STAAR Surgical reported third quarter 2026 results that exceeded analyst expectations for both revenue and earnings. Although reported net sales declined 12% year-over-year due to a difficult comparison against a one-time $25.9 million recognition of deferred China revenue in 2025, underlying performance was strong with 21% net sales growth when excluding those prior-year impacts. The company highlighted a continued structural shift toward lens-based vision correction, particularly in mid-tier hospitals in China and among lower-diopter patients in the U.S.
Key Highlights
- China underlying sales grew 31% when excluding the non-recurring deferred revenue impact, supported by 12.4% year-to-date unit volume growth that outpaced the broader refractive market.
- EMEA performance surged with net sales up 31% overall and 51% when excluding the Middle East, while U.S. sales reached $6.5 million, marking the third consecutive quarter above $6 million.
- Gross profit margin compressed to 70.9% from an adjusted 75.5% last year, impacted by ERP implementation costs and tariffs; however, the company successfully transitioned all China-market manufacturing to Switzerland to mitigate future tariff exposure.
- Liquidity and capital return improved with cash and investments reaching $206.4 million, prompting the authorization of a new $50 million share repurchase program.