforces that procedures remain pressured in parts of China and APAC. STAAR's performance supports our belief that EVO is gaining market share."

Analyst Q&A: EVO Plus mix, supply, and the U.S.

Analysts pressed for more detail on EVO Plus pricing and mix. Foust said EVO Plus had "outstripped our supply capabilities" and that premium pricing has not met meaningful pushback from customers or patients. He said supply should catch up with demand around the end of Q3, helped by seasonality.

Asked about share gains in China, Foust said patients are increasingly coming in asking for EVO Plus, surgeons are more confident in lens-based surgery, and laser volumes are struggling. He framed competition as validation of the lens-based future, while arguing that STAAR's proprietary Collamer material and 32-year safety record give it a durable advantage over acrylic lens entrants.

On the U.S., Foust said the market remains underpenetrated and the strategy is focused on converting clinically confident surgeons with an economic case. He acknowledged the U.S. saw a slight sequential dip in Q2 and attributed part of it to supply constraints, including backorders on made-to-order toric lenses, because of stronger-than-expected demand in China. "We're cranking out product now to get caught up," he said.

Looking further out, Foust said STAAR is moving beyond a single-product mindset, with plans to hire a chief technology officer and prepare for first-in-human studies of next-generation products. "Refractive is our wheelhouse," he said, adding that the company sees opportunities tied to presbyopia correction and extended depth of focus. "We have the opportunity to build a broader platform."

To date, STAAR has sold more than 4 million ICLs across 85 countries. Executives said the long-term opportunity is tied to a growing myopic population and a global shift away from laser-based procedures toward lens-based options that preserve corneal tissue and remain removable.

This article is based on STAAR Surgical's Q2 2026 earnings call and shareholder letter. The Motley Fool has no position in any stocks mentioned. For further details, see the company's SEC filings.