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Iridex Corp (IRIX)
NASDAQ:IRIX
US Market
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Iridex (IRIX) AI Stock Analysis

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IRIX

Iridex

(NASDAQ:IRIX)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$1.00
▼(-5.66% Downside)
Iridex's overall stock score reflects significant financial challenges, including declining revenues and negative cash flows. The technical analysis indicates bearish trends, while the valuation is impacted by unprofitability. Despite some positive developments in the earnings call, the overall financial health remains a concern.

Iridex (IRIX) vs. SPDR S&P 500 ETF (SPY)

Iridex Business Overview & Revenue Model

Company DescriptionIridex Corporation (NASDAQ: IRIX) is a medical technology company that specializes in developing innovative therapeutic solutions for the treatment of ocular diseases and conditions. The company primarily operates in the ophthalmic sector, offering a range of products including laser systems, consumables, and services designed for ophthalmic surgeries. Iridex's core products focus on the treatment of glaucoma, retinal diseases, and other eye disorders, utilizing advanced laser and micro-invasive technologies to enhance patient outcomes.
How the Company Makes MoneyIridex generates revenue through multiple streams, primarily from the sale of its laser systems and associated disposable products used in ophthalmic procedures. The company sells its laser systems to hospitals and outpatient surgery centers, which are then used in various surgical procedures. Additionally, Iridex earns recurring revenue from the sale of consumables that are required for each procedure. Key revenue streams include direct sales of capital equipment, sales of consumables that accompany the equipment, and service agreements providing maintenance and support for their systems. Partnerships with healthcare providers, hospitals, and clinics are significant, as they help to expand the reach of Iridex's products and enhance its market presence. The company also invests in research and development to innovate new therapies, which can lead to additional revenue opportunities in the long term.

Iridex Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive revenue growth and significant cost reductions alongside challenges such as declining gross margins and regional sales issues. The company's successful implementation of efficiency measures and positive adjusted EBITDA were tempered by ongoing market challenges and a net loss.
Q2-2025 Updates
Positive Updates
Year-Over-Year Revenue Growth
IRIDEX achieved a 7% year-over-year revenue growth in Q2 2025, with total revenues of $13.6 million.
Sequential Revenue Growth
The company saw a 14% sequential growth compared to Q1 2025, driven by higher laser console sales.
Expense Reduction Achievements
Operating expenses were reduced by 28% compared to the prior year period, contributing to improved financial health.
Positive Adjusted EBITDA
IRIDEX reported a positive non-GAAP adjusted EBITDA of $21,000 for Q2 2025, an improvement of $1.7 million compared to the previous year.
Strong Pascal System Sales
High sales of the Pascal system contributed to the growth in both the U.S. and international markets, particularly in the Middle East and Africa.
Cash Burn Reduction
Cash and cash equivalents decreased only by $0.4 million, indicating a reduction in cash usage.
Negative Updates
Gross Margin Decline
Gross margin decreased to 34.5% in Q2 2025 from 40.7% in Q2 2024, primarily due to increased manufacturing costs and product mix.
Challenges in Asia
Uncertainty around tariffs with China and logistical delays in Japan affected Q2 and potentially future quarters' performance.
Lower G6 and Surgical Retina Probe Sales
There was a decrease in G6 and surgical retina probe sales, partially offsetting the growth in other areas.
Net Loss
The company reported a net loss of $1.0 million or $0.06 per share for Q2 2025, although this was an improvement from the previous year's net loss.
Pricing Pressures in Latin America and Canada
Pascal sales in Latin America and Canada fell short of expectations due to pricing pressures.
Company Guidance
During the second quarter of 2025, IRIDEX reported promising financial results, showcasing a year-over-year revenue growth of 7% and a sequential growth of 14%, culminating in a revenue of $13.6 million. Operating expenses were reduced by 28% compared to the prior year period, contributing to a net loss reduction from $2.7 million to $1.0 million. The company achieved a positive adjusted EBITDA of $21,000, a significant improvement from a loss of $1.7 million in Q2 2024. Gross margin, however, decreased to 34.5% from 40.7% due to increased manufacturing costs and tariffs. Despite these challenges, IRIDEX maintained robust sales in its retina and glaucoma product lines, particularly noting strong performance in Pascal system sales, and aims to further reduce operating expenses and improve gross margins through strategic actions such as renegotiating manufacturing contracts and relocating facilities. The company remains on track to achieve its financial goals of cash flow breakeven and positive adjusted EBITDA for the year.

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
45
Neutral
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.
Balance Sheet
40
Negative
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.
Cash Flow
35
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue49.74M48.67M51.87M56.97M53.90M36.35M
Gross Profit19.57M19.50M21.81M25.37M22.83M15.56M
EBITDA-2.52M-6.88M-7.97M-6.16M-6.73M-6.08M
Net Income-5.45M-8.91M-9.57M-7.55M-5.22M-6.33M
Balance Sheet
Total Assets31.59M29.14M34.44M42.29M48.69M27.97M
Cash, Cash Equivalents and Short-Term Investments6.78M2.39M7.03M13.92M23.85M11.63M
Total Debt5.07M4.64M2.75M1.77M2.66M4.19M
Total Liabilities25.53M27.04M24.91M25.06M25.39M10.60M
Stockholders Equity6.06M2.10M9.52M17.23M23.30M17.37M
Cash Flow
Free Cash Flow-5.86M-7.30M-6.85M-9.80M8.00M-3.33M
Operating Cash Flow-5.86M-7.29M-6.75M-9.52M8.22M-3.24M
Investing Cash Flow-34.00K-13.00K-109.00K-286.00K-5.56M-93.00K
Financing Cash Flow8.63M2.60M-5.00K-73.00K9.47M2.47M

Iridex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.06
Price Trends
50DMA
1.20
Negative
100DMA
1.15
Negative
200DMA
1.20
Negative
Market Momentum
MACD
-0.04
Negative
RSI
40.42
Neutral
STOCH
36.75
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 1.06 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.20, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.75 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 48 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
45
Neutral
$17.67M-105.72%0.09%51.09%
44
Neutral
$21.76M-262.03%2.65%70.21%
42
Neutral
$10.96M0.44-73.36%
42
Neutral
$14.20M-195.48%-40.47%96.14%
41
Neutral
$22.30M15.00%71.57%
40
Underperform
$24.05M-26.49%-91.23%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRIX
Iridex
1.06
-0.48
-31.17%
SINT
Sintx Technologies
3.25
-0.11
-3.27%
PAVM
PAVmed
0.43
-0.64
-59.81%
VVOS
Vivos Therapeutics
2.67
0.03
1.14%
ADGM
Adagio Medical Holdings
1.34
-1.36
-50.37%
COCH
Envoy Medical
0.80
-1.77
-68.87%

Iridex Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Iridex Regains Nasdaq Compliance by August 2025
Positive
Sep 9, 2025

On May 14, 2025, Iridex Corporation received a notification of non-compliance from Nasdaq due to not meeting the continued listing standards based on its quarterly report for the period ending March 29, 2025. However, by August 27, 2025, the company had regained compliance with the Nasdaq listing standards by meeting the minimum stockholders’ equity requirement of $2,500,000, as confirmed by Nasdaq’s formal notification. This resolution ensures Iridex’s continued listing on the Nasdaq Capital Market, closing the matter and stabilizing its market position.

The most recent analyst rating on (IRIX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Iridex stock, see the IRIX Stock Forecast page.

Iridex Reports Mixed Q2 2025 Earnings Amid Growth and Challenges
Sep 1, 2025

The recent earnings call for Iridex presented a mixed sentiment, highlighting both positive strides in revenue growth and cost reduction, alongside challenges such as declining gross margins and regional sales issues. While the company successfully implemented efficiency measures and reported a positive adjusted EBITDA, it continues to face market challenges and a net loss.

Iridex Reports Revenue Growth and Expense Reduction in Q2 2025
Aug 13, 2025

Iridex Corporation is a global leader in the development and marketing of innovative laser-based medical systems for treating glaucoma and retinal diseases, utilizing its proprietary MicroPulse technology to offer safe and effective solutions in the ophthalmology market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 23, 2025