STAAR Surgical Co (NASDAQ:STAA) Posts Mixed Q2 2025 Results as China Inventory Cuts Weigh on Revenue

STAAR Surgical Co (NASDAQ:STAA) Reports Mixed Q2 2025 Results Amid China Inventory Reduction

STAAR Surgical Co released its second-quarter 2025 earnings, revealing a significant year-over-year revenue decline but beating analyst estimates on both sales and earnings per share (EPS). The company’s performance reflects ongoing challenges in China, where distributors reduced inventory purchases, while other regions showed growth.

Key Financial Highlights

• Revenue: $44.3 million, down 55% year-over-year but above the consensus estimate of $41.4 million.
• EPS: Reported a net loss of $(0.34) per share, an improvement from $(1.10) in Q1 2025 and better than the estimated $(0.67).
• Ex-China Sales: Net sales outside China grew 10% year-over-year to $39.0 million.
• Gross Margin: 74.0%, down from 79.2% in Q2 2024 but recovering from 65.8% in Q1 2025.
• Cash Position: $189.9 million in cash and investments, with no outstanding debt.

Market Reaction

The stock has shown resilience in recent weeks, gaining 5.97% over the past month and 4.78% in the last two weeks. The after-hours reaction was neutral (0.0%), suggesting investors had already priced in the mixed results. The better-than-expected revenue and narrower-than-anticipated loss may have provided some relief, though concerns remain over China’s impact.

China’s Impact and Cost Optimization

The sharp revenue decline was primarily due to a planned reduction in channel inventory in China, where distributors relied on existing stock rather than new purchases. This was partially offset by growth in other markets. Meanwhile, STAAR Surgical has been cutting costs, with operating expenses down to $62.8 million from $66.5 million a year ago.

Share Repurchases and Pending Acquisition

The company repurchased 261,000 shares for $4.5 million under its $30 million buyback program. However, due to the pending acquisition by Alcon Inc, STAAR Surgical did not hold an earnings call, leaving investors without further guidance.

Looking Ahead

Analysts expect Q3 2025 revenue of $91.3 million and full-year sales of $259.3 million, though the company did not provide its own outlook. The lack of forward guidance is neither positive nor negative but leaves uncertainty around future performance.

For a deeper dive into STAAR Surgical’s earnings and estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.