STAAR Surgical’s second quarter results surpassed Wall Street’s expectations for both revenue and adjusted earnings, but the market reacted negatively, likely reflecting investor caution about the sustainability of recent growth. Management attributed the strong quarter to increased adoption of EVO Plus in China, ongoing market share gains from laser-based competitors, and consistent double-digit growth outside China, especially in the U.S. and EMEA. CEO Warren Foust emphasized that the company’s performance was supported by demand-driven growth in China, rather than inventory build, and highlighted the successful rollout of the new ERP system as a contributor to operational improvements.
Is now the time to buy STAA? Find out in our full research report (it’s free for active Edge members).
STAAR Surgical (STAA) Q2 CY2026 Highlights:
- Revenue: $93.54 million vs analyst estimates of $90.51 million (111% year-on-year growth, 3.3% beat)
- Adjusted EPS: $0.25 vs analyst estimates of $0.23 (9.7% beat)
- Adjusted EBITDA: $20 million vs analyst estimates of $17.64 million (21.4% margin, 13.4% beat)
- Operating Margin: 10.8%, up from -67.6% in the same quarter last year
- Market Capitalization: $1.24 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From STAAR Surgical’s Q2 Earnings Call
- John Young (Canaccord): Asked for clarification on Q3 expectations and the impact of one-time orders. CEO Warren Foust refrained from commenting on consensus but emphasized that underlying growth is expected off an adjusted base.
- Thomas Stephan (Stifel): Probed on normalized China growth rates and the impact of seasonality. Foust explained that Q1 and Q2 are now the seasonally strongest quarters, with Q3 and Q4 typically softer, but growth is still planned.
- Anthony Petrone (Mizuho Americas): Inquired about U.S. active sites and strategy between new versus existing accounts. Foust described focused efforts to deepen penetration at current sites and highlighted patient-driven demand as a key growth factor.
- Gursimran Kaur (Wells Fargo): Asked about the durability of China share gains amid emerging competition and the mechanism behind switching from laser-based procedures. Foust stated that EVO's material and reversibility are key differentiators, and competition has yet to significantly impact share.
- Ryan Zimmerman (BTIG): Questioned the sustainability of pricing power in China and the implications of a higher EVO Plus mix. Foust acknowledged that premium pricing is holding for now but remains focused on unit share and market expansion rather than offsetting price erosion.
Catalysts in Upcoming Quarters
Over the coming quarters, our team will be watching (1) whether EVO Plus supply can meet demand in China and further drive share gains, (2) the successful migration of manufacturing to Switzerland to lessen tariff impacts on margins, and (3) the rollout of new R&D initiatives and clinical studies for next-generation lens products. Progress in U.S. adoption and the effectiveness of operational investments will also be important markers.
STAAR Surgical currently trades at $24.65, down from $25.41 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free).
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