STAAR Surgical Reports Fourth Quarter and Fiscal Year 2025 Results

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

stock-based compensation financial

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

restructuring financial

Restructuring is a deliberate rearrangement of a company’s operations, finances, or ownership—like reorganizing a cluttered house to run more efficiently—often involving cost cuts, asset sales, debt changes, or staff moves. Investors pay attention because restructuring can improve profitability and free up cash, but it can also signal distress, incur one-time costs, or dilute shareholder value; its success affects future earnings and stock performance.

impairment financial

Impairment occurs when the value of an asset, such as property, equipment, or investments, drops below its recorded worth on the books. This situation signals that the asset may be less valuable than originally thought, similar to discovering that an item you own is worth less than what you paid for it. For investors, recognizing impairment is important because it can affect the overall financial health and future prospects of a business.

right-of-use assets financial

Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.

implantable collamer lenses medical

An implantable collamer lens is a small, soft lens surgically placed inside the eye to correct vision, acting much like a permanent contact lens implanted behind the iris instead of sitting on the eye surface. Investors care because these devices represent a durable, higher‑value medical product whose sales growth, regulatory approvals, safety record and reimbursement policies can directly affect a company’s revenue and risk profile, similar to how a popular new gadget can drive a maker’s earnings and reputation.

Confident in China Progress and Future Roadmap

A Clear Path Toward Sustainable Profitability and Growth

Board and Leadership Transitions Support Strategy Execution and Shareholder Value Creation

STAAR Interim co-CEOs Issue Letter to Shareholders

Earnings Call and Webcast Today at 5:30 PM Eastern

LAKE FOREST, Calif.--(BUSINESS WIRE)-- STAAR Surgical Company (NASDAQ: STAA), the global leader in phakic IOLs with the EVO family of Implantable Collamer® Lenses (EVO ICL™) for vision correction, today reported results for the fourth quarter and fiscal year ended January 2, 2026. STAAR’s Interim co-CEOs will be issuing a Letter to Shareholders after this earnings release, which can be found here: https://investors.staar.com/news-and-events/press-releases.

Fourth Quarter 2025 Financial Overview

• Net sales of $57.8 million, up 18.1% Y/Y
• Net sales excluding China of $40.3 million, down 2.1% Y/Y
• Gross margin at 75.7% vs. 64.7% Y/Y
• Net loss of $(18.3) million or $(0.37) per share, compared to a net loss of $(34.2) million or $(0.69) per share a year ago
• Adjusted EBITDA¹ breakeven or $(0.00) per share, compared to Adjusted EBITDA loss of $(20.8) million or $(0.42) per share a year ago

Fiscal Year 2025 Financial Overview

• Net sales of $239.4 million, down 23.7% Y/Y
• Net sales excluding China of $161.7 million, up 6.6% Y/Y
• Gross margin at 76.2% vs. 76.3% Y/Y
• Net loss of $(80.4) million or $(1.62) per share, compared to a net loss of $(20.2) million or $(0.41) per share a year ago
• Adjusted EBITDA¹ loss of $(6.6) million or ($0.13) per share compared to Adjusted EBITDA income of $23.2 million or $0.47 per share a year ago
• Cash, cash equivalents and investments available for sale ended the year at $187.5 million

“Throughout fiscal 2025, we made meaningful progress on multiple fronts, including rebalancing distributor inventory and disciplined gross profit and expense management. The actions we have taken give us confidence in a clear path toward sustained profitability and growth, and we are optimistic about the business in 2026,” said Warren Foust, Interim Co-CEO of STAAR Surgical. “During 2024, China demand was challenged, which led to a double-digit decline in in-market sales² and increased inventory in the channel. In 2025, in-market demand in China improved with an estimated mid-single-digit recovery, and inventories were reduced to normal levels. In-market demand in China accelerated in the fourth quarter, providing a positive signal for fiscal 2026. However, the in-market recovery did not translate into sales growth for STAAR during the fourth quarter because of a reduction in sub-distributor and customer inventory in China. Due to uncertainties about their future if the Company were acquired by Alcon, certain China sub-distributors and customers returned some inventory to our distributors, resulting in lower-than-anticipated fourth quarter net sales for STAAR. This uncertainty also impacted sales to distributors in other parts of the world. In 2026, with the merger question behind us, we believe we will see modest growth in in-market volume demand and expect net sales in China to increase due to rising average selling prices (ASPs) for lenses and market share gains. ASP increases are being driven by the success of our EVO+ ICL launch in China. The EVO+ ICL for China, which is manufactured in Switzerland, is not subject to US-China tariff volatility. There is excitement around the launch of EVO+ in China, and we are working closely with our distributor partners to accelerate adoption in this key market. We believe our China business is well positioned for growth this year and intend to provide investors with greater transparency into our execution there. We made substantial progress in improving our ability to track channel inventory in China during 2025 and are continuing that effort in 2026.”

Mr. Foust continued, “STAAR possesses a differentiated proprietary material with Collamer®, exceptional optical technology with EVO ICLs, and a proven ability to gain market share. With a large addressable market opportunity driven by the increasing prevalence of myopia worldwide, our leadership in lens-based refractive surgery provides us with a winning formula. As we look to the future as a standalone company, our Board, leadership team, and employees have a renewed focus on strategic execution and long-term value creation for our shareholders.”

Leadership Changes

On February 2, 2026, STAAR announced the appointment of Warren Foust and Deborah Andrews as interim co-Chief Executive Officers. STAAR’s Board of Directors have engaged Egon Zehnder, a leading global executive search and leadership advisory firm, to conduct the search for STAAR’s next Chief Executive Officer. The search will include both internal and external candidates.

Fourth Quarter 2025 Financial Results

Net sales were $57.8 million for the fourth quarter of 2025, up by 18.1% from $49.0 million in the prior year quarter. The year over year increase in net sales primarily reflected sales growth in China. Excluding China, net sales were $40.3 million, a decrease of 2.1% as compared to $41.1 million in the prior year quarter due to the timing of sales returns that disproportionally impacted the fourth quarter compared to the first three quarters of 2025.

Gross profit margin for the fourth quarter of 2025 was 75.7% of total net sales compared to the prior year quarter of 64.7% of total net sales. The increase in gross profit margin versus the prior year quarter was due primarily to the timing of the recognition of the cost of sales associated with the December 2024 China Shipment, decreased period costs resulting from cost reductions implemented in the first quarter of 2025 and the ramp up of Swiss manufacturing, partially offset by higher inventory provisions. As previously disclosed, in December 2024, the Company shipped $27.5 million of ICLs to China, for which it did not recognize revenue in the fourth quarter of 2024 due to extended payment terms with the Company’s distributor. However, cost of sales of $3.9 million associated with the December 2024 China Shipment was recorded in the fourth quarter of 2024. The revenue from this shipment was recognized in the second and third quarters of 2025, as payments were received.

Total operating expenses for the fourth quarter of 2025 were $66.6 million, compared to $59.6 million in the prior year quarter. Operating expenses for the quarter included costs related to the Company’s terminated merger transaction with Alcon of $11.2 million and costs related to restructuring of $0.7 million. Excluding the costs related to the merger and restructuring, operating expenses for the fourth quarter of 2025 were $54.7 million, a reduction of 8.2% from the prior year quarter. General and administrative expenses were $19.6 million compared to $21.3 million in the prior year quarter. The year over year decrease was primarily due to decreased outside services and facilities costs, largely offset by increased compensation related expenses. Selling and marketing expenses were $25.8 million compared to $28.4 million in the prior year quarter. The year over year decrease was due to lower advertising and promotional spending, lower trade show and sales meeting expenses, partially offset by increased compensation expenses. Research and development expenses were $9.2 million compared to $9.8 million in the prior year quarter. The year over year decrease is the result of lower clinical and investigator-initiated trials, partially offset by increased compensation expenses.

Operating loss for the fourth quarter of 2025 was $(22.8) million compared to $(27.9) million in the prior year quarter. Net loss for the fourth quarter of 2025 was $(18.3) million or $(0.37) per diluted share, down from net loss of $(34.2) million or $(0.69) per diluted share for the prior year quarter. The year over year improvement in net loss was primarily attributable to higher gross profit and lower operating expenses before merger and restructuring expenses and foreign exchange gains, partially offset by merger and restructuring expenses.

Fiscal Year 2025 Financial Results

Net sales were $239.4 million for fiscal year 2025 compared to $313.9 million in the prior year. Included in 2025 net sales was the recognition of $27.5 million in China sales from the December 2024 China Shipment, which was deferred from the fourth quarter of 2024 to the second and third quarters of 2025 due to extended payment terms with the Company’s distributor. The decrease in net sales was due to the reduction of distributor and channel inventory in China in the first half of the year partially offset by increased sales outside of China. Excluding China, net sales for fiscal year 2025 were $161.7 million, an increase of 6.6% as compared to $151.6 million in the prior year.

Gross profit margin for fiscal year 2025 was 76.2% of total net sales compared to 76.3% of total net sales for fiscal year 2024.

Operating expenses for fiscal year 2025 were $274.1 million compared to $252.2 million in the prior year. Excluding merger and restructuring expenses, operating expenses for fiscal year 2025 were $228.4 million, a 9.4% reduction from the prior year.

Operating loss for fiscal year 2025 was $(91.7) million compared to operating loss of $(12.6) million for fiscal year 2024. Net loss for fiscal year 2025 was $(80.4) million or $(1.62) per diluted share compared with net loss of $(20.2) million or $(0.41) per diluted share for the prior year.

Cash, cash equivalents and investments available for sale at January 2, 2026, totaled $187.5 million, compared to $230.5 million at the end of the fourth quarter of 2024. The Company had no outstanding debt.

For the year ended January 2, 2026, the Company repurchased approximately 376,000 shares of its common stock under its $30 million share repurchase program announced in May 2025, for a total cost of approximately $6.5 million. The average purchase price per share was $17.20. As of January 2, 2026, approximately $23.5 million remained available under the current authorization.

Earnings Conference Call and Webcast

The Company will host an earnings conference call and webcast today, Tuesday, March 3 at 5:30 p.m. Eastern / 2:30 p.m. Pacific to discuss its financial results and operational progress. To access the webcast please use the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=J3bNAuVd

In addition to live questions, participants may submit questions by email to ir@staar.com

1	Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial measures. For further information on non-GAAP financial measures, please refer to the “Use of Non-GAAP Financial Measures” section of this press release. Please also refer to the tables at the end of this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure.
2	In-market sales reflect sales from the Company’s distributors to customers and end-users in China. This data is collected and provided by the Company’s distributors and is used by the Company to estimate in-market demand and analyze trends. This data is unaudited by the Company and can be impacted by timing of orders placed, returns, and other factors.

Use of Non-GAAP Financial Measures

To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense, restructuring, impairment and related charges, and commencing with the fourth quarter ended January 2, 2026, merger transaction and related costs. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. The Company believes that restructuring, impairment and related charges are not indicative of the underlying operating expense profile for the Company. These charges, which include costs related to severance, reduction in force and consulting expenses, impairment expenses on leasehold improvements and machinery and equipment, impairment on real property right-of-use assets, and impairment of internally developed software, are anticipated to be completed within a finite period of time and can vary significantly in any specific period. The Company believes that excluding restructuring, impairment and related charges from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business operations and better assess the Company’s current and future continuing operations. Similarly, the Company believes that merger transaction and related costs are not indicative of the underlying operating expense profile for the Company and that excluding such costs from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business.

The Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company’s results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the “constant currency” rate to sales or expenses in the current period as well.

In the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income (loss) and net income (loss) per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency.

About STAAR Surgical

STAAR Surgical (NASDAQ: STAA) is the global leader in implantable phakic intraocular lenses, a vision correction solution that reduces or eliminates the need for glasses or contact lenses. Since 1982, STAAR has been dedicated solely to ophthalmic surgery, and for 30 years, STAAR has been designing, developing, manufacturing, and marketing advanced Implantable Collamer® Lenses (ICLs), using its proprietary biocompatible Collamer material. STAAR ICL’s are clinically-proven to deliver safe long-term vision correction without removing corneal tissue or the eye’s natural crystalline lens. Its EVO ICL™ product line provides visual freedom through a quick, minimally invasive procedure. STAAR has sold more than 4 million ICLs in over 85 countries. Headquartered in Lake Forest, California, the company operates research, development, manufacturing, and packaging facilities in California and Switzerland. For more information about ICL, visit www.EVOICL.com. To learn more about STAAR, visit http://www.staar.com.

We intend to use our website as a means of disclosing material non-public information about the Company and complying with Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections at investors.staar.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the Email Alerts section at investors.staar.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as “anticipate,” “believe,” “expect,” “plan,” “estimate,” “project,” “continue,” “will,” “should,” “may,” and similar terms. All statements in this press release that are not statements of historical fact are forward-looking statements. These forward-looking statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: our ability to grow and generate profit; our reliance on independent distributors in international markets; a slowdown or disruption to the Chinese economy; global economic conditions; disruptions in our supply chain; fluctuations in foreign currency exchange rates; international trade disputes (including involving tariffs) and substantial dependence on demand from Asia; changes in effective tax rate or tax laws; any loss of use of our principal manufacturing facility; competition; potential losses due to product liability claims; our exposure to environmental liability; data corruption, cyber-based attacks or network security breaches and/or noncompliance with data protection and privacy regulations; acquisitions of new technologies; climate changes; the willingness of surgeons and patients to adopt a new or improved product and procedure; extensive clinical trials and resources devoted to research and development; compliance with government regulations; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; laws pertaining to healthcare fraud and abuse; changes in FDA or international regulations related to product approval; product recalls or failures; and other important factors set forth in the Company’s Annual Report on Form 10-K for the year ended January 2, 2026 under the caption “Risk Factors,” which is filed with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Information” section of the Company’s website under the heading “SEC Filings,” as any such factors may be updated from time to time in the Company’s other filings with the SEC.

Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated Balance Sheets
(in 000's)
Unaudited
ASSETS		January 2, 2026				December 27, 2024
Current assets:
Cash and cash equivalents		$	153,150			$	144,159
Investments available for sale			34,386				86,335
Accounts receivable trade, net			50,064				77,897
Inventories, net			55,496				43,305
Prepayments, deposits, and other current assets			18,449				16,244
Total current assets			311,545				367,940
Property, plant, and equipment, net			73,323				84,889
Finance lease right-of-use assets, net			-				37
Operating lease right-of-use assets, net			29,609				36,850
Cloud-based software			30,700				15,763
Goodwill			1,786				1,786
Deferred income taxes			3,365				788
Other assets			1,350				1,471
Total assets		$	451,678			$	509,524
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	11,574			$	16,704
Obligations under finance leases			-				42
Obligations under operating leases			5,872				3,894
Allowance for sales returns			10,199				6,579
Other current liabilities			40,859				43,087
Total current liabilities			68,504				70,306
Obligations under operating leases			32,481				34,807
Deferred income taxes			-				297
Asset retirement obligations			45				42
Deferred rent			89				-
Pension liability			6,375				6,737
Total liabilities			107,494				112,189
Stockholders' equity:
Common stock			498				493
Additional paid-in capital			504,682				471,449
Treasury Stock			(6,461	)			-
Accumulated other comprehensive loss			(6,511	)			(7,031	)
Accumulated deficit			(148,024	)			(67,576	)
Total stockholders' equity			344,184				397,335
Total liabilities and stockholders' equity		$	451,678			$	509,524

Consolidated Statements of Operations
(in 000's except for per share data)
Unaudited
		Three Months Ended																					Twelve Months Ended
		% of Sales			January 2, 2026				% of Sales			December 27, 2024				Fav (Unfav) Amount				%			% of Sales			January 2, 2026				% of Sales			December 27, 2024				Fav (Unfav) Amount				%
Net sales		100.0	%		$	57,801			100.0	%		$	48,950			$	8,851			18.1	%		100.0	%		$	239,442			100.0	%		$	313,901			$	(74,459	)		(23.7	)%
Cost of sales		24.3	%			14,060			35.3	%			17,302				3,242			18.7	%		23.8	%			57,022			23.7	%			74,319				17,297			23.3	%
Gross profit		75.7	%			43,741			64.7	%			31,648				12,093			38.2	%		76.2	%			182,420			76.3	%			239,582				(57,162	)		(23.9	)%
Selling, general and administrative expenses:
General and administrative		33.9	%			19,593			43.6	%			21,344				1,751			8.2	%		35.8	%			85,783			28.6	%			89,898				4,115			4.6	%
Selling and marketing		44.7	%			25,839			58.1	%			28,443				2,604			9.2	%		42.8	%			102,528			37.3	%			116,978				14,450			12.4	%
Research and development		16.0	%			9,244			20.0	%			9,771				527			5.4	%		16.7	%			40,055			14.4	%			45,317				5,262			11.6	%
Total selling, general, and administrative expenses		94.6	%			54,676			121.7	%			59,558				4,882			8.2	%		95.3	%			228,366			80.3	%			252,193				23,827			9.4	%
Merger transaction and related costs		19.4	%			11,209			0.0	%			-				(11,209	)		0.0	%		7.2	%			17,135			0.0	%			-				(17,135	)		0.0	%
Restructuring, impairment and related charges		1.2	%			694			0.0	%			-				(694	)		0.0	%		12.0	%			28,632			0.0	%			-				(28,632	)		0.0	%
Total operating expenses		115.2	%			66,579			121.7	%			59,558				(7,021	)		(11.8	)%		114.5	%			274,133			80.3	%			252,193				(21,940	)		(8.7	)%
Operating loss		(39.5	)%			(22,838	)		(57.0	)%			(27,910	)			5,072			18.2	%		(38.3	)%			(91,713	)		(4.0	)%			(12,611	)			(79,102	)		(627.2	)%
Other income (expense):
Interest income, net		1.8	%			1,072			3.2	%			1,553				(481	)		(31.0	)%		1.9	%			4,594			1.9	%			5,911				(1,317	)		(22.3	)%
Gain (loss) on foreign currency transactions		(0.9	)%			(535	)		(8.7	)%			(4,260	)			3,725			87.4	%		1.1	%			2,603			(1.3	)%			(3,675	)			6,278			170.8	%
Royalty income		0.0	%			-			0.0	%			-				-			0.0	%		0.0	%			-			0.1	%			508				(508	)		(100.0	)%
Other income, net		2.9	%			1,649			0.6	%			283				1,366			482.7	%		0.9	%			2,253			0.3	%			815				1,438			176.4	%
Total other income (expense), net		3.8	%			2,186			(4.9	)%			(2,424	)			4,610			190.2	%		3.9	%			9,450			1.0	%			3,559				5,891			165.5	%
Loss before provision for income taxes		(35.7	)%			(20,652	)		(61.9	)%			(30,334	)			9,682			31.9	%		(34.4	)%			(82,263	)		(3.0	)%			(9,052	)			(73,211	)		(808.8	)%
Provision (benefit) for income taxes		(4.1	)%			(2,343	)		8.0	%			3,894				6,237			160.2	%		(0.8	)%			(1,815	)		3.6	%			11,156				12,971			116.3	%
Net loss		(31.6	)%			(18,309	)		(69.9	)%			(34,228	)			15,919			46.5	%		(33.6	)%			(80,448	)		(6.6	)%			(20,208	)			(60,240	)		(298.1	)%
Net loss per share - basic						(0.37	)						(0.69	)													(1.62	)						(0.41	)
Net loss per share - diluted						(0.37	)						(0.69	)													(1.62	)						(0.41	)
Weighted average shares outstanding - basic						49,758							49,266														49,568							49,125
Weighted average shares outstanding - diluted						49,758							49,266														49,568							49,125

Consolidated Statements of Cash Flows
(in 000's)
Unaudited
		Three Months Ended								Twelve Months Ended
		January 2, 2026				December 27, 2024				January 2, 2026				December 27, 2024
Cash flows from operating activities:
Net loss		$	(18,309	)		$	(34,228	)		$	(80,448	)		$	(20,208	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment			2,007				2,375				8,319				6,891
Amortization of capitalized cloud-based software			105				-				409				-
Non-cash operating lease expense			905				973				3,570				3,562
Impairment of fixed assets and operating leases			811				-				15,404				-
Gain on fixed asset recovery			(1,458	)			-				(1,458	)			-
Accretion/Amortization of investments available for sale			(143	)			(681	)			(198	)			(1,091	)
Deferred income taxes			(2,198	)			3,543				(2,916	)			3,590
Change in net pension liability			(292	)			188				(249	)			26
Stock-based compensation expense			8,613				4,669				30,588				27,210
Change in asset retirement obligation			4				(77	)			4				(53	)
Loss on disposal of property and equipment			51				26				74				1,694
Provision for sales returns and bad debts			2,689				(1,661	)			3,664				286
Inventory provision			2,073				909				5,334				2,782
Changes in working capital:
Accounts receivable			9,830				26,196				27,834				16,493
Inventories			(4,532	)			(4,038	)			(16,981	)			(10,000	)
Prepayments, deposits and other assets			(2,403	)			440				(1,352	)			(2,006	)
Cloud-based software			(4,700	)			(3,566	)			(15,764	)			(13,357	)
Accounts payable			2,404				2,106				(5,507	)			75
Other current and long-term liabilities			629				3,468				(4,557	)			(169	)
Net cash provided by (used in) operating activities			(3,914	)			642				(34,230	)			15,725
Cash flows from investing activities:
Acquisition of property and equipment			(1,677	)			(5,725	)			(5,820	)			(23,394	)
Purchase of investments available for sale			(48,899	)			(19,046	)			(75,363	)			(80,240	)
Proceeds from sale or maturity of investments available for sale			31,161				5,276				127,522				44,417
Net provided by (used in) investing activities			(19,415	)			(19,495	)			46,339				(59,217	)
Cash flows from financing activities:
Repayment of finance lease obligations			-				(41	)			(42	)			(165	)
Repurchase of common stock			-				-				(6,461	)			-
Repurchase of employee common stock for taxes withheld			(164	)			(109	)			(1,520	)			(1,505	)
Proceeds from vested restricted stock and exercise of stock options			114				40				3,468				7,394
Net cash provided by (used in) financing activities			(50	)			(110	)			(4,555	)			5,724
Effect of exchange rate changes on cash and cash equivalents			374				(881	)			1,437				(1,111	)
Increase (decrease) in cash and cash equivalents			(23,005	)			(19,844	)			8,991				(38,879	)
Cash and cash equivalents, at beginning of the period			176,155				164,003				144,159				183,038
Cash and cash equivalents, at end of the period		$	153,150			$	144,159			$	153,150			$	144,159

Reconciliation of Non-GAAP Financial Measure
Net Income to Adjusted EBITDA
(in 000's except for per share data)
Unaudited
			2023			Q1-24				Q2-24				Q3-24				Q4-24(5)					2024(5)			Q1-25				Q2-25(5)				Q3-25(5)				Q4-25					2025(5)
Net income (loss) - (as reported)		$	21,347			$	(3,339	)		$	7,379			$	9,980			$	(34,228	)		$	(20,208	)		$	(54,211	)		$	(16,812	)		$	8,884			$	(18,309	)		$	(80,448	)
Provision (benefit) for income taxes			12,349				1,128				2,955				3,179				3,894				11,156				(275	)			(9,103	)			9,906				(2,343	)			(1,815	)
Other (income) expense, net			(5,599	)			(70	)			1,564				(7,477	)			2,424				(3,559	)			(2,915	)			(4,049	)			(300	)			(2,186	)			(9,450	)
Depreciation			5,111				1,237				1,522				1,757				2,375				6,891				2,337				1,975				2,000				2,007				8,319
(Gain) loss on disposal of property plant and equipment(2)			73				-				26				1,642				26				1,694				-				-				23				51				74
Amortization of capitalized cloud-based software			-				-				-				-				-				-				53				147				104				105				409
Restructuring, impairment and related charges(3)			-				-				-				-				-				-				22,664				5,248				26				694				28,632
Merger transaction and related costs(4)			-				-				-				-				-				-				-				-				5,926				11,209				17,135
Amortization of intangible assets			13				-				-				-				-				-				-				-				-				-				-
Stock-based compensation			23,516				6,339				9,042				7,160				4,669				27,210				6,015				7,802				8,158				8,613				30,588
Adjusted EBITDA		$	56,810			$	5,295			$	22,488			$	16,241			$	(20,840	)		$	23,184			$	(26,332	)		$	(14,792	)		$	34,727			$	(159	)		$	(6,556	)
Net income (loss) as a % of Sales			6.7	%			(4.3	)%			7.4	%			11.3	%			(69.9	)%			(6.6	)%			(127.3	)%			(38.0	)%			9.3	%			(31.6	)%			(33.6	)%
Adjusted EBITDA as a % of Sales			17.6	%			6.8	%			22.7	%			18.3	%			(42.6	)%			7.4	%			(61.8	)%			(33.4	)%			36.7	%			(0.3	)%			(2.7	)%
Net income (loss) per share, diluted - (as reported)		$	0.43			$	(0.07	)		$	0.15			$	0.20			$	(0.69	)		$	(0.41	)		$	(1.10	)		$	(0.34	)		$	0.18			$	(0.37	)		$	(1.62	)
Provision (benefit) for income taxes			0.25				0.02				0.06				0.06				0.08				0.22				(0.01	)			(0.18	)			0.20				(0.05	)			(0.04	)
Other (income) expense, net			(0.11	)			-				0.03				(0.15	)			0.05				(0.07	)			(0.06	)			(0.08	)			(0.01	)			(0.04	)			(0.19	)
Depreciation			0.10				0.03				0.03				0.04				0.05				0.14				0.05				0.04				0.04				0.04				0.17
(Gain) loss on disposal of property plant and equipment			-				-				-				0.03				-				0.03				-				-				-				-				-
Amortization of capitalized cloud-based software			-				-				-				-				-				-				-				-				-				-				0.01
Restructuring, impairment and related charges			-				-				-				-				-				-				0.46				0.11				-				0.01				0.58
Merger transaction and related costs			-				-				-				-				-				-				-				-				0.12				0.23				0.35
Amortization of intangible assets			-				-				-				-				-				-				-				-				-				-				-
Stock-based compensation			0.48				0.13				0.18				0.14				0.09				0.55				0.12				0.16				0.16				0.17				0.62
Adjusted EBITDA per share, diluted(1)		$	1.15			$	0.11			$	0.45			$	0.33			$	(0.42	)		$	0.47			$	(0.53	)		$	(0.30	)		$	0.69			$	-			$	(0.13	)
Weighted average shares outstanding - Diluted			49,427				48,907				49,811				49,731				49,266				49,597				49,344				49,520				50,549				49,758				49,568

(1)	Adjusted EBITDA per diluted share may not add due to rounding.
(2)	The Q3-2024 non cash write-off of $1.6M was related to the former EVO Experience Center.
(3)	This was related to severance, consulting expenses and impairment on operating leases, machinery and equipment, leasehold improvements and internally developed software.
(4)	These are costs related to the merger with Alcon, which was terminated on January 6, 2026.
(5)	As previously disclosed, in December 2024 the Company shipped $27.5 million of ICLs to one of its distributors in China (the “December China Shipment”). The December China Shipment was subject to extended payment terms and was paid in full during Q3 FY25 pursuant to such payment terms. Cost of sales for the December China Shipment of $3.9 million was recognized upon shipment in Q4 FY24. Net sales for the December China Shipment were recognized as payments were received, with $1.6 million and $25.9 million of net sales recognized in Q2 FY25 and Q3 FY25, respectively, at 100% gross margin. If the cost of sales was recognized during the same period as the corresponding net sales, cost of sales related to the December China Shipment would have been $0.2 million and $3.7 million in Q2 FY25 and Q3 FY25, respectively.

Sales by Geography
(in 000's)
Unaudited
		Fiscal Year												Three Months Ended
Sales by Region(1)			2023				2024				2025			December 27, 2024				March 28, 2025				June 27, 2025				September 26, 2025				January 2, 2026
Americas(2)		$	22,315			$	25,229			$	28,788			$	6,387			$	6,739			$	7,307			$	7,211			$	7,531
EMEA(3)			40,063				43,511				44,733				12,286				13,110				11,436				10,364				9,823
APAC(4)			260,037				245,161				165,921				30,277				22,740				25,577				77,157				40,447
Global Sales		$	322,415			$	313,901			$	239,442			$	48,950			$	42,589			$	44,320			$	94,732			$	57,801
Global Sales Growth			13	%			(3	)%			(24	)%			(36	)%			(45	)%			(55	)%			7	%			18	%
Americas Sales Growth			13	%			13	%			14	%			20	%			9	%			10	%			20	%			18	%
EMEA Sales Growth			(2	)%			9	%			3	%			7	%			16	%			11	%			8	%			(20	)%
APAC Sales Growth			16	%			(6	)%			(32	)%			(49	)%			(62	)%			(69	)%			6	%			34	%
Global ICL Unit Growth			19	%			(6	)%			(27	)%			(39	)%			(48	)%			(63	)%			9	%			15	%
		Fiscal Year												Three Months Ended
Sales by Country(5)			2023				2024				2025			December 27, 2024				March 28, 2025				June 27, 2025				September 26, 2025				January 2, 2026
China		$	184,569			$	162,287			$	77,781			$	7,823			$	(877	)		$	5,299			$	55,833			$	17,526
Growth			25	%			(12	)%			(52	)%			(81	)%			(102	)%			(92	)%			6	%			124	%
Japan		$	38,468			$	41,841			$	45,265			$	10,963			$	11,395			$	10,915			$	11,226			$	11,729
Growth			(11	)%			9	%			8	%			10	%			9	%			10	%			7	%			7	%
South Korea		$	19,880			$	21,636			$	23,380			$	5,880			$	7,522			$	4,293			$	5,491			$	6,074
Growth			11	%			9	%			8	%			17	%			12	%			9	%			8	%			3	%
United States		$	17,221			$	19,896			$	22,558			$	4,881			$	5,459			$	5,635			$	5,632			$	5,832
Growth			17	%			16	%			13	%			17	%			11	%			4	%			20	%			19	%
Global Sales Ex China		$	137,846			$	151,614			$	161,661			$	41,127			$	43,466			$	39,021			$	38,899			$	40,275
Growth			1	%			10	%			7	%			14	%			12	%			10	%			8	%			(2	)%

Notes:
(1)	Certain adjustments have been reclassed from EMEA to APAC. Prior periods have changed to conform to the current presentation.
(2)	Americas includes the United States, Canada and Latin American countries.
(3)	EMEA includes Spain, Germany, United Kingdom, European, Middle East and Africa Distributors.
(4)	APAC includes China, Japan, South Korea, India and the rest of Asia Pacific distributors.
(5)	Sales by country includes countries representing more than 5% of total sales in the most recently completed fiscal year.

Constant Currency Sales
Constant Currency Sales
(in 000's)
Unaudited
		Three Months Ended										Three Months Ended			As Reported							Constant Currency
Sales		January 2, 2026			Effect of Currency				Constant Currency			December 27, 2024			$ Change				% Change			$ Change				% Change
Total Sales		$	57,801		$	(702	)		$	57,099		$	48,950		$	8,851			18.1	%		$	8,149			16.6	%
		Twelve Months Ended										Twelve Months Ended			As Reported							Constant Currency
Sales		January 2, 2026			Effect of Currency				Constant Currency			December 27, 2024			$ Change				% Change			$ Change				% Change
Total Sales		$	239,442		$	(1,992	)		$	237,450		$	313,901		$	(74,459	)		(23.7	)%		$	(76,451	)		(24.4	)%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260303436397/en/

Investor/Media Contact:

Connie Johnson

cjohnson@staar.com

(626) 303-7902 (ext. 2207)

Asia Investor/Media Contact:

Niko Liu, CFA

nliu@staar.com

United States: (626) 303-7902 (ext. 3023)

Hong Kong: +852 6092-5076

ir@staar.com

Source: STAAR Surgical Company