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Iridex Corp (IRIX)
NASDAQ:IRIX
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Iridex
(NASDAQ:IRIX)
49Neutral
Iridex (IRIX) vs. S&P 500 (SPY)
Market Cap
$16.62M
Dividend YieldN/A
Average Volume (3M)102.13K
Price to Earnings (P/E)―
Beta (1Y)-0.19
Revenue Growth-6.17%
EPS Growth8.27%
CountryUS
Employees111
SectorHealthcare
Sector Strength72
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.54
Shares Outstanding16,636,380
10 Day Avg. Volume177,780
30 Day Avg. Volume102,129
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
Price to Cash Flow (P/CF)-1.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Iridex Business Overview & Revenue Model
Company DescriptionIridex Corporation (IRIX) is a leading provider of innovative laser-based medical systems and delivery devices used to treat eye diseases. The company primarily operates in the ophthalmology sector, focusing on therapies for glaucoma and retinal diseases. Its core products include laser systems and consumables, which are designed to deliver precise and effective treatment while ensuring patient safety and comfort.
How the Company Makes MoneyIridex makes money by selling its laser systems and related consumable products to ophthalmologists, hospitals, and clinics globally. The company's revenue streams include the initial sale of laser systems and ongoing sales of consumable products, such as laser probes, which are used during procedures. Iridex also generates income through service and maintenance contracts for its equipment. Strategic partnerships with research institutions and key players in the medical device industry further enhance its market reach and contribute to its revenue growth.
Iridex Financial Statement Overview
Summary
Iridex is experiencing significant financial challenges with declining revenues, negative profit margins, and weakening balance sheet metrics. The ongoing negative cash flows and increasing leverage highlight liquidity and financial sustainability concerns. Strategic interventions are necessary to stabilize and improve financial health.Income Statement
Iridex has faced declining revenue over recent years, with a notable decrease from $56.97 million in 2022 to $48.67 million in 2024. The gross profit margin has also declined from 44.5% in 2022 to 40.1% in 2024, indicating eroding profitability. The company has consistently reported negative EBIT and EBITDA margins, reflecting ongoing operational challenges and unprofitability.45
Neutral
Balance Sheet
The balance sheet reflects a concerning financial position with stockholders' equity significantly declining from $23.3 million in 2022 to $2.1 million in 2024. The debt-to-equity ratio has increased substantially due to the lower equity base, posing potential financial risk. The equity ratio dropped from 35.4% in 2022 to 7.2% in 2024, indicating weakened financial stability.40
Negative
Cash Flow
Iridex's cash flow situation is challenging, with negative operating cash flow and free cash flow observed over the recent years. Operating cash flow to net income ratio remains negative, implying inefficiencies in cash generation from operations. The free cash flow growth rate is negative, exacerbating liquidity concerns.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 48.43M | 48.67M | 51.87M | 56.97M | 53.90M | 36.35M | Gross Profit |
| 18.55M | 19.50M | 21.81M | 25.37M | 22.83M | 15.56M | EBIT |
| -10.88M | -8.30M | -10.01M | -7.54M | -7.53M | -6.58M | EBITDA |
| -9.18M | -8.30M | -7.97M | -6.10M | -6.73M | -6.08M | Net Income Common Stockholders |
| -11.04M | -8.91M | -9.57M | -7.55M | -5.22M | -6.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.09M | 2.39M | 7.03M | 13.92M | 23.85M | 11.63M | Total Assets |
| 28.20M | 29.14M | 34.44M | 42.29M | 48.69M | 27.97M | Total Debt |
| 0.00 | 1.91M | 2.75M | 1.77M | 2.66M | 4.19M | Net Debt |
| -7.09M | -482.00K | -4.29M | -12.15M | -21.20M | -7.44M | Total Liabilities |
| 9.78M | 27.04M | 24.91M | 25.06M | 25.39M | 10.60M | Stockholders Equity |
| 18.42M | 2.10M | 9.52M | 17.23M | 23.30M | 17.37M |
| Cash Flow | Free Cash Flow | ||||
| -6.99M | -7.29M | -6.85M | -9.80M | 8.00M | -3.33M | Operating Cash Flow |
| -7.03M | -7.29M | -6.75M | -9.52M | 8.22M | -3.24M | Investing Cash Flow |
| 28.00K | -13.00K | -109.00K | -286.00K | -5.56M | -93.00K | Financing Cash Flow |
| 2.87M | 2.60M | -5.00K | -73.00K | 9.47M | 2.47M |
Iridex Technical Analysis
Negative
0.99
Price Trends
1.37
Negative
1.53
Negative
1.71
Negative
Market Momentum
-0.14
Negative
42.83
Neutral
37.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRIX, the sentiment is Negative. The current price of 0.99 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.37, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRIX.
Iridex Risk Analysis
Iridex disclosed 49 risk factors in its most recent earnings report. Iridex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iridex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $199.72M | 30.91 | 16.11% | ― | 15.35% | 71.35% | |
70 Outperform | $3.19B | 25.01 | 14.06% | ― | 8.14% | 2.55% | |
58 Neutral | $201.51M | 5.05 | -24.25% | ― | -68.00% | -134.79% | |
53 Neutral | $3.44B | ― | -5.76% | ― | 5.28% | -292.14% | |
49 Neutral | $16.62M | ― | -153.37% | ― | -6.17% | 8.27% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
36 Underperform | $201.86K | ― | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
IRIX
Iridex
0.99
-2.00
-66.89%
CUTRQ
Cutera
0.01
-1.37
-99.28%
ELMD
Electromed
23.86
7.64
47.10%
HAE
Haemonetics
63.55
-21.24
-25.05%
ICUI
ICU Medical
138.86
33.43
31.71%
VYGR
Voyager Therapeutics
3.38
-7.16
-67.93%
Iridex Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 12.50% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for IRIDEX with significant achievements in cost reduction and strategic investment, leading to financial stabilization and revenue growth. However, challenges remain, particularly in the retina product segment and the overall net loss, though the financial performance has improved from the previous year.Highlights
Successful Cost Reduction Program
The company successfully implemented a cost-reduction program, completed in Q4 2024, which stabilized the business and positioned it for positive cash flow from operations.
Strategic Investment by Novel Innovations
IRIDEX received a strategic investment from Novel Innovations, strengthening the balance sheet with $10 million and an option for an additional $10 million. The investment was made at a significant premium, reflecting the strategic nature and potential value of IRIDEX.
Revenue Growth and Improved Financial Performance
IRIDEX reported year-over-year revenue growth in Q4 2024, with revenue increasing to $12.7 million, up from $12.5 million in the prior year. The gross margin improved to 44.0% from 39.2% in the previous year, and the company achieved positive adjusted EBITDA for the first time in recent history.
Increased Sales of Cyclo G6 Glaucoma Products
Sales of the Cyclo G6 glaucoma product family increased by 9%, with 13,300 probes sold compared to 12,700 in the prior year, and 47 laser systems sold compared to 35 in the same quarter of the prior year.
Lowlights
Decrease in Retina Product Revenue
Retina product revenue decreased by 3% compared to the prior year period, primarily due to deferral of capital purchases leading to lower system sales internationally.
Net Loss Despite Improvements
The company reported a net loss of $0.8 million or $0.05 per share in Q4 2024, although this was an improvement from a net loss of $3.0 million or $0.18 per share in the prior year.
Company Guidance
During the fourth quarter of 2024, IRIDEX implemented several strategic initiatives aimed at enhancing business performance for 2025. A key focus was the successful completion of a cost-reduction program, which aligned expenses with revenue projections, contributing to a positive adjusted EBITDA of $0.4 million, a notable improvement from a negative $2.0 million in the prior year. Revenue for Q4 2024 increased to $12.7 million, up from $12.5 million in the same period of the previous year, with a gross profit of $5.6 million, reflecting a 44.0% gross margin. The Cyclo G6 glaucoma product line showed promising growth, generating $3.3 million in revenue and selling 13,300 probes, compared to 12,700 the previous year. Additionally, a strategic investment by Novel Innovations provided $10 million, with an option for an additional $10 million, strengthening the balance sheet and positioning IRIDEX for future growth. The company plans to pre-announce its Q1 2025 results to address a prolonged insider trading window closure and to highlight the perceived undervaluation of its stock, particularly in light of Novel's investment at a $2 per share valuation.Iridex Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Iridex Secures Strategic Investment and Appoints New CFO
Positive
Mar 20, 2025
On March 19, 2025, Iridex Corporation announced the closing of a strategic investment with Novel Inspiration International Co., Ltd., resulting in $10 million in gross proceeds and an option for an additional $10 million for future growth initiatives. This transaction, which includes the sale of Series B Preferred Stock and convertible notes, aims to enhance Iridex’s ability to pursue opportunities in advanced laser-based treatments, particularly for glaucoma, following changes in reimbursement policies for certain surgical devices. Additionally, the company appointed Romeo Dizon as Chief Financial Officer, replacing Fuad Ahmad, as part of its strategic review process.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.