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Iridex Corp (IRIX)
NASDAQ:IRIX
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Iridex
(NASDAQ:IRIX)
Rating:44Neutral
Price Target:
$1.00
▼( -1.96% Downside)
Iridex (IRIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.12M
Dividend YieldN/A
Average Volume (3M)76.06K
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth-2.24%
EPS Growth36.09%
CountryUS
Employees93
SectorHealthcare
Sector Strength44
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.10
Shares Outstanding16,789,026
10 Day Avg. Volume86,635
30 Day Avg. Volume76,059
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)19.83
Price to Sales (P/S)0.00
P/FCF Ratio-2.50
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.57
Enterprise Value/Ebitda-0.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 makes money by selling its laser systems and related consumable products to ophthalmologists, hospitals, and clinics globally. The company's revenue streams include the initial sale of laser systems and ongoing sales of consumable products, such as laser probes, which are used during procedures. Iridex also generates income through service and maintenance contracts for its equipment. Strategic partnerships with research institutions and key players in the medical device industry further enhance its market reach and contribute to its revenue growth.
Iridex Financial Statement Overview
Summary
Iridex is experiencing significant financial challenges with declining revenues and negative profit margins. The balance sheet shows weakened financial stability, and the cash flow situation is concerning with negative operating and free cash flows. These factors 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.45
Neutral
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.40
Negative
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.35
Negative
| 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 | EBIT |
| -5.21M | -8.30M | -10.01M | -7.54M | -7.53M | -6.58M | EBITDA |
| -4.22M | -6.88M | -7.97M | -6.10M | -6.73M | -6.08M | Net Income Common Stockholders |
| -7.13M | -8.91M | -9.57M | -7.55M | -5.22M | -6.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.24M | 2.39M | 7.03M | 13.92M | 23.85M | 11.63M | Total Assets |
| 34.24M | 29.14M | 34.44M | 42.29M | 48.69M | 27.97M | Total Debt |
| 1.66M | 4.64M | 2.75M | 1.77M | 2.66M | 4.19M | Net Debt |
| -5.59M | 2.26M | -4.29M | -12.15M | -21.20M | -7.44M | 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
Negative
1.02
Price Trends
1.04
Negative
1.30
Negative
1.53
Negative
Market Momentum
-0.02
Positive
42.94
Neutral
25.93
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 1.02 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.04, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 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 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 3 New Risks
1.
Lind has conversion rights under the Note, the exercise of which could result in the issuance of a substantial amount of our common stock at a significant discount to the trading price of our common stock. Q3, 2024
2.
We may need additional funding and may not be able to raise capital when needed, which could force us to delay or reduce our commercialization efforts. Q3, 2024
3.
Servicing our existing and future debt, including the Note, may require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness. Q3, 2024
Iridex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% | |
44 Neutral | $17.12M | ― | -194.33% | ― | -2.24% | 36.09% | |
43 Neutral | $13.87M | ― | -93.11% | ― | 85.24% | -27.93% | |
41 Neutral | $18.61M | ― | -329.16% | ― | 2115.38% | -4.40% | |
35 Underperform | $13.07M | ― | -196.69% | ― | ― | ― | |
34 Underperform | $83.52M | ― | 5400.35% | ― | 122.22% | 79.08% | |
24 Underperform | $315.13K | ― | ― | -2.99% | 59.87% |
* Healthcare Sector Average
Performance Comparison
IRIX
Iridex
1.02
-1.47
-59.04%
AXDXQ
Accelerate Diagnostics
0.01
-1.27
-99.22%
LFWD
Lifeward
1.19
-3.80
-76.15%
BSGM
BioSig Technologies
3.30
1.67
102.45%
ADGM
Adagio Medical Holdings
1.15
-10.27
-89.93%
IINN
Inspira Technologies Oxy BHN
0.50
-1.64
-76.64%
Iridex Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -7.27%|
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 Corporate Events
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.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Iridex Secures Strategic Investment and Appoints New CFO
Positive
Mar 20, 2025
On March 19, 2025, Iridex Corporation announced the closing of a strategic investment with Novel Inspiration International Co., Ltd., resulting in $10 million in gross proceeds and an option for an additional $10 million for future growth initiatives. This transaction, which includes the sale of Series B Preferred Stock and convertible notes, aims to enhance Iridex’s ability to pursue opportunities in advanced laser-based treatments, particularly for glaucoma, following changes in reimbursement policies for certain surgical devices. Additionally, the company appointed Romeo Dizon as Chief Financial Officer, replacing Fuad Ahmad, as part of its strategic review process.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.