STAAR Surgical Company (NASDAQ: STAA), the global leader in phakic IOLs with the EVO family of Implantable Collamer® Lenses (EVO ICL™) for vision correction, today reported results for the third quarter ended September 26, 2025.

Third Quarter 2025 Financial Overview

• Net sales of $94.7 million up 6.9% Y/Y
• Net sales included $25.9 million related to the previously disclosed December 2024 ICL shipment that was subject to extended payment terms, and which was paid in full during the third quarter 2025 pursuant to such payment terms (the “December China Shipment”)
• Net sales excluding China of $38.9 million up 7.7% Y/Y
• Gross margin at 82.2% vs. 77.3% year ago due to the timing of the recognition of the cost of sales associated with the December China Shipment and decreased period costs resulting from cost reductions implemented in the first quarter of 2025
• Net income of $8.9 million or $0.18 per share, down from net income of $10.0 million or $0.20 per share year ago
• Adjusted EBITDA¹ of $34.6 million or $0.68 per share, up from Adjusted EBITDA of $16.2 million or $0.33 per share year ago

Third Quarter 2025 Results

Net sales were $94.7 million for the third quarter of 2025 compared to $88.6 million in the prior year quarter and $44.3 million in the second quarter of 2025. Net sales for the three months ended September 26, 2025, included $25.9 million related to the previously disclosed December China Shipment, which was paid in full during the third quarter of 2025. The year over year increase in net sales was primarily driven by the December China Shipment combined with 7.7% growth in net sales outside China, partially offset by lower new orders from distributors in China during the third quarter of 2025, due in part to leaner inventory management during the quarter. Excluding China, net sales were $38.9 million, an increase of 7.7% as compared to $36.1 million in the prior year quarter.

As previously disclosed, the Company shipped $27.5 million of ICLs in December 2024 to one of its distributors in China for which the distributor requested extended payment terms through September 2025. Given the extended payment terms, net sales for the shipment were not recognized by the Company until payments were received. The Company recognized $1.6 million related to this shipment in the second quarter of 2025 and the remaining $25.9 million in the third quarter of 2025, in each case upon receipt of corresponding payment. While the remaining $25.9 million related to the shipment was recognized in full during the third quarter of 2025, the associated ICL procedures took place throughout 2025. Sales for the nine months ended September 26,2025 were lower than the prior year period as distributors in China reduced their inventory by approximately $80 million to $85 million (inclusive of the $27.5 million December China Shipment) instead of purchasing new product from the Company.

Gross profit margin for the third quarter of 2025 was 82.2% of total net sales compared to the prior year quarter of 77.3% of total net sales and 74.0% of total net sales in the second quarter of 2025. The increase in gross profit margin versus the prior year quarter was due primarily to timing of the recognition of the cost of sales associated with the December China Shipment. The cost of sales for the December China Shipment was recognized in December 2024 when product was shipped, and net sales of $25.9 million was recognized upon payment in September 2025 at 100% gross margin. The increase in gross margin was also due in part to decreased period costs, as a result of cost reductions implemented in the first quarter of 2025.

Total operating expenses for the third quarter of 2025 were $59.4 million, compared to $62.8 million in the prior year quarter. Operating expenses for the quarter included costs related to the Company’s merger with Alcon of $5.9 million. The year over year decrease in operating expenses was driven by cost optimization efforts that primarily took place in the first half of 2025. General and administrative expenses were $20.8 million compared to $21.7 million in the prior year quarter and $21.0 million in the second quarter of 2025. The year over year decrease was primarily due to decreased outside services and facilities costs, partially offset by increased compensation related expenses. Selling and marketing expenses were $23.5 million compared to $28.9 million in the prior-year quarter, and $26.3 million in the second quarter of 2025. The year over year decrease was due to lower advertising and promotional spending during the third quarter of 2025 and as a result of costs and charges in the prior year period associated with the opening of the Company’s new experience center, partially offset by increased compensation related expenses. Research and development expenses were $9.2 million compared to $12.2 million in the prior year quarter and $10.3 million in the second quarter of 2025. The year over year decrease is the result of purchases of in-process research and development in the prior year period related to external AI tools for measurement and lens size selection.

Operating income for the third quarter of 2025 was $18.5 million compared to $5.7 million in the prior year quarter. Income taxes for the third quarter of 2025 were $9.9 million, compared to $3.2 million in the prior year quarter. The year over year increase in income taxes is due to the reversal of income tax benefits recorded in the first six months of 2025 as a result of the recognition in the third quarter of 2025 of the $25.9 million of net sales for the December China Shipment. Net income for the third quarter of 2025 was $8.9 million or $0.18 per diluted share, down from net income of $10.0 million or $0.20 per diluted share for the prior year quarter. The year over year decrease in net income was primarily attributable to lower other income, net and higher income taxes, offset by higher net sales, gross profit and reduced operating expenses.

Cash, cash equivalents and investments available for sale at September 26, 2025, totaled $192.7 million, compared to $189.9 million at the end of the second quarter of 2025. The Company had no outstanding debt.

During the third quarter of 2025, the Company repurchased approximately 115,000 shares of its common stock for a total cost of $2.0 million under its $30 million share repurchase program announced in May 2025, with an average purchase price of $17.20. For the nine months ended September 26, 2025, the Company repurchased approximately 376,000 shares of its common stock for a total cost of approximately $6.5 million. The average purchase price per share was $17.20. As of September 26, 2025, approximately $23.5 million remained available under the current authorization.

Due to the pending acquisition of the Company by Alcon Inc., the Company will not host a conference call to review its third quarter 2025 results.

Use of Non-GAAP Financial Measures

To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense, restructuring, impairment and related charges, and commencing with the third quarter ended September 26, 2025, merger transaction and related costs. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. The Company believes that restructuring, impairment and related charges are not indicative of the underlying operating expense profile for the Company. These charges, which include costs related to severance, reduction in force and consulting expenses, impairment expenses on leasehold improvements and machinery and equipment, impairment on real property right-of use assets, and impairment of internally developed software, are anticipated to be completed within a finite period of time and can vary significantly in any specific period. The Company believes that excluding restructuring, impairment and related charges from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business operations and better assess the Company’s current and future continuing operations. Similarly, the Company believes that merger transaction and related costs are not indicative of the underlying operating expense profile for the Company and that excluding such costs from Adjusted EBITDA allows investors to more consistently analyze period-to-period financial performance of its core business.

The Company also presents certain financial information on a constant currency basis, which is intended to exclude the effects of foreign currency fluctuations. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company’s results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the “constant currency” rate to sales or expenses in the current period as well.

In the tables provided below, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income (loss) and net income (loss) per diluted share, the most directly comparable GAAP financial measure, as well as supplemental financial information with net sales expressed in constant currency.

About STAAR Surgical

STAAR Surgical (NASDAQ: STAA) is the global leader in implantable phakic intraocular lenses, a vision correction solution that reduces or eliminates the need for glasses or contact lenses. Since 1982, STAAR has been dedicated solely to ophthalmic surgery, and for 30 years, STAAR has been designing, developing, manufacturing, and marketing advanced Implantable Collamer® Lenses (ICLs), using its proprietary biocompatible Collamer material. STAAR ICL’s are clinically-proven to deliver safe long-term vision correction without removing corneal tissue or the eye’s natural crystalline lens. Its EVO ICL™ product line provides visual freedom through a quick, minimally invasive procedure. STAAR has sold more than 3 million ICLs in over 75 countries. Headquartered in Lake Forest, California, the company operates research, development, manufacturing, and packaging facilities in California and Switzerland. For more information about ICL, visit www.EVOICL.com. To learn more about STAAR, visit www.staar.com.

We intend to use our website as a means of disclosing material non-public information about the Company and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections at investors.staar.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the Email Alerts section at investors.staar.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as “anticipate,” “believe,” “expect,” “plan,” “estimate,” “project,” “continue,” “will,” “should,” “may,” and similar terms. All statements in this press release that are not statements of historical fact are forward-looking statements. These forward-looking statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: our ability to continue our growth and profitability trajectory; our reliance on independent distributors in international markets; a slowdown or disruption to the Chinese economy; global economic conditions; disruptions in our supply chain; fluctuations in foreign currency exchange rates; international trade disputes (including involving tariffs) and substantial dependence on demand from Asia; changes in effective tax rate or tax laws; any loss of use of our principal manufacturing facility; competition; potential losses due to product liability claims; our exposure to environmental liability; data corruption, cyber-based attacks or network security breaches and/or noncompliance with data protection and privacy regulations; acquisitions of new technologies; climate changes; the willingness of surgeons and patients to adopt a new or improved product and procedure; extensive clinical trials and resources devoted to research and development; compliance with government regulations; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; laws pertaining to healthcare fraud and abuse; changes in FDA or international regulations related to product approval; product recalls or failures; the timing of, and completion of, or failure to complete, the pending acquisition of the Company by Alcon Inc.; risks related to disruption of management’s attention from the Company’s ongoing business operations due to the pending acquisition of the Company by Alcon Inc.; the effect of the announcement of the acquisition of the Company by Alcon Inc. on our ability to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business, or on its operating results and business generally; and other important factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 27, 2024 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Information” section of the Company’s website under the heading “SEC Filings,” as any such factors may be updated from time to time in the Company’s other filings with the SEC.

Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.