Staar Surgical Co Q2 2026 earnings show revenue up 111% to $93.5M, driven by EVO plus lens growth in China. Net income reaches $8.1M, marking a significant turnaround.
Staar Surgical Co reported Q2 2026 revenue of $93.5 million, up 111% year-over-year and significantly exceeding consensus expectations of $66.3 million. The extraordinary growth was driven primarily by increased adoption of the EVO plus lens in China, marking a pivotal moment for the company as it navigates a recovering market and gains market share against traditional laser procedures.
Key Takeaways
- Net sales reached $93.5 million, up 111% YoY, with significant contributions from China and the Americas.
- China revenue surged to $52.3 million, marking a 100% increase YoY and a 10% sequential growth, supported by the growing popularity of EVO plus.
- Gross margin improved to 74.5%, compared to 74% in the prior year, reflecting lower manufacturing costs and operational efficiencies.
- Net income stood at $8.1 million or $0.16 per diluted share, reversing a net loss of $16.8 million in the prior year quarter.
- Cash balance increased to $181.5 million, reinforcing the company’s strong financial position with no debt.
Exceptional Revenue Growth Fueled by EVO Plus in China
Staar Surgical achieved remarkable revenue growth in Q2 2026, with net sales climbing to $93.5 million, marking a 111% increase year-over-year. This growth was largely attributed to the successful launch of the EVO plus lens in China, which not only drove sales but also enhanced the company's market position. Warren Faust, President and CEO, highlighted that the company is witnessing a shift as patients and surgeons increasingly prefer lens-based surgery over traditional laser methods.
The company reported that China's revenue reached $52.3 million, reflecting a 100% increase compared to the same quarter last year. This was primarily due to increased adoption of EVO plus, which has become increasingly popular among patients seeking reversible and less invasive options for vision correction. Faust noted, “We saw no evidence of inventory build at distributors or hospitals, reinforcing that our growth is being driven by demand.”
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | $93.5M | +111% | +10% |
| China Revenue | $52.3M | +100% | +10% |
| Gross Margin | 74.5% | +0.5% | N/A |
| Net Income | $8.1M | N/A | N/A |
Profit Expansion and Cash Flow Generation
In addition to stellar revenue growth, Staar Surgical also reported significant progress in profitability. The company recorded a gross margin of 74.5%, reflecting an increase from 74% in the prior year, driven by reduced manufacturing costs and efficient operations. The improvement in profitability can be attributed to a combination of operational efficiencies and a positive shift in product mix, particularly with the increased demand for EVO plus lenses.
Net income for the quarter was $8.1 million, translating to $0.16 per diluted share, a significant turnaround from the previous year’s net loss of $16.8 million. The company also generated substantial cash flow, increasing its cash balance to $181.5 million from $163.9 million at the end of the first quarter. This strong cash position allows Staar to invest in growth opportunities while maintaining financial flexibility.
Guidance and Outlook for Q3 2026
Looking ahead, management provided guidance for Q3 2026, acknowledging that while they expect to see a seasonal dip in revenue, they are still planning for year-over-year growth. Staar is forecasting revenue in the range of $70 million to $90 million, which reflects the seasonal trends in China as well as the absence of a one-time order from the previous year. Faust emphasized that even with these factors, the underlying demand remains stable, and the company is well-positioned to capitalize on market share gains.
Management highlighted the need for investors to adjust for last year's one-time revenue recognition of $25.9 million to accurately assess year-over-year growth. Faust noted that the primary driver of success will continue to be the adoption of EVO plus, particularly in China, where the company expects sustained growth despite overall market challenges.
Frequently Asked Questions
Did Staar Surgical Co beat earnings estimates in Q2 2026?
Yes, Staar Surgical reported Q2 2026 earnings of $0.16 per diluted share, surpassing consensus estimates of $0.10 per share, marking a positive trend in profitability for the company.
What was Staar Surgical's revenue growth in China for Q2 2026?
In Q2 2026, Staar Surgical's revenue from China reached $52.3 million, reflecting a substantial 100% increase year-over-year, driven by the heightened adoption of the EVO plus lens.
What factors contributed to Staar Surgical's improved gross margin in Q2 2026?
The improved gross margin of 74.5% in Q2 2026 was attributed to lower manufacturing costs and operational efficiencies, along with a favorable product mix boosted by the sales of EVO plus lenses.
What is the outlook for Staar Surgical in Q3 2026?
Staar Surgical anticipates revenue between $70 million and $90 million for Q3 2026, factoring in seasonal trends and the absence of a one-time order from the previous year, while still expecting year-over-year growth.
In conclusion, Staar Surgical's strong performance in Q2 2026, driven by the successful launch of EVO plus and solid financial management, sets a promising trajectory for the company as it navigates market challenges and seizes growth opportunities.
This analysis is based on public earnings call materials and is not investment advice.
