The Q1 results confirm the China recovery thesis and the company's return to profitability, which should drive multiple expansion. Key catalysts to watch: (1) Q2 2026 results to confirm China demand sustainability vs one-time inventory restock; (2) EVO+ ICL adoption trajectory in China and margin impact; (3) U.S. growth acceleration post-FDA label expansion to age 45-60; (4) Swiss manufacturing scale achieving 100% China supply without tariffs. The stock likely gaps up significantly on this beat.
Price Chart
Executive Summary
STAAR Surgical reported a transformative Q1 2026 with record net sales of $93.5M (+119.6% YoY), driven by a recovery in China and strong U.S. growth, and returned to GAAP profitability with net income of $5.2M ($0.10 EPS) vs a $54.2M loss a year ago. The massive top-line beat vs consensus ($78.7M) and swing to profitability signal the end of the 2025 China inventory destock headwind, though the 119.6% YoY growth is heavily influenced by the depressed Q1 2025 base when China shipments were minimal.
Key Financial Metrics
Key Facts
- Q1 2026 net sales of $93.5M, up 119.6% YoY from $42.6M, the highest first-quarter net sales in company history
- GAAP net income of $5.2M ($0.10 diluted EPS) vs net loss of $(54.2)M ($(1.10) EPS) in Q1 2025
- China net sales surged to $47.4M from $(0.9)M in Q1 2025, as distributor inventory normalized and EVO+ launch exceeded expectations
- U.S. net sales grew 22% YoY to $6.7M, surpassing $6M quarterly for the first time
- Gross margin improved to 73.6% from 65.8% YoY, driven by Swiss manufacturing scale and lower period costs
- Adjusted EBITDA of $24.4M ($0.48/diluted share) vs a loss of $(26.3)M in Q1 2025
- Operating income of $8.0M vs operating loss of $(57.4)M in Q1 2025
- Cash and investments of $163.9M, down from $187.5M at Q4 2025 end, with no debt
- Ex-China net sales grew 6.0% YoY to $46.1M, with U.S. growth partly offset by geopolitical headwinds in Middle East and India
Financial Impact
Record Q1 revenue of $93.5M vs consensus $78.7M (+18.8% beat); GAAP EPS $0.10 vs consensus $0.08 (+25% beat); swing from $(54.2)M net loss to $5.2M net income YoY
Risk Factors
- Q1 2025 was an artificially low comp due to China destock — sequential revenue trajectory matters more than YoY growth rate
- Operating cash flow was negative $(21.7)M in Q1 2026, worse than $(5.7)M in Q1 2025, driven by working capital build
- China net sales of $47.4M may partly reflect inventory restocking rather than pure end-demand recovery
- Geopolitical disruption in Middle East and India markets remains a headwind for ex-China growth
- Merger-related costs of $6.7M and restructuring charges of $2.7M continue to weigh on reported profitability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000718937-26-000022 |
| Document: staa-20260512.htm | 0000718937-26-000022 |
| Document: 0000718937-26-000022-index-headers.html | 0000718937-26-000022 |
| Document: 0000718937-26-000022-index.html | 0000718937-26-000022 |
| Document: 0000718937-26-000022.txt | 0000718937-26-000022 |
| 8-K Data (Synthetic) | 0000718937-26-000022 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | 8-K | $25.33 | awaiting T+60 | — | $23.23 (−8.29%) |
Aug 6, 2026 11w ago | 8-K | $23.12 | awaiting T+60 | — | $23.23 (+0.48%) |
Jun 22, 2026 18w ago | 8-K | $28.36 $22.41 | ▼ −20.98% | ▼ −24.23% | $23.23 (−18.09%) |
Jun 11, 2026 19w ago | Institutional Cluster | $28.90 $23.47 | ▲ +18.79% | ▲ +23.18% | $23.23 (+19.62%) |
May 13, 2026 23w ago | 8-K | $32.01 $25.12 | ▼ −21.52% | ▼ −25.11% | $23.23 (−27.43%) |
Apr 8, 2026 28w ago | 8-K | $25.21 $27.34 | ▲ +8.45% | ▼ −2.33% | $23.23 (−7.85%) |
US Market Status
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