Asked about EVO Plus's share of China volume versus expectations and the price vs. unit benefit in Q3.

EVO Plus demand outstripped supply capabilities, exceeding initial expectations. By the end of Q2, it represented close to one-third of China's unit volume. The company is maintaining a considerable price premium, which customers and patients have accepted. “Candidly, it's outstripped our supply capabilities based on the demand. It's higher than what we anticipated it would be... by the time we exited the quarter, it's probably close to a third of the units.”

Asked for a finer point on Q3 China revenue being "moderately lower" than Q2, referencing historical $10-$15M sequential declines, and if this is a good anchor point.

Warren Foust explained that seasonal shifts mean Q1 and Q2 are now stronger, borrowing from Q3. He emphasized the underlying demand in China is stable, and STAAR is disproportionately gaining share. He declined to put a specific number on the Q3 sequential decline but reiterated the $25.9M adjustment and planning for growth in Q3 and Q4. “The seasonal shift has happened that I described. So Q1 and Q2, we expect to be stronger. That's borrowing partially from Q3. So it's hard for us to say, gosh, this is exactly what we think is going to happen in Q3 because one, because of that dynamic, and then two, because of what we said around having to pull some of that 2024 order out of Q3.”

Asked for an update on total active sites in the U.S. and a recap of the strategy (deeper penetration vs. new accounts).

The U.S. has "hundreds and hundreds and hundreds" of active sites. The strategy focuses on going deeper with clinically confident customers, addressing economic barriers (ASC costs vs. in-office suites), and leveraging increasing patient demand for EVO as a differentiated, removable, reversible technology. “we've got hundreds and hundreds and hundreds of active sites. We're going deeper where we know we can make the biggest difference. We're focused on 2 key things... surgeons get more confident clinically and then they look for how do I make this work for me economically.”

STAA

STAAR Surgical (STAA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 12, 2026

Source: earnings call transcript

Executive summary

STAAR Surgical Q2 FY26 — Record First Half Revenue, Strong Profitability, and EVO Plus Momentum

STAAR Surgical delivered a robust second quarter, achieving record first-half revenue and a strong return to profitability and free cash flow generation. The company demonstrated significant momentum in China with the EVO Plus launch driving market share gains, alongside solid performance in the Americas and EMEA. Management is focused on disciplined execution, expanding profitability, and accelerating innovation, including next-generation product development and a strategic CTO hire, to build a broader platform beyond its core EVO ICL offering.

Highlights

Net sales of $93.5 million, up 111% year over year, marking the strongest first half revenue performance in company history.
Return to profitability with net income of $8.1 million ($0.16 diluted EPS) compared to a $16.8 million net loss ($0.34 diluted EPS) in the prior year.
Significant cash flow generation, increasing cash and investments to $181.5 million from $163.9 million sequentially, with no debt.
China net sales increased over 100% year-over-year and 10% sequentially to $52.3 million, driven by EVO Plus launch and market share gains.
Americas grew 12% year-over-year, with the U.S. delivering its second consecutive quarter of approximately $6 million in sales.

Concerns

Q3 FY25 net sales included a non-recurring $25.9 million from a 2024 order, requiring an adjusted comparable base of $68.8 million for Q3 FY26 year-over-year growth calculations.
Currency headwinds dampened reported sales growth in Japan to 2%, despite a 14% unit volume increase.
Gross margin negatively impacted by China tariffs on U.S. manufactured product, which will continue until Switzerland manufacturing fully supplies China by end of 2026.
EMEA declined 1% year-over-year due to conflicts in the Middle East, though EMEA excluding Middle East grew 12%.
Supply constraints for EVO Plus and made-to-order Toric lenses due to higher-than-expected demand and manufacturing complexities, leading to backorders in some regions like the U.S.

Guidance & targets

Category	Target	Timeline	Confidence
Q3 FY26 Revenue Growth	Year-over-year growth high materiality	Q3 · FY26	High
Q4 FY26 Revenue Growth	Year-over-year growth medium materiality	Q4 · FY26	High
China Tariff Impact on Margins	Impact to continue until 100% of products shipped from Switzerland medium materiality	End of 2026 · FY26	High
FY26 Operating Expense Target	$225 million medium materiality	FY26	Medium
FY26 Cash Balance	Well over $200 million high materiality	End of 2026 · FY26	High
Next-Generation Product First-in-Human Studies	First part of next year or sooner high materiality	Q1 · FY27	High
EVO Plus Inventory Supply (China)	Enough to fully supply demand medium materiality	Q3 · FY26	High
V4c Supply (China)	Supply as much as possible medium materiality	End of 2026 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Total Company Strongest first half revenue performance in STAAR's history.	$93.5 million	111%	—	—
APAC Overall APAC growth, driven by China.	—	189%	—	—
APAC excluding China Solid growth in the region outside of China.	—	7%	—	—
China Fueled by EVO Plus launch and market share gains. No evidence of inventory build, reinforcing demand-driven growth. Seasonal pattern evolving with Q1/Q2 strongest. EVO Plus share of unit volume: ~33% (exit Q2)	$52.3 million	100%+	10%	—
Japan Strong underlying demand, but reported sales growth dampened by currency headwinds. Bolstered by direct-to-consumer awareness initiatives launched in November 2025. Unit volume growth: 14%	—	2%	—	—
Americas Growth led by the U.S.	—	12%	—	—
U.S. Second consecutive quarter at this level. Market remains underpenetrated with opportunity to grow EVO sales and take market share from declining laser procedures. Impacted by overall refractive market decline and MTO supply constraints.	Approximately $6 million	—	—	—
EMEA Resulting from continued conflicts in the Middle East.	—	-1%	—	—
EMEA excluding Middle East Reflecting solid underlying demand across much of the region.	—	12%	—	—

Risks & headwinds

China Tariffs on U.S. Manufactured Product Until end of 2026

Negative impact on gross margin

Mitigation:Transitioning to 100% Switzerland-manufactured products for China by end of 2026.

Middle East Conflicts Q2 FY26

EMEA sales declined 1% year-over-year

Mitigation:N/A (implied focus on other EMEA regions which grew 12% excluding Middle East)

Currency Headwinds in Japan Q2 FY26

Dampened reported sales growth to 2% despite 14% unit volume increase

Mitigation:N/A (underlying market activity remains strong, direct-to-consumer awareness initiatives)

Supply Constraints for EVO Plus and Made-to-Order Toric Lenses Q1 and Q2 FY26, expected to ease by end of Q3 FY26 for EVO Plus

Outstripped supply capabilities for EVO Plus; U.S. goes on back order for MTOs

Mitigation:Working to scale up supply; demand slowing due to seasonality will help catch up on inventory; focus on supplying V4c from Switzerland to avoid tariffs.

Uneven Broader Refractive Market in China and APAC Ongoing

Procedures remain pressured in parts of China and APAC; laser procedures continue to struggle

Mitigation:EVO is gaining market share due to EVO Plus rollout and patient/surgeon preference for lens-based surgery; disciplined investment in markets with clearest returns.

Overall Refractive Market Decline (U.S.) Q2 FY26

Total refractive market (driven by lasers) went down sequentially in Q2, impacting STAAR

Mitigation:Focus on U.S. market penetration with differentiated lens-based alternatives; targeting practices with economic message.

What to watch in Q3 FY26

Q3 FY26 Revenue Growth

Next quarter (Q3 FY26)

Current Q2 FY26 revenue $93.5M, up 111% YoY

Target Year-over-year growth off adjusted Q3 FY25 base of $68.8M

Why it matters

Verifies management's ability to grow off the adjusted base, indicating underlying demand and execution despite seasonality and prior-year one-time orders.

While the third quarter revenue is expected to be moderately lower than the second quarter due to shifts in seasonality, excluding the 1-time order of $25.9 million booked in the third quarter of 2025, we expect year-over-year growth.

Find out whether STAA delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for comfort on consensus Q3 revenue ($80.9M) given the adjusted Q3 FY25 base ($68.8M) and how to think about Q3 growth.

Management does not comment on consensus but reiterated the need to use the adjusted Q3 FY25 base of $68.8M for year-over-year growth. They expect to grow off this adjusted number and also in Q4. China's comeback and EVO Plus launch are key drivers, along with performance in other regions.

“Look, we don't comment on consensus numbers generally. What I would say is we tried to give a little bit of a bridge to how you think about Q3 and Q4. We wanted to be clear that you needed to take the 2024 order out of each quarter so that you could have an appropriate base. We intend to grow off of that number.”

asked by John Young · answered by Warren Foust

2 min read 6 chapters

Detailed narrative

Strong Q2 Performance and First Half Records

STAAR Surgical reported its strongest first half revenue performance in company history, driven by robust Q2 results. Net sales reached $93.5 million, marking a 111% year-over-year increase, and the company returned to profitability with $8.1 million in net income. This performance reflects successful navigation of challenges and leveraging significant opportunities, including the EVO Plus launch in China and record quarters in the U.S.

China Market Share Gains and EVO Plus Momentum

China remains a critical market, with net sales increasing over 100% year-over-year and 10% sequentially to $52.3 million. The launch of EVO Plus fueled market share gains, with approximately one-third of China's unit volume being EVO Plus by the end of Q2.

Despite an uneven broader refractive market and pressure on laser procedures in China and APAC, STAAR's performance indicates EVO is gaining share, supported by patient and surgeon preference for lens-based surgery.

U.S. and International Market Dynamics

The U.S. market delivered another quarter of approximately $6 million in sales, showing continued growth in an underpenetrated market as practices seek lens-based alternatives to declining laser vision correction. In APAC, Japan saw a 14% unit volume increase, though currency headwinds limited reported sales growth to 2%. EMEA, excluding the Middle East, grew double digits, reflecting solid underlying demand.

Profitability Expansion and Financial Discipline

The company demonstrated meaningful progress in expanding profitability, with gross margin improving to 74.5% from 74% in the prior year. This, combined with disciplined financial management, led to significant cash flow generation, increasing cash and investments to $181.5 million. The successful ERP implementation is expected to improve visibility and scalability, positioning the company for future growth.

Innovation Acceleration and Future Product Pipeline

STAAR is accelerating innovation, moving beyond a single-product mindset to build a broader platform and diversified product organization. The R&D team is preparing for first-in-human studies on next-generation products as early as Q1 2027. The company is also hiring a Chief Technology Officer to drive its innovation agenda, leveraging its proprietary Collamer material and expertise in lens-based refractive surgery.

Seasonality and Comparability Adjustments

Management provided clarity on China's evolving seasonality, with Q1 and Q2 emerging as the strongest revenue quarters due to Chinese New Year, military recruitment procedures, and summer demand. Q3 is expected to be moderately lower than Q2, and Q4 seasonally softer, but both are projected to show year-over-year growth when excluding a non-recurring $25.9 million order from Q3 2025.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.