Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $57.8 million, compared to $49 million in the same quarter last year, driven by a lower than expected rebound in sales in China, partially offset by growth in the Americas and non-China APAC regions [21] - Gross profit margin for Q4 2025 was 75.7%, up from 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 [24] Business Line Data and Key Metrics Changes - China net sales in Q4 2025 were $17.5 million, up from $7.8 million in the year-ago quarter, although certain sub-distributors returned inventory, impacting sales [21] - 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 [10] - 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 [11] Company Strategy and Development Direction - The company aims for growth, improving profitability, and progress across its innovation pipeline in 2026, following a challenging 2025 [8] - Focus on enterprise-wide impacts and disciplined investing to drive profitability, including manufacturing improvements and optimizing average selling prices (ASPs) [13] - The launch of EVO+ in China and the expansion of the LIOLI injector for EVO ICL procedures are key components of the growth strategy [14][15] 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 previous macroeconomic challenges [10] - The company is focused on restoring revenue and maintaining cost discipline, with a target for profitability in FY 2026 [25][26] - Management emphasized the importance of innovation and the need to bring new products to market to maintain competitive advantage [85] Other Important Information - The company has engaged a search firm to find a permanent CEO, indicating a focus on leadership stability during this transition [8] - The company has no debt and ended Q4 2025 with approximately $187.5 million in cash equivalents and investments [25] Q&A Session Summary Question: Have the reductions in distributor inventory continued into Q1? - Management confirmed that inventory levels are stable and below contractual levels, indicating readiness for market recovery [32] 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 [36] Question: What is the expected growth for 2026? - Management refrained from providing specific guidance but expressed optimism about growth in both China and ex-China markets [44] Question: How is the company addressing inventory management in China? - Improved processes and weekly oversight of inventory levels have been implemented to prevent future buildups [47] Question: What is the strategy for U.S. growth versus China growth? - Management emphasized that while China remains the largest opportunity, the U.S. business is also seeing success and will continue to be a focus [53]

Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $57.8 million, compared to $49 million in the same quarter last year, driven by a lower than expected rebound in sales in China, partially offset by growth in the Americas and non-China APAC regions [21] - Gross profit margin for Q4 2025 was 75.7%, up from 64.7% in the prior year quarter, primarily due to the timing of cost recognition and cost reductions implemented earlier [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 in Q4 2025 were $17.5 million, up from $7.8 million in the year-ago quarter, although certain sub-distributors returned inventory, impacting sales [21] - 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 [10] - 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 [11] Company Strategy and Development Direction - The company aims for growth, improving profitability, and progress in its innovation pipeline for 2026, following a challenging 2025 [8] - Focus on enterprise-wide impacts and disciplined investing to drive profitability, including manufacturing improvements and optimizing average selling prices (ASPs) [13] - The company is advancing its ERP implementation and launching new products like EVO+ in China, which is expected to enhance margins and ASPs [14][15] 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 previous challenges [10] - The leadership team emphasized the importance of maintaining cost discipline while targeting profitability in FY 2026 [25] - Management acknowledged the need for continued innovation and the introduction of new products to capture market share [85] 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, aiming for continuity and alignment in strategy execution [6][8] Q&A Session Summary Question: Have the reductions in distributor inventory continued into Q1 or stabilized now that Alcon is behind? - Management reported stable inventory levels at distributors, slightly below the six-month contractual level, indicating readiness for market recovery [32] Question: How does the health of the organization today compare to pre-Alcon? - Management noted improved cost control and alignment within the organization post-Alcon, focusing on growth and profitability [36] Question: What is the expected growth for 2026 collectively? - Management refrained from providing specific guidance but expressed optimism about growth in both China and ex-China markets [44] Question: What structural changes have been implemented to prevent inventory buildups in China? - Enhanced processes for inventory management have been established, allowing for better visibility and control over distributor inventory levels [48] Question: How should we think about prioritization between U.S. growth and China growth? - Management emphasized that while the U.S. business is growing, China remains the largest opportunity, and investments will continue in both markets [53] Question: What is the growth algorithm moving forward? - Management indicated that while they do not expect to return to hyper-growth levels, they are working towards significant growth opportunities in 2026 [57]

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]

STAAR Surgical Company (STAA) FY Conference Summary Company Overview - STAAR Surgical is a 43-year-old company recognized as a global leader in ophthalmic surgery, offering a superior solution to LASIK with its EVO ICL lens technology [3][4] - The company operates in 75 countries, holding a significant refractive market share, particularly in Japan where it has a 70% share due to negative perceptions of LASIK [5][6] Core Points and Arguments - **Product Advantages**: The EVO ICL lens is reversible, provides UV protection, does not induce dry eye, and preserves corneal tissue, leading to rapid recovery and better contrast vision [4][12][14] - **Market Position**: STAAR holds approximately 12% of the global refractive market share, with significant opportunities for growth, especially in China and India [6][20] - **Growth Drivers**: The company anticipates growth driven by macroeconomic improvements and increased patient comfort with surgical options as word-of-mouth spreads [6][10][30] - **Financial Performance**: In FY 2024, STAAR reported revenues of $313.9 million, a 3% decline from FY 2023, primarily due to challenges in the Chinese market [10][34] - **Margins**: Gross margins decreased from 78.5% to 65.8% due to reduced production volume and increased reserves for obsolete inventory [35] Challenges and Strategic Focus - **Market Challenges**: The company faces headwinds from patient reluctance to pursue surgical options, particularly in the U.S., where fear of surgery is a significant barrier [6][27] - **China Market Concerns**: There are investor concerns regarding inventory levels and tariff issues in China, but the company believes these are transitory and manageable [21][41] - **Operational Restructuring**: STAAR is undergoing a restructuring to reduce SG&A expenses to a $225 million run rate, which is expected to improve financial health [36][42] Future Outlook - **Market Potential**: The myopia epidemic is expected to grow, with projections indicating that 50% of the global population may be affected by 2050, presenting a substantial market opportunity for STAAR [45] - **Long-term Confidence**: The company is optimistic about returning to historical earnings and cash flow generation as macroeconomic conditions improve [46][51] - **Strategic Shift**: There is a focus on expanding the market beyond current surgical candidates to include those using glasses and contacts, aiming to increase overall market penetration [55] Additional Insights - **Regulatory Wins**: Recent approvals in China for new product variations are seen as positive developments that could enhance market presence [17][22] - **Sales Growth**: Despite challenges, the company achieved a 9% year-over-year growth in markets outside of China, indicating resilience and potential for recovery [38] This summary encapsulates the key points discussed during the STAAR Surgical conference, highlighting the company's strengths, challenges, and strategic direction moving forward.

Financial Data and Key Metrics Changes - Total net sales for Q1 2025 were $42.6 million, down from $77.4 million in the same quarter last year, primarily due to minimal purchases by distributors in China [26][27] - Adjusted EBITDA for Q1 2025 was a loss of $26.4 million compared to earnings of $5.3 million in the prior year, reflecting a $33 million decrease in gross profit [27][28] - Gross margin for Q1 2025 was 65.8%, down from 78.9% year-over-year, impacted by higher manufacturing costs and increased inventory reserves [29][30] Business Line Data and Key Metrics Changes - Sales in China were $389,000 in Q1 2025, a significant drop from $38.5 million in the same quarter last year, as distributors consumed existing inventory [14][26] - Net sales excluding China were $42.2 million, representing a 9% growth year-over-year, driven by growth in APAC sales outside China [26][28] - The company expects to recognize $27.5 million in sales associated with a prior order in Q3 2025, which will help normalize reported sales in China [14][28] Market Data and Key Metrics Changes - The demand for ICL procedures in China is improving, with expectations for a strong second half of 2025 as inventory levels are managed [10][13] - The company is seeing growth in APAC markets outside China, with Japan, South Korea, and India contributing positively to sales performance [28][29] - The global prevalence of myopia is increasing, which is expected to drive demand for lens-based vision correction solutions [7][41] Company Strategy and Development Direction - The company aims to return to sustainable growth by addressing short-term tactical issues and focusing on strategic growth initiatives [8][10] - A new management structure has been implemented to enhance operational efficiency and drive shareholder value [9][10] - The company is expanding its manufacturing capabilities in Switzerland to mitigate tariff impacts and support future growth [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in China and the overall market for ICL procedures, despite global economic uncertainties [33][105] - The company is committed to transparency and aims to build trust with investors by delivering consistent results [60][68] - Management believes that the unique proprietary technology and first-mover advantage will sustain competitive advantages in the market [34][35] Other Important Information - The company has withdrawn its previous guidance due to economic uncertainty and evolving tariff situations, but remains optimistic about future performance [33][60] - The restructuring efforts are expected to continue into Q2, with additional charges anticipated as the company rightsizes its operations [27][28] - The company ended Q1 2025 with $222.8 million in cash and equivalents, with expectations to maintain cash above $140 million through the year [31][32] Q&A Session Summary Question: Can you elaborate on ICL sellout in Q1 2025 and trends for Q2? - Management noted that sellout rates were consistent across January, February, and March, and they are pleased with the pace of sales [46][47] Question: What is the competitive impact of Ibrite on ICL? - Management indicated that competition has been minimal so far, and they welcome it as it raises awareness of alternatives to glasses and contacts [48][50] Question: How does the consignment inventory strategy mitigate tariff impacts? - Management explained that consignment inventory is owned by the company and is positioned with distributors in China to avoid tariffs [17][71] Question: What is the pricing strategy for EVO ICL? - Management stated that there are no major changes in pricing strategy, emphasizing the high value of the EVO ICL to patients and surgeons [76][78] Question: How does the new leadership in China inform the broader strategy? - Management highlighted the importance of having experienced leadership in China to capitalize on opportunities and address challenges effectively [101][102]

Second Quarter 2024 Earnings Presentation August 7, 2024 NASDAQ: STAA Second Quarter 2024 STAAR Surgical Earnings Webcast Chair of the Board, President and CEO Chief Financial Officer TOM FRINZI PATRICK WILLIAMS Today's Speakers Investor Relations ? http://investors.staar.com Brian Moore VP, Investor Relations and Corporate Development +1 626.303.7902 x3023 > bmoore@staar.com Connie Johnson Director, Investor Relations and High-Performance Management Niko Liu, CFA Director, Investor Relations and Corporate ...