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1. Company Snapshot

1.a. Company Description

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye.The company provides Visian implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia; and Hyperopic ICL, which treats far-sightedness.It also offers preloaded silicone cataract intraocular lenses and injector systems for use in cataract surgery.


In addition, the company sells injector parts, and other related instruments and devices.It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists.The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally.


STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.

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1.b. Last Insights on STAA

The recent 3-month performance of STAAR Surgical Company was negatively impacted by a series of events. The company's Q4 2025 earnings release missed the Zacks Consensus Estimate, with quarterly earnings of $0.04 per share, compared to a loss of $0.5 per share a year ago. This disappointing earnings report was a significant setback for the company. Additionally, the company's proposed sale to Alcon Inc. has been met with resistance from some shareholders, including Defender Capital, which has expressed its intention to vote against the deal. Furthermore, the company's recent FDA nod to expand the EVO ICL age indication to 60 years, while a positive development, may not have been enough to offset the negative sentiment surrounding the company.

1.c. Company Highlights

2. STAAR Surgical's 2025 Earnings: A Year of Stabilization and Growth Ahead

STAAR Surgical Company reported fourth quarter 2025 net sales of $57.8 million, a 17.7% increase from the year-ago quarter. The gross profit margin for the fourth quarter was 75.7% of total net sales, up from 64.7% in the prior year quarter. However, the company's EPS came out at -$0.2, missing estimates of $0.18. Total operating expenses for the fourth quarter were $66.6 million, including costs related to the terminated merger transaction with Alcon and restructuring costs.

Publication Date: Mar -08

📋 Highlights
  • Q4 2025 Net Sales Growth:: Increased 17.7% year-over-year to $57.8 million.
  • Operating Expense Reduction:: Fourth-quarter operating expenses were $66.6 million, aligning with the $225 million annual target.
  • China Market Recovery:: Mid-single-digit EVO ICL demand recovery in China, despite no net sales growth in 2025.
  • US Market Expansion:: 8 million additional potential candidates for EVO ICL due to expanded age range approval in the U.S.
  • Strong Liquidity Position:: Closed Q4 with $187.5 million in cash, cash equivalents, and investments, no debt.

Financial Performance and Outlook

The company is optimistic about 2026, expecting to significantly increase sales and target profitability, with a focus on maintaining cost discipline and driving operating leverage. STAAR expects to maintain its operating expense run rate at levels generally aligned to the $225 million target and resume cash generation in the back half of the year. Analysts estimate next year's revenue growth at 17.0%, which is in line with the company's plans to reaccelerate growth in existing markets and unlock opportunities with new product offerings.

Market Dynamics and Product Pipeline

STAAR is making progress in its innovation pipeline, with a focus on delivering new products, including the Lioli injector and EVO+. The company's EVO product and differentiated Collamer material are key drivers of its growth strategy. As Warren Foust, Interim Co-CEO, mentioned, the company is "well-positioned to reaccelerate growth in existing markets and unlock opportunities with new product offerings." The expanded age range indication for EVO in the United States is expected to increase the potential candidate pool by roughly 8 million.

Valuation and Ratios

With a P/S Ratio of 3.81 and EV/EBITDA of -21.26, the market is pricing in significant growth expectations for STAAR Surgical. The company's ROE and ROIC are currently negative, at -23.24% and -20.05%, respectively. However, with a strong cash position and no debt, STAAR is well-positioned to drive growth and improve profitability. The current valuation multiples suggest that the market is expecting a turnaround in the company's performance.

China Market and Competition

The company's largest market, China, saw stabilized conditions in 2025, with in-market EVO ICL demand recovering at mid-single-digit rates. STAAR is prioritizing growth in China and is cautiously optimistic about the economy, expecting single-digit in-market demand growth in 2025. The company is also investing in its US business, where it has seen double-digit growth in 2025. The competitive landscape is intense, but STAAR believes its Collamer lens is a differentiator, and the ASP delta between EVO+ and EVO in China is a competitive advantage.

3. NewsRoom

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Defender Capital LLC. Takes $15.43 Million Position in STAAR Surgical Company $STAA

Mar -26

Source: defenseworld.net

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Insider Buying: STAAR Surgical (NASDAQ:STAA) Director Purchases $5,881,076.37 in Stock

Mar -16

Source: defenseworld.net

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Insider Buying: STAAR Surgical (NASDAQ:STAA) Director Purchases $5,425,707.84 in Stock

Mar -16

Source: defenseworld.net

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STAAR Surgical Company (STAA) Q4 2025 Earnings Call Transcript

Mar -04

Source: seekingalpha.com

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Staar Surgical (STAA) Lags Q4 Earnings and Revenue Estimates

Mar -03

Source: zacks.com

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Reviewing STAAR Surgical (NASDAQ:STAA) & Merit Medical Systems (NASDAQ:MMSI)

Feb -22

Source: defenseworld.net

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BCK Capital Management LP Invests $1.37 Million in STAAR Surgical Company $STAA

Feb -21

Source: defenseworld.net

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STAA Gains FDA Nod to Expand EVO ICL Age Indication to 60 Years

Feb -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.98%)

6. Segments

Implantable Collamer Lenses

Expected Growth: 12.0%

STAAR Surgical's Implantable Collamer Lenses' 12.0% growth driven by increasing demand for refractive surgery, rising prevalence of myopia and presbyopia, expanding adoption in emerging markets, and innovative product enhancements. Additionally, growing awareness of visual freedom and convenience, coupled with a strong distribution network, contribute to the segment's rapid growth.

Other Surgical Products

Expected Growth: 10.0%

STAAR Surgical's 10.0% growth in Other Surgical Products is driven by increasing adoption of minimally invasive surgeries, rising demand for ophthalmic procedures, and expansion into emerging markets. Additionally, the company's strategic partnerships and investments in R&D have enhanced its product portfolio, contributing to the segment's growth.

Cataract Intraocular Lenses

Expected Growth: 11.0%

STAAR Surgical's 11.0% growth in Cataract Intraocular Lenses is driven by increasing demand for premium lenses, expanding adoption in emerging markets, and a growing elderly population. Additionally, advancements in lens technology, such as toric and multifocal lenses, are driving sales. The company's strategic partnerships and expanded distribution channels also contribute to its growth.

7. Detailed Products

Visian Implantable Collamer Lenses (ICLs)

A type of refractive implant designed to correct nearsightedness, farsightedness, and astigmatism.

EVO/EVO+ Visian Implantable Collamer Lenses (ICLs)

Advanced versions of ICLs with improved design and materials for better visual outcomes.

KS-Aquport

A micro-incisional device used in cataract surgery to create a precise and stable incision.

NanoFlex

A range of intraocular lenses (IOLs) designed for cataract surgery and refractive lens exchange.

TORIC IOLs

Intraocular lenses designed to correct astigmatism in cataract surgery.

8. STAAR Surgical Company's Porter Forces

Forces Ranking

Threat Of Substitutes

STAAR Surgical Company's Visian ICL and EVO/EVO+ lenses are unique products with no direct substitutes, but patients may opt for alternative treatments such as LASIK or PRK, which could impact sales.

Bargaining Power Of Customers

STAAR Surgical Company's customers, primarily ophthalmologists and optometrists, have limited bargaining power due to the company's strong brand reputation and limited alternative suppliers.

Bargaining Power Of Suppliers

STAAR Surgical Company's suppliers, primarily manufacturers of raw materials, have limited bargaining power due to the company's large scale of operations and diversified supply chain.

Threat Of New Entrants

The ophthalmic industry has high barriers to entry, including significant R&D investments, regulatory approvals, and established distribution networks, making it difficult for new entrants to compete with STAAR Surgical Company.

Intensity Of Rivalry

The ophthalmic industry is highly competitive, with established players such as Alcon, Johnson & Johnson, and Bausch + Lomb, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.50%
Debt Cost 3.95%
Equity Weight 91.50%
Equity Cost 7.95%
WACC 7.61%
Leverage 9.28%

11. Quality Control: STAAR Surgical Company passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AngioDynamics

A-Score: 4.5/10

Value: 5.9

Growth: 2.7

Quality: 4.6

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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InfuSystem Holdings

A-Score: 4.3/10

Value: 4.3

Growth: 5.7

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
STAAR Surgical

A-Score: 3.9/10

Value: 6.8

Growth: 4.1

Quality: 4.8

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Atrion

A-Score: 3.6/10

Value: 3.6

Growth: 3.0

Quality: 6.2

Yield: 1.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
NEXGEL

A-Score: 3.1/10

Value: 7.9

Growth: 4.9

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Femasys

A-Score: 2.8/10

Value: 6.2

Growth: 2.8

Quality: 3.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.89$

Current Price

17.89$

Potential

-0.00%

Expected Cash-Flows