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Iridex (IRIX)
:IRIX
US Market

Iridex (IRIX) AI Stock Analysis

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Iridex

(NASDAQ:IRIX)

Rating:47Neutral
Price Target:
$1.00
▲(5.26%Upside)
Iridex's overall stock score is primarily influenced by its weak financial performance and valuation concerns due to ongoing unprofitability and liquidity issues. Despite some positive developments in the earnings call, such as revenue growth and strategic investments, the stock's technical indicators reflect bearish sentiment. The potential risk from Nasdaq non-compliance further weighs on its outlook.

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

Iridex Business Overview & Revenue Model

Company DescriptionIRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser photocoagulation systems, which are used for the treatment of diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.
How the Company Makes MoneyIridex Corporation generates revenue primarily through the sale of its laser-based medical systems and associated consumables to eye care professionals and medical institutions worldwide. The company's key revenue streams include direct sales of laser consoles and delivery devices, as well as recurring sales from consumable products that are used in conjunction with its laser systems. Additionally, Iridex benefits from service agreements and maintenance contracts for its equipment. Strategic partnerships and collaborations with medical professionals and institutions also play a significant role in expanding its market reach and driving sales. Iridex's focus on innovation and meeting the needs of the ophthalmology market helps maintain its competitive edge and sustain its financial performance.

Iridex Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: -13.64%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive aspects, including revenue and EBITDA growth, successful cost reductions, and strategic investments, which were offset by some challenges in retina product revenue and regional sales declines. Despite the net loss, the company's trajectory towards profitability appears promising.
Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
IRIDEX reported revenue of $11.9 million for Q1 2025, a slight increase from $11.8 million in Q1 2024. Achieved positive adjusted EBITDA of $0.4 million, an improvement of $2.9 million compared to the prior year quarter.
Cost Reduction and Profitability
Operating expenses decreased by $2.5 million to $5.3 million in Q1 2025 from $7.8 million in Q1 2024, driven by workforce reductions and lower discretionary spending, resulting in improved profitability.
Strategic Investment and Balance Sheet Strengthening
Received a $10 million strategic investment from Novel Inspiration, which strengthened the balance sheet and helped settle the Lind note payable.
Product Performance in Glaucoma Segment
Cyclo G6 product family revenue grew 8% year-over-year, primarily driven by higher probe sales, with MP3 probe unit sales exceeding expectations.
International Market Growth
Strong sales in EMEA and Asia, with regulatory approvals driving capital equipment sales. Medical retina sales in China showed a healthy recovery.
Negative Updates
Decline in Retina Product Revenue
Retina product revenue decreased by 3% to $6.6 million in Q1 2025 compared to the same period in 2024, primarily due to lower PASCAL system sales.
Slight Decline in GmbH Sales
Sales in GmbH experienced a slight decline due to unresolved service issues, indicating an area of management focus.
Net Loss Reporting
Net loss was $1.7 million or $0.10 per share for Q1 2025, though improved from a net loss of $3.5 million or $0.21 per share in Q1 2024.
Company Guidance
During the First Quarter 2025 IRIDEX Earnings Conference Call, several key financial metrics and strategic goals were discussed. IRIDEX reported revenue of $11.9 million, a slight increase from $11.8 million in Q1 2024, with a notable 8% year-over-year growth in the Cyclo G6 product family revenue. The company achieved a positive adjusted EBITDA of $0.4 million, marking a $2.9 million improvement compared to the previous year. Gross profit for the quarter was $5.1 million, translating to a gross margin of 42.5%, up from 37.9% in Q1 2024, due to favorable product mix and reduced manufacturing expenses. Operating expenses were significantly reduced by $2.5 million year-over-year, leading to a net loss of $1.7 million, improving from a $3.5 million net loss in the prior year period. IRIDEX also strengthened its financial position with a $10 million strategic investment from Novel Inspiration in March 2025, which helped settle existing debt and enhance liquidity, with cash and cash equivalents totaling $7.2 million at the end of the quarter. The company remains focused on achieving cash flow breakeven and positive adjusted EBITDA for the year, driven by disciplined cost management and strategic initiatives to expand product adoption and market reach.

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.
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 2022Mar 2022Mar 2021
Income Statement
Total Revenue48.80M48.67M51.87M56.97M53.90M36.35M
Gross Profit20.02M19.50M21.81M25.37M22.83M15.56M
EBITDA-4.22M-6.88M-7.97M-6.10M-6.73M-6.08M
Net Income-7.13M-8.91M-9.57M-7.55M-5.22M-6.33M
Balance Sheet
Total Assets34.24M29.14M34.44M42.29M48.69M27.97M
Cash, Cash Equivalents and Short-Term Investments7.24M2.39M7.03M13.92M23.85M11.63M
Total Debt1.66M4.64M2.75M1.77M2.66M4.19M
Total Liabilities27.38M27.04M24.91M25.06M25.39M10.60M
Stockholders Equity852.00K2.10M9.52M17.23M23.30M17.37M
Cash Flow
Free Cash Flow-6.79M-7.30M-6.85M-9.80M8.00M-3.33M
Operating Cash Flow-6.79M-7.29M-6.75M-9.52M8.22M-3.24M
Investing Cash Flow-21.00K-13.00K-109.00K-286.00K-5.56M-93.00K
Financing Cash Flow8.64M2.60M-5.00K-73.00K9.47M2.47M

Iridex Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.95
Price Trends
50DMA
1.02
Negative
100DMA
1.08
Negative
200DMA
1.37
Negative
Market Momentum
MACD
-0.02
Negative
RSI
51.34
Neutral
STOCH
60.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRIX, the sentiment is Neutral. The current price of 0.95 is above the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.02, and below the 200-day MA of 1.37, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 60.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.45B0.27-61.87%2.30%16.62%1.04%
51
Neutral
$25.38M-329.16%2115.38%-4.40%
47
Neutral
$15.95M-194.33%-2.24%36.09%
43
Neutral
$10.34M-93.11%85.24%-27.93%
37
Underperform
$131.09K
-2.99%59.87%
35
Underperform
$39.45M-196.69%
34
Underperform
$315.25M5400.35%122.22%79.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IRIX
Iridex
0.96
-1.04
-52.00%
AXDXQ
Accelerate Diagnostics
0.01
-1.13
-99.12%
LFWD
Lifeward
0.77
-3.18
-80.51%
BSGM
BioSig Technologies
8.39
7.98
1946.34%
ADGM
Adagio Medical Holdings
1.75
-9.77
-84.81%
IINN
Inspira Technologies Oxy BHN
1.49
0.20
15.50%

Iridex Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Iridex Stockholders Approve Key Proposals at Annual Meeting
Positive
Jun 13, 2025

On June 11, 2025, Iridex Corporation held its Annual Meeting of Stockholders at its headquarters in Mountain View, California, where several key proposals were approved. Notably, the stockholders approved an amendment to the 2008 Equity Incentive Plan, increasing the shares reserved for issuance and extending the plan’s term. Additionally, the appointment of BPM LLP as the independent registered public accounting firm was ratified, and various governance-related proposals were passed, including the election of directors and amendments to the company’s charter. These decisions reflect a strategic effort to enhance corporate governance and operational flexibility, potentially impacting the company’s future growth and shareholder value.

Business Operations and Strategy
Iridex Amends Investor Rights Agreement with Novel
Neutral
May 22, 2025

On May 20, 2025, IRIDEX Corporation amended its Investor Rights Agreement with Novel Inspiration International Co., Ltd. The amendment restricts the company from disposing of a substantial portion of its assets without unanimous board approval, unless the transaction involves a wholly-owned subsidiary.

Delistings and Listing ChangesRegulatory Filings and Compliance
Iridex Faces Nasdaq Non-Compliance Notification
Negative
May 20, 2025

On May 14, 2025, Iridex Corporation received a notification from Nasdaq regarding non-compliance with the minimum stockholders’ equity requirement for continued listing, as their equity was reported at approximately $852,000, below the $2,500,000 threshold. The company plans to address this by seeking stockholder approval to amend its charter, which would reclassify its Series B Preferred Stock as permanent equity, potentially regaining compliance. The notice does not immediately impact the listing of Iridex’s common stock, and the company is exploring additional options to meet Nasdaq’s requirements.

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: Jul 08, 2025