Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $57.8 million, compared to $49 million in the year-ago quarter, driven by a lower than expected rebound in sales in China, partially offset by growth in the Americas and non-China APAC regions [20] - Gross profit margin for Q4 2025 was 75.7% of total net sales, compared to 64.7% in the prior year quarter, primarily due to cost reductions and the ramp-up of Swiss manufacturing [22] - Adjusted EBITDA for Q4 2025 was a loss of $200,000, an improvement from a loss of $20.8 million in the year-ago quarter, attributed to higher gross profit and lower operating expenses [24] Business Line Data and Key Metrics Changes - China net sales for Q4 2025 were $17.5 million, up from $7.8 million in the year-ago quarter, although certain sub-distributors returned inventory, impacting sales [20] - Excluding China, net sales declined by 2% year-over-year, with the Americas up 18%, EMEA down 20%, and APAC ex-China up 2% in Q4 [22] Market Data and Key Metrics Changes - In China, demand for EVO ICL recovered at mid-single digit rates, but did not translate into net sales growth due to inventory reductions by distributors [9] - The U.S. business showed momentum despite a decline in laser vision correction procedures, with an expanded age range indication for EVO increasing the potential candidate pool by approximately 8 million [10] Company Strategy and Development Direction - The company aims for growth, improving profitability, and meaningful progress across its innovation pipeline in 2026, following a difficult transition year in 2025 [6] - Focus on enterprise-wide impacts and new ways of working to increase decision-making velocity and operational efficiency [12] - The company is advancing its innovation strategy with the launch of EVO+ in China and expanding the commercial availability of the Lioli injector for EVO ICL procedures [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in China and the potential for growth in 2026, despite ongoing macroeconomic challenges [9][78] - The company is not providing specific financial guidance for 2026 but expects to significantly increase sales compared to 2025 and target profitability [25][26] Other Important Information - The company has no debt and ended Q4 2025 with approximately $187.5 million in cash equivalents and investments [25] - The leadership structure has transitioned to a shared role of Interim Co-CEOs, focusing on continuity and alignment on priorities [5] Q&A Session Summary Question: Have the reductions in distributor inventory continued into the first quarter? - Management confirmed that inventory levels have stabilized and are below the six-month contractual level, indicating readiness for market recovery [31] Question: How does the health of the organization compare to pre-Alcon? - Management noted that expenses have been controlled since Q1 2025, and the organization is aligned around growth and profitability goals post-Alcon disruption [34] Question: What is the expected growth algorithm for 2026? - Management indicated that while they expect growth, it will not reach the hyper-growth levels seen in previous years, with a focus on restoring revenue and expanding profit margins [52] Question: What are the expectations for ICL and market growth in FY 2026? - Management expressed cautious optimism about further recovery in China, with Q4 2025 showing acceleration in market sales [78]