STAAR Surgical Q3 sales fall on China comparison; sees gross margin improving
STAA•STAAR Surgical's third-quarter net sales fell 12% year over year to $83.41 million, but rose 21% excluding deferred China sales. The company authorized a $50 million share buyback and expects fourth-quarter gross margins to rise above third-quarter levels.
1. Quarterly results
STAAR Surgical reported third-quarter net income of $5.58 million and earnings per share of $0.11, both down year over year as prior-year results included deferred China revenue.
2. China and margins
China sales rose 31% excluding deferred revenue, with higher average selling prices driven by greater adoption of EVO+ and toric lenses. STAAR completed the move of all China-bound implantable collamer lens manufacturing to Switzerland, which it expects to reduce tariff exposure and improve gross margin. Third-quarter gross margin was affected by higher manufacturing costs from low production volumes, increased freight costs, tariffs and inventory provisions; the company expects those pressures to ease in the fourth quarter.
3. Outlook and buyback
STAAR expects China seasonality to moderate fourth-quarter revenue and earnings, but not free cash flow. It expects unit costs to improve further in 2027 as both production facilities run at full capacity and authorized a $50 million share buyback program.
