Iridex (IRIX) AI Stock Analysis

• Market Cap: $15.95M
• Dividend Yield: N/A
• Average Volume (3M): 65.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -2.24%
• EPS Growth: 36.09%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 16,789,026
• 10 Day Avg. Volume: 61,476
• 30 Day Avg. Volume: 65,000
• PEG Ratio: -0.11
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.27
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: -0.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• 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 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 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 Money

Iridex 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.80M	48.67M	51.87M	56.97M	53.90M	36.35M
Gross Profit	20.02M	19.50M	21.81M	25.37M	22.83M	15.56M
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 Assets	34.24M	29.14M	34.44M	42.29M	48.69M	27.97M
Cash, Cash Equivalents and Short-Term Investments	7.24M	2.39M	7.03M	13.92M	23.85M	11.63M
Total Debt	1.66M	4.64M	2.75M	1.77M	2.66M	4.19M
Total Liabilities	27.38M	27.04M	24.91M	25.06M	25.39M	10.60M
Stockholders Equity	852.00K	2.10M	9.52M	17.23M	23.30M	17.37M
Cash Flow
Free Cash Flow	-6.79M	-7.30M	-6.85M	-9.80M	8.00M	-3.33M
Operating Cash Flow	-6.79M	-7.29M	-6.75M	-9.52M	8.22M	-3.24M
Investing Cash Flow	-21.00K	-13.00K	-109.00K	-286.00K	-5.56M	-93.00K
Financing Cash Flow	8.64M	2.60M	-5.00K	-73.00K	9.47M	2.47M

Iridex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.45B	0.27	-61.87%	2.30%	16.62%	1.04%
ADGM	51 Neutral	$25.38M	―	-329.16%	―	2115.38%	-4.40%
IRIX	47 Neutral	$15.95M	―	-194.33%	―	-2.24%	36.09%
LFWD	43 Neutral	$10.34M	―	-93.11%	―	85.24%	-27.93%
AXDXQ	37 Underperform	$131.09K	―		―	-2.99%	59.87%
IINN	35 Underperform	$39.45M	―	-196.69%	―	―	―
BSGM	34 Underperform	$315.25M	―	5400.35%	―	122.22%	79.08%

Iridex Corporate Events

Iridex Stockholders Approve Key Proposals at Annual Meeting

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.

Iridex Amends Investor Rights Agreement with Novel

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.

Iridex Faces Nasdaq Non-Compliance Notification

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.