Iridex Corp (IRIX)
NASDAQ:IRIX
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Iridex
(NASDAQ:IRIX)
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Rating:45Neutral
Price Target:
$1.00
▼(-18.70% Downside)
Action:Reiterated
Date:05/20/26
The score is held down primarily by weak financial performance (revenue decline, ongoing losses, and negative free cash flow with a thin equity base). Technicals also lean bearish with the stock below key longer-term moving averages and a negative MACD. These are partially offset by a more constructive earnings call featuring reaffirmed guidance, expected positive operating cash flow for 2026, and ongoing cost and margin-improvement initiatives.
Positive Factors
Recurring consumables revenue
Iridex's business model ties capital equipment placements to recurring procedure-based consumable sales and service. That installed-base driven revenue creates predictable, higher-margin follow-on sales as placements accumulate, supporting sustainable top-line and cash conversion over multi-quarter horizons.
Negative Factors
Revenue decline and weak margins
A material TTM revenue decline and persistent negative margins reduce scale economics for a device maker. Lower revenue compresses gross margin and limits ability to invest in sales/marketing and R&D, making recovery and durable margin expansion more difficult absent sustained demand improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables revenue
Iridex's business model ties capital equipment placements to recurring procedure-based consumable sales and service. That installed-base driven revenue creates predictable, higher-margin follow-on sales as placements accumulate, supporting sustainable top-line and cash conversion over multi-quarter horizons.
Read all positive factors
Iridex (IRIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.50M
Dividend YieldN/A
Average Volume (3M)66.91K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth7.73%
EPS Growth55.39%
CountryUS
Employees93
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.19
Shares Outstanding17,406,519
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 Cap0.92
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit0.95
Enterprise Value/Ebitda-8.95
Forecast
1Y Price Target
$2.75Price Target Upside123.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.12
Revenue Forecast (FY)$53.00M
Iridex Business Overview & Revenue Model
Company Description
IRIDEX Corporation is a medical technology firm specializing in ophthalmology. They develop and supply advanced therapeutic laser systems, various delivery instruments, and essential consumable tools designed to address vision-threatening ocular c...
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:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: solid operational progress (probe and Cyclo G6 growth, cost reductions, partnership expansion, and a near‑term $0.8M backlog) balanced against notable international headwinds, a YoY gross margin decline, softer retina system sell‑through, and a quarter‑end cash decline. Management reaffirmed full‑year guidance ($51M–$53M excluding the Middle East), expects full‑year positive operating cash flow, and highlighted multi‑quarter initiatives (G&A relocation and contract manufacturer transition) that should improve margins over time. Near‑term risks are primarily timing and international/regulatory disruptions rather than fundamental demand weakness in core U.S. businesses.Positive Updates
Stable Quarterly Revenue
Q1 2026 revenue of $11.8M was essentially flat year‑over‑year versus $11.9M in Q1 2025 and came in above prior guidance.
Negative Updates
Retina Product Weakness and Shipping Delays
Retina product sell‑through was below expectations in Q1, driven by international regulatory delays (e.g., Japan electrical safety testing) and supply constraints (EndoProbe issues in China), contributing to lower retina revenue and deferred orders.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Quarterly Revenue
Q1 2026 revenue of $11.8M was essentially flat year‑over‑year versus $11.9M in Q1 2025 and came in above prior guidance.
Read all positive updates
Company Guidance
IRIDEX reaffirmed 2026 revenue guidance of $51.0–$53.0 million (which, excluding the Middle East, implies ~1%–5% pro forma growth versus 2025), reiterated expectations for positive operating cash flow for the year, and forecasted adjusted operating expenses (ex‑depreciation, amortization, and stock‑based comp) of $19.0–$19.5 million. In Q1 they reported $11.8 million of revenue (~22% of annual revenue historically) essentially flat vs $11.9M a year ago, retina product revenue of $5.8M (vs $0.6M prior), Cyclo G6 product revenue of $3.6M (+14% YoY), 15.5k G‑Probes sold (vs 13.9k), 24 G6 systems placed, gross profit of $4.7M (40% gross margin, down from 43% YoY but +300 bps sequentially), adjusted EBITDA of $0.3M (vs $0.4M), a net loss of $0.5M (−$0.03/share vs −$1.7M/−$0.10), cash of $4.6M (down $1.4M in the quarter), and operating expenses of $5.1M (down $0.2M). Management also noted an ~$800k retina backlog expected to ship in Q2, a planned HQ relocation to reduce fixed costs by ~$600k annually, ~$100k of Q1 savings from G&A relocation (≈70% complete toward an expected quarterly benefit of ~$165k), and a contract‑manufacturing transition to be completed in 2027 to drive future gross‑margin improvement.Iridex Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.58M | 52.67M | 48.67M | 51.87M | 56.97M | 53.90M |
| Gross Profit | 18.99M | 19.31M | 19.50M | 21.81M | 25.37M | 22.83M |
| EBITDA | -2.01M | -2.83M | -7.42M | -7.45M | -6.10M | -4.38M |
| Net Income | -3.27M | -4.44M | -8.91M | -9.57M | -7.55M | -5.22M |
Balance Sheet | ||||||
| Total Assets | 28.27M | 29.15M | 29.14M | 34.44M | 42.29M | 48.69M |
| Cash, Cash Equivalents and Short-Term Investments | 4.59M | 6.03M | 2.39M | 7.03M | 13.92M | 23.85M |
| Total Debt | 4.28M | 4.53M | 4.64M | 2.75M | 1.77M | 2.66M |
| Total Liabilities | 23.54M | 24.23M | 27.04M | 24.91M | 25.06M | 25.39M |
| Stockholders Equity | 4.73M | 4.92M | 2.10M | 9.52M | 17.23M | 23.30M |
Cash Flow | ||||||
| Free Cash Flow | -2.45M | -2.26M | -7.30M | -6.85M | -9.80M | 8.00M |
| Operating Cash Flow | -2.30M | -2.12M | -7.29M | -6.75M | -9.52M | 8.22M |
| Investing Cash Flow | -233.00K | -143.00K | -13.00K | -109.00K | -286.00K | -5.56M |
| Financing Cash Flow | -76.00K | 5.96M | 2.60M | -5.00K | -73.00K | 9.47M |
Iridex Technical Analysis
Neutral
1.23
Price Trends
1.05
Positive
1.21
Negative
1.17
Negative
Market Momentum
0.02
Negative
56.62
Neutral
46.27
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 1.23 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.05, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 46.27 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 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% | |
47 Neutral | $48.27M | -1.87 | 239.44% | ― | 10.38% | 20.70% | |
45 Neutral | $19.50M | -5.92 | -148.64% | ― | 7.73% | 55.39% | |
45 Neutral | $35.80M | -0.42 | -9999.00% | ― | -95.74% | -118.94% | |
43 Neutral | $7.95M | -0.33 | -335.47% | ― | 33.77% | -20.22% | |
42 Neutral | $16.55M | -0.68 | -312.04% | ― | -100.00% | 100.00% | |
41 Neutral | $9.16M | -0.48 | -204.04% | ― | -59.95% | 56.67% |
* Healthcare Sector Average
IRIX
Iridex
1.12
0.14
14.29%
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PAVM
PAVmed
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VVOS
Vivos Therapeutics
0.57
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ADGM
Adagio Medical Holdings
0.75
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COCH
Envoy Medical
0.63
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-54.23%
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.