Staar Surgical 2025 Q2 Earnings Sharp Loss Amid Acquisition by Alcon

Staar Surgical (STAA) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, revealing a dramatic decline in performance as it nears its acquisition by Alcon. The company posted a net loss of $16.81 million, a 327.8% deterioration from a $7.38 million profit in the same period the prior year. Earnings per share swung to a loss of $0.34 from $0.15. With the pending acquisition, no traditional forward guidance was provided.

Revenue
The company’s total revenue in Q2 2025 dropped 55.2% year-over-year to $44.32 million, significantly below the $99 million recorded in Q2 2024. The decline was primarily attributed to reduced channel inventory in China, though the CEO noted 10% growth in regions excluding China partially offset the losses.

Earnings/Net Income
Staar Surgical swung to a loss of $0.34 per share in 2025 Q2, a 326.7% negative change from a profit of $0.15 per share in 2024 Q2. The company reported a net loss of $-16.81 million in 2025 Q2, reflecting a 327.8% deterioration from the net income of $7.38 million in 2024 Q2. This result represents a record low for the company.

Price Action
The stock price of Staar Surgical edged down 0.55% during the latest trading day but surged 48.62% during the most recent full trading week and climbed 61.95% month-to-date.

Post Earnings Price Action Review
Despite a 55% year-over-year decline in net sales driven by reduced channel inventory in China, the CEO emphasized that the decrease was partially offset by 10% growth in regions excluding China. Strategic cost optimization efforts led to lower operating expenses and an improvement in net loss compared to Q1 2025. The CEO highlighted the company’s focus on long-term value through restructuring, including leadership realignment and cost control initiatives, as well as continued investment in innovation. The tone of leadership remained cautiously optimistic, with a clear emphasis on operational discipline and positioning the company for future growth post-acquisition by Alcon Inc.

CEO Commentary
The CEO noted that while the company faced significant headwinds from China, its cost-cutting and operational improvements helped to narrow the net loss compared to the previous quarter. The leadership team expressed confidence in the company’s strategic direction and long-term potential, especially as the pending acquisition by Alcon approaches.

Guidance
Staar Surgical did not provide traditional forward-looking guidance due to the pending acquisition by Alcon Inc. Management also indicated that it would not host a conference call to review the second-quarter results, signaling a shift in focus toward the transaction.

Additional News
Alcon agreed to acquire Staar Surgical for $28 per share in cash, or approximately $1.5 billion in equity value, representing a 59% premium to STAAR’s 90-day volume-weighted average price and a 51% premium to its August 4 closing price. The acquisition, which is expected to close within six to 12 months, is anticipated to be accretive to earnings in year two. Alcon views the transaction as a strategic move to expand its offerings in vision correction, particularly in moderate to high myopia treatment. Staar’s EVO ICL line complements Alcon’s existing laser vision correction portfolio. The deal received unanimous board approval from both companies and is financed through short- and long-term credit facilities. Legal and financial advisors have been engaged, and a shareholder meeting will be announced soon for necessary approvals.