08-05-2025
STAAR Surgical (NASDAQ:STAA) Exceeds Q1 Expectations
Medical lens company STAAR Surgical (NASDAQ:STAA) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 44.9% year on year to $42.59 million. Its GAAP loss of $1.10 per share was 65.2% below analysts' consensus estimates.
Is now the time to buy STAAR Surgical? Find out in our full research report.
STAAR Surgical (STAA) Q1 CY2025 Highlights:
Revenue: $42.59 million vs analyst estimates of $40.35 million (44.9% year-on-year decline, 5.5% beat)
EPS (GAAP): -$1.10 vs analyst expectations of -$0.67 (65.2% miss)
Adjusted EBITDA: -$26.39 million vs analyst estimates of -$26.51 million (-62% margin, in line)
Operating Margin: -135%, down from -2.9% in the same quarter last year
Free Cash Flow was -$7.20 million, down from $16.48 million in the same quarter last year
Constant Currency Revenue fell 44.3% year on year (6.5% in the same quarter last year)
Market Capitalization: $922.9 million
'STAAR's first quarter sales were in line with expectations, but we can and will do better,' said STAAR Surgical CEO, Stephen C. Farrell.
Company Overview
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Sales Growth
A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, STAAR Surgical's sales grew at a solid 12.8% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
STAAR Surgical Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. STAAR Surgical's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.7% over the last two years.
STAAR Surgical Year-On-Year Revenue Growth
We can dig further into the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 1.9% year-on-year declines. Because this number aligns with its normal revenue growth, we can see that STAAR Surgical has properly hedged its foreign currency exposure.
STAAR Surgical Constant Currency Revenue Growth
This quarter, STAAR Surgical's revenue fell by 44.9% year on year to $42.59 million but beat Wall Street's estimates by 5.5%.
Looking ahead, sell-side analysts expect revenue to grow 3.4% over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
