STAAR Surgical reported fourth‑quarter 2025 net sales of $57.8 million, an 18.1 % year‑over‑year increase, and a gross profit margin of 75.7 %, up from 64.7 % in the same period a year earlier. The rebound was driven by a recovery in China demand and the timing of a $27.5 million shipment that was recognized in the quarter, which helped lift margin performance.
Full‑year 2025 results showed net sales of $239.4 million, a 23.4 % decline from $313.9 million in 2024. Operating loss widened to $91.7 million from $12.6 million, and net loss reached $80.4 million, or $1.62 per diluted share, versus $20.2 million ($0.41 per share) in 2024. The decline was largely due to the delayed recognition of the China shipment and higher operating expenses, including costs associated with the terminated merger with Alcon.
The company’s cost‑reduction program cut operating expenses by 8.2 % in the quarter and 9.4 % for the year, excluding merger and restructuring charges. The program is part of a broader effort to improve profitability, including the ramp‑up of Swiss manufacturing to mitigate tariff exposure and enhance operational leverage.
Revenue missed analyst expectations, falling $17.9 million short of the $75.81 million consensus estimate—a 23.8 % miss. EPS also missed, with a GAAP loss of $0.37 per share versus an estimate of $0.04, a significant shortfall. The miss reflects weaker demand, inventory normalization in China, and higher operating costs.
Management indicated that inventory normalization in China and the expansion of Swiss manufacturing will support revenue recovery and margin expansion in 2026. While no specific guidance figures were disclosed, the outlook signals confidence in a clear path toward sustained profitability and growth.
"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.
The market reaction was negative, with investors focusing on the miss on revenue and EPS, higher operating expenses, and uncertainty from the terminated merger.
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