STAAR Surgical Releases Update in New Shareholder Letter
STAAR Surgical Company the global leader in phakic intraocular lenses (IOLs) and maker of the EVO family of Implantable Collamer® Lenses (EVO ICL™), issued a Shareholder Letter on March 3 following market close. The full earnings release is available on the Company’s investor relations website.
Letter to Shareholders
STAAR recently entered an important leadership transition with the appointment of Interim Co-Chief Executive Officers. The new co-CEOs expressed appreciation for the Board’s confidence and reaffirmed their commitment to employees, customers, partners, and shareholders.
They emphasized a forward-looking strategy centered on:
- Sustainable revenue growth
- Expanding profitability
- Accelerating innovation
- Strengthening operational discipline
While honoring STAAR’s long-standing heritage, leadership intends to sharpen focus, improve execution, and drive long-term shareholder value.
2025: A Year of Transition
2025 proved to be a challenging year marked by operational resets, macroeconomic pressures, and strategic recalibration. However, the Company expects 2026 to represent a return to growth and improving profitability.
Less than five years ago, STAAR experienced rapid expansion driven by the strength of its proprietary Collamer® material and increasing global adoption of lens-based refractive surgery. That structural advantage remains intact, as refractive procedures continue shifting away from corneal tissue-removing laser surgeries toward lens-based solutions.
Over the past four years, however, macroeconomic headwinds—particularly in China—combined with underperforming initiatives and elevated operating expenses slowed growth and impacted margins. Heavy U.S. consumer marketing investments did not generate expected returns, contributing to investor concern.
In early 2025, STAAR implemented decisive actions:
- Shifted to targeted, ROI-focused marketing
- Paused shipments to China to normalize inventory
- Initiated significant cost reductions
- Accelerated Swiss manufacturing expansion to mitigate tariff exposure
Additionally, a proposed merger with Alcon created temporary disruption before shareholders rejected the proposal in January 2026. Following this, the Board was strengthened with new directors representing over 37% of outstanding shares, and a co-CEO leadership model was introduced to enhance execution and accountability.
China Recovery and Market Stabilization
China, STAAR’s largest market, experienced prolonged volatility following COVID-related disruptions and a housing downturn that affected consumer spending. Because EVO ICL procedures are premium, cash-pay treatments, demand fluctuated significantly.
In 2025, STAAR:
- Normalized distributor inventory levels
- Improved downstream data visibility
- Strengthened channel discipline
By late 2025, in-market demand stabilized, with mid-single-digit procedure growth and accelerating fourth-quarter volumes. Government stimulus measures and improving consumer trends further supported recovery.
China remains a compelling long-term opportunity given its high myopia prevalence and relatively low refractive surgery penetration.
Beyond China, STAAR sees strong potential across Asia-Pacific markets, including India. Growth in Europe, the Middle East, and the Americas remains steady. In the U.S., EVO ICL continues to grow despite a broader decline in laser-based procedures since 2018.
Cost Discipline and Profitability Focus
STAAR undertook a comprehensive cost-reduction program in 2025 after operating expenses began outpacing revenue growth in 2023.
Key achievements include:
- Lower operating expense run rate
- Beating the communicated second-half target of $225 million
- Restoring operating leverage potential
Leadership believes the Company can return to double-digit operating margins as revenue recovers, supported by strong gross margins on proprietary products.
Manufacturing Expansion and Tariff Mitigation
Rising tariffs in 2025 prompted STAAR to accelerate manufacturing expansion in Nidau, Switzerland.
The Swiss facility:
- Began commercial production in 2025
- Now focuses exclusively on producing EVO and EVO+ lenses for China
- Reduces exposure to U.S.-China tariff volatility
- Enhances long-term supply chain resilience
Although the transition involved incremental costs, manufacturing yields and quality metrics have improved significantly.
Product Momentum and Innovation Pipeline
Product advancements are contributing to renewed momentum.
- EVO+ Approval in China (2025): Features a larger optic zone designed to enhance visual quality. Early demand has exceeded expectations and supports higher average selling prices.
- U.S. Regulatory Expansion: The FDA extended EVO ICL’s approved age range from 21–45 to 21–60, expanding the addressable market by nearly eight million patients.
- Taiwan Approval (2025): Expansion planned in 2026.
EVO ICL now represents approximately 12% of global refractive procedures, while laser-based procedures continue to decline.
The Company’s innovation pipeline remains focused on expanding the advantages of lens-based refractive surgery and increasing total addressable market.
Leadership Strengthening
In 2025, STAAR strengthened its executive team:
- Filip De Keersmaecker joined as Senior Vice President, End-to-End Supply Chain, focusing on manufacturing efficiency, quality, and working capital improvement.
- Ying Chen was appointed Senior Vice President of APAC, enhancing regional execution and commercial discipline in Asia-Pacific.
These additions reinforce operational execution heading into 2026.
2026 Strategic Priorities
STAAR enters 2026 positioned for recovery and growth, guided by three core objectives:
1. Revenue Growth
Accelerate performance in key markets while unlocking new opportunities.
2. Profit Expansion
Maintain disciplined investment, improve enterprise-wide costs, enhance manufacturing yields, and optimize pricing strategy.
3. Innovation Acceleration
Advance near-term product enhancements and strengthen next-generation development programs.
Positioned for Long-Term Value Creation
With proprietary Collamer material, differentiated optical technology in EVO ICL, and global market leadership in lens-based refractive surgery, STAAR believes it is well positioned to capitalize on rising global myopia prevalence.
Leadership concludes that with Board alignment, cost discipline, operational focus, and renewed growth momentum, the Company is entering 2026 with clarity of strategy and commitment to long-term shareholder value creation.
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