Iridex (IRIX) AI Stock Analysis

• Market Cap: $22.16M
• Dividend Yield: N/A
• Average Volume (3M): 144.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -2.24%
• EPS Growth: 36.09%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 16,789,026
• 10 Day Avg. Volume: 308,126
• 30 Day Avg. Volume: 144,608
• PEG Ratio: -0.18
• Price to Book (P/B): 30.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.78
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: $1.00
• Price Target Upside: -24.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $1.50 ▲(13.64%Upside)

Iridex's overall score is primarily impacted by significant financial challenges, including declining revenues and weakening balance sheet metrics. Despite this, technical analysis indicates some bullish momentum, and recent positive developments in earnings and strategic governance improvements offer potential upside. The ongoing Nasdaq compliance issue remains a notable risk.

Iridex Business Overview & Revenue Model

Company Description

Iridex Corporation (IRIX) is a leading global provider of innovative laser-based medical systems and delivery devices. The company specializes in developing high-quality products for the treatment of eye diseases, particularly in ophthalmology. Its core products include laser consoles, delivery devices, and consumable instrumentation that are used to treat prevalent eye conditions such as glaucoma and retinal diseases. Iridex's products are widely used by eye care professionals and are known for their precision, safety, and efficacy.

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. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.67M	51.87M	56.97M	53.90M	36.35M
Gross Profit	19.50M	21.81M	25.37M	22.83M	15.56M
EBITDA	-6.88M	-7.97M	-6.10M	-6.73M	-6.08M
Net Income	-8.91M	-9.57M	-7.55M	-5.22M	-6.33M
Balance Sheet
Total Assets	29.14M	34.44M	42.29M	48.69M	27.97M
Cash, Cash Equivalents and Short-Term Investments	2.39M	7.03M	13.92M	23.85M	11.63M
Total Debt	4.64M	2.75M	1.77M	2.66M	4.19M
Total Liabilities	27.04M	24.91M	25.06M	25.39M	10.60M
Stockholders Equity	2.10M	9.52M	17.23M	23.30M	17.37M
Cash Flow
Free Cash Flow	-7.30M	-6.85M	-9.80M	8.00M	-3.33M
Operating Cash Flow	-7.29M	-6.75M	-9.52M	8.22M	-3.24M
Investing Cash Flow	-13.00K	-109.00K	-286.00K	-5.56M	-93.00K
Financing Cash Flow	2.60M	-5.00K	-73.00K	9.47M	2.47M

Iridex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 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 1.32 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.06, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.21 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
IRIX	58 Neutral	$22.16M	―	-194.33%	―	-2.24%	36.09%
Sector *	50 Neutral	AU$2.63B	3.88	-56.57%	2.69%	36.37%	13.78%
LFWD	43 Neutral	$10.87M	―	-93.11%	―	85.24%	-27.93%
ADGM	43 Neutral	$20.30M	―	-329.16%	―	2115.38%	-4.40%
AXDXQ	37 Underperform	$25.00	―		―	-2.99%	59.87%
IINN	35 Underperform	$31.51M	―	-196.69%	―	―	―
BSGM	34 Underperform	$144.73M	―	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.