STAAR Surgical reported third‑quarter 2025 revenue of $94.7 million, up 6.9% from $88.6 million in the same quarter a year earlier and more than double the $44.3 million recorded in Q2 2025. The company’s gross profit margin expanded to 82.2% from 77.3% in Q3 2024, while operating income rose to $18.5 million from $5.7 million a year earlier. Net income fell to $8.9 million, a decline from $10.0 million in Q3 2024, but the company’s earnings per share of $0.18 beat the consensus estimate of $0.16, a $0.02 or 12% lift.
The revenue increase and margin improvement were largely driven by a $25.9 million December China shipment that was fully recognized in this quarter. Timing the recognition of that shipment pushed sales into Q3 2025 and lifted the gross margin, while cost‑control initiatives in the first half of the year reduced operating expenses. The margin expansion reflects a favorable mix of higher‑margin product lines and disciplined cost management, offsetting the impact of the China shipment’s cost base.
Net income slipped because of higher income taxes and $5.9 million in merger‑related costs associated with the pending acquisition by Alcon. The tax impact stems from a reversal of earlier tax benefits linked to the China shipment, which increased the tax expense for the quarter. These one‑time items explain the year‑over‑year decline in net income despite stronger top‑line performance.
Cash, cash equivalents and investments stood at $192.7 million as of September 26 2025, and the company repurchased 115,000 shares for $2 million during the quarter. STAAR chose not to hold a conference call to discuss the results because the pending Alcon acquisition dominates the company’s strategic focus and communication priorities.
Investor sentiment has been mixed. Shareholder opposition to the Alcon deal, led by Yunqi Capital, has highlighted the company’s recent operational momentum and cost discipline as reasons to reject the merger. The lack of a conference call and the shareholder pushback underscore the uncertainty surrounding the company’s future as an independent entity, even as the earnings beat and margin gains suggest strong operational execution.
The company remains debt‑free and cash‑rich, and while it has not issued new guidance, the financial results and cash position provide a solid foundation for navigating the final stages of the Alcon acquisition. The earnings beat and margin expansion signal resilience, but the tax and merger costs illustrate the short‑term impact of the pending transaction.
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