Iridex Corp (IRIX)
NASDAQ:IRIX
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Iridex
(NASDAQ:IRIX)
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Rating:44Neutral
Price Target:
$1.00
▼(-18.70% Downside)
Action:ReiteratedDate:04/03/26
The score is held down primarily by weak financial performance (ongoing losses and negative free cash flow) and bearish technical momentum (below key moving averages with negative MACD). The earnings call was a relative positive due to clear operating improvements and cost actions, but modest guidance and margin/transition risks limit the upside, while valuation remains challenging given negative earnings and no dividend.
Positive Factors
Recurring consumables & service attached to equipment
Iridex’s business model pairs higher‑value capital equipment placements with recurring, procedure‑tied consumables and service revenues. That attachment economics supports durable revenue visibility, higher lifetime customer value and margin stability as installed base grows.
Negative Factors
Persistent negative cash flow
Although cash burn has materially improved versus prior years, the company remains net cash‑consuming on a full‑year basis. Continued negative FCF limits reinvestment capacity, makes the business sensitive to revenue setbacks, and raises refinancing or dilution risk.
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Positive Factors
Negative Factors
Recurring consumables & service attached to equipment
Iridex’s business model pairs higher‑value capital equipment placements with recurring, procedure‑tied consumables and service revenues. That attachment economics supports durable revenue visibility, higher lifetime customer value and margin stability as installed base grows.
Read all positive factors
Iridex (IRIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.87M
Dividend YieldN/A
Average Volume (3M)66.91K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth8.23%
EPS Growth51.64%
CountryUS
Employees93
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.26
Shares Outstanding17,395,350
10 Day Avg. Volume69,445
30 Day Avg. Volume66,914
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)4.09
Price to Sales (P/S)0.38
P/FCF Ratio-8.91
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit0.87
Enterprise Value/Ebitda-6.25
Forecast
1Y Price Target
$2.75Price Target Upside123.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$56.55M
Iridex Business Overview & Revenue Model
Company Description
IRIDEX 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 Cy...
How the Company Makes Money
Iridex makes money primarily by selling ophthalmic laser capital equipment and generating recurring revenue from the consumables and accessories used with those systems. (1) Capital equipment revenue: The company sells ophthalmic laser platforms t...
Iridex Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational progress and financial improvement: revenue growth, significant operating expense reductions, the company’s first positive adjusted EBITDA in recent history, and positive operating cash flow in the quarter. These positives are tempered by margin pressure from higher manufacturing costs and tariffs, inventory write-downs, and notable regional headwinds (Middle East, China, Japan) that constrained sales and led management to provide conservative guidance excluding the Middle East. Management outlined credible cost-saving initiatives (G&A relocations, HQ move, contract manufacturing transition) expected to improve margins over 2026–2027, but those benefits are multi-quarter in delivery and carry execution risk. Overall, the call emphasizes a clear operational turnaround with some material but manageable near-term risks.Positive Updates
Full-Year Revenue Growth
Revenue for fiscal 2025 was $52.7 million, representing +8% year-over-year growth versus 2024, with broad-based growth across Cyclo G6, medical retina and surgical retina, and both U.S. and international businesses.
Negative Updates
Gross Margin Compression
Gross margin declined to 37% (gross profit $5.5M) from 44% (gross profit $5.6M) year-over-year in the comparable period, primarily due to higher manufacturing costs, tariff-driven product cost increases, lower capitalization of manufacturing overhead as inventory levels declined, and inventory write-downs.
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Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Revenue for fiscal 2025 was $52.7 million, representing +8% year-over-year growth versus 2024, with broad-based growth across Cyclo G6, medical retina and surgical retina, and both U.S. and international businesses.
Read all positive updates
Company Guidance
The company guided 2026 revenue of $51.0–$53.0 million (guidance assumes no Middle East sales — the Middle East was ~5% of total revenue and ~10% of U.S. revenue), which on a pro forma basis excluding 2025 Middle East revenue implies 1%–5% growth versus 2025 (FY2025 revenue was $52.7M, up 8% year-over-year); management reiterated seasonality (Q1 ~22% of annual revenue, Q4 strongest) and said it expects to generate positive cash flow for fiscal 2026 with cash generation improving after Q1. They forecast adjusted operating expenses (ex‑D&A and stock comp) of $19.0–$19.5M, plan to realize ~$165K of quarterly savings beginning Q1 2026 from G&A relocations (and an additional ~$600K annualized savings from a later HQ move), and expect gross-margin improvement as manufacturing transfers begin in 2026 (full transition by 2027). Recent financials cited to support the outlook included Q4 revenue of $14.7M (16% YoY), FY2025 adjusted EBITDA of $817K, cash and cash equivalents of ~$6.0M at quarter end, and 2025 cash use of $2.1M (a 71% improvement vs. 2024).Iridex Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 52.67M | 48.67M | 51.87M | 56.97M | 53.90M |
| Gross Profit | 19.31M | 19.50M | 21.81M | 25.37M | 22.83M |
| EBITDA | -1.02M | -6.88M | -7.97M | -6.16M | -6.73M |
| Net Income | -4.44M | -8.91M | -9.57M | -7.55M | -5.22M |
Balance Sheet | |||||
| Total Assets | 29.15M | 29.14M | 34.44M | 42.29M | 48.69M |
| Cash, Cash Equivalents and Short-Term Investments | 6.03M | 2.39M | 7.03M | 13.92M | 23.85M |
| Total Debt | 4.53M | 4.64M | 2.75M | 1.77M | 2.66M |
| Total Liabilities | 24.23M | 27.04M | 24.91M | 25.06M | 25.39M |
| Stockholders Equity | 4.92M | 2.10M | 9.52M | 17.23M | 23.30M |
Cash Flow | |||||
| Free Cash Flow | -2.26M | -7.30M | -6.85M | -9.80M | 8.00M |
| Operating Cash Flow | -2.12M | -7.29M | -6.75M | -9.52M | 8.22M |
| Investing Cash Flow | -143.00K | -13.00K | -109.00K | -286.00K | -5.56M |
| Financing Cash Flow | 5.96M | 2.60M | -5.00K | -73.00K | 9.47M |
Iridex Technical Analysis
Negative
1.23
Price Trends
1.27
Negative
1.22
Negative
1.20
Negative
Market Momentum
-0.07
Negative
40.53
Neutral
40.21
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 1.23 is above the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.27, and above the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 40.21 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
UnderperformOutperform
Sector (51)
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% | |
49 Neutral | $20.90M | -1.58 | -312.04% | ― | -100.00% | 100.00% | |
49 Neutral | $53.42M | -0.49 | 129.49% | ― | 7.11% | 6.53% | |
45 Neutral | $51.89M | -1.01 | 1.02% | ― | -97.63% | -93.90% | |
44 Neutral | $18.87M | -27.32 | -148.64% | ― | 8.23% | 51.64% | |
44 Neutral | $10.14M | -0.68 | -335.47% | ― | 16.05% | 27.95% | |
42 Neutral | $9.97M | -1.21 | -204.04% | ― | -64.74% | 71.67% |
* Healthcare Sector Average
IRIX
Iridex
1.09
-0.06
-5.65%
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PAVM
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VVOS
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ADGM
Adagio Medical Holdings
0.94
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COCH
Envoy Medical
0.69
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-54.04%
Iridex Corporate Events
Business Operations and Strategy
Iridex Signs Long-Term Lease for New Headquarters
Positive
Mar 13, 2026
On March 9, 2026, IRIDEX Corporation signed a triple net lease with SFIII Hellyer entities to relocate its corporate headquarters to 5215 Hellyer Avenue in San Jose, California, securing approximately 30,784 square feet of office space. The lease ...
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.