Q2 2026 STAAR Surgical Co Earnings Call

August 12, 2026

Speaker #1: Greetings, and welcome to the Star Surgical Q2 2026 results conference call and webcast. During today's presentation, all parties will be in a listen-only mode.

Operator: Greetings, and welcome to the STAAR Surgical Q2 2026 Results Conference Call and Webcast. During today's presentation, all parties will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Connie Johnson, Director of Investor Relations.

Speaker #1: Should you need assistance, please signal at conference specialists by pressing the star key, followed by 0. After today's presentation, there will be an opportunity to ask questions, to ask a question you may press star, then 1 on a touch-tone phone.

Speaker #1: Greetings, and welcome to the STAAR Surgical second quarter 2026 results conference call and webcast. During today's presentation, all parties will be in listen-only mode.

Operator: Greetings, and welcome to the STAAR Surgical Q2 2026 results conference call and webcast. During today's presentation, all parties will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Connie Johnson, Director of Investor Relations.

Speaker #1: To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Connie Johnson, Director of Investor Relations.

Speaker #1: Please signal a conference specialist by pressing the star (*) key, followed by zero (0). After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star (*) then 1 on a touchtone phone.

Speaker #2: Thank you, operator. Good afternoon, and thank you for joining us. On the call today, our Warren Foust, president and chief executive officer of Star Surgical, and Deborah Andrews, executive vice president and chief financial officer of Star Surgical.

Connie Johnson: Thank you, operator. Good afternoon, and thank you for joining us. On the call today are Warren Foust, President and Chief Executive Officer of STAAR Surgical, and Deborah Andrews, Executive Vice President and Chief Financial Officer of STAAR Surgical. Earlier today, we reported our Q2 2026 results via a press release and Form 8-K. We posted our results, release, and shareholder letter to our investor website at investors.staar.com. Today's call is scheduled for one hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to ir@staar.com. Before we get started, I want to remind you that during today's discussion, we will be making forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Speaker #1: To withdraw your question, please press *star*, then 2. Please note this event is being recorded. I would now like to turn the conference over to Connie Johnson, Director of Investor Relations.

Speaker #2: Earlier today, we reported our Q2 2026 results via a press release in Form 8K. We posted our results release and shareholder letter to our investor website at investors.star.com.

Speaker #2: Thank you, Operator. Good afternoon, and thank you for joining us. On the call today are Warren Foust, President and Chief Executive Officer of STAAR Surgical, and Deborah Andrews, Executive Vice President and Chief Financial Officer of STAAR Surgical.

Connie Johnson: Thank you, operator. Good afternoon, and thank you for joining us. On the call today are Warren Foust, President and Chief Executive Officer of STAAR Surgical, and Deborah Andrews, Executive Vice President and Chief Financial Officer of STAAR Surgical. Earlier today, we reported our Q2 2026 results via a press release in Form 8-K. We posted our results release and shareholder letter to our investor website at investors.staar.com. Today's call is scheduled for one hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to investorrelations@staar.com. Before we get started, I want to remind you that during today's discussion, we will be making forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Connie Johnson: Thank you, operator. Good afternoon, and thank you for joining us. On the call today are Warren Foust, President and Chief Executive Officer of STAAR Surgical, and Deborah Andrews, Executive Vice President and Chief Financial Officer of STAAR Surgical. Earlier today, we reported our Q2 2026 results via a press release in Form 8-K. We posted our results release and shareholder letter to our investor website at investors.staar.com. Today's call is scheduled for one hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to ir@staar.com. Before we get started, I want to remind you that during today's discussion, we will be making forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Speaker #2: Today's call is scheduled for 1 hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to ir@star.com.

Speaker #2: Earlier today, we reported our second quarter 2026 results via a press release in Form 8-K. We posted our results release and shareholder letter to our investor website at investors.staar.com.

Speaker #2: Before we get started, I want to remind you that during today's discussion we will be making forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Speaker #2: Today's call is scheduled for one hour and will include Q&A for publishing analysts. Webcast participants can also send questions for today's Q&A session to ir@staar.com.

Speaker #2: I encourage you to read the disclosures in today's release as well as disclosures on our filings with the SEC. Except as required by law, Star assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes.

Connie Johnson: I encourage you to read the disclosures in today's release, as well as disclosures on our filings with the SEC. Except as required by law, STAAR assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes. In addition, during today's discussion, we will reference certain non-GAAP financial measures, including adjusted EBITDA and constant currency sales. Please refer to today's release for definitions and reconciliations of non-GAAP metrics. For brevity, unless otherwise specified, all comparisons on today's call will be on a year-over-year basis versus the relevant period. Finally, a quick reminder. We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the investor relations section.

Speaker #2: Before we get started, I want to remind you that during today's discussion, we will be making forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements.

Speaker #2: In addition, during today's discussion, we will reference certain non-GAAP financial measures including adjusted EBITDA and constant currency sales. Please refer to today's release for definitions and reconciliations of non-GAAP metrics.

Speaker #2: I encourage you to read the disclosures in today's release, as well as the disclosures in our filings with the SEC. Except as required by law, STAAR assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes.

Speaker #2: For brevity, unless otherwise specified, all comparisons on today's call will be on a year-over-year basis versus the relevant period. Finally, a quick reminder: we intend to use our website as a means of disclosing material non-public information and for complying with our disclosures obligations under regulation FD.

Speaker #2: In addition, during today's discussion, we will reference certain non-GAAP financial measures, including adjusted EBITDA and constant currency sales. Please refer to today's release for definitions and reconciliations of non-GAAP metrics.

Speaker #2: Such disclosures will be included on our website in the investor relations section. Accordingly, investors should monitor our investor website in addition to following our press releases' SEC filings and public conference calls and webcasts.

Connie Johnson: Accordingly, investors should monitor our investor website in addition to following our press releases, SEC filings, and public conference calls and webcasts. With that, I would like to turn the presentation over to our President and CEO, Warren Foust. Warren?

Speaker #2: And with that, I would like to turn the presentation over to our president and CEO, Warren Foust. Warren?

Speaker #2: Such disclosures will be included on our website in the Investor Relations section. Accordingly, investors should monitor our Investor website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Speaker #3: Good afternoon, everyone, and thank you for joining us. Six months ago, Deborah and I stepped into our roles as interim co-CEOs looking back now, I am struck by how much we accomplished together.

Warren Foust: Good afternoon, everyone, and thank you for joining us. Six months ago, Debra and I stepped into our roles as interim co-CEOs. Looking back now, I am struck by how much we accomplished together. We navigated uncertainty and challenges and leaned into significant opportunities. Today, we are proud to report the strongest H1 revenue performance in STAAR's history. That includes the launch of EVO+ in China, which fueled market share gains and drove both year-over-year and sequential growth in the region, back-to-back record quarters in the US, and a return to profitability and free cash flow generation across the business. These results reflect the focus, resilience, and execution of teams across the company, and that is a milestone worth celebrating. Through it all, it's been a tremendous experience, one that I'm grateful for. As we move forward, I'm proud to do so as President and Chief Executive Officer.

Speaker #3: We navigated uncertainty and challenges, and leaned into significant opportunities. And today, we are proud to report the strongest first-half revenue performance in Star's history.

Speaker #2: And with that, I would like to turn the presentation over to our President and CEO, Warren Foust. Warren?

Speaker #3: Good afternoon, everyone, and thank you for joining us. Six months ago, Deborah and I stepped into our roles as interim co-CEOs. Looking back now, I am struck by how much we accomplished together.

Warren Foust: Good afternoon, everyone, and thank you for joining us. Six months ago, Debra and I stepped into our roles as interim co-CEOs. Looking back now, I am struck by how much we accomplished together. We navigated uncertainty and challenges and leaned into significant opportunities. Today, we are proud to report the strongest H1 revenue performance in STAAR's history. That includes the launch of EVO+ in China, which fueled market share gains and drove both year-over-year and sequential growth in the region, back-to-back record quarters in the US, and a return to profitability and free cash flow generation across the business. These results reflect the focus, resilience, and execution of teams across the company, and that is a milestone worth celebrating. Through it all, it has been a tremendous experience, one that I am grateful for.

Speaker #3: That includes the launch of Evo Plus in China, which fueled market share gains and drove both year-over-year and sequential growth in the region, back-to-back record quarters in the U.S., and a return to profitability and free cash flow generation across the business.

Speaker #3: We navigated uncertainty and challenges, and leaned in to significant opportunities. Today, we are proud to report the strongest first-half revenue performance in STAAR's history.

Speaker #3: These results reflect the focus, resilience, and execution of teams across the company and that is a milestone worth celebrating. Through it all, it's been a tremendous experience, one that I'm grateful for.

Speaker #3: As we move forward, I'm proud to do so as president and chief executive officer. I thank the board for their confidence in each of you for your continued support.

Warren Foust: I thank the board for their confidence and each of you for your continued support. I want to take a moment to recognize and thank Deborah Andrews. Over the past six months, Debra has been an extraordinary partner. Steady, wise, and tireless in her commitment to STAAR. Her clarity and focus on financial discipline, culture, and strategy have profoundly benefited this company. I'm thrilled that she continues as Chief Financial Officer and is doing so now as an Executive Vice President. I could not ask for a better partner as we lead our company forward. Now, let's talk about the quarter, which was a strong one. Our shareholder letter, published today, covers our Q2 results, regional performance, ERP implementation, and long-term priorities in detail.

Speaker #3: These results reflect the focus, resilience, and execution of teams across the company, and that is a milestone worth celebrating. Through it all, it's been a tremendous experience—one that I'm grateful for.

Speaker #3: I want to take a moment to recognize and thank Deborah Andrews. Over the past six months, Deborah has been an extraordinary partner, steady, wise, and tireless in her commitment to Star.

Speaker #3: As we move forward, I'm proud to do so as President and Chief Executive Officer. I thank the board for their confidence and each of you for your continued support.

Warren Foust: As we move forward, I am proud to do so as President and Chief Executive Officer. I thank the board for their confidence and each of you for your continued support. I want to take a moment to recognize and thank Deborah Andrews. Over the past six months, Debra has been an extraordinary partner, steady, wise, and tireless in her commitment to STAAR. Her clarity and focus on financial discipline, culture, and strategy have profoundly benefited this company. I am thrilled that she continues as Chief Financial Officer and is doing so now as an Executive Vice President. I could not ask for a better partner as we lead our company forward. Now, let us talk about the quarter, which was a strong one. Our shareholder letter, published today, covers our Q2 results, regional performance, ERP implementation, and long-term priorities in detail.

Speaker #3: Her clarity and focus on financial discipline, culture, and strategy have profoundly benefited this company. I'm thrilled that she continues as chief financial officer and is doing so now as an executive vice president.

Speaker #3: I want to take a moment to recognize and thank Deborah Andrews. Over the past six months, Deborah has been an extraordinary partner—steady, wise, and tireless in her commitment to STAAR.

Speaker #3: I could not ask for a better partner as we lead our company forward. Now, let's talk about the quarter which was a strong one.

Speaker #3: Her clarity and focus on financial discipline, culture, and strategy have profoundly benefited this company. I'm thrilled that she continues as Chief Financial Officer and is doing so now as an Executive Vice President.

Speaker #3: Our shareholder letter, published today, covers our Q2 results, regional performance, ERP implementation, and long-term priorities in detail. Rather than repeat all of that here, I want to focus on the three priorities that we laid out nearly six months ago.

Warren Foust: Rather than repeat all of that here, I want to focus on the three priorities that we laid out nearly six months ago, revenue growth, profit expansion, and innovation acceleration. In the Q2, we advanced all three, and I'd like to walk you through where we stand. Starting with revenue growth. The Q2 was a strong revenue quarter. Net sales were $93.5 million, up 111% year over year. We delivered sequential growth in China, double-digit growth in the Americas, and double-digit growth in EMEA, excluding the Middle East. Debra will take you through the details a little later, but the headline is clear: This business is performing. One important item I want to flag for your modeling, our Q3 2025 results included the recognition of $25.9 million related to the 2024 order. On a consolidated basis, Q3 2025 net sales were $94.7 million.

Speaker #3: I could not ask for a better partner as we lead our company forward. Now, let's talk about the quarter, which was a strong one.

Warren Foust: I could not ask for a better partner as we lead our company forward. Now, let us talk about the quarter, which was a strong one. Our shareholder letter, published today, covers our Q2 results, regional performance, ERP implementation, and long-term priorities in detail.

Speaker #3: Revenue growth, profit expansion, and innovation acceleration. In the second quarter, we advanced all three, and I'd like to walk you through where we stand.

Speaker #3: Our shareholder letter published today covers our second quarter results, regional performance, ERP implementation, and long-term priorities in detail. Rather than repeat all of that here, I want to focus on the three priorities that we laid out nearly six months ago.

Speaker #3: Starting with revenue growth. The second quarter was a strong revenue quarter. Net sales were 93.5 million dollars, up 111% year over year. We delivered sequential growth in China, double-digit growth in the Americas, and double-digit growth in EMEA excluding the Middle East.

Warren Foust: Rather than repeat all of that here, I want to focus on the three priorities that we laid out nearly six months ago: revenue growth, profit expansion, and innovation acceleration. In Q2, we advanced all three, and I would like to walk you through where we stand. Starting with revenue growth, Q2 was a strong revenue quarter. Net sales were $93.5 million, up 111% year over year. We delivered sequential growth in China, double-digit growth in the Americas, and double-digit growth in EMEA, excluding the Middle East. Debra will take you through the details a little later, but the headline is clear. This business is performing. One important item I want to flag for your modeling. Our Q3 2025 results included the recognition of $25.9 million related to the 2024 order. On a consolidated basis, Q3 2025 net sales were $94.7 million.

Speaker #3: Revenue growth, profit expansion, and innovation acceleration—in the second quarter, we advanced all three, and I'd like to walk you through where we stand.

Speaker #3: Deborah will take you through the details a little later, but the headline is clear: this business is performing. One important item I want to flag for your modeling: our third quarter of 2025 results included the recognition of 25.9 million dollars related to the 2024 order.

Speaker #3: Starting with revenue growth, the second quarter was a strong revenue quarter. Net sales were $93.5 million, up 111% year over year. We delivered sequential growth in China, double-digit growth in the Americas, and double-digit growth in EMEA, excluding the Middle East.

Speaker #3: On a consolidated basis, third quarter 2025 net sales were 94.7 million dollars, excluding that item, though, the comparable base is 68.8 million dollars. That revenue from the 2024 order will not repeat, and we encourage you to use the adjusted base when evaluating third quarter 2026 year-over-year results.

Warren Foust: This business is performing. One important item I want to flag for your modeling. Our Q3 2025 results included the recognition of $25.9 million related to the 2024 order. On a consolidated basis, Q3 2025 net sales were $94.7 million.

Warren Foust: Excluding that item though, the comparable base is $68.8 million. That revenue from the 2024 order will not repeat, and we encourage you to use the adjusted base when evaluating Q3 2026 year-over-year results. Q4 comparisons are unaffected. Q4 2025 net sales were $57.8 million. Now, on China. I'm proud of our market share gains and of our expanding EVO+ launch. China remains critical to our success and an area where we have a compelling opportunity ahead. In the quarter, China grew sequentially, supported by increased adoption of EVO+, and importantly, we saw no evidence of inventory build at distributors or hospitals, reinforcing that our growth is being driven by demand. The broader refractive market remains uneven. Recent industry commentary reinforces the view that procedures remain pressured in parts of China and APAC. Against that backdrop, STAAR's performance supports our belief that EVO is gaining market share.

Speaker #3: On a consolidated basis, third quarter 2025 net sales were $94.7 million. Excluding that item, though, the comparable base is $68.8 million. That revenue from the 2024 order will not repeat, and we encourage you to use the adjusted base when evaluating third quarter 2026 year-over-year results.

Speaker #3: Fourth quarter comparisons are unaffected. Fourth quarter 2025 net sales were 57.8 million dollars. Now, on China. I'm proud of our market share gains and of our expanding Evo Plus launch.

Warren Foust: Excluding that item, though, the comparable base is $68.8 million. That revenue from the 2024 order will not repeat, and we encourage you to use the adjusted base when evaluating Q3 2026 year-over-year results. Q4 comparisons are unaffected. Q4 2025 net sales were $57.8 million. Now, on China. I am proud of our market share gains and of our expanding EVO+ launch. China remains critical to our success and an area where we have a compelling opportunity ahead. In the quarter, China grew sequentially, supported by increased adoption of EVO+, and importantly, we saw no evidence of inventory build at distributors or hospitals, reinforcing that our growth is being driven by demand. The broader refractive market remains uneven. Recent industry commentary reinforces the view that procedures remain pressured in parts of China and APAC.

Speaker #3: China remains critical to our success, and an area where we have a compelling opportunity ahead. In the quarter, China grew sequentially, supported by increased adoption of Evo Plus and, importantly, we saw no evidence of inventory build at distributors or hospitals reinforcing that our growth is being driven by demand.

Speaker #3: Fourth quarter comparisons are unaffected. Fourth quarter 2025 net sales were $57.8 million. Now, on China. I'm proud of our market share gains and of our expanding EVO Plus launch.

Speaker #3: The broader refractive market remains uneven. Recent industry commentary reinforces the view that procedures remain pressured in parts of China and APAC. Against that backdrop, Star's performance supports our belief that Evo is gaining market share.

Speaker #3: China remains critical to our success and is an area where we have a compelling opportunity ahead. In the quarter, China grew sequentially, supported by increased adoption of EVO Plus, and importantly, we saw no evidence of inventory build at distributors or hospitals, reinforcing that our growth is being driven by demand.

Speaker #3: We're definitely getting a lift from the Evo Plus rollout, but more than that, we're seeing patience and surgeons really leaning into the benefits of lens-based surgery.

Warren Foust: We're definitely getting a lift from the EVO+ rollout, but more than that, we're seeing patients and surgeons really leaning into the benefits of lens-based surgery. People like that EVO is reversible and doesn't require removing corneal tissue, and that's a big differentiator as laser-based procedures continue to struggle in many markets around the world. We also want to provide more clarity on China seasonality. As discussed in our shareholder letter, the quarterly pattern in China has evolved. The Q1 and Q2 are emerging as our strongest revenue quarters, supported by Chinese New Year, a shift forward of military recruitment-related procedures, and summer demand. While the Q3 revenue is expected to be moderately lower than the Q2 due to shift in seasonality, excluding the one-time order of $25.9 million booked in the Q3 of 2025, we expect year-over-year growth.

Speaker #3: The broader refractive market remains uneven. Recent industry commentary reinforces the view that procedures remain pressured in parts of China and APAC. Against that backdrop, STAAR’s performance supports our belief that EVO was gaining market share.

Speaker #3: People like that Evo was reversible and doesn't require removing corneal tissue, and that's a big differentiator as laser-based procedures continue to struggle in many markets around the world.

Warren Foust: Against that backdrop, STAAR's performance supports our belief that EVO is gaining market share. We're definitely getting a lift from the EVO+ rollout, but more than that, we're seeing patients and surgeons really leaning into the benefits of lens-based surgery. People like that EVO is reversible and doesn't require removing corneal tissue, and that's a big differentiator as laser-based procedures continue to struggle in many markets around the world. We also want to provide more clarity on China seasonality. As discussed in our shareholder letter, the quarterly pattern in China has evolved. The first and second quarters are emerging as our strongest revenue quarters, supported by Chinese New Year, a shift forward of military recruitment-related procedures, and summer demand.

Speaker #3: We also want to provide more clarity on China's seasonality. As China has evolved. The first and second quarters are emerging as our strongest revenue quarters, supported by Chinese New Year, a shift forward of military recruitment-related procedures, and summer demand.

Speaker #3: We're definitely getting a lift from the EVO+ rollout, but more than that, we're seeing patients and surgeons really leaning into the benefits of lens-based surgery.

Speaker #3: People like that EVO is reversible and doesn't require removing corneal tissue, and that's a big differentiator as laser-based procedures continue to struggle in many markets around the world.

Speaker #3: While the third quarter revenue is expected to be moderately lower than the second quarter due to shifts in seasonality, excluding the one-time order of 25.9 million dollars booked in the third quarter of 2025, we expect year-over-year growth.

Speaker #3: We also want to provide more clarity on China's seasonality. As discussed in our shareholder letter, the quarterly pattern in China has evolved. The first and second quarters are emerging as our strongest revenue quarters, supported by Chinese New Year, a shift forward of military recruitment-related procedures, and summer demand.

Speaker #3: As is typical, the fourth quarter will remain seasonally softer than the first three quarters, but we are still planning for year-over-year growth. Outside China, we continue to see strong revenue contributions in key markets such as Japan and Korea, as well as double-digit growth in the U.S., the Americas broadly, and excluding the Middle East and EMEA as well.

Warren Foust: As is typical, the Q4 will remain seasonally softer than the first three quarters, but we are still planning for year-over-year growth. Outside China, we continue to see strong revenue contributions in key markets such as Japan and Korea, as well as double-digit growth in the US, the Americas broadly, and excluding the Middle East and EMEA as well. We also see compelling long-term opportunities in many other markets around the globe. In the Americas, growth was led by another greater than $6 million quarter in the US, our second consecutive quarter at that level. The US market remains under-penetrated, and we continue to see opportunity to grow EVO sales and continue to take market share as practices look for differentiated lens-based refractive alternatives to laser vision correction as demand for laser procedures continues to decline.

Speaker #3: While the third quarter revenue is expected to be moderately lower than the second quarter due to shifts in seasonality, excluding the one-time order of $25.9 million booked in the third quarter of 2025, we expect year-over-year growth.

Warren Foust: While the Q3 revenue is expected to be moderately lower than the Q2 due to shifts in seasonality, excluding the one-time order of $25.9 million booked in the Q3 of 2025, we expect year-over-year growth. As is typical, the Q4 will remain seasonally softer than the first three quarters, but we are still planning for year-over-year growth. Outside China, we continue to see strong revenue contributions in key markets such as Japan and Korea, as well as double-digit growth in the US, the Americas broadly, and excluding the Middle East and EMEA as well. We also see compelling long-term opportunities in many other markets around the globe. In the Americas, growth was led by another greater than $6 million quarter in the US, our second consecutive quarter at that level.

Speaker #3: We also see compelling long-term opportunities in many other markets around the globe. In the Americas, growth was led by another greater than 6 million dollar quarter in the U.S., our second consecutive quarter at that level.

Speaker #3: The U.S. market remains underpenetrated, and we continue to see opportunity to grow Evo sales and continue to take market share as practices look for differentiated, lens-based refractive alternatives to laser vision correction, as demand for laser procedures continues to decline.

Speaker #3: We also see compelling long-term opportunities in many other markets around the globe. In the Americas, growth was led by another greater-than-$6-million quarter in the U.S., our second consecutive quarter at that level.

Speaker #3: In APAC outside of China, Japan remains an important market where Evo has strong category awareness, is a strong market leader, and has sustainable long-term potential.

Warren Foust: In APAC, outside of China, Japan remains an important market where EVO has strong category awareness, is a strong market leader, and has sustainable long-term potential. We continue to see solid underlying demand in Japan, bolstered by direct-to-consumer awareness initiatives launched in November of 2025. Unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. Across the broader region, market dynamics vary, and we are being disciplined about where we invest. In EMEA, excluding the Middle East, the region grew double digits, reflecting solid underlying demand across much of the region. Across all regions, our approach is consistent. Invest where we see the clearest returns and support surgeons and patients through service, training, and education.

Speaker #3: The U.S. market remains underpenetrated, and we continue to see opportunity to grow EVO sales and continue to take market share as practices look for differentiated, lens-based refractive alternatives to laser vision correction, as demand for laser procedures continues to decline.

Warren Foust: The US market remains under-penetrated, and we continue to see opportunity to grow EVO sales and continue to take market share as practices look for differentiated lens-based refractive alternatives to laser vision correction as demand for laser procedures continues to decline. In APAC, outside of China, Japan remains an important market where EVO has strong category awareness, is a strong market leader, and has sustainable long-term potential. We continue to see solid underlying demand in Japan, bolstered by direct-to-consumer awareness initiatives launched in November of 2025. Unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. Across the broader region, market dynamics vary, and we are being disciplined about where we invest. In EMEA, excluding the Middle East, the region grew double digits, reflecting solid underlying demand across much of the regions. Across all regions, our approach is consistent.

Speaker #3: We continue to see solid underlying demand in Japan, bolstered by direct-to-consumer awareness initiatives launched in November of 2025. Unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%.

Speaker #3: In APAC, outside of China, Japan remains an important market where EVO has strong category awareness, is a market leader, and has sustainable long-term potential.

Speaker #3: Across the broader region, market dynamics vary, and we are being disciplined about where we invest. In EMEA, excluding the Middle East, the region grew double digits, reflecting solid underlying demand across much of the region.

Speaker #3: We continue to see solid underlying demand in Japan, bolstered by direct-to-consumer awareness initiatives launched in November 2025. Unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%.

Speaker #3: Across all regions, our approach is consistent: invest where we see the clearest returns and support surgeons and patients through service, training, and education. While we continue driving the global shift from laser-based to lens-based refractive surgery, we are also working to increase our product availability in order to satisfy the accelerating global demand that has outpaced our supply chain projections.

Warren Foust: Across the broader region, market dynamics vary, and we are being disciplined about where we invest. In EMEA, excluding the Middle East, the region grew double digits, reflecting solid underlying demand across much of the regions. Across all regions, our approach is consistent.

Warren Foust: While we continue driving the global shift from laser-based to lens-based refractive surgery, we are also working to increase our product availability in order to satisfy the accelerating global demand that has outpaced our supply chain projections. The second area is profit expansion. In the Q2, we demonstrated meaningful progress in expanding profitability. We grew gross profit and net income compared with both the prior year quarter and the Q1. These improvements resulted in significant cash flow generation, increasing cash from $163.9 million at the end of the Q1 to $181.5 million at the end of the Q2. This progress reflects the strength of our business model and the financial discipline that Deborah and the team have brought to the organization.

Speaker #3: The second area is profit expansion. In the second quarter, we demonstrated meaningful progress in expanding profitability. We grew gross profit and net income compared with both the prior year quarter and the first quarter.

Warren Foust: Invest where we see the clearest returns and support surgeons and patients through service, training, and education. While we continue driving the global shift from laser-based to lens-based refractive surgery, we are also working to increase our product availability in order to satisfy the accelerating global demand that has outpaced our supply chain projections. The second area is profit expansion. In the Q2, we demonstrated meaningful progress in expanding profitability. We grew gross profit and net income compared with both the prior year quarter and the Q1. These improvements resulted in significant cash flow generation, increasing cash from $163.9 million at the end of the Q1 to $181.5 million at the end of the Q2. This progress reflects the strength of our business model and the financial discipline that Deborah and the team have brought to the organization.

Speaker #3: These improvements resulted in significant cash flow generation, increasing cash from 163.9 million dollars at the end of the first quarter to 181.5 million dollars at the end of the second quarter.

Speaker #3: This progress reflects the strength of our business model and the financial discipline that Deborah and the team have brought to the organization. The result is a company with strong gross margins, a strong balance sheet, no debt, and increasing cash balance and the flexibility to invest in the business where it matters, commercial execution, customer support, product availability, innovation, and the systems that help us scale.

Speaker #3: These improvements resulted in significant cash flow generation, increasing cash from $163.9 million at the end of the first quarter to $181.5 million at the end of the second quarter.

Warren Foust: The result is a company with strong gross margins, a strong balance sheet, no debt, an increasing cash balance, and the flexibility to invest in the business where it matters. Commercial execution, customer support, product availability, innovation, and the systems that help us scale. Our ERP implementation demanded significant energy and focus across the organization in the quarter, and our teams delivered. We continued to sell EVO lenses. We provided support for our customers and achieved strong results. The ERP system is now live, and we are actively optimizing the system in Q3. This is not just an operational upgrade. It is a foundational investment that improves visibility across our business and positions us to scale more effectively and efficiently as we grow. With the ERP system in place, we are also beginning to build towards artificial intelligence-enabled capabilities that will improve how we operate over time.

Speaker #3: This progress reflects the strength of our business model and the financial discipline that Deborah and the team have brought to the organization. The result is a company with strong gross margins, a strong balance sheet, no debt, an increasing cash balance, and the flexibility to invest in the business where it matters: commercial execution, customer support, product availability, innovation, and the systems that help us scale.

Speaker #3: Our ERP implementation demanded significant energy and focus across the organization in the quarter. And our teams delivered. We continued to sell Evo lenses. We provided support for our customers and achieved strong results.

Speaker #3: The ERP system is now live, and we are actively optimizing the system in the third quarter. This is not just an operational upgrade. It is a foundational investment that improves visibility across our business and positions us to scale more effectively and efficiently as we grow.

Speaker #3: Our ERP implementation demanded significant energy and focus across the organization in the quarter, and our teams delivered. We continued to sell EVO lenses, provided support for our customers, and achieved strong results.

Speaker #3: With the ERP system in place, we are also beginning to build towards artificial intelligence-enabled capabilities that will improve how we operate over time. The third area: innovation acceleration, is the one that I am most excited about.

Speaker #3: The ERP system is now live, and we are actively optimizing the system in the third quarter. This is not just an operational upgrade; it is a foundational investment that improves visibility across our business and positions us to scale more effectively and efficiently as we grow.

Warren Foust: The ERP system is now live, and we are actively optimizing the system in Q3. This is not just an operational upgrade. It is a foundational investment that improves visibility across our business and positions us to scale more effectively and efficiently as we grow. With the ERP system in place, we are also beginning to build towards artificial intelligence-enabled capabilities that will improve how we operate over time.

Warren Foust: The third area, innovation acceleration, is the one that I am most excited about. EVO is a genuinely differentiated product. Built on our proprietary Collamer material, it is a lens-based procedure that preserves the cornea, is removable by a surgeon, and addresses a broad range of myopia and astigmatism. While our progress is significant and accelerating, our global share of the refractive market remains far below what we believe is possible. That gap is our opportunity. Capturing it requires moving beyond a single-product mindset. EVO, powered by Collamer, is our foundation, but we have the opportunity to build a broader platform and a more diversified product organization. One supported by a disciplined innovation roadmap, structured product development, clear milestones, and a stronger execution accountability. Our R&D team, including our advanced research group, is working hard against these objectives and is actively preparing for first-in-human studies on our next-generation product.

Speaker #3: Evo was a genuinely differentiated product, built on our proprietary columnar material. It is a lens-based procedure that preserves the cornea, is removable by a surgeon, and addresses a broad range of myopia and astigmatism.

Speaker #3: With the ERP system in place, we are also beginning to build toward artificial intelligence-enabled capabilities that will improve how we operate over time. The third area, innovation acceleration, is the one that I am most excited about.

Speaker #3: While our progress is significant and accelerating, our global share of the refractive market remains far below what we believe is possible. That gap is our opportunity.

Warren Foust: The third area, innovation acceleration, is the one that I am most excited about. EVO is a genuinely differentiated product built on our proprietary Collamer material. It is a lens-based procedure that preserves the cornea, is removable by a surgeon, and addresses a broad range of myopia and astigmatism. While our progress is significant and accelerating, our global share of the refractive market remains far below what we believe is possible. That gap is our opportunity. Capturing it requires moving beyond a single-product mindset. EVO, powered by Collamer, is our foundation, but we have the opportunity to build a broader platform and a more diversified product organization. One supported by a disciplined innovation roadmap, structured product development, clear milestones, and a stronger execution accountability. Our R&D team, including our advanced research group, is working hard against these objectives and is actively preparing for first-in-human studies on our next-generation product.

Speaker #3: Capturing it requires moving beyond a single product mindset. Evo powered by columnar is our foundation, but we have the opportunity to build a broader platform and a more diversified product organization.

Speaker #3: While our progress is significant and accelerating, our global share of the refractive market remains far below what we believe is possible. That gap is our opportunity.

Speaker #3: One supported by a disciplined innovation roadmap, structured product development, clear milestones, and a stronger execution accountability. Our R&D team, including our advanced research group, is working hard against these objectives and is actively preparing for first-in-human studies on our next-generation product.

Speaker #3: Capturing it requires moving beyond a single-product mindset. EVO powered by columnar is our foundation, but we have the opportunity to build a broader platform and a more diversified product organization.

Warren Foust: Capturing it requires moving beyond a single-product mindset. EVO, powered by Collamer, is our foundation, but we have the opportunity to build a broader platform and a more diversified product organization. One supported by a disciplined innovation roadmap, structured product development, clear milestones, and a stronger execution accountability. Our R&D team, including our advanced research group, is working hard against these objectives and is actively preparing for first-in-human studies on our next-generation product.

Speaker #3: To further support our efforts, we will soon be hiring a Chief Technology Officer to drive STAR's innovation agenda. I have personally led this search with the support from trusted advisors and our board, and I'll say this: this process has only deepened my conviction about STAR's long-term potential.

Speaker #3: One supported by a disciplined innovation roadmap, structured product development, clear milestones, and stronger execution accountability. Our R&D team, including our advanced research group, is working hard against these objectives and is actively preparing for first-in-human studies on our next-generation product.

Warren Foust: To further support our efforts, we will soon be hiring a chief technology officer to drive STAAR's innovation agenda. I have personally led this search with the support from trusted advisors and our board, and I'll say this process has only deepened my conviction about STAAR's long-term potential. I'm excited to share more in the coming weeks. This is the next chapter of STAAR, grounded in differentiated technology, disciplined execution, and sustainable long-term value creation. With that, I'll turn the call over to Deborah to walk through the financials in more detail. Deborah?

Speaker #3: I'm excited to share more in the coming weeks. This is the next chapter of STAR, grounded in differentiated technology, disciplined execution, and sustainable long-term value creation.

Speaker #3: To further support our efforts, we will soon be hiring a Chief Technology Officer to drive STAAR's innovation agenda. I have personally led this search with support from trusted advisors and our Board, and I'll say this: this process has only deepened my conviction about STAAR's long-term potential.

Warren Foust: To further support our efforts, we will soon be hiring a Chief Technology Officer to drive STAAR's innovation agenda. I have personally led this search with the support from trusted advisors and our board. I'll say this process has only deepened my conviction about STAAR's long-term potential. I'm excited to share more in the coming weeks. This is the next chapter of STAAR, grounded in differentiated technology, disciplined execution, and sustainable long-term value creation. With that, I'll turn the call over to Deborah to walk through the financials in more detail. Deborah?

Speaker #3: With that, I'll turn the call over to Deborah to walk through the financials in more detail. Deborah?

Speaker #2: Thank you, Warren. I'll provide a brief financial summary and then we'll move to Q&A. Second quarter net sales were 93.5 million, compared to 44.3 million in the prior year quarter, which, as a reminder, was impacted by minimal China shipments while distributors worked through excess inventory.

Deborah Andrews: Thank you, Warren. I'll provide a brief financial summary, and then we'll move to Q&A. Q2 net sales were $93.5 million, compared to $44.3 million in the prior year quarter. Which, as a reminder, was impacted by minimal China shipments while distributors worked through excess inventory. Excluding China, net sales were $41.2 million, up 6% year over year. Regionally, the quarter was generally consistent with the preliminary net sales update we provided in July. APAC net sales increased 189% year over year. Excluding China, net sales were up 7% year over year. China net sales increased 100% and grew 10% sequentially to $52.3 million. In Japan, unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. The Americas grew 12% year over year, and the US delivered another approximately $6 million quarter.

Speaker #3: I'm excited to share more in the coming weeks. This is the next chapter of STAAR, grounded in differentiated technology, disciplined execution, and sustainable, long-term value creation.

Speaker #3: With that, I'll turn the call over to Deborah to walk through the financials in more detail. Deborah?

Speaker #2: Thank you, Warren. I'll provide a brief financial summary, and then we'll move to Q&A. Second quarter net sales were $93.5 million, compared to $44.3 million in the prior year quarter—which, as a reminder, was impacted by minimal China shipments while distributors worked through excess inventory.

Deborah Andrews: Thank you, Warren. I'll provide a brief financial summary, and then we'll move to Q&A. Q2 net sales were $93.5 million, compared to $44.3 million in the prior year quarter, which as a reminder, was impacted by minimal China shipments while distributors worked through excess inventory. Excluding China, net sales were $41.2 million, up 6% year over year. Regionally, the quarter was generally consistent with the preliminary net sales update we provided in July. APAC net sales increased 189% year over year. Excluding China, net sales were up 7% year over year. China net sales increased 100% plus and grew 10% sequentially to $52.3 million. In Japan, unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. The Americas grew 12% year over year, and the US delivered another approximately $6 million quarter.

Speaker #2: Excluding China, net sales were 41.2 million, up 6% year over year. Regionally, the quarter was generally consistent with the preliminary net sales update we provided in July.

Speaker #2: APAC net sales increased 189% year over year, excluding China, net sales were up 7% year over year. China net sales increased 100-plus percent and grew 10% sequentially to 52.3 million.

Speaker #2: Excluding China, net sales were $41.2 million, up 6% year over year. Regionally, the quarter was generally consistent with the preliminary net sales update we provided in July.

Speaker #2: In Japan, unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. The Americas grew 12% year over year, and the US delivered another approximately 6 million dollar quarter.

Speaker #2: APAC net sales increased 189% year over year. Excluding China, net sales were up 7% year over year. China net sales increased over 100% and grew 10% sequentially to $52.3 million.

Speaker #2: EMEA declined 1%, resulting from the continued conflicts in the Middle East. Excluding the Middle East, EMEA also grew 12% year over year. Gross margin was 74.5%, compared to 74% in the prior year quarter.

Deborah Andrews: EMEA declined 1%, resulting from the continued conflicts in the Middle East. Excluding the Middle East, EMEA also grew 12% year-over-year. Gross margin was 74.5%, compared to 74% in the prior year quarter. The improvement reflected lower Switzerland ramp-up costs, reduced advanced manufacturing expenses, lower inventory provisions, and lower freight and other cost of sales as a percentage of sales, partially offset by higher per-unit manufacturing costs related to lower production volumes in 2025. Gross margin was also negatively impacted by China tariffs on US-manufactured product. Margins will continue to be impacted by tariffs until 100% of products shipped to China are manufactured in Switzerland, which should happen by the end of 2026. Total operating expenses were USD 59.6 million, compared to USD 62.8 million in the prior year quarter.

Speaker #2: In Japan, unit volume rose 14%, though currency headwinds dampened reported sales growth, which came in at 2%. The Americas grew 12% year over year, and the U.S. delivered another approximately $6 million quarter.

Speaker #2: The improvement reflected lower Switzerland ramp-up costs, reduced advanced manufacturing expenses, lower inventory provisions, and lower freight and other cost of sales, as a percentage of sales, partially offset by higher per unit manufacturing costs related to lower production volumes in 2025.

Deborah Andrews: EMEA declined 1%, resulting from the continued conflicts in the Middle East. Excluding the Middle East, EMEA also grew 12% year over year. Gross margin was 74.5%, compared to 74% in the prior year quarter. The improvement reflected lower Switzerland ramp-up costs, reduced advanced manufacturing expenses, lower inventory provisions, and lower freight and other cost of sales as a percentage of sales, partially offset by higher per-unit manufacturing costs related to lower production volumes in 2025. Gross margin was also negatively impacted by China tariffs on US-manufactured product. Margins will continue to be impacted by tariffs until 100% of products shipped to China are manufactured in Switzerland, which should happen by the end of 2026. Total operating expenses were $59.6 million, compared to $62.8 million in the prior year quarter.

Speaker #2: The improvement reflected lower Switzerland ramp-up costs, reduced advanced manufacturing expenses, lower inventory provisions, and lower freight and other costs of sales as a percentage of sales, partially offset by higher per-unit manufacturing costs related to lower production volumes in 2025.

Speaker #2: Gross margin was also negatively impacted by China tariffs on US manufactured product. Margins will continue to be impacted by tariffs until 100% of products shipped to China are manufactured in Switzerland, which should happen by the end of 2026.

Speaker #2: Gross margin was also negatively impacted by China tariffs on U.S.-manufactured product. Margins will continue to be affected by tariffs until 100% of products shipped to China are manufactured in Switzerland, which should happen by the end of 2026.

Speaker #2: Total operating expenses were 59.6 million, compared to 62.8 million in the prior year quarter. Excluding 5.2 million in restructuring and merger-related costs from the prior year period, operating expenses increased approximately 3.7% year over year.

Deborah Andrews: Excluding USD 5.2 million in restructuring and merger-related costs from the prior year period, operating expenses increased approximately 3.7% year-over-year. Included within operating expenses were USD 1.2 million in marketing severance and USD 1.7 million in ERP consulting. We do not expect the severance to repeat and expect the ERP consulting expense to decline significantly beginning in Q4. Depreciation expense related to ERP systems was USD 1.1 million. We continue to manage toward our 2026 spending target of USD 225 million, though we may choose to make targeted investments that could result in marginally higher spending should the opportunity arise. Net income was USD 8.1 million, or USD 0.16 per diluted share, compared to a net loss of USD 16.8 million, or USD 0.34 per diluted share in the prior year quarter.

Speaker #2: Total operating expenses were $59.6 million, compared to $62.8 million in the prior year quarter. Excluding $5.2 million in restructuring and merger-related costs from the prior year period, operating expenses increased approximately 3.7% year over year.

Speaker #2: Included within operating expenses were 1.2 million in marketing severance and 1.7 million in ERP consulting. We don't expect the severance to repeat, and expect the ERP consulting expense to decline significantly beginning in the fourth quarter.

Deborah Andrews: Excluding $5.2 million in restructuring and merger-related costs from the prior year period, operating expenses increased approximately 3.7% year over year. Included within operating expenses were $1.2 million in marketing severance and $1.7 million in ERP consulting. We don't expect the severance to repeat and expect the ERP consulting expense to decline significantly beginning in Q4. Depreciation expense related to ERP systems was $1.1 million. We continue to manage toward our 2026 spending target of $225 million, so we may choose to make targeted investments that could result in marginally higher spending should the opportunity arise. Net income was $8.1 million, or $0.16 per diluted share, compared to a net loss of $16.8 million, or $0.34 per diluted share in the prior year quarter.

Speaker #2: Depreciation expense related to ERP systems was 1.1 million. We continue to manage toward our 2026 spending target of 225 million, though we may choose to make targeted investments that could result in marginally higher spending should the opportunity arise.

Speaker #2: Included within operating expenses were $1.2 million in marketing severance and $1.7 million in ERP consulting. We don't expect severance to repeat, and we expect the ERP consulting expense to decline significantly beginning in the fourth quarter.

Speaker #2: Depreciation expense related to ERP systems was $1.1 million. We continue to manage toward our 2026 spending target of $225 million, though we may choose to make targeted investments that could result in marginally higher spending should the opportunity arise.

Speaker #2: Net income was 8.1 million, or 16 cents per diluted share, compared to a net loss of 16.8 million, or 34 cents per diluted share, in the prior year quarter.

Speaker #2: Adjusted EBITDA was 20 million, or 39 cents per diluted share, compared to an adjusted EBITDA loss of 14.8 million, or 30 cents per diluted share, in the prior year quarter.

Deborah Andrews: Adjusted EBITDA was USD 20 million, or USD 0.39 per diluted share, compared to an adjusted EBITDA loss of USD 14.8 million, or USD 0.30 per diluted share in the prior year quarter. We ended the quarter with USD 181.5 million in cash equivalents, and investments available for sale, up from USD 163.9 million at the end of Q1, and we continue to have no debt. The company currently expects to generate significant free cash flow in the H2 of the year, ending 2026 with well over USD 200 million in cash. Overall, Q2 reflected meaningful improvement in profitability, cash generation, and operating leverage. Our focus remains on maintaining financial discipline, advancing new product development, and investing selectively in the opportunities with the clearest return potential. With that, I will turn it back to Warren.

Speaker #2: Net income was $8.1 million, or $0.16 per diluted share, compared to a net loss of $16.8 million, or $0.34 per diluted share in the prior year quarter.

Speaker #2: We ended the quarter with 181.5 million in cash, cash equivalents, and investments available for sale, up from 163.9 million at the end of the first quarter, and we continue to have no debt.

Speaker #2: Adjusted EBITDA was $20 million, or $0.39 per diluted share, compared to an adjusted EBITDA loss of $14.8 million, or $0.30 per diluted share in the prior year quarter.

Deborah Andrews: Adjusted EBITDA was $20 million, or $0.39 per diluted share, compared to an adjusted EBITDA loss of $14.8 million, or $0.30 per diluted share in the prior year quarter. We ended the quarter with $181.5 million in cash equivalents, and investments available for sale, up from $163.9 million at the end of Q1, and we continue to have no debt. The company currently expects to generate significant free cash flow in H2, ending 2026 with well over $200 million in cash. Overall, Q2 reflected meaningful improvement in profitability, cash generation, and operating leverage. Our focus remains on maintaining financial discipline, advancing new product development, and investing selectively in the opportunities with the clearest return potential. With that, I'll turn it back to Warren.

Speaker #2: The company currently expects to generate significant free cash flow in the second half of the year, ending 2026 with well over 200 million in cash.

Speaker #2: We ended the quarter with $181.5 million in cash, cash equivalents, and investments available for sale, up from $163.9 million at the end of the first quarter, and we continue to have no debt.

Speaker #2: Overall, the second quarter reflected meaningful improvement in profitability, cash generation, and operating leverage. Our focus remains on maintaining financial discipline, advancing new product development, and investing selectively in the opportunities with the clearest return potential.

Speaker #2: The company currently expects to generate significant free cash flow in the second half of the year ending 2026, with well over $200 million in cash.

Speaker #2: With that, I'll turn it back to Warren.

Speaker #3: Thank you, Deborah. Stepping back, the second quarter was a strong quarter that rounded out the best first half-year revenue performance in STAR history. This is yet another step forward for STAR.

Warren Foust: Thank you, Debra. Stepping back, Q2 was a strong quarter that rounded out the best H1 revenue performance in STAAR history. This is yet another step forward for STAAR. We grew revenue, expanded gross margins, generated net income, and built cash. We have much to be proud of. Growing EVO+ adoption in China, back-to-back record quarters in the US, a successful ERP implementation, and early progress in organizing our product pipeline with an eye toward the mid and long-term future. Our strategy is clear. Our team is focused and performing, and our long-term opportunity remains as compelling as ever, with more than 4 million lenses sold, 85 countries served, and 32 years of proven Collamer safety and efficacy in a world that is becoming more myopic every year. Our focus is to build on this momentum, revenue growth, expanding profitability, and advancing innovation.

Speaker #3: We grew revenue, expanded gross margins, generated net income, and built cash, and we have much to be proud of, growing Evo Plus adoption in China, back-to-back record quarters in the US, a successful ERP implementation, an early progress in organizing our product pipeline with an eye toward the mid and long-term future.

Speaker #2: With that, I'll turn it back to Warren.

Speaker #3: Thank you, Deborah. Stepping back, the second quarter was a strong quarter that rounded out the best first-half year revenue performance in STAAR history. This is yet another step forward for STAAR.

Warren Foust: Thank you, Deborah. Stepping back, Q2 was a strong quarter that rounded out the best H1 revenue performance in STAAR history. This is yet another step forward for STAAR. We grew revenue, expanded gross margins, generated net income, and built cash, and we have much to be proud of. Growing EVO+ adoption in China, back-to-back record quarters in the US, a successful ERP implementation, and early progress in organizing our product pipeline with an eye toward the mid and long-term future. Our strategy is clear, our team is focused and performing, and our long-term opportunity remains as compelling as ever, with more than 4 million lenses sold, 85 countries served, and 32 years of proven Collamer safety and efficacy in a world that is becoming more myopic every year. Now, our focus is to build on this momentum, revenue growth, expanding profitability, and advancing innovation.

Speaker #3: Our strategy is clear. Our team is focused and performing, and our long-term opportunity remains as compelling as ever, with more than 4 million lenses sold, 85 countries served, and 32 years of proven column or safety and efficacy in a world that is becoming more myopic every year.

Speaker #3: We grew revenue, expanded gross margins, generated net income, and built cash, and we have much to be proud of—growing EVO Plus adoption in China, back-to-back record quarters in the U.S., a successful ERP implementation, and early progress in organizing our product pipeline with an eye toward the mid- and long-term future.

Speaker #3: Now, our focus is to build on this momentum, revenue growth, expanding profitability, and advancing innovation. Deborah and I are aligned with our board and management team as we focused on long-term, value creation through clear priorities and operating discipline.

Speaker #3: Our strategy is clear. Our team is focused and performing, and our long-term opportunity remains as compelling as ever, with more than 4 million lenses sold, 85 countries served, and 32 years of proven clinical safety and efficacy in a world that is becoming more myopic every year.

Warren Foust: Our strategy is clear, our team is focused and performing, and our long-term opportunity remains as compelling as ever, with more than 4 million lenses sold, 85 countries served, and 32 years of proven Collamer safety and efficacy in a world that is becoming more myopic every year. Now, our focus is to build on this momentum, revenue growth, expanding profitability, and advancing innovation.

Warren Foust: Debra and I are aligned with our board and management team as we focus on long-term value creation through clear priorities and operating discipline. Thank you for your continued support. With that, operator, we are now ready to take questions.

Speaker #3: Thank you for your continued support. With that, operator, we are now ready to take questions.

Speaker #3: Now, our focus is to build on this momentum: revenue growth, expanding profitability, and advancing innovation. Deborah and I are aligned with our board and management team as we focus on long-term value creation through clear priorities and operating discipline.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchstone phone.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. For any additional questions, you may rejoin the queue. The first question will come from John Young with Canaccord. Please go ahead.

Warren Foust: Deborah and I are aligned with our board and management team as we focus on long-term value creation through clear priorities and operating discipline. Thank you for your continued support. With that, operator, we are now ready to take questions.

Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2.

Speaker #3: Thank you for your continued support. With that, operator, we are now ready to take questions.

Speaker #1: Please let me yourself to one question and one follow-up for any additional questions you may rejoin the queue. The first question will come from John Young with Canaccord.

Speaker #1: Thank you. We will now begin the question-and-answer session. To ask a question, you may press STAR, then 1 on your touch-tone phone.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please limit yourself to one question and one follow-up. For any additional questions, you may rejoin the queue. The first question will come from John Young with Canaccord. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Hi, Warren. Deborah, thank you for taking the question, and congratulations on the quarter and the recent leadership announcement. I want to touch on Q3 and just maybe understand how you're going to level set investors just given the comps and the one-timers that you called out.

John Young: Hey, Warren, Debra. Thank you for taking the question, and congratulations on the quarter and recent leadership announcement. I want to touch on Q3 and just maybe understand how you are going to level-set investors, just given the comps and the one-timers that you called out. Using that adjusted number of $68.8 million that was in the press release, and then you spoke about consensus currently sits at $80.9 million going into this print, so about 17.5% year-over-year growth from that figure you provided. Are you comfortable with the consensus number today? What is a good way to think of the Q3 growth algorithm? If you are not comfortable with that number, how should we think about growth overall for the quarter? Thank you.

Speaker #1: Please limit yourself to one question and one follow-up. For any additional questions, you may rejoin the queue. The first question will come from John Young with Canaccord.

Speaker #4: So using that adjusted number of 68.8 million, that was in the press release, and then you spoke about consensus currently sits at 80.9 million going into this print, so about 17.5% year-over-year growth from that figure you provided.

Speaker #1: Please go ahead.

Speaker #4: Hi, Warren. Deborah, thank you for taking the question, and congratulations on the quarter and the recent leadership announcement. I want to touch on Q3 and just maybe understand how you're going to level-set investors, just given the comps and the one-timers that you called out.

John Young: Hey, Warren, Deborah. Thank you for taking the question, and congratulations on the quarter and recent leadership announcement. I want to touch on Q3 and just maybe understand how you are going to level-set investors, just given the comps and the one-timers that you called out. So using that adjusted number of $68.8 million that was in the press release, you spoke about consensus currently sits at $80.9 million going into this print, so about 17.5% year-over-year growth from that figure you provided. Are you comfortable with the consensus number today, and what is a good way to think of the Q3 growth algorithm? If you are not comfortable with that number, how should we think about growth overall for the quarter? Thank you.

Jon Young: Hey, Warren, Deborah. Thank you for taking the question, and congratulations on the quarter and recent leadership announcement. I want to touch on Q3 and just maybe understand how you are going to level-set investors, just given the comps and the one-timers that you called out. So using that adjusted number of $68.8 million that was in the press release, you spoke about consensus currently sits at $80.9 million going into this print, so about 17.5% year-over-year growth from that figure you provided. Are you comfortable with the consensus number today, and what is a good way to think of the Q3 growth algorithm? If you are not comfortable with that number, how should we think about growth overall for the quarter? Thank you.

Speaker #4: Are you comfortable with the consensus number today? And what's a good way to think of the Q3 growth algorithm if you're not comfortable about that number?

Speaker #4: But using that adjusted number of $68.8 million, that was in the press release, and then you spoke about consensus currently sitting at $80.9 million going into this sprint.

Speaker #4: How should we think about growth overall for the quarter? Thank you.

Speaker #3: Yeah. Hey, John. Great question. Nice to hear from you, and I'll make some comments and then invite Deborah to join. Look, we don't comment on consensus numbers generally.

Warren Foust: Yeah. Hey, John. Great question. Nice to hear from you, and I will make some comments and then invite Debra to join. Look, we do not comment on consensus numbers generally. What I would say is we tried to give a little bit of a bridge to how you think about Q3 and Q4. We wanted to be clear that you needed to take the 2024 order out of each quarter so that you could have an appropriate base. Then we intend to grow off of that number. In fact, we are planning to grow on Q4 as well. That is what we would say as far as how to think about it. I think the primary driver of the success so far, clearly China has come back for us. We recognize that the market is somewhat muted.

Speaker #4: So, about 17.5% year-over-year growth from that figure you provided. Are you comfortable with the consensus number today? And what's a good way to think of the Q3 growth algorithm if you're not comfortable with that number?

Speaker #3: What I would say is we tried to give a little bit of a bridge to how you think about Q3 and Q4. We wanted to be clear that you needed to take the 2024 order out of the quarter so that you could have an appropriate base.

Speaker #4: How should we think about growth overall for the quarter? Thank you.

Speaker #3: Yeah. Hey, John, great question. Nice to hear from you. I'll make some comments and then invite Deborah to join. Look, we don't comment on consensus numbers generally.

Warren Foust: Yeah. Hey, John. Great question. Nice to hear from you, and I will make some comments and then invite Deborah to join. Look, we do not comment on consensus numbers generally. What I would say is we tried to give a little bit of a bridge to how you think about Q3 and Q4. We wanted to be clear that you needed to take the 2024 order out of each quarter so that you could have an appropriate base, and then we intend to grow off of that number. In fact, we are planning to grow on Q4 as well. So, that is what we would say as far as how to think about it. I think the primary driver of the success so far, clearly China has come back for us. We recognize that the market is somewhat muted.

Speaker #3: And then we intend to grow off of that number. In fact, we're planning to grow on Q4 as well. And so that's what we would say as far as how to think about it.

Speaker #3: What I would say is, we tried to give a little bit of a bridge to how you think about Q3 and Q4. We wanted to be clear that you needed to take the 2024 order out of the quarter.

Speaker #3: I think the primary driver of the success so far, clearly China has come back for us. We recognize that the market is somewhat muted.

Speaker #3: You hear that in some of the commentary about other companies that are reporting, but we believe we have a nice advantage with Evo Plus launching in that market.

Speaker #3: So that you could have an appropriate base. And then we intend to grow off of that number. In fact, we're planning to grow in Q4 as well.

Warren Foust: You hear that in some of the commentary about other companies that are reporting. But we believe we have a nice advantage with EVO+ launching in that market. We are clearly taking share relative to our competitors. Then we are still putting up a nice performance around the rest of the world, even in the face of some external challenges.

Speaker #3: And so that's what we would say as far as how to think about it. I think the primary driver of the success so far, clearly, China has come back for us.

Speaker #3: We're clearly taking share relative to our competitors, and then we're still putting up a nice performance around the rest of the world, even in the face of some external challenges.

Speaker #3: We recognize that the market is somewhat muted. You hear that in some of the commentary about other companies that are reporting. But we believe we have a nice advantage with EVO+ launching in that market.

Warren Foust: You hear that in some of the commentary about other companies that are reporting. But we believe we have a nice advantage with EVO+ launching in that market. We are clearly taking share relative to our competitors, and then we are still putting up a nice performance around the rest of the world, even in the face of some external challenges.

Speaker #4: Okay. Great. And then maybe just as a quick follow-up then, any of this color on where Evo Plus is today as a share of China volume, versus your initial expectations at launch?

John Young: Okay, great. Then maybe just as a quick follow-up, any color on where EVO+ is today as a share of China volume, versus your initial expectations at launch? Then maybe how could we think about the price versus unit benefit in Q2 specific to China? Thanks again for taking the questions.

Speaker #3: We're clearly taking share relative to our competitors, and we're still putting up a nice performance around the rest of the world, even in the face of some external challenges.

Speaker #4: And then maybe how could we think about the price versus unit benefit in Q2 specific to China? Thanks again for taking the questions.

Speaker #3: You bet. Yeah, it's a good one. Look, we're excited about what's happened with Evo Plus. Candidly, it's outstripped our supply capabilities based on the demand.

Speaker #4: Okay, great. And then maybe just as a quick follow-up, any color on where EVO Plus is today as a share of China volume versus your initial expectations at launch?

Jon Young: Okay, great. Then maybe just as a quick follow-up, any color on where EVO+ is today as a share of China volume, versus your initial expectations at launch? Then maybe how could we think about the price versus unit benefit in Q2 specific to China? Thanks again for taking the questions.

Warren Foust: You bet. Yeah, it is a good one. Look, we are excited about what has happened with EVO+. Candidly, it has outstripped our supply capabilities based on the demand. It is higher than what we anticipated it would be. Certainly, we saw that in the first quarter, and second quarter was no different. So even in other markets around the world, we are now working to try and sort through scaling up supply to be able to reach the demand. So that speaks to EVO+ has done better in China than expected. As far as the percent penetration of it, look, by the time we exited the quarter, it is probably close to a third of the units. So we feel that is pretty strong and it beats what we expected when we started. So, how you think about it going forward from a price standpoint, we are still taking a considerable premium.

Speaker #3: It's higher than what we anticipated it would be. Certainly, we saw that in the first quarter, and second quarter was no different. So even in other markets around the world, we're now working to try and sort through scaling up supply to be able to reach the demand.

Speaker #4: And then maybe, how could we think about the price versus unit benefit in Q2, specific to China? Thanks again for taking the questions.

Speaker #3: You bet. Yeah, it's a good one. Look, we're excited about what's happened with EVO Plus. Candidly, it's outstripped our supply capabilities based on the demand.

Warren Foust: You bet. Yeah, it is a good one. Look, we are excited about what has happened with EVO+. Candidly, it has outstripped our supply capabilities based on the demand. It is higher than what we anticipated it would be. Certainly, we saw that in the first quarter, and second quarter was no different. So even in other markets around the world, we are now working to try and sort through scaling up supply to be able to reach the demand. So that speaks to EVO+ has done better in China than expected. As far as the percent penetration of it, look, by the time we exited the quarter, it is probably close to a third of the units. So we feel that is pretty strong, and it beats what we expected when we started. So, how you think about it going forward from a price standpoint, we are still taking a considerable premium.

Speaker #3: And so that speaks to Evo Plus has done better in China than expected. As far as the percent penetration of it, look, it's by the time we exited the quarter, it's probably close to a third of the units.

Speaker #3: It's higher than what we anticipated it would be. Certainly, we saw that in the first quarter, and the second quarter was no different. So even in other markets around the world, we're now working to try and sort through scaling up supply to be able to meet the demand.

Speaker #3: And so we feel that's pretty strong, and it beats what we expected when we started. So how you think about it going forward from a price standpoint, we're still taking a considerable premium.

Speaker #3: And so that speaks to EVO Plus having done better in China than expected. As far as the percent penetration of it, look, by the time we exited the quarter, it's probably close to a third of the units.

Warren Foust: So that speaks to EVO+ has done better in China than expected. As far as the percent penetration of it, look, by the time we exited the quarter, it is probably close to a third of the units. So we feel that is pretty strong, and it beats what we expected when we started. So, how you think about it going forward from a price standpoint, we are still taking a considerable premium.

Speaker #3: Our customers and seemingly their patients have not balked at that premium. And so we expect that to continue at least into the near term.

Warren Foust: Our customers and seemingly their patients have not balked at that premium, and so we expect that to continue at least into the near term, and then we will see what next year brings.

Speaker #3: And so we feel that's pretty strong, and it beats what we expected when we started. So, how you think about it going forward from a price standpoint, we're still taking a considerable premium.

Speaker #3: And then we'll see what next year brings.

Speaker #1: The next question will come from Tom Stefan with Stifel. Please go ahead.

Operator: The next question will come from Thomas Stephan with Stifel. Please go ahead.

Speaker #5: Great. Hey, guys. Thanks for taking the questions and congrats on the roles. I want to start off with China and sort of thinking more intermediate to long-term.

Tom Stephan: Great. Hey, guys. Thanks for taking the questions and congrats on the roles. I want to start off with China and thinking more intermediate to long term. Comp's weird this year, when the street looks at numbers, but you're seeing obviously underlying volume growth, and obviously have a good sense on price and mix. Not asking for guidance or anything, Warren, but if we think out to 2027 on a full year basis, and that obviously strips out any quarter-to-quarter seasonality questions. As we sit here today, what do you view as the general range of call it normalized year-over-year China growth for STAAR? Then I'll have a follow-up.

Speaker #3: Our customers, and seemingly their patients, have not balked at that premium, and so we expect that to continue, at least into the near term.

Speaker #3: And then we'll see what next year brings.

Speaker #5: Comps, weird this year, when the street looks at numbers, but you're seeing, obviously, underlying volume growth, and obviously, have a good sense on price and mix.

Speaker #1: The next question will come from Tom Stefan with Stifel. Please go ahead.

Operator: The next question will come from Thomas Stephan with Stifel. Please go ahead.

Thomas Stephan: Great. Hey, guys. Thanks for taking the questions and congrats on the roles. I want to start off with China and sort of thinking more intermediate to long-term. Comp is weird this year, when the street looks at numbers, but you are seeing, obviously, underlying volume growth, and obviously have a good sense on price and mix. Not asking for guidance or anything, Warren, but if we think out to 2027 on a full year basis, and that obviously strips out any quarter-to-quarter seasonality questions. As we sit here today, what do you view as the general range of call it normalized year-over-year China growth for STAAR? Then I will have a follow-up.

Tom Stephan: Great. Hey, guys. Thanks for taking the questions and congrats on the roles. I want to start off with China and sort of thinking more intermediate to long-term. Comp is weird this year, when the street looks at numbers, but you are seeing, obviously, underlying volume growth, and obviously have a good sense on price and mix. Not asking for guidance or anything, Warren, but if we think out to 2027 on a full year basis, and that obviously strips out any quarter-to-quarter seasonality questions. As we sit here today, what do you view as the general range of call it normalized year-over-year China growth for STAAR? Then I will have a follow-up.

Speaker #5: Great. Hey, guys. Thanks for taking the questions, and congrats on the roles. I want to start off with China and sort of think more intermediate to long-term—comps are weird this year.

Speaker #5: So not asking for guidance or anything, Warren, but if we think out to 2027 on a full-year basis and that obviously strips out any quarter-to-quarter seasonality questions, as we sit here today, what do you view as the general range of, call it, normalized year-over-year China growth for star?

Speaker #5: When the Street looks at numbers, but you're seeing, obviously, underlying volume growth—and obviously, you have a good sense on price and mix—so I'm not asking for guidance or anything, Warren, but if we think out to 2027 on a full-year basis (and that obviously strips out any quarter-to-quarter seasonality questions), as we sit here today, what do you view as the general range of, call it, normalized year-over-year China growth for STAAR?

Speaker #5: And then I'll have a follow-up.

Speaker #3: Yeah. Thanks, Tom. Appreciate the comments. And look, I love that you said you're thinking intermediate to long-term. That's what we want. We're focused on building the long-term, not just from the revenue standpoint, but the infrastructure investments that we're making in the organization, the preparations we're making behind the scenes from a portfolio standpoint.

Warren Foust: Yeah. Thanks, Tom. Appreciate the comments. Look, I love that you said you're thinking intermediate to long term. That's what we want. We're focused on building the long term, not just from the revenue standpoint, but the infrastructure investments that we're making in the organization, the preparations we're making behind the scenes from a portfolio standpoint. We are intending to operate this business into the long term. So, thanks for that mindset. You said it. Look, aside from the nuance of us taking out the $25.9 million from the Q3 base, now we're going to be back to what we call clean quarters. We had clean quarters already this year, and you've seen growth better than market in China, and you've seen us continue to deliver in markets elsewhere around the world. I have no reason to believe that's going to change in China.

Speaker #3: We are intending to operate this business into the long term. So thanks for that mindset. You said it. Look, aside from the nuance of us taking out the 25.9 million from the Q3 base, now we're going to be back to what we call clean quarters.

Speaker #5: And then I'll have a follow-up.

Speaker #3: Yeah, thanks, Tom. Appreciate the comments. And look, I love that you said you're thinking intermediate to long-term. That's what we want. We're focused on building for the long-term, not just from the revenue standpoint, but through the infrastructure investments we're making in the organization, and the preparations we're making behind the scenes from a portfolio standpoint.

Warren Foust: Yeah. Thanks, Tom. Appreciate the comments. Look, I love that you said you are thinking intermediate to long-term. That is what we want. We are focused on building the long-term, not just from the revenue standpoint, but the infrastructure investments that we are making in the organization, the preparations we are making behind the scenes from a portfolio standpoint. We are intending to operate this business into the long term. So, thanks for that mindset. You said it. Look, aside from the nuance of us taking out the $25.9 million from the Q3 base, now we are going to be back to what we call clean quarters. So we had clean quarters already this year, and you have seen growth better than market in China, and you have seen us continue to deliver in markets elsewhere around the world. So I have no reason to believe that is going to change in China.

Speaker #3: And we had clean quarters already this year, and you've seen growth better than market in China. And you've seen us continue to deliver in markets elsewhere around the world.

Speaker #3: We are intending to operate this business into the long term, so thanks for that mindset—you said it. Look, aside from the nuance of us taking out the $25.9 million from the Q3 base, now we're going to be back to what we call clean quarters.

Warren Foust: So, thanks for that mindset. You said it. Look, aside from the nuance of us taking out the $25.9 million from the Q3 base, now we are going to be back to what we call clean quarters. So we had clean quarters already this year, and you have seen growth better than market in China, and you have seen us continue to deliver in markets elsewhere around the world. So I have no reason to believe that is going to change in China.

Speaker #3: And so I have no reason to believe that's going to change in China. Our thinking is that as that market, which we think is probably mid to single digits right now from a refractive market standpoint, pulled down a little bit, by lasers that are struggling, but it's offset by improvements that are happening largely because of price with Evo Plus and then V4C halo effect that's happening when patients go in looking for V5 and either don't get it because it's slightly higher priced from a premium standpoint or it's not even available because we're trying to satisfy that demand.

Warren Foust: Our thinking is that as that market, which we think is probably mid to single digits right now from a refractor market standpoint, pulled down a little bit by lasers that are struggling. But it's offset by improvements that are happening largely because of price with EVO+, and then V4c halo effect that's happening when patients go in looking for V5 and either don't get it because it's slightly higher priced from a premium standpoint, or it's not even available because we're trying to satisfy that demand. We think that feels like a tailwind as we go into next year, but not really ready to comment on exactly what that means for the quarters. I'll just finish by saying we did try and give some more guidance, not formal guidance, but some guidance around what the shape of the quarters look like in China.

Speaker #3: And we had clean quarters already this year, and you've seen growth better than market in China. And you've seen us continue to deliver in markets elsewhere around the world.

Speaker #3: And so I have no reason to believe that's going to change in China. Our thinking is that as that market—which we think is probably mid- to single-digits right now from a refractive market standpoint—pulled down a little bit by lasers that are struggling, but it's offset by improvements that are happening largely because of price with EVO Plus, and then the V4C halo effect that's happening when patients go in looking for V5 and either don't get it because it's slightly higher priced from a premium standpoint or it's not even available because we're trying to satisfy that demand.

Warren Foust: Our thinking is that as that market, which we think is probably mid to single digits right now from a refractive market standpoint, pulled down a little bit by lasers that are struggling. But it is offset by improvements that are happening largely because of price with EVO+ and then V4c halo effect that is happening when patients go in looking for V5 and either do not get it because it is slightly higher priced from a premium standpoint or it is not even available because we are trying to satisfy that demand. So we think that feels like a tailwind as we go into next year, but not really ready to comment on exactly what that means for the quarters. I will just finish by saying we did try and give some more guidance, not formal guidance, but some guidance around what the shape of the quarters look like in China.

Speaker #3: So we think that feels like a tailwind as we go into next year, but not really ready to comment on exactly what that means for the quarters.

Speaker #3: I'll just finish by saying we did try and give some more guidance, not formal guidance, but some guidance around what the shape of the quarters look like in China, clearly Q1 and Q2 have now moved in the last couple of years to be seasonally our highest quarters.

Warren Foust: Clearly, Q1 and Q2 have now moved in the last couple of years to be seasonally our highest quarters. Q3 is still strong, but it is typically going to be less than what Q1 and Q2 are. Q4 will be a softer quarter from a total revenue standpoint. But again, we are planning growth in both of those quarters, notwithstanding the $25.9 million that we have talked about extensively. I hope that makes sense.

Speaker #3: So we think that feels like a tailwind as we go into next year, but we're not really ready to comment on exactly what that means for the quarters.

Warren Foust: So we think that feels like a tailwind as we go into next year, but not really ready to comment on exactly what that means for the quarters. I will just finish by saying we did try and give some more guidance, not formal guidance, but some guidance around what the shape of the quarters look like in China.

Speaker #3: Q3 is still strong, but it's typically going to be less than what Q1 and Q2 2 are. And Q4 will be a softer quarter from a total revenue standpoint.

Speaker #3: I'll just finish by saying we did try to give some more guidance—not formal guidance, but some guidance—around what the shape of the quarters looks like in China.

Speaker #3: But again, we're planning growth in both of those quarters, notwithstanding the 25.9 million that we've talked about extensively. I hope that makes sense.

Speaker #3: Clearly, Q1 and Q2 have now moved, in the last couple of years, to be seasonally our highest quarters. Q3 is still strong, but it's typically going to be less than what Q1 and Q2 are.

Warren Foust: Clearly, Q1 and Q2 have now moved in the last couple of years to be seasonally our highest quarters. Q3 is still strong, but it is typically going to be less than what Q1 and Q2 are, and Q4 will be a softer quarter from a total revenue standpoint. Again, we are planning growth in both of those quarters, notwithstanding the $25.9 million that we have talked about extensively. I hope that makes sense.

Speaker #5: Makes sense. Appreciate that. And I'll maybe shift a little near-term on to start off long-term to set this up a little better. But I'll take a stab at kind of the three Q4, Q cadence, and focus on China here.

Tom Stephan: Makes sense. Appreciate that. Well, maybe just near term. I wanted to start off long term to set this up a little better, but I will take a stab at kind of the Q3, Q4 cadence and focus on China here. Warren, if I got this right, I think you mentioned Q3 China revenues moderately lower than Q2. Hopefully I heard that right. I am wondering if we can put a finer point on that. I will ask it in the context of Q3 2024 and Q3 2023, China dollar declines were $10 to $15 million, roughly speaking. Warren or Deborah, is that reasonable for Q3 2026 China, particularly as EVO+ mix, I think continues to provide a continued sequential headwind, and as we try to contemplate what sounds like pretty resilient ICL China summer high season trends.

Speaker #3: And Q4 will be a softer quarter from a total revenue standpoint. But again, we're planning growth in both of those quarters, notwithstanding the $25.9 million that we've talked about extensively.

Speaker #5: Warren, if I got this right, I think you mentioned three Q China revenues moderately lower than two Q. Hopefully, I heard that right. Wondering if we can put a finer point on that.

Speaker #3: I hope that makes sense.

Speaker #5: Makes sense. Appreciate that. I'll maybe shift a little near term to start off, then move to long term to set this up a little better. But I'll take a stab at the Q3, Q4 cadence, and focus on China here.

Thomas Stephan: Makes sense. Appreciate that. I will maybe shift a little near term. I wanted to start off long term to set this up a little better, but I will take a stab at kind of the Q3, Q4 cadence and focus on China here. Warren, if I got this right, I think you mentioned Q3 China revenues moderately lower than Q2. Hopefully, I heard that right. I am wondering if we can put a finer point on that. I will ask it in the context of Q3 2024 and Q3 2023 China dollar declines were $10 to $15 million, roughly speaking. Warren or Deborah, is that reasonable for Q3 2026 China, particularly as EVO+ mix, I think, continues to provide a continued sequential headwind and as we try to contemplate what sounds like pretty resilient ICL China summer high season trends.

Tom Stephan: Makes sense. Appreciate that. I will maybe shift a little near term. I wanted to start off long term to set this up a little better, but I will take a stab at kind of the Q3, Q4 cadence and focus on China here. Warren, if I got this right, I think you mentioned Q3 China revenues moderately lower than Q2. Hopefully, I heard that right. I am wondering if we can put a finer point on that. I will ask it in the context of Q3 2024 and Q3 2023 China dollar declines were $10 to $15 million, roughly speaking.

Speaker #5: And I'll ask it in the context of three Q '24 and three Q '23 China dollar declines were 10 to 15 million dollars, roughly speaking.

Speaker #5: Warren, if I got this right, I think you mentioned Q3 China revenues moderately lower than Q2. Hopefully I heard that right. Wondering if we can put a finer point on that.

Speaker #5: Warren, or Deborah, is that reasonable for three Q '26 China particularly as Evo Plus mix? I think continues to provide a continued sequential headwinds.

Speaker #5: And I'll ask it in the context of Q3 '24 and Q3 '23. China dollar declines were $10 to $15 million, roughly speaking.

Speaker #5: And as we try to contemplate what sounds like pretty resilient ICL, China summer high season trend. So is that down 10 to 15 million that you've seen in the past a good anchor point?

Speaker #5: Warren or Deborah, is that reasonable for Q3 '26 China? Particularly as I think the EVO Plus mix continues to provide sequential headwinds.

Tom Stephan: Warren or Deborah, is that reasonable for Q3 2026 China, particularly as EVO+ mix, I think, continues to provide a continued sequential headwind and as we try to contemplate what sounds like pretty resilient ICL China summer high season trends. Is that down $10 to $15 million that you have seen in the past a good anchor point? Thanks.

Tom Stephan: So is that down $10 to $15 million that you have seen in the past a good anchor point? Thanks.

Speaker #5: Thanks.

Speaker #3: Yeah, that's a good one. Look, I'll start and then invite Deborah. I think it's important to remember two things. The seasonal shift has happened that I described.

Warren Foust: Yeah, that is a good one. Look, I will start and then invite Deborah. I think it is important to remember two things. The seasonal shift has happened that I described. So Q1 and Q2 we expect to be stronger. That is borrowing partially from Q3, so it is hard for us to say, "Gosh, this is exactly what we think is going to happen in Q3," one, because of that dynamic, and then two, because of what we said around having to pull some of that 2024 order out of Q3. But we still expect the underlying, I think the important piece, the underlying demands in China, it is stable. It is not amazing. It is not as high as it was back in periods of hypergrowth. But we are taking advantage of it disproportionately because of the acceleration of share capture in our view. So I think that is how I would be thinking about it.

Speaker #5: And as we try to contemplate what sounds like a pretty resilient ICL, China summer high season trend, is that down 10 to 15 million that you've seen in the past?

Speaker #3: So Q1 and Q2, we expect to be stronger. That's borrowing partially from Q3. So it's hard for us to say, "Gosh, this is exactly what we think is going to happen in Q3," because one, because of that dynamic, and then two, because of what we said around having to pull some of that 2024 order out of Q3.

Thomas Stephan: Is that down $10 to $15 million that you have seen in the past a good anchor point? Thanks.

Speaker #5: A good anchor point. Thanks.

Speaker #3: Yeah, that's a good one. Look, I'll start and then invite Deborah. I think it's important to remember two things. The seasonal shift has happened that I described.

Warren Foust: Yeah, that is a good one. Look, I will start and then invite Deborah. I think it is important to remember two things. The seasonal shift has happened that I described. So Q1 and Q2, we expect to be stronger. That is borrowing partially from Q3. So it is hard for us to say, gosh, this is exactly what we think is going to happen in Q3 because, one, because of that dynamic, and then two, because of what we said around having to pull some of that 2024 order out of Q3. But we still expect the underlying, I think the important piece, the underlying demand in China, it is stable. It is not amazing. It is not as high as it was back in periods of hypergrowth, but we are taking advantage of it disproportionately because of the acceleration of share capture in our view. So I think that is how I would be thinking about it.

Speaker #3: But we still expect the underlying I think the important piece the underlying demand in China it's stable. It's not amazing. It's not as high as it was back in periods of hypergrowth, but we're taking advantage of it disproportionately because of the acceleration of share capture in our view.

Speaker #3: And then two, because of what we said around having to pull some of that 2024 order out of Q3. But we still expect—the underlying, I think the important piece—the underlying demand in China is stable.

Speaker #3: So I think that's how I would be thinking about it. It's hard for us to put a number on that, which is sort of stating the obvious why we haven't.

Warren Foust: But we still expect the underlying, I think the important piece, the underlying demand in China, it is stable. It is not amazing. It is not as high as it was back in periods of hypergrowth, but we are taking advantage of it disproportionately because of the acceleration of share capture in our view. So I think that is how I would be thinking about it.

Warren Foust: It is hard for us to put a number on that, which is stating the obvious why we have not.

Speaker #3: It's not amazing. It's not as high as it was back in periods of hypergrowth, but we're taking advantage of it disproportionately because of the acceleration of share capture, in our view.

Speaker #1: The next question will come from Anthony Petrone with Mizuho Americas. Please go ahead.

Operator: The next question will come from Anthony Petrone with Mizuho Americas. Please go ahead.

Speaker #2: Oh, thanks. And congrats, everyone, on the new roles. And look forward to working with everyone moving forward. Maybe I'll pivot to the US and then come back to China.

Anthony Petrone: Thanks, and congrats everyone on the new roles, and look forward to working with everyone moving forward.

Speaker #3: So I think that's how I would be thinking about it. It's hard for us to put a number on that, which is sort of stating the obvious as to why we haven't.

Warren Foust: It is hard for us to put a number on that, which is stating the obvious why we have not.

Warren Foust: Thanks.

Anthony Petrone: Well, maybe I will pivot to the US and then come back to China. Just maybe an update on active sites and the strategy. So where are we in terms of total active sites in the US? And I know that there was a go deeper penetration strategy, but also there was a push to open up new sites. So, maybe where are we on active sites and a recap and a refresh on the strategy between deeper penetration at the EVO live sites versus going after new accounts, and then I will have a follow-up on China.

Speaker #2: Just maybe an update on active sites and the strategy. So where are we in terms of total active sites in the US? And I know that there was sort of a go deeper penetration strategy, but also there was a push to open up new sites.

Speaker #1: The next question will come from Anthony Petrone with Mizuho Americas. Please go ahead.

Operator: The next question will come from Anthony Petrone with Mizuho Americas. Please go ahead.

Speaker #2: Oh, thanks. And congrats, everyone, on the new roles. I look forward to working with everyone moving forward. Maybe I'll pivot to the U.S. and then come back to China.

Anthony Petrone (Mizuho Americ: Thanks. Congrats everyone on the new roles and look forward to working with everyone moving forward.

Anthony Petrone (Mizuho Ame: Thanks. Congrats everyone on the new roles and look forward to working with everyone moving forward.

Warren Foust: Thanks, Anthony.

Anthony Petrone (Mizuho Americ: Maybe I will pivot to the US and then come back to China. Just maybe an update on active sites and the strategy. Where are we in terms of total active sites in the US? I know that there was sort of a go deeper penetration strategy, but also there was a push to open up new sites. Maybe where are we on active sites and a recap and a refresh on the strategy between deeper penetration at the EVO live sites versus going after new accounts, and then I will have a follow-up on China.

Anthony Petrone (Mizuho Ame: Maybe I will pivot to the US and then come back to China. Just maybe an update on active sites and the strategy. Where are we in terms of total active sites in the US? I know that there was sort of a go deeper penetration strategy, but also there was a push to open up new sites. Maybe where are we on active sites and a recap and a refresh on the strategy between deeper penetration at the EVO live sites versus going after new accounts, and then I will have a follow-up on China.

Speaker #2: So maybe where are we on active sites and a recap and a refresh on the strategy between deeper penetration at the Evo Live sites versus going after new accounts and then I'll have a follow-up on China.

Speaker #2: Just maybe an update on active sites and the strategy. So, where are we in terms of total active sites in the U.S.? And I know that there was sort of a 'go deeper' penetration strategy, but also there was a push to open up new sites.

Speaker #3: Yeah. Thanks, Anthony. Good to hear from you. Look, what we're seeing in the US is a bit of what we're seeing around the world.

Warren Foust: Yeah. Thanks, Anthony. Good to hear from you. Look, what we are seeing in the US is a bit of what we are seeing around the world. Remember that when we got the approval for EVO in 2022, commercial launch kind of happened in 2023 as we built up the team. What you are seeing now is we have got hundreds and hundreds and hundreds of active sites. We are going deeper where we know we can make the biggest difference. We are focused on two key things. It is a US discussion, but it is also one that is relevant outside of the US, and that is once we get customers clinically confident when they use EVO, and those patients come back and they see them in the clinic, or they see the optometrist, these are happy people.

Speaker #2: So maybe, where are we on active sites, and can we get a recap and a refresh on the strategy between deeper penetration at the EVO live sites versus going after new accounts? And then I'll have a follow-up on China.

Speaker #3: Remember that only got the approval for Evo in '22. Commercial launch kind of happened in 2023 as we built up the team. And what you're seeing now is we've got hundreds and hundreds and hundreds of active sites.

Speaker #3: We're going deeper where we know we can make the biggest difference. We're focused on two key things. And it's a US discussion, but it's also one that is relevant outside of the US.

Speaker #3: Yeah, thanks, Anthony. Good to hear from you. Look, what we're seeing in the U.S. is a bit of what we're seeing around the world.

Warren Foust: Yeah. Thanks, Anthony. Good to hear from you. Look, what we are seeing in the US is a bit of what we are seeing around the world. Remember that when we got the approval for EVO in 2022, commercial launch kind of happened in 2023 as we built up the team. What you are seeing now is we have got hundreds and hundreds of active sites. We are going deeper where we know we can make the biggest difference. We are focused on two key things, and it is a US discussion, but it is also one that is relevant outside of the US, and that is once we get customers clinically confident when they use EVO, and those patients come back and they see them in the clinic, or they see the optometrist, these are happy people.

Speaker #3: Remember that we only got the approval for EVO in 2022. The commercial launch kind of happened in 2023 as we built up the team. And what you're seeing now is we've got hundreds and hundreds and hundreds of active sites.

Speaker #3: And that is, once we get customers clinically confident when they use Evo, and those patients come back and they see them in the clinic or they see the optometrist, these are happy people.

Speaker #3: We're going deeper where we know we can make the biggest difference. We're focused on two key things. And it's a U.S. discussion, but it's also one that is relevant outside of the U.S.

Speaker #3: And so what we're seeing is the surgeons get more confident clinically, and then they look for, "How do I make this work for me economically?" And that varies by whether they operate in their practice or whether they go down the street in their car to a multispecialty ASC where they have to pay anywhere from $900 to $1,800 an eye to operate on them.

Warren Foust: What we are seeing is the surgeons get more confident clinically, and then they look for, how do I make this work for me economically? That varies by whether they operate in their practice or whether they go down the street in their car to a multi-specialty ASC, where they have to pay anywhere from $900 to $1,800 an eye to operate on them. That is a more challenging situation to where we have in-office suites where the doctor can go right down the hall and operate in his or her own practice. So you can see where there is opportunity sets within each one of those scenarios. We have stratified those customers.

Speaker #3: And that is, once we get customers clinically confident when they use EVO, and those patients come back and they see them in the clinic or they see the optometrist, these are happy people.

Speaker #3: That's a more challenging situation to where we have in-office suites where the doctor can go right down the hall and operate in his or her own practice.

Speaker #3: And so what we're seeing is the surgeons get more confident clinically, and then they look for, "How do I make this work for me economically?" And that varies by whether they operate in their practice or whether they go down the street in their car to a multispecialty ASC, where they have to pay anywhere from $900 to $1,800 an eye to operate on them.

Warren Foust: What we are seeing is the surgeons get more confident clinically, and then they look for, how do I make this work for me economically? That varies by whether they operate in their practice or whether they go down the street in their car to a multi-specialty ASC, where they have to pay anywhere from $900 to $1,800 an eye to operate on them. That is a more challenging situation to where we have in-office suites where the doctor can go right down the hall and operate in his or her own practice. You can see where there is opportunity sets within each one of those scenarios. We have stratified those customers.

Speaker #3: So you can see where there's opportunity sets within each one of those scenarios. We've stratified those customers. Our team is actively and aggressively going after clinically confident customers with an economic message that says, "You've got revenue that's walking out of your practice because they're high diopter and someone's trying to sell them LASIK," which is declining.

Warren Foust: Our team is actively and aggressively going after clinically confident customers with an economic message that says, "You have got revenue that is walking out of your practice because they are high diopter and someone is trying to sell them LASIK," which is declining year-over-year, and now again, quarter-over-quarter. That is a little bit of an almost dated discussion because what is happening now is patients are asking for EVO because they are hearing more about it. Younger patients and younger doctors recognize the value of a removable reversible technology, so they are more excited. So more of those surgeons in the US are offering EVO as one of their refractive surgery options. You are seeing the adoption, you are seeing less walkout revenue, and you are seeing more of the practices that we are targeting narrow the delta for the patient from a pricing standpoint.

Speaker #3: That's a more challenging situation, where we have in-office suites, and the doctor can go right down the hall and operate in his or her own practice.

Speaker #3: So you can see where there are opportunity sets within each one of those scenarios. We've stratified those customers. Our team is actively and aggressively going after clinically confident customers with an economic message that says, "You've got revenue that's walking out of your practice," because they're high diopter and someone's trying to sell them LASIK, which is declining.

Speaker #3: Year over year. And now, again, quarter over quarter. And so that's a little bit of a almost dated discussion because what's happening now is patients are asking for Evo because they're hearing more about it.

Warren Foust: Our team is actively and aggressively going after clinically confident customers with an economic message that says, "You have got revenue that is walking out of your practice because they are high diopter and someone is trying to sell them LASIK," which is declining year-over-year and now again, quarter-over-quarter. That is a little bit of an almost dated discussion because what is happening now is patients are asking for EVO because they are hearing more about it. Younger patients and younger doctors recognize the value of a removable, reversible technology, and so they are more excited. More of those surgeons in the US are offering EVO as one of their refractive surgery options.

Speaker #3: Younger patients and younger doctors recognize the value of a removable reversible technology and so they're more excited. So more of those surgeons in the US are offering Evo as one of their refractive surgery options.

Speaker #3: Year over year, and now again, quarter over quarter. So that's a little bit of an almost dated discussion, because what's happening now is patients are asking for EVO because they're hearing more about it.

Speaker #3: And so you're seeing the adoption. You're seeing less walkout revenue. And you're seeing more of the practices that we're targeting narrow the delta for the patient.

Speaker #3: Younger patients and younger doctors recognize the value of a removable, reversible technology, and so they're more excited. So, more of those surgeons in the U.S. are offering EVO as one of their refractive surgery options.

Speaker #3: From a pricing standpoint. So they make it more accessible to them and that's what we're seeing drive the adoption in the US. It's still on smaller volume that we want, but we're proud of another $6 million quarter.

Warren Foust: They make it more accessible to them, and that is what we are seeing drive the adoption in the US. It is still on smaller volume that we want, but we are proud of another $6 million quarter and looking forward to continued growth.

Speaker #3: And so, you're seeing the adoption. You're seeing less walkout revenue. And you're seeing more of the practices that we're targeting narrow the delta for the patient.

Warren Foust: You are seeing the adoption, you are seeing less walkout revenue, and you are seeing more of the practices that we are targeting narrow the delta for the patient from a pricing standpoint, so they make it more accessible to them, and that is what we are seeing drive the adoption in the US. It is still on smaller volume that we want, but we are proud of another $6 million quarter and looking forward to continued growth.

Speaker #3: And looking forward to continued growth.

Speaker #2: Very helpful. And China, Evo Plus, just a reminder, what percent of the market does the larger lens size open up in China? And then just looking at the consignment numbers, they're up pretty substantially year over year in the Q.

Anthony Petrone: Very helpful. China, EVO+, just a reminder, what percent of the market does the larger lens size open up in China? Then just looking at the consignment numbers, they are up pretty substantially year-over-year in the Q. Just wondering how much of the China consignment sales were linked to EVO+. Thanks.

Speaker #3: From a pricing standpoint, they make it more accessible to them, and that's what we're seeing drive the adoption in the US. It's still on a smaller volume than we want, but we're proud of another $6 million quarter.

Speaker #2: Just wondering how much of the China consignment sales were linked to Evo Plus. Thanks.

Speaker #3: And looking forward to continued growth.

Speaker #2: Very helpful. And China, EVO Plus—just a reminder, what percent of the market does the larger lens size open up in China? And then, just looking at the consignment numbers, they're up pretty substantially year over year in the quarter.

Anthony Petrone (Mizuho Americ: Very helpful. China, EVO+, just a reminder, what percent of the market does the larger lens size open up, in China? Then just looking at the consignment numbers, they are up pretty substantially year-over-year in the Q. Just wondering how much of the China consignment sales were linked to EVO+. Thanks.

Anthony Petrone (Mizuho Ame: Very helpful. China, EVO+, just a reminder, what percent of the market does the larger lens size open up, in China? Then just looking at the consignment numbers, they are up pretty substantially year-over-year in the Q. Just wondering how much of the China consignment sales were linked to EVO+. Thanks.

Speaker #3: I'll let Deborah comment on the consignment sales. I'll just say as far as opening up the opportunity, look, the way we see market demand is it's unlimited.

Warren Foust: I will let Deborah comment on the consignment sales. I will just say as far as opening up the opportunity, look, the way we see market demand is it is unlimited. That is not just China, that is on a global basis. The amount of refractive error on this planet is untreated, and it is massive, so we are on a journey after it. Obviously, we are constrained by some things. We are constrained by total patients in the refractive market coming in and seeking consultation. Then as it pertains to EVO+ in China, we are constrained a bit by inventory as we have been struggling to build enough to meet the demand in Q1 and then in Q2. I think we are getting our hands around that now, particularly as we get into the latter parts of Q3 and into Q4. We will see some of the demand slow down just because of the dynamics of the seasonality.

Speaker #3: And that's not just China. That's on a global basis. The amount of refractive error on this planet is untreated and it's massive. And so we're on a journey after it.

Speaker #2: I was just wondering how much of the China consignment sales were linked to EVO Plus. Thanks.

Speaker #3: Obviously, we're constrained by some things. We're constrained by total patients in the refractive market coming in and seeking consultation. And then as we've been struggling to build enough to meet the demand in Q1 and then in Q2, I think we're getting our hands around that now, particularly as we get into the latter parts of Q3 and into Q4, we'll see some of the demand slow down just because of the dynamics of the seasonality.

Speaker #3: I'll let Deborah comment on the consignment sales. I'll just say, as far as opening up the opportunity—look, the way we see market demand is, it's unlimited.

Warren Foust: I will let Deborah comment on the consignment sales. I will just say as far as opening up the opportunity, look, the way we see market demand is it is unlimited. That is not just China, that is on a global basis. The amount of refractive error on this planet is untreated, and it is massive. We are on a journey after it. Obviously, we are constrained by some things. We are constrained by total patients in the refractive market coming in and seeking consultation. Then as it pertains to EVO+ in China, we are constrained a bit by inventory as we have been struggling to build enough to meet the demand in Q1 and then in Q2. I think we are getting our hands around that now, particularly as we get into the latter parts of Q3 and into Q4. We will see some of the demand slow down just because of the dynamics of the seasonality.

Speaker #3: And that's not just China; that's on a global basis. The amount of refractive error on this planet is untreated, and it's massive. So we're on a journey after it.

Speaker #3: Obviously, we're constrained by some things. We're constrained by the total number of patients in the refractive market coming in and seeking consultation. And then, as it pertains to EVO Plus in China, we're constrained a bit by inventory as we've been struggling to build enough to meet the demand in Q1 and then in Q2.

Warren Foust: We are constrained by total patients in the refractive market coming in and seeking consultation. Then as it pertains to EVO+ in China, we are constrained a bit by inventory as we have been struggling to build enough to meet the demand in Q1 and then in Q2. I think we are getting our hands around that now, particularly as we get into the latter parts of Q3 and into Q4. We will see some of the demand slow down just because of the dynamics of the seasonality.

Speaker #3: So that'll actually help us from a supply standpoint. But you're seeing there's no additional number of patients that Evo Plus opens up because Evo Plus could be used for any number of patients that Evo could be used for.

Warren Foust: That will actually help us from a supply standpoint. You are seeing there is no additional number of patients that EVO+ opens up because EVO+ could be used for any number of patients that EVO could be used for. It becomes a premium positioning at the account level and whether the patient has the economics to support themselves on it.

Speaker #3: I think we're getting our hands around that now, particularly as we get into the latter parts of Q3 and into Q4. We'll see some of the demand slow down just because of the dynamics of the seasonality.

Speaker #3: It becomes a premium positioning at the account level. And whether the patient has the economics to support themselves on it.

Speaker #3: So that'll actually help us from a supply standpoint. But you're saying there's no additional number of patients that EVO Plus opens up, because EVO Plus could be used for any number of patients that EVO could be used for.

Warren Foust: That will actually help us from a supply standpoint. But you are seeing there is no additional number of patients that EVO+ opens up because EVO+ could be used for any number of patients that EVO could be used for. It becomes a premium positioning at the account level and whether the patients have the economics to support themselves on it.

Speaker #4: I guess this is Deborah. I'll from a consignment standpoint, actually, our consignments in China are way down. And that's why you're seeing increased tariff costs on the gross margin side, because if you recall, we shipped those consignments before the increased tariffs were put into effect last year, early last year.

Deborah Andrews: This is Debra. From a consignment standpoint, actually, our consignments in China are way down. That is why you are seeing increased tariff costs on the gross margin side, because if you recall, we shipped those consignments before the increased tariffs were put into effect early last year. Now that those lenses have been used, we are shipping US product into China increasingly, and they are subject to tariffs. But the overall numbers are way down in China in consignments.

Speaker #3: It becomes a premium positioning at the account level, and whether the patient has the economics to support themselves on it.

Speaker #4: I guess this is Deborah. From a consignment standpoint, actually, our consignments in China are way down. And that's why you're seeing increased tariff costs on the gross margin side, because, if you recall, we shipped those consignments before the increased tariffs were put into effect last year, early last year.

Deborah Andrews: This is Debra. From a consignment standpoint, actually, our consignments in China are way down. That is why you are seeing increased tariff costs on the gross margin side, because if you recall, we shipped those consignments before the increased tariffs were put into effect last year, early last year. Now that those lenses have been used, we are shipping US product into China increasingly, and they are subject to tariffs. But the overall numbers are way down in China in consignments.

Speaker #4: And so now that those lenses have been used, we're shipping US product into China increasingly. And they are subject to tariffs. But the overall numbers are way down in China.

Speaker #4: In consignments.

Speaker #4: And so now that those lenses have been used, we're shipping US product into China increasingly. And they are subject to tariffs, but the overall numbers are way down in China.

Speaker #1: The next question will come from Simran Carr with Wells Fargo. Please go ahead.

Operator: The next question will come from Simran Kaur with Wells Fargo. Please go ahead.

Speaker #5: Hi. Thanks for taking the questions. And I'll echo the prior congratulations on the quarter and leadership announcement. Warren, you've framed the China share gains as coming primarily from laser-based procedures.

Simran Kaur: Hi. Thanks for taking the questions, and I'll echo the prior congratulations on the quarter-end leadership announcements. Warren, you framed the China share gains as coming primarily from laser-based procedures. Could you just help us understand the mechanism behind that? Are you seeing more patients opt for ICL up front, or is the bigger driver surgeons expanding into ICL and converting procedures within their practices? As domestic competition develops in the China refractive market over the next few years, how durable do you believe those share gains are?

Speaker #4: In consignments.

Speaker #1: The next question will come from Simran Carr with Wells Fargo. Please go ahead.

Operator: The next question will come from Simran Kaur with Wells Fargo. Please go ahead.

Speaker #5: Could you just help us understand the mechanism behind that? Are you seeing more patients opt for ICL upfront, or is the bigger into ICL and converting procedures within their practices?

Simran Kaur: Hi. Thanks for taking the questions. I will echo the prior congratulations on the quarter and leadership announcements. Warren, you have framed the China share gains as coming primarily from laser-based procedures. Could you just help us understand the mechanism behind that? Are you seeing more patients opt for ICL up front, or is the bigger driver surgeons expanding into ICL and converting procedures within their practices? As domestic competition develops in the China refractive market over the next few years, how durable do you believe those share gains are?

Speaker #5: Hi, thanks for taking the questions. And I'll echo the prior congratulations on the quarter and the leadership announcements. Warren, you've framed the China share gains as coming primarily from laser-based procedures.

Speaker #5: And as domestic competition develops, and the China refractive market over the next few years, how durable do you believe those share gains are?

Speaker #5: Could you just help us understand the mechanism behind that? Are you seeing more patients opt for ICL upfront, or is the bigger driver surgeons expanding into ICL and converting procedures within their practices?

Speaker #3: Yeah. Hey, Simran. Thanks for the question. Look, I think starting with the competition, we're thrilled to have competition. It's just more of an admonition that the future is lens-based from a refractive surgery standpoint.

Warren Foust: Yeah. Hey, Simran. Thanks for the question. Look, I think starting with the competition, we're thrilled to have competition. It's just more of an admonition that the future is lens-based from a refractive surgery standpoint. You're seeing laser volumes around the world face headwinds. Is that what's happening in China? It's hard to say, getting into the share discussion. We believe a little bit of all of it's happening. Patients are coming in asking for EVO+. Oftentimes, they're getting EVO+ if they have the economics to do it and we're able to supply it. Even when they're not, and if they're a candidate for V4c, we're seeing a bit of a halo effect that's happening from that standpoint.

Speaker #5: And as domestic competition develops in the China refractive market over the next few years, how durable do you believe those share gains are?

Speaker #3: You're seeing laser volumes around the world face headwinds. And is that what's happening in China? It's hard to say. Getting into the share discussion, we believe a little bit of all of it's happening.

Speaker #3: Yeah. Hey, Simran, thanks for the question. Look, I think starting with the competition, we're thrilled to have competition. It's just more of an admonition that the future's lens-based from a refractive surgery standpoint.

Warren Foust: Yeah. Hey, Simran. Thanks for the question. Look, I think starting with the competition, we are thrilled to have competition. It is just more of an admonition that the future is lens-based from a refractive surgery standpoint. You are seeing laser volumes around the world face headwinds. Is that what is happening in China? It is hard to say, getting into the share discussion. We believe a little bit of all of it is happening. Patients are coming in asking for EVO+. Oftentimes, they are getting EVO+ if they have the economics to do it and we are able to supply it. Even when they are not, and if they are a candidate for V4c, we are seeing a bit of a halo effect that is happening from that standpoint.

Speaker #3: Patients are coming in asking for Evo Plus. Oftentimes, they're getting Evo Plus if they have the economics to do it. And we're able to supply it.

Speaker #3: And then even when they're not and if they're a candidate for V4C, we're seeing a bit of a halo effect that's happening from that standpoint.

Speaker #3: You're seeing laser volumes around the world face headwinds, and is that what's happening in China? It's hard to say. Getting into the share discussion, we believe a little bit of all of it's happening.

Speaker #3: So despite the otherwise sort of modest market growth in refractive in China, we believe we're getting a bigger share of it because we're getting dollar share with Evo Plus and we're getting some unit share probably with Evo Plus and with Evo.

Warren Foust: Despite the otherwise sort of modest market growth in refractive in China, we believe we're getting a bigger share of it because we're getting a dollar share with EVO+, and we're getting some unit share probably with EVO+ and with EVO. That's inviting that competition. We respect it. We see it outside of China, we see it inside of China. It's not made such an impact so far. Remember, these are acrylic lenses. The advantages of STAAR for 32 years and beyond now is our material. The EVO and EVO+ powered by Collamer message is very real, and the trust that our surgeons have for a device that they've had implanted for 30-plus years gives them great confidence, and I think it makes it more challenging for these other devices that are not made out of Collamer to compete in those markets.

Speaker #3: Patients are coming in asking for EVO Plus. Oftentimes, they're getting EVO Plus if they have the economics to do it, and we're able to supply it.

Speaker #3: And then even when they're not, and if they're a candidate for V4C, we're seeing a bit of a halo effect that's happening from that standpoint.

Speaker #3: That's inviting that competition. And so we respect it. We see it outside of China. We see it inside of China. It's not made such an impact so far.

Speaker #3: So, despite the otherwise sort of modest market growth in refractive in China, we believe we're getting a bigger share of it because we're getting dollar share with EVO Plus, and we're getting some unit share probably with EVO Plus and with EVO.

Warren Foust: So despite the otherwise sort of modest market growth in refractive in China, we believe we are getting a bigger share of it because we are getting a dollar share with EVO+ and we are getting some unit share probably with EVO+ and with EVO. That is inviting that competition. We respect it. We see it outside of China. We see it inside of China. It has not made such an impact so far. Remember, these are acrylic lenses. The advantages of STAAR for 32 years and beyond now is our material. The EVO and EVO+ powered by Collamer message is very real, and the trust that our surgeons have for a device that they have had implanted for 30-plus years gives them great confidence, and I think it makes it more challenging for these other devices that are not made out of Collamer to compete in those markets.

Speaker #3: Remember, these are STAR for 32 years and beyond now is our material. The Evo and Evo Plus powered by columnar message is very real.

Speaker #3: That's inviting that competition, and so we respect it. We see it outside of China, we see it inside of China. It's not made such an impact so far.

Speaker #3: And the trust that our surgeons have for a device that they've had implanted for 30-plus years gives them great confidence. And I think it makes it more challenging for these other devices that are not made out of columnar to compete in those markets.

Speaker #3: Remember, these are acrylic lenses. The advantage of STAAR for 32 years and beyond now is our material. The EVO and EVO Plus, powered by columnar message, is very real.

Warren Foust: The advantages of STAAR for 32 years and beyond now is our material. The EVO and EVO+ powered by Collamer message is very real, and the trust that our surgeons have for a device that they have had implanted for 30-plus years gives them great confidence, and I think it makes it more challenging for these other devices that are not made out of Collamer to compete in those markets.

Speaker #3: It doesn't mean that we have any disrespect for them. It just means they've got an uphill battle.

Warren Foust: It doesn't mean that we have any disrespect for them. It just means they've got an uphill battle.

Speaker #5: Got it. Very helpful. And for my follow-up, ex-China, I can certainly appreciate on a year-over-year basis every region grew. But if I look at the growth rates across APAC in particular, it looks like it's decelerated pretty significantly.

Simran Kaur: Got it. Very helpful. For my follow-up, ex China, I can certainly appreciate on a year-over-year basis every region grew. If I look at the growth rates across APAC in particular, it looks like it decelerated pretty significantly. Maybe just to help us understand what's going on in the region and more broadly, should we think about ex China as sort of a mid-single digit grower going forward, or is there opportunity to re-accelerate the growth rate there?

Speaker #3: It doesn't mean that we have any disrespect for them. It just means they've got an uphill battle.

Warren Foust: It does not mean that we have any disrespect for them. It just means they have got an uphill battle.

Speaker #5: Got it. Very helpful. And for my follow-up, ex-China, I can certainly appreciate that on a year-over-year basis every region grew. But if I look at the growth rates across APAC in particular, it looks like they've decelerated pretty significantly.

Simran Kaur: Got it. Very helpful. For my follow-up, ex China, I can certainly appreciate on a year-over-year basis, every region grew. If I look at the growth rates across APAC in particular, it looks like it decelerated pretty significantly. Maybe just to help us understand what is going on in the region and more broadly, should we think about ex China as sort of a mid-single digit grower going forward, or is there opportunity to re-accelerate the growth rate there?

Speaker #5: So maybe just to help us understand what's going on in the region and more broadly, should we think about ex-China as sort of a mid-single-digit grower going forward, or is there opportunity to re-accelerate the growth rate there?

Speaker #3: We have strong contributions from our largest markets in the region, in APAC, Japan and Korea. Japan grew substantially from a unit standpoint but faced tremendous headwinds from a currency exchange standpoint.

Warren Foust: We have strong contributions from our largest markets in the region in APAC, Japan and Korea. Japan grew substantially from a unit standpoint but faced tremendous headwinds from a currency exchange standpoint. I think it's 13% to 14% growth even in units. What we faced after currency was just 2% growth. It's modest from that perspective. But the underlying market activity is strong. We don't have any reason to think that that's going to change. Korea, it's a bit of the low season for Korea. Korea, it's a smaller market relative to Japan, but it's a really important one for us, and it's one where we have great sales execution, great customer relationships, and so we believe in the long-term viability of that market as well. India is really, really a long-term play for us. That's a complicated market. It's complicated relative to local competition.

Speaker #5: So, maybe just to help us understand what's going on in the region and more broadly, should we think about ex-China as sort of a mid-single-digit grower going forward, or is there opportunity to reaccelerate the growth rate there?

Speaker #3: So I think it's 30 to 14 percent growth even in units. And then what we faced after currency was just 2 percent growth. So it's modest from that perspective.

Warren Foust: We have strong contributions from our largest markets in the region in APAC, Japan and Korea. Japan grew substantially from a unit standpoint, but faced tremendous headwinds from a currency exchange standpoint. So, I think it is 13% to 14% growth even in units, and then what we faced after currency was just 2% growth. So it is modest from that perspective, but the underlying market activity is strong, and we do not have any reason to think that that is going to change. Korea, it is a bit of the low season for Korea. Korea is a smaller market relative to Japan, but it is a really important one for us, and it is one where we have great sales execution, great customer relationships. So we believe in the long-term viability of that market as well. India is really a long-term play for us. That is a complicated market. It is complicated relative to local competition.

Speaker #3: We have strong contributions from our largest markets in the region in APAC—Japan and Korea. Japan grew substantially from a unit standpoint but faced tremendous headwinds from a currency exchange standpoint.

Speaker #3: But the underlying markets activity is strong. And we don't have any reason to think that's going to change because it's a bit of the low season for Korea.

Speaker #3: Korea is also it's not as it's a smaller market relative to Japan, but it's a really important one for us. It's one where we have great sales execution, great customer relationships, so we believe in the long-term viability of that market as well.

Speaker #3: So I think it's 30 to 14 percent growth, even in units. And then what we faced after currency was just 2 percent growth. So it's modest from that perspective.

Speaker #3: But the underlying market activity is strong, and we don't have any reason to think that that's going to change. Korea—it's a bit of the low season for Korea.

Speaker #3: India is really, really a long-term play for us. That's a complicated market. It's complicated relative to local competition. It's complicated relative to macroeconomic factors that they're facing.

Speaker #3: Korea is also—not as it's a smaller market relative to Japan—but it's a really important one for us. And it's one where we have great sales execution, great customer relationships.

Warren Foust: Korea is a smaller market relative to Japan, but it is a really important one for us, and it is one where we have great sales execution, great customer relationships. So we believe in the long-term viability of that market as well. India is really a long-term play for us. That is a complicated market. It is complicated relative to local competition.

Warren Foust: It's complicated relative to macroeconomic factors that they're facing. Obviously, there's currency issues associated with being able to access US-made and Swiss-made products in India. So that's a long-term process for us, but it's still a really important market. As far as the heart of your question of what should we expect as far as growth rate, can't say, but what I would say is we don't have any reason to believe that the viability of EVO in those markets is going to be under any siege.

Speaker #3: Obviously, there's currency issues associated with being able to access US-made and Swiss-made products in India. So that's a long-term process for us, but it's still a really important market.

Speaker #3: And so, we believe in the long-term viability of that market as well. India is really, really a long-term play for us. That's a complicated market.

Speaker #3: So as far as the heart of your question of what should we expect, as far as growth rate, can't say. But what I would say is we don't have any reason to believe that the viability of Evo in those markets is going to be under any siege.

Speaker #3: It's complicated relative to local competition. It's complicated relative to macroeconomic factors that they're facing. Obviously, there are currency issues associated with being able to access U.S.-made and Swiss-made products in India.

Warren Foust: It's complicated relative to macroeconomic factors that they're facing. Obviously, there's currency issues associated with being able to access US-made and Swiss-made products in India. That's a long-term process for us, but still a really important market. As far as the heart of your question of what should we expect as far as growth rate, can't say, but what I would say is we don't have any reason to believe that the viability of EVO in those markets is going to be under any siege.

Speaker #1: The next question will come from pardon me. Go ahead.

Operator: The next question will come from, pardon me, go ahead.

Speaker #3: Yeah. Go ahead, Deborah.

Speaker #3: So that's a long-term process for us, but it's still a really important market. So, as far as the heart of your question—what should we expect as far as growth rate—I can't say.

Speaker #4: No. I just wanted to add that plus we're seeing really strong growth in Taiwan, which we just launched last year. And that market is really doing very, very well.

Warren Foust: Yeah, go ahead, Debra.

Deborah Andrews: No, I just wanted to add that plus we are seeing really strong growth in Taiwan, which we just launched last year. That market is really doing very well. Sequentially every quarter it has increased significantly. So nice market there.

Speaker #3: But what I would say is, we don't have any reason to believe that the viability of EVO in those markets is going to be under NECC-ish.

Speaker #4: The quickly every quarter, it's significantly doing a nice market there.

Speaker #1: The next question will come from—pardon me. Go ahead.

Operator: The next question will come from, pardon me, go ahead.

Speaker #3: Market to think about because we just got the approval for Evo Plus. We're adjacent to China, obviously. So from a patient population standpoint, we have access and visibility to seeing the social media that have happened with Evo.

Speaker #3: Yeah. Go ahead, Deborah.

Warren Foust: Yeah, go ahead, Debra.

Speaker #4: No, I just wanted to add that, plus we're seeing really strong growth in Taiwan, which we just launched last year, and that market is really doing very, very well.

Deborah Andrews: No, I just wanted to add that plus we're seeing really strong growth in Taiwan, which we just launched last year. That market is really doing very well. Sequentially, every quarter, it's increased significantly. So nice market there.

Warren Foust: It is a fun market to think about because we just got the approval for EVO+, where it is adjacent to China obviously. From a patient population standpoint, they have access and visibility to seeing the social media, the happiness with EVO. It is one that we are going to start servicing. It is filled with lasers and opportunity.

Speaker #3: And it's one we're going to start servicing. It's laser. It's filled with lasers.

Speaker #4: Sequentially, every quarter, it's increased significantly, so nice market there.

Speaker #1: The next question will come from Ryan Zimmerman with BTIG. Please go ahead.

Speaker #3: It's a fun market to think about because we just got the approval for EVO Plus. It's adjacent to China, obviously. So, from a patient population standpoint, they have access and visibility to seeing the social media and the happiness with EVO.

Warren Foust: It's a fun market to think about because we just got the approval for EVO+ where it's adjacent to China, obviously. From a patient population standpoint, they have access and visibility to seeing the social media, the happiness with EVO, and it's one that we're going to start servicing. It's filled with lasers and opportunity.

Operator: The next question will come from Ryan Zimmerman with BTIG. Please go ahead.

Speaker #2: Good afternoon. And thank you for taking questions. Congrats to both of you on the roles. The first question I want to go back to the pricing and volume dynamics in China for a minute here.

Ryan Zimmerman: Good afternoon, and thank you for taking questions. Congrats to both of you on the roles. The first question, I want to go back to the pricing and volume dynamics in China for a minute here. Warren, I was struck by your comments about a third of the lenses in China are EVO+. And let's assume that there's a 30% to 40% price premium on that product. That would suggest, I think, that you're getting about, call it 10 points of growth on those lenses. But if you back that out and all else being equal, the China market's missing a digit. I can appreciate that you're taking share in the market, but wouldn't that suggest that the volume, the units are declining in China?

Speaker #3: And it's one that we're going to start servicing. And it's laser—it's filled with lasers and opportunity.

Speaker #2: Warren, I was struck by your comments about a third of the lenses in China are Evo Plus. And let's assume that there's a 30, 40 percent price premium on that product.

Speaker #1: The next question will come from Ryan Zimmerman with BTIG. Please go ahead.

Operator: The next question will come from Ryan Zimmerman with BTIG. Please go ahead.

Speaker #2: I mean, that would suggest, I think, that you're getting about call it 10 points of growth on those lenses. But if you back that out and all else being equal, if the China market's mid-single digits, and again, I can appreciate that you're taking share in the markets, but wouldn't that suggest that the volume the units are declining in China?

Speaker #6: Good afternoon, and thank you for taking questions. Congrats to both of you on the roles. For my first question, I want to go back to the pricing and volume dynamics in China for a minute here.

Ryan Zimmerman: Good afternoon, and thank you for taking questions. Congrats to both of you on the roles. The first question, I want to go back to the pricing and volume dynamics in China for a minute here. Warren, I was struck by your comments about a third of the lenses in China are EVO+. Let's assume that there's a 30% to 40% price premium on that product. That would suggest, I think, that you're getting about, call it 10 points of growth on those lenses. If you back that out and all else being equal, if the China market's mid-single digits, again, I can appreciate that you're taking share in the market, but wouldn't that suggest that the units are declining in China?

Speaker #6: Warren, I was struck by your comments about a third of the lenses in China being EVO Plus. And let's assume there's a 30% to 40% price premium on that product.

Speaker #6: I mean, that would suggest, I think, that you're getting about—call it—10 points of growth on those lenses. But if you back that out and, all else being equal, if the China market's mid-single digits, isn't—and again, I can appreciate that you're taking share in the markets.

Speaker #3: Well, you got to start with this exit share in July. So we don't have it's not a third of the units of Evo Plus for the full year.

Warren Foust: Well, you got to start with this exit share in July. So it's not a third of the units of EVO+ for the full year.

Speaker #3: And so remember, we're building. As we go, we're not even launched with Evo Plus in all of the hospitals or the systems that we're going to get ultimately get launched and listed into.

Ryan Zimmerman: Okay.

Warren Foust: We don't even launch with EVO+ in all of the hospitals or the systems that we're going to ultimately get launched and listed into. So the math becomes a little bit challenging from that perspective. But again, I'll just double down on revenue in China now is being driven by two things. It's being driven by return of our EVO V4c, somewhat of a halo effect, and it's being driven by adoption, both units and price, with EVO. So how much that's ultimately going to go from a third exit to the full year, we'll see. Remains to be seen, and we have to be able to supply it as well.

Speaker #6: But wouldn't that suggest that the volume of units is declining in China?

Speaker #3: So the math becomes a little bit challenging. From that perspective, but again, I'll just double down on revenue in China now is being driven by two things.

Speaker #3: Well, you got to start with this exit share in July. So we don't have—it's not a third of the units of EVO Plus for the full year.

Warren Foust: Well, you got to start with this exit share in July. It's not a third of the units of EVO+ for the full year. Remember, we're building as we go.

Speaker #3: It's being driven by return of our Evo V4C, somewhat of a halo effect. And it's being driven by adoption, both units and price, with Evo.

Speaker #3: And so remember, we're building as we go. We're not even launched with EVO Plus in all of the hospitals or the systems that we're ultimately going to get launched and listed into.

Ryan Zimmerman: Okay.

Warren Foust: We don't even launch with EVO+ in all of the hospitals or the systems that we're going to ultimately get launched and listed into. The math becomes a little bit challenging from that perspective. But again, I'll just double down on revenue in China now is being driven by two things. It's being driven by return of our EVO Visian ICL V4c, somewhat of a halo effect, and it's being driven by adoption, both units and price, with EVO. How much that's ultimately going to go from a third exit to the full year, we'll see. Remains to be seen, and we have to be able to supply it as well.

Speaker #3: So the math becomes a little bit challenging from that perspective, but again, I'll just double down: revenue in China now is being driven by two things.

Speaker #3: And so how much that's ultimately going to go from a third exit to the full year, we'll see. Remains to be seen. And we have to be able to supply it as well.

Speaker #2: Okay. That's very helpful. And that buttons that up. The other question I had was just US. And again, I can appreciate that this is still building.

Speaker #3: It's being driven by the return of our EVO V4C, somewhat of a halo effect. And it's being driven by adoption—both units and price—with EVO.

Ryan Zimmerman: Okay. That is very helpful, and that buttons that up. The other question I had was just US. I can appreciate that this is still building, but if you go back to the launch of EVO in the US, we have seen sequential growth from Q1 to Q2 every quarter since EVO launched. I appreciate that it is holding steady at 6, but it did decline sequentially a little bit in the US in Q2. That may just be based on small numbers and so forth, but I wanted to at least get your perspective on that because it is still early days, given the opportunity in the US.

Speaker #2: But if you go back to the launch of Evo in the US, I mean, we have seen sequential growth from one Q to two Q every quarter since Evo launch.

Speaker #3: And so, how much that's ultimately going to go from a third exit to the full year, we'll see. Remains to be seen if we have to be able to supply it as well.

Speaker #6: Okay, that's very helpful and really buttons that up. The other question I had was just about the U.S., and again, I can appreciate that this is still building.

Ryan Zimmerman: Okay. That's very helpful, and that buttons that up. The other question I had was just US. Again, I can appreciate that this is still building. But if you go back to the launch of EVO in the US, we have seen sequential growth from Q1 to Q2 every quarter since EVO launched. I appreciate that it's holding steady at 6, but it did decline sequentially a little bit in the US in Q2, and that may just be based on small numbers and so forth, but I wanted to at least get your perspective on that because it is still early days given the opportunity in the US.

Speaker #2: I appreciate that it's holding steady at six, but it did decline sequentially a little bit in the US in two Q. And that may just be based on small numbers and so forth.

Speaker #2: But I wanted to at least get your perspective on that because it is still early days. Given the opportunity in the US.

Speaker #6: But if you go back to the launch of EVO in the US, I mean, we have seen sequential growth from Q1 to Q2 every quarter since the EVO launch.

Speaker #3: Yeah. That's a good one. And look, I think the long-term value of the US market's massive, I think access that we have is going to create a channel for us to do all sorts of things.

Speaker #6: I appreciate that it's holding steady at 6, but it did decline sequentially a little bit in the US in Q2. And that may just be based on small numbers and so forth.

Warren Foust: Yeah, it is a good one. Look, I think the long-term value of the US market is massive. I think access that we have is going to create a channel for us to do all sorts of things, and this is a long-term discussion, not a quarter-to-quarter one. Just as a practical matter, even though we do better than the LASIK market, there is often an inverse relationship between how the LASIK market declines and we grow, but we are not taking every one of those points of their decline, clearly. When the overall refractive market shrinks or grows, we benefit from that, or we suffer a bit from that. In Q2, sequentially versus Q1, you saw the total refractive market go down, driven by LASIK because they have the predominant share. We suffered a bit from that.

Speaker #3: And this is a long-term discussion, not a quarter to quarter one. But just as a practical matter, even though we do better than the laser market, there's often an inverse relationship between how the laser market declines and we grow, but we're not taking every one of those points of their decline, clearly.

Speaker #6: But I wanted to at least get your perspective on that because it is still early days, given the opportunity in the U.S.

Speaker #3: Yeah, that's a good one. And look, I think the long-term value of the US market's masses, I think access that we have is going to create a channel for us to do all sorts of things.

Warren Foust: Yeah, it's a good one. Look, I think the long-term value of the US market is massive. I think access that we have is going to create a channel for us to do all sorts of things, and this is a long-term discussion, not a quarter-to-quarter one. But just as a practical matter, even though we do better than the LASIK market, there's often an inverse relationship between how the LASIK market declines and we grow, but we're not taking every one of those points of their decline, clearly. When the overall refractive market shrinks or grows, we benefit from that, or we suffer a bit from that. So in Q2 sequentially versus Q1, you saw the total refractive market go down, driven by LASIKs because they have the predominant share. We suffered a bit from that.

Speaker #3: And so when the overall refractive market shrinks or grows, we benefit from that or we suffer a bit from that. So in Q2, sequentially versus Q1, you saw the laser the total refractive market go down driven by lasers because they have the predominant share.

Speaker #3: And this is a long-term discussion, not a quarter-to-quarter one. But just as a practical matter, even though we do better than the laser market, there's often an inverse relationship between how the laser market declines and we grow.

Speaker #3: And so we suffered a bit from that. So that explains, I think, some of the sequential we grew, but the decline versus our first quarter performance, which was like 22 percent.

Speaker #3: But we're not taking every one of those points of their decline, clearly. And so, when the overall refractive market shrinks or grows, we benefit from that, or we suffer a bit from that.

Warren Foust: That explains, I think, some of the sequential, we grew, but the decline versus our first quarter performance, which was like 22%. There is probably some timing in there also. The other thing I will say, candidly, the US makes up 5%, maybe 7% of the share here. When we are on backorder or supply constraint in our largest market, China, or in other markets as a result, as we try and satisfy by building product, we have to build MTOs, made-to-order products for Toric. When we do that, those are built in smaller volume of units, and therefore it gums up our supply chain. When that happens, guess what? The US goes on backorder for MTOs. That is going to explain some of it, too.

Speaker #3: There's probably some timing in there also. And then the other thing I'll say candidly, the US makes up five, maybe seven percent of the share here.

Speaker #3: So in Q2, sequentially versus Q1, you saw the total refractive market go down, driven by lasers because they have the predominant share.

Speaker #3: When we're on backorder or supply constraint in our largest market, China, or in other markets as a result, as we try and satisfy by building product, we have to build MTOs, made-to-order product for Torex.

Speaker #3: And so we suffered a bit from that. So that explains, I think, some of the sequential—we grew, but the decline versus our first quarter performance, which was like 22%.

Warren Foust: That explains, I think, some of the sequential. We grew, but the decline versus our first quarter performance, which was like 22%. There's probably some timing in there also. The other thing I'll say candidly, the US makes up 5%, maybe 7% of the share here. When we're on backorder or supply constraint in our largest market, China, or in other markets as a result, as we try and satisfy by building product. We have to build MTOs, made-to-order products for Torics. When we do that, those are built in smaller volume of units, and therefore it gums up our supply chain. When that happens, guess what? The US goes on back order for MTOs. That's going to explain some of it too.

Speaker #3: There's probably some timing in there also. And then, the other thing I'll say candidly—the US makes up 5, maybe 7 percent of the share here.

Speaker #3: And when we do that, those are built in smaller units, smaller volume of units. And therefore, it gums up our supply chain. And when that happens, guess what?

Speaker #3: The US goes on backorder for MTOs. And so that's going to explain some of it too. I suspect if you channel check, you'll find some unhappy customers, unfortunately, in the US that are trying to get product from us, which we are cranking out now to try and get caught up.

Warren Foust: I suspect if you channel check, you will find some unhappy customers, unfortunately, in the US that are trying to get product from us, which we are cranking out now to try and get caught up.

Speaker #3: And when we do that, those are built in smaller units, smaller volumes of units. And therefore, it gums up our supply chain. And when that happens, guess what?

Speaker #1: The next question will come from David Saxon with Needham & Co. Please go ahead.

Speaker #3: The US goes on backorder for MTOs. And so that's going to explain some of it, too. I suspect if you channel check, you'll find some unhappy customers, unfortunately, in the US that are trying to get product from us, which we are cranking out now to try and get caught up.

Operator: The next question will come from David Saxon with Needham & Company. Please go ahead.

Speaker #2: Great. Good afternoon. Thanks for taking my questions. And congratulations on the roles. Warren and Deborah. Maybe just on the I'll start on the ERP any way to quantify the impact of the second quarter earnings?

David Saxon: Great. Good afternoon. Thanks for taking my questions, and congratulations on the roles, Warren and Debra. Maybe I will start on the ERP. Any way to quantify the impact to the Q2 earnings, I am sorry, orders or revenue? Does that all get recouped in the Q3, or does that take longer, or is it just lost sales at this point?

Speaker #2: I'm sorry, orders or revenue? And does that all get recouped in the third quarter, or does that take longer? Or is it just lost sales at this point?

Speaker #1: The next question will come from David Saxon with Needham & Co. Please go ahead.

Operator: The next question will come from David Saxon with Needham & Company. Please go ahead.

Speaker #5: Great. Good afternoon. Thanks for taking my questions. And congratulations on the roles Warren and Deborah. Maybe just on the I'll start on the ERP any way to quantify the impact of the second quarter earnings?

Speaker #4: No, no. We don't think the impact was material. There is any material impact overall on our revenue numbers. The as far as the P&L is concerned, the impact was mainly on expenses.

Deborah Andrews: No. We do not think there was any material impact overall on our revenue numbers. As far as the P&L is concerned, the impact was mainly on expenses as we work to stabilize the system overall and update the system. But on the revenue side, could there have been some lost sales, I guess, on the MTO side of it, the made-to-order lens side of it? It could have been. But that is mainly driven not by the ERP system. It is driven by the strong demand in the H1, especially in China.

Speaker #5: I'm sorry, orders or revenue? And does that all get recouped in the third quarter, or does that take longer, or is it just lost sales at this point?

Speaker #4: As we work to stabilize the system overall and upgrade the or update the system. But on the revenue side, could there have been some lost sales?

Speaker #4: No, no. We don't think there was any material impact overall on our revenue numbers. As far as the P&L is concerned, the impact was mainly on expenses.

Deborah Andrews: No, we do not think there was any material impact overall on our revenue numbers. As far as the P&L is concerned, the impact was mainly on expenses, as we work to stabilize the system overall and update the system. But on the revenue side, could there have been some lost sales, I guess, on the MTO side of it, the made-to-order lens side of it? It could have been. But that is mainly driven not by the ERP system. It is driven by the strong demand in the H1 of the year, especially in China.

Speaker #4: I guess on the MTO side of it, the made-to-order lens side of it, it could have been. But that's mainly driven not by the ERP system.

Speaker #4: As we work to stabilize the system overall and upgrade the or update the system. But on the revenue side, could there have been some lost sales?

Speaker #4: It's driven by the strong demand in the first half of the year, especially in China.

Speaker #3: Yeah. Hey, David, we referenced it in the pre-release. And then we referenced it in the shareholder letter. It's more honestly, it's more of an acknowledgment of how hard our teams work because despite the internal exhaustion that it created, we were still shipping product, still booking orders, still servicing our customers, still delivering the revenue for the quarter, which delivered our profit.

Warren Foust: Yeah. Hey, David. We referenced it in the pre-release, and then we referenced it in the shareholder letter. Honestly, it is more of an acknowledgment of how hard our teams work because despite the internal exhaustion that it created, we were still shipping product, still booking orders, still servicing our customers, still delivering the revenue for the quarter, which delivered our profit. So I think the ERP system has been a big lift. We will continue to tune it as we go. But from a revenue impact, I think it was negligible.

Speaker #4: I guess on the MTO side of it, the made-to-order lens side of it, it could have been. But that's mainly driven not by the ERP system.

Speaker #4: It's driven by the strong demand in the first half of the year, especially in China.

Speaker #3: Yeah. Hey David, we referenced it in the pre-release, and then we referenced it in the shareholder letter. Honestly, it’s more of an acknowledgment of how hard our teams work because, despite the internal exhaustion that it created, we were still shipping product, still booking orders, still servicing our customers, still delivering the revenue for the quarter, which delivered our profit.

Warren Foust: Yeah. Hey, David. We referenced it in the pre-release, and then we referenced it in the shareholder letter. Honestly, it's more of an acknowledgment of how hard our teams work, because despite the internal exhaustion that it created, we were still shipping product, still booking orders, still servicing our customers, still delivering the revenue for the quarter, which delivered our profit. I think the ERP system has been a big lift. We'll continue to tune it as we go, but from a revenue impact, I think it was negligible.

Speaker #3: So I think the ERP system is has been a big lift. We'll continue to tune it as we go. But from a revenue impact, I think it was negligible.

Speaker #4: Yeah. I mean, I would just add that we've actually exceeded our planned operating plan for both the first and second quarter of this year.

Deborah Andrews: Yeah. I would just add that we've actually exceeded our operating plan for both Q1 and Q2 of this year. That I will say. So we're pleased overall.

Speaker #4: That I will say. So we're pleased overall.

Speaker #2: Okay. That's helpful. Thanks for that. And then maybe I'll try to third quarter question. So obviously, appreciate the seasonality commentary. So I mean, looking at third quarter, round numbers sounds like you'll land somewhere in the 70 to 90 million dollar range.

Speaker #3: So I think the ERP system has been a big lift. We'll continue to tune it as we go. But from a revenue impact, I think it was negligible.

David Saxon: Okay. That's helpful. Thanks for that. And then maybe I'll try a Q3 question. So obviously appreciate the seasonality commentary. So looking at Q3 round numbers, sounds like you'll land somewhere in the $70 million to $90 million range. I guess sitting here halfway through the quarter or thereabouts, how would you characterize the sequential trend you're seeing? How steep or gradual is that trend line looking at this point? Thanks so much.

Speaker #4: Yeah, I mean, I would just add that we've actually exceeded our operating plan for both the first and second quarter of this year.

Deborah Andrews: Yeah. I would just add that we've actually exceeded our operating plan for both the first and second quarter of this year. That I will say. We're pleased overall.

Speaker #4: That I will say. So, we're pleased overall.

Speaker #2: I guess sitting here halfway through the quarter or thereabouts, how would you characterize the sequential trend you're seeing? How steep or gradual is that trend line looking at this point?

Speaker #6: Okay, that's helpful. Thanks for that. And then maybe I'll try the third quarter question. So, obviously, I appreciate the seasonality commentary. Looking at the third quarter, in round numbers, it sounds like you'll land somewhere in the $70 to $90 million range.

David Saxon: Okay. That's helpful. Thanks for that. Maybe I'll try a Q3 question. Obviously appreciate the seasonality commentary. Looking at Q3, round numbers, sounds like you'll land somewhere in the $70 to $90 million range. I guess sitting here halfway through the quarter or thereabouts, how would you characterize the sequential trend you're seeing? How steep or gradual is that trend line looking at this point? Thanks so much.

Speaker #2: Thanks so much.

Speaker #3: Look, I won't comment on the specifics there. I would just say from a trend line standpoint, I don't think a lot has changed. We've seen some commentary out there around the high season for China.

Warren Foust: Look, I won't comment on the specifics there. I would just say from a trend line standpoint, I don't think a lot has changed. We've seen some commentary out there around the high season for China. Remembering, we believe there's kind of two high seasons that happen back to back in Q1 and Q2 now because of the pull forward of the military procedures, as well as the Chinese New Year. And then in Q2, you start to get some of the summer high season, which fades off during Q3. If you listen to what's happening in China, it's sort of flat to mid-single digit sort of growth for the market. And as you've heard us say, at least in the quarter, we've done better than that.

Speaker #6: I guess, sitting here halfway through the quarter or thereabouts, how would you characterize the sequential trend you're seeing? How steep or gradual is that trend line looking at this point?

Speaker #3: Remembering we believe there's kind of two high seasons that happened back to back in Q1 and 2 now because of the pull forward of the military procedures.

Speaker #6: Thanks so much.

Speaker #3: As well as the Chinese New Year. And then in the second quarter, you get a bit of the you start to get some of the summer high season, which fades off during Q3.

Speaker #3: Look, I won't comment on the specifics there. I would just say, from a trend line standpoint, I don't think a lot has changed. We've seen some commentary out there around the high season for China.

Warren Foust: Look, I won't comment on the specifics there. I would just say from a trend line standpoint, I don't think a lot has changed. We've seen some commentary out there around the high season for China. Remembering, we believe there's kind of two high seasons that happen back-to-back in Q1 and Q2 now because of the pull forward of the military procedures, as well as the Chinese New Year. In the second quarter, you start to get some of the summer high season, which fades off during Q3. If you listen to what's happening in China, it's sort of flat to mid-single digit sort of growth for the market. As you've heard us say, at least in the quarter, we've done better than that.

Speaker #3: If you listen to what's happening in China, it's sort of flat to mid-single digit sort of growth for the market. And as you've heard us say, at least in the quarter, we've done better than that.

Speaker #3: Remember, we believe there are kind of two high seasons that happen back to back in Q1 and Q2 now because of the pull forward of the military procedures.

Speaker #3: So I think all those dynamics hold as we go forward. And then you just have to back out the 25-point 9 million dollars from last quarter to get your Q3 and think about a little bit of growth there.

Speaker #3: As well as the Chinese New Year. And then in the second quarter, you get a bit of the you start to get some of the summer high season, which fades off during Q3.

Warren Foust: I think all those dynamics hold as we go forward, and then you just have to back out the $25.9 million from last quarter to get your Q3 and think about a little bit of growth there. Same for Q4. Q4 was unaffected by that order, but we're planning at least to grow in Q4.

Speaker #3: Same for Q4. Q4 was unaffected by that order, but we think we're planning at least to grow in Q4.

Speaker #3: If you listen to what's happening in China, it's sort of flat to mid–single-digit sort of growth for the market. And as you've heard us say, at least in the quarter, we've done better than that.

Speaker #1: The next question will come from Mason Carico with Stevens. Please go ahead.

Speaker #3: So, I think all those dynamics hold as we go forward. And then you just have to back out the $25.9 million from last quarter to get your Q3, and think about a little bit of growth there.

Warren Foust: I think all those dynamics hold as we go forward. You just have to back out the $25.9 million from last quarter to get your Q3 and think about a little bit of growth there. Same for Q4. Q4 was unaffected by that order, but we are planning at least to grow in Q4.

Operator: The next question will come from Mason Carrico with Stephens. Please go ahead.

Speaker #5: Hey, this is Harrison. I'm from Mason. Good afternoon. And thanks for taking the questions. Warren, Deborah, congrats on the new roles. Just wanted to ask on ASPs.

[Analyst] (Stephens): Hey, this is Harrison on for Mason. Good afternoon, and thanks for taking the questions. Warren, Deborah, congrats on the new roles. Just wanted to ask on ASPs. Blended ASPs have been under pressure from Toric/sphere mix and the diopter curve dynamics. After exiting Q2 at 30% of China volume, is the EVO+ premium now large enough to offset these headwinds at the consolidated level in the back half of the year?

Speaker #3: Q4 was unaffected by that order, but we think we're planning, at least, to grow in Q4.

Speaker #5: Blended ASPs, have been under pressure from Torex, Spear, Mix, and the diopter curve dynamics. After exiting Q2 at 30 percent of China volume, is the Evo Plus premium now large enough to offset these headwinds to the at the consolidated level in the back half of the year?

Speaker #1: The next question will come from Mason Carico with Stevens. Please go ahead.

Operator: The next question will come from Mason Carrico with Stephens. Please go ahead.

Speaker #5: Hey, this is Harrison. I'm from Mason. Good afternoon, and thanks for taking the questions. Warren, Deborah, congrats on the new roles. Just wanted to ask on ASPs.

[Company Representative] (Stephens): Hey, this is Harrison on for Mason. Good afternoon, and thanks for taking the questions. Warren, Debra, congrats on the new roles. Just wanted to ask on ASPs. Blended ASPs have been under pressure from Toric sphere mix and the diopter curve dynamics. After exiting Q2 at 30% of China volume, is the EVO+ premium now large enough to offset these headwinds at the consolidated level in the back half of the year?

Harrison Parsons: Hey, this is Harrison on for Mason. Good afternoon, and thanks for taking the questions. Warren, Debra, congrats on the new roles. Just wanted to ask on ASPs. Blended ASPs have been under pressure from Toric sphere mix and the diopter curve dynamics. After exiting Q2 at 30% of China volume, is the EVO+ premium now large enough to offset these headwinds at the consolidated level in the back half of the year?

Speaker #5: Blended ASPs have been under pressure from Torex, Spear, Mix, and the diopter curve dynamics. After exiting Q2 at 30% of China volume, is the EVO Plus premium now large enough to offset these headwinds at the consolidated level in the back half of the year?

Speaker #3: No, that's a good question. I'd have to give a lot of thought to that to try and to try and come up with the best answer.

Speaker #3: I would just say clearly, we're going to continue to get ASP tailwind from Evo Plus. But honestly, prices are a function of well, at least in Europe, a country like Germany, where we have the highest price in Europe, we're facing competition.

Warren Foust: Well, it's a good question. I'd have to give a lot of thought to that to try and come up with the best answer. I would just say, clearly, we're going to continue to get ASP tailwind from EVO+. But honestly, price is a function of, well, at least in Europe with a country like Germany, where we have the highest price in Europe, we're facing competition. We're going to have some ASP slippage there, but it's not massive. We've held price in most markets around the world, partially because the adoption of Toric continues, and so Toric's a little bit higher priced. The higher mix of Toric we have, the better pricing we have. I'm less concerned about pricing, and I'm more concerned and focused on continuing to take share, which we believe we have line of sight to keep doing.

Warren Foust: Look, it is a good question. I would have to give a lot of thought to that to try and come up with the best answer. I would just say, clearly we are going to continue to get ASP tailwind from EVO+. But honestly, price is a function of, well, at least in Europe. A country like Germany where we have the highest price in Europe, we are facing competition. We are going to have some ASP slippage there, but it is not massive. We have held price in most markets around the world, partially because the adoption of Toric continues, and so Toric is a little bit higher priced. The higher mix of Toric we have, the better pricing we have. I am less concerned about pricing, and I am more concerned and focused on continuing to take share, which we believe we have line of sight to keep doing.

Speaker #3: Yeah, look, that's a good question. I'd have to give a lot of thought to that to try and come up with the best answer.

Speaker #3: We're going to have some ASP slippage there, but it's not massive. We've held price in most markets around the world, partially because the adoption of Torex continues.

Speaker #3: I would just say clearly we're going to continue to get ASP tailwind from EVO Plus. But honestly, prices are a function of, well, at least in Europe, a country like Germany, where we have the highest price in Europe, we're facing competition.

Speaker #3: And so Torex is a little bit higher priced, the higher mix of Torex we have, the better pricing we have. So I'm less concerned about pricing and I'm more concerned and focused on continuing to take share, which we believe we have line of sight to keep doing.

Speaker #3: We're going to have some ASP slippage there, but it's not massive. We've held price in most markets around the world, partially because the adoption of Toric continues.

Speaker #3: So rather than say we're going to overcome price erosion with price in China on Evo Plus, I'd rather say we're focused on taking share on global markets and we think we can do that.

Warren Foust: We have held price in most markets around the world, partially because the adoption of Toric continues, and so Toric is a little bit higher priced. The higher mix of Toric we have, the better pricing we have. I am less concerned about pricing, and I am more concerned and focused on continuing to take share, which we believe we have line of sight to keep doing.

Warren Foust: Rather than say we're going to overcome price erosion with price in China on EVO+, I'd rather say we're focused on taking share on global markets, and we think we can do that. You mentioned diopter, and outside of China, if you look at our percentage of units that we sell, if you look at above -8 and you look at below -8, we've moved ourselves down outside of China a couple of percentage points at least, down from -8 into the -6 to -8 range. We believe that we are continuing to move ourselves down the diopter curve. Anytime we're doing that gives us an opportunity to take share where lasers may have been treating that patient before. That's going to be our focus rather than the ASP component.

Speaker #3: And so, Torex—a little bit higher price, the higher mix of Torex we have, the better pricing we have. So I'm less concerned about pricing, and I'm more concerned and focused on continuing to take share, which we believe we have line of sight to keep doing.

Speaker #3: Yeah, you mentioned diopter. And outside of China, if you look at the our percentage of units that we sell, if you look at above minus eight and you look at below minus eight, we've moved ourselves down outside of China a couple of percentage points at least down from minus eight into the minus six to minus eight range.

Speaker #3: So rather than say we're going to overcome price erosion with price in China on EVO Plus, I'd rather say we're focused on taking share in global markets, and we think we can do that.

Warren Foust: So rather than say we're going to overcome price erosion with price in China on EVO+, I'd rather say we're focused on taking share on global markets, and we think we can do that. You mentioned diopter, and outside of China, if you look at our percentage of units that we sell, if you look at above -8 and you look at below -8, we've moved ourselves down outside of China a couple of percentage points, at least, down from -8 into the -6 to -8 range. We believe that we are continuing to move ourselves down the diopter curve. Anytime we're doing that gives us an opportunity to take share where lasers may have been treating that patient before. That's going to be our focus rather than the ASP component.

Speaker #3: And so we believe that we are continuing to move ourselves down the diopter curve. And anytime we're doing that, that gives us an opportunity to take share.

Speaker #3: Yeah. You mentioned diopter. And outside of China, if you look at our percentage of units that we sell, if you look at above minus eight and you look at below minus eight, we've moved our sales down outside of China a couple of percentage points at least, down from minus eight into the minus six to minus eight range.

Speaker #3: We're lasers may have been treating that patient before. And so that's going to be our focus rather than the ASP component.

Speaker #5: Great. Thank you. That all makes sense. And then sorry if I already missed on the call, but when do you expect to have enough Evo Plus inventory to fully supply the demand you were seeing right now in the China region?

[Analyst] (Stephens): Great. Thank you. That all makes sense. Sorry if I already missed this on the call, but when do you expect to have enough EVO+ inventory to fully supply the demand you were seeing right now in the China region?

Speaker #3: And so, we believe that we are continuing to move our sales down the diopter curve. Anytime we're doing that, it gives us an opportunity to take share where lasers may have been treating that patient before.

Speaker #3: And so that's going to be our focus, rather than the ASP component.

Speaker #3: You know, I think we're there or thereabouts now. Remembering that we're going to start to see the summer part of the high season tail off, which gives us a chance to catch our breath and start to build units.

Speaker #5: Great, thank you. That all makes sense. And then, sorry if I already missed it on the call, but when do you expect to have enough Evo Plus inventory to fully supply the demand you are seeing right now in the China region?

[Company Representative] (Stephens): Great. Thank you. That all makes sense. Sorry if I already missed it on the call, but when do you expect to have enough EVO+ inventory to fully supply the demand you were seeing right now in the China region?

Harrison Parsons: Great. Thank you. That all makes sense. Sorry if I already missed it on the call, but when do you expect to have enough EVO+ inventory to fully supply the demand you were seeing right now in the China region?

Warren Foust: I think we are there or thereabouts now. Remembering that we are going to start to see the summer part of the high season tail off, which gives us a chance to catch our breath and start to build units. So I think by the end of Q3, roughly, we should be in a place where we can supply as much EVO+ as necessary. Our focus is to build V4c. Remember, every unit of V4c that we build in Switzerland for China gives us the benefit of not having to pay the tariff. So our focus is supplying EVO+, but a sidecar of we want to make sure we supply as much V4c out of China as possible, and we are hoping by the end of the year, we are going to be able to accomplish that.

Speaker #3: So I think by the end of the third quarter, roughly, we should be in place where we can supply as much Evo Plus as necessary.

Speaker #3: Now our focus is to build V4C. Remember, every unit of V4C that we build in Switzerland, for China, gives us the benefit of not having to pay the tariff.

Speaker #3: You know, I think we're there or thereabouts now. Remember that we're going to start to see the summer part of the high season tail off, which gives us a chance to catch our breath and start to build units.

Warren Foust: I think we're there or thereabouts now. Remembering that we're going to start to see the summer part of the high season tail off, which gives us a chance to catch our breath and start to build units. I think by the end of Q3, roughly, we should be in place where we can supply as much EVO+ as necessary. Our focus is to build V4c. Remember, every unit of V4c that we build in Switzerland for China gives us the benefit of not having to pay the tariff. Our focus is supplying EVO+, but a sidecar of we want to make sure we supply as much V4c out of China as possible, and we're hoping by the end of the year, we're going to be able to accomplish that.

Speaker #3: And so our focus is supplying Evo Plus but a sidecar of we want to make sure we supply as much V4C out of China as possible.

Speaker #3: So I think by the end of the third quarter, roughly, we should be in a place where we can supply as much Evo Plus as necessary.

Speaker #3: And we're hoping by the end of the year, we're going to be able to accomplish that.

Speaker #3: Now, our focus is to build V4C. Remember, every unit of V4C that we build in Switzerland for China gives us the benefit of not having to pay the tariff.

Speaker #1: The next question will come from Adam Mater with Piper Sandler. Please go ahead.

Speaker #3: And so our focus is supplying Evo Plus, but as a side note, we want to make sure we supply as much V4C out of China as possible.

Operator: The next question will come from Adam Maeder with Piper Sandler. Please go ahead.

Speaker #5: Hi, good evening. Warren and Deborah, thank you for taking the question and congrats on the appointments. I'll keep it to one multi-part question. In the press release you talked about moving beyond a single product line, company into kind of a I think a true platform was the phrase you used.

Adam Maeder: Hi, good evening, Warren and Deborah. Thank you for taking the question, and congrats on the appointments. I will keep it to one multi-part question. In the press release, you talked about moving beyond a single product line company into a, I think, a true platform was the phrase you used. Could you just expand on that comment? Are you thinking about moving beyond the refractive market, or is it more a focus of having a broader offering within refractive? I am assuming everything kind of starts and stops with your Collamer-based technology. Is that the right way to think about it? Any comments around potential timelines, whether it is years or medium, long-term, would be helpful. Thank you.

Speaker #3: And we're hoping that by the end of the year, we're going to be able to accomplish that.

Speaker #5: Could you just expand on that comment? Are you thinking about moving beyond the refractive market or is it more a focus of kind of having a broader offering within refractive?

Speaker #1: The next question will come from Adam Mater with Piper Sandler. Please go ahead.

Operator: The next question will come from Adam Maeder with Piper Sandler. Please go ahead.

Speaker #5: Hi, good evening. Warren and Deborah, thank you for taking the question and congrats on the appointments. I'll keep it to one multi-part question. In the press release, you talked about moving beyond a single product line company into, kind of, a, I think, 'a true platform' was the phrase you used.

Adam Maeder: Hi. Good evening, Warren and Deborah. Thank you for taking the question and congrats on the appointments. I will keep it to one multi-part question. In the press release, you talked about moving beyond a single product line company into kind of a, I think, a true platform was the phrase you used. Could you just expand on that comment? Are you thinking about moving beyond the refractive market, or is it more a focus of kind of having a broader offering within refractive? I am assuming everything kind of starts and stops with your Collamer-based technology. Is that the right way to think about it? Just any comments around potential timelines, whether it is years or medium, long-term, would be helpful. Thank you.

Speaker #5: And I'm assuming everything kind of starts and stops with your columnar-based technology. Is that the right way to think about it? And just any comments around potential timelines whether it's years or medium long-term would be helpful.

Speaker #5: Could you just expand on that comment? Are you thinking about moving beyond the refractive market, or is it more a focus on having a broader offering within refractive?

Speaker #5: Thank you.

Speaker #3: Thanks, Adam. I love the question. Look, we're excited to run this business for the long-term. The thinking here now has really evolved to we want to establish the infrastructure and the capabilities for this to be a long-term investment for folks.

Warren Foust: Thanks, Adam. I love the question. Look, we are excited to run this business for the long term. The thinking here now has really evolved to, we want to establish the infrastructure and the capabilities for this to be a long-term investment for folks, but a long-term successful company in ophthalmology. From a pipeline standpoint, we have great engineers and great clinical, medical, regulatory talents in this organization that have been working in the background for years now on a variety of things. We are looking forward to bringing those things together in what will be a more cohesive, a more easy-to-understand portfolio. We will talk about that in future releases. We are not ready to talk about it today. You heard us say we are going to hire a Chief Technology Officer. I am excited about that.

Speaker #5: And I'm assuming everything kind of starts and stops with your columnar-based technology. Is that the right way to think about it? And just any comments around potential timelines, whether it's years or medium- to long-term, would be helpful.

Speaker #3: But a long-term successful company in ophthalmology and so from a pipeline standpoint, we've got great engineers and great clinical medical regulatory talents in this organization that have been working in the background for years now on a variety of things.

Speaker #5: Thank you.

Speaker #3: Thanks, Adam. I love the question. Look, we're excited to run this business for the long term. The thinking here now has really evolved to: we want to establish the infrastructure and the capabilities for this to be a long-term investment for folks.

Warren Foust: Thanks, Adam. I love the question. Look, we are excited to run this business for the long term. The thinking here now has really evolved to, we want to establish the infrastructure and the capabilities for this to be a long-term investment for folks, but a long-term successful company in ophthalmology. From a pipeline standpoint, we have got great engineers and great clinical, medical, regulatory talents in this organization that have been working in the background for years now on a variety of things. We are looking forward to bringing those things together in what will be a more cohesive, a more easy-to-understand portfolio. We will talk about that in future releases. We are not ready to talk about it today. You heard us say we are going to hire a Chief Technology Officer. I am excited about that.

Warren Foust: Thanks, Adam. I love the question. Look, we are excited to run this business for the long term. The thinking here now has really evolved to, we want to establish the infrastructure and the capabilities for this to be a long-term investment for folks, but a long-term successful company in ophthalmology. From a pipeline standpoint, we have got great engineers and great clinical, medical, regulatory talents in this organization that have been working in the background for years now on a variety of things. We are looking forward to bringing those things together in what will be a more cohesive, a more easy-to-understand portfolio. We will talk about that in future releases. We are not ready to talk about it today. You heard us say we are going to hire a Chief Technology Officer. I am excited about that,

Speaker #3: And so we're looking forward to bringing those things together in what will be a more cohesive, a more easy to understand portfolio. And we'll talk about that in future releases.

Speaker #3: But a long-term successful company in ophthalmology, and so from a pipeline standpoint, we've got great engineers and great clinical, medical, regulatory talents in this organization that have been working in the background for years now on a variety of things.

Speaker #3: We're not ready to talk about it today. You heard us say we're going to hire a chief technology officer I'm excited about that. I'm excited to be able to start talking about first in human testing that we will be doing very soon.

Speaker #3: And so we're looking forward to bringing those things together in what will be a more cohesive, a more easy to understand portfolio. And we'll talk about that in future releases.

Warren Foust: I am excited to be able to start talking about first-in-human testing that we will be doing very soon, as early as even the first part of next year, if we cannot even do it sooner. That is on next generation products. We have said before, we are focused on things. Of course, the material capabilities that we have are unique, and that is how Collamer has differentiated us for many years. We want to use those same capabilities, whether it is Collamer or whether it is something else, for us to be able to accelerate and become beyond just an EVO ICL company. Refractive is our wheelhouse. In the sulcus is our wheelhouse, where the surgeons place the EVO ICL. I think all of those represent opportunities.

Speaker #3: As early as even the first part of next year, if we can't even do it sooner. And that's on next generation products. We've said before we're focused on things of course the material capabilities that we have, our unique.

Speaker #3: We're not ready to talk about it today. You heard us say we're going to hire a chief technology officer. I'm excited about that. I'm excited to be able to start talking about first-in-human testing that we will be doing very soon.

Speaker #3: And that's how columnar is differentiated us for many years. So we want to use those same capabilities, whether it's columnar or whether it's something else, for us to be able to accelerate and become beyond just an Evo ICL company.

Warren Foust: I am excited to be able to start talking about first-in-human testing that we will be doing very soon, as early as even the first part of next year, if we cannot even do it sooner, and that is on next-generation products. We have said before, we are focused on things. Of course, the material capabilities that we have are unique, and that is how Collamer has differentiated us for many years. So we want to use those same capabilities, whether it is Collamer or whether it is something else, for us to be able to accelerate and become beyond just an EVO ICL company. Refractive is our wheelhouse. In the sulcus is our wheelhouse, where the surgeons place the EVO ICL. So I think all of those represent opportunities.

Speaker #3: As early as even the first part of next year, if we can't even do it sooner. And that's on next-generation products. We've said before we're focused on things—of course, the material capabilities that we have are unique.

Speaker #3: Refractive is our wheelhouse. In the sulcus is our wheelhouse where we place the where the surgeons place the Evo ICL. So I think all of those represent opportunities.

Speaker #3: And that's how columnar has differentiated us for many years. So, we want to use those same capabilities—whether it's columnar or whether it's something else—for us to be able to accelerate and become more than just an EVO ICL company.

Speaker #3: You've heard us talk in the past about extended depth of focus or presbyopia correction, being able to take advantage of a patient's natural ability to accommodate, but be able to give them some extra help with a lens-based technology.

Warren Foust: You have heard us talk in the past about extended depth of focus or presbyopia correction, being able to take advantage of a patient's natural ability to accommodate, but be able to give them some extra help with a lens-based technology. That is an option amongst many other options. We will talk about those in a more formal way as we go, but there is a lot of excitement here about our future.

Speaker #3: Refractive is our wheelhouse. In the sulcus is our wheelhouse where we place—the surgeons place—the EVO ICL. So I think all of those represent opportunities.

Speaker #3: That's an option. Amongst many other options. So we'll talk about those in a more formal way as we go. But there's a lot of excitement here about our future.

Speaker #3: You've heard us talk in the past about extended depth of focus, or presbyopia correction, being able to take advantage of a patient's natural ability to accommodate, but also being able to give them some extra help with a lens-based technology.

Warren Foust: You have heard us talk in the past about extended depth of focus or presbyopia correction, being able to take advantage of a patient's natural ability to accommodate, but be able to give them some extra help with a lens-based technology. That is an option amongst many other options. So we will talk about those in a more formal way as we go, but there is a lot of excitement here about our future.

Speaker #5: I'll stay tuned. Thank you.

Speaker #1: Again, if you have a question, please press star and then one. Please stand by as we pull for questions. Showing no further questions, this will conclude our question and answer session as well as conference call.

Adam Maeder: I will stay tuned. Thank you.

Operator: Again, if you have a question, please press star and then one. Please stand by as we poll for questions. Showing no further questions, this will conclude our question and answer session, as well as conference call. Thank you for attending today's presentation. You may now disconnect.

Speaker #3: That's an option, among many other options. We'll talk about those in a more formal way as we go, but there's a lot of excitement here about our future.

Speaker #5: Well, stay tuned. Thank you.

Adam Maeder: I will stay tuned. Thank you.

Speaker #1: Again, if you have a question, please press star then one. Please stand by as we poll for questions. Showing no further questions, this will conclude our question and answer session as well as the conference call.

Operator: Again, if you have a question, please press star and then one. Please stand by as we poll for questions. Showing no further questions, this will conclude our question and answer session as well as conference call. Thank you for attending today's presentation. You may now disconnect.