> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# STAAR Surgical Sales Fall 12% To $83.4 Million, But Rise 21% Without A Year-Ago China Catch-Up
- URL: https://www.bullished.co/staar-surgical-sales-fall-12-to-83-4-million-but-rise-21-without-a-year-ago-china-catch-up-55091519/
- Published: 2026-11-04T23:28:41.000Z
- Updated: 2026-11-04T23:28:41.000Z
- Description: The lens maker earned $5.6 million in the third quarter, and its CFO said gross margin pressure should ease from the fourth quarter.
- Author: Matteo Parrino
- Tags: Earnings, STAA, Industry: Healthcare

[STAAR Surgical](https://www.bullished.co/tag/staa/), which makes implantable lenses for vision correction, said third-quarter sales [fell 12% to $83.4 million](https://www.sec.gov/Archives/edgar/data/0000718937/000071893726000040/staa-ex99%5F1.htm?ref=bullished.co) from $94.7 million, but rose 21% once a year-ago China catch-up is stripped out. The company reported the results Wednesday, and its CFO said margin pressure should start easing in the fourth quarter.

## A distorted comparison

The prior-year quarter held [$25.9 million](https://markets.ft.com/data/announce/detail?dockey=600-202611041601BIZWIRE%5FUSPRX%5F%5F%5F%5F20261104%5FBW516093-1&ref=bullished.co) of previously deferred China sales, tied to a $27.5 million lens shipment to a China distributor in December 2024 that was sold on extended payment terms. That revenue was booked as payments arrived, at a 100% gross margin. Without it, prior-year sales were $68.8 million.

China sales were [$39.3 million](https://markets.ft.com/data/announce/detail?dockey=600-202611041601BIZWIRE%5FUSPRX%5F%5F%5F%5F20261104%5FBW516093-1&ref=bullished.co), down 30%, but up 31% excluding the deferred sales. Sales outside China rose 13% to $44.1 million. EMEA climbed 31%, or 51% excluding the Middle East, and U.S. sales were $6.5 million.

CEO Warren Foust said all of the China sales increase in the quarter came from higher average selling prices, because the company could not yet fully meet lens demand. Unit volume shipped by its China distributors grew 12.4% in the first nine months of 2026, versus mid-single-digit growth in 2025.

## Margin hit and profit

Gross margin fell to 70.9% from 82.2%. The year-ago figure would have been 75.5% without the deferred revenue. The company blamed temporary factors: costly low-volume production in the second quarter after an ERP (enterprise software) rollout, higher freight, tariffs on U.S.-made lenses sold into China, and larger provisions for expiring inventory.

Net income was $5.6 million, or $0.11 per share, against $8.9 million, or $0.18, a year earlier. Adjusted EBITDA, the company's adjusted earnings measure, was $14.4 million versus $34.7 million. Cash and investments reached $206.4 million, with no debt.

CFO Deborah Andrews said temporary gross margin pressures are expected to abate beginning in the fourth quarter, adding that China seasonality should moderate revenue and earnings but not free cash flow. All China-bound lenses are now made in Switzerland, which should cut tariff exposure.

## Buyback and pipeline

STAAR designs and sells implantable lenses placed in the eye without removing the natural lens; nearly all its revenue comes from them. Its board authorized a $50 million share repurchase in September, saying it believes the shares are undervalued.

First-in-human trials of two next-generation presbyopia products are expected to begin enrolling patients in the next few months, subject to remaining regulatory authorizations. The Alcon merger agreement was terminated on January 6, 2026, and first-quarter results carried merger costs.

Nine-month sales hit a record $270.5 million, and the company says it remains on track for its $225 million operating expense target.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — STAAR SURGICAL CO (STAA)](https://www.sec.gov/Archives/edgar/data/0000718937/000071893726000040/staa-20261104.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit staa-ex99\_1.htm — STAAR SURGICAL CO 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000718937/000071893726000040/staa-ex99%5F1.htm?ref=bullished.co) — SEC EDGAR
- [STAAR Surgical Reports Third Quarter 2026 Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202611041601BIZWIRE%5FUSPRX%5F%5F%5F%5F20261104%5FBW516093-1&ref=bullished.co) — Financial Times

### More on STAAR Surgical

- [STAAR's Two China Distributors Now Hold 61% Of Its Trade Receivables, Up From 33%](https://www.bullished.co/staars-two-china-distributors-now-hold-61-of-its-trade-receivables-up-from-33-08c39f18/)
- [STAAR Surgical Corrects Its Disclosure Of David Bailey's $850,000 Grant: Half Stock Options, Not All Stock Units](https://www.bullished.co/staar-surgical-fixes-david-baileys-pay-terms-850-000-grant-was-split-wrongly-filing-says-43183eff/)

[All STAAR Surgical (STAA) coverage →](https://www.bullished.co/tag/staa/)