STAAR Surgical (NASDAQ: STAA) shares plummeted 7.41% in after-hours trading on Wednesday following the release of the company's disappointing first-quarter 2025 financial results. The ophthalmic products manufacturer reported a significant net loss and a steep decline in sales, primarily due to inventory adjustments in China.

The company posted a net loss of $54.2 million for Q1 2025, a substantial increase from the $3.3 million loss reported in the same period last year. Net sales tumbled 45% year-over-year to $42.6 million, largely attributed to a planned reduction of channel inventory in China. Excluding China, net sales grew 9% to $42.2 million, driven by growth in all key markets. The adjusted earnings per share (EPS) of $(0.64) missed analyst estimates of $(0.59), further contributing to investor disappointment.

Despite the challenging quarter, STAAR Surgical remains optimistic about its future prospects. The company has implemented cost control measures and restructuring initiatives, primarily focused on U.S. operations, to reduce its SG&A run rate. Management expressed confidence in resuming growth in revenue and adjusted EBITDA for the full second half of the year. Additionally, STAAR Surgical reported improved EVO ICL procedure trends in China, despite ongoing macroeconomic challenges. With $222.8 million in cash and investments available as of March 28, 2025, the company appears well-positioned to navigate near-term headwinds while working towards long-term growth objectives.