Staar Surgical Co Q2 2025 Earnings: Revenue Beats Estimates Despite China Sales Decline

Staar Surgical Co reported Q2 2025 net sales of $44.3 million, exceeding expectations, despite a 55% YoY decline. The company's net loss was $(16.8) million or $(0.34) per share. Gross margin improved to 74.0% from 65.8% in Q1 2025. The company reduced operating expenses to $62.8 million from $66.5 million in the prior-year quarter.

STAAR Surgical (NASDAQ: STAA), a leading manufacturer of implantable lenses for vision correction, released its financial results for the second quarter of fiscal year 2025 on August 6, 2025. The company reported net sales of $44.3 million, which exceeded analyst expectations by $3.8 million, despite a 55% year-over-year (YoY) decline. The company's net loss was $(16.8) million or $(0.34) per share, which was an improvement over the previous quarter's net loss of $(54.2) million or $(1.10) per share [1].

The quarter's results were characterized by a sharp decline in sales from China, the company's largest market, due to a planned reduction in channel inventory. Despite this, net sales excluding China rose 10% YoY to $39.0 million, indicating strong performance in other regions. Gross margin improved to 74.0% from 65.8% in the previous quarter, although it remained below the historical norm of 79.2%. This improvement was primarily due to a decrease in sales volume [1].

Operating expenses were reduced to $62.8 million from $66.5 million in the prior-year quarter, reflecting ongoing cost optimization efforts. However, the company's adjusted EBITDA loss of $(14.9) million or $(0.30) per share was a significant decline from the previous quarter's adjusted EBITDA loss of $(26.4) million or $(0.53) per share. The company also withdrew its formal financial guidance for the remainder of fiscal 2025 due to persistent volatility in the Chinese market and uncertainty over tariffs [1].

Looking ahead, STAAR Surgical expects sales in China to return to more regular patterns starting in Q3 FY2025 as inventory normalization completes. The upcoming regulatory approval of the EVO+ lens (V5) product for China remains a future growth catalyst. However, the company's gross margin is expected to face pressure for the rest of FY2025 due to costs associated with scaling its new production facility in Switzerland, which aims to reduce tariff exposure [1].

References:
[1] https://www.nasdaq.com/articles/staar-surgical-staa-q2-revenue-tops-9