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Iridex
(NASDAQ:IRIX)
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Rating:46Neutral
Price Target:
$0.75
▲(4.44% Upside)
Action:Reiterated
Date:10/08/26
IRIX scores low mainly due to weak financial performance (ongoing losses and negative TTM operating/free cash flow, despite lower leverage) and a technically weak longer-term trend (below 100/200-day averages). The earnings call provides some offset via reaffirmed guidance, glaucoma growth, and stated expectations for improved cash generation, but corporate-event risks (Nasdaq bid-price notice and governance controversy) and the lack of profitable valuation support keep the overall score subdued.
Positive Factors
Recurring consumables and service model
Iridex combines one-time laser placements with repeat purchases of probes, fibers, service, and maintenance. This installed-base model can make revenue more durable than capital equipment sales alone, while procedure growth and utilization provide avenues for recurring revenue expansion.
Negative Factors
Persistent losses and negative cash generation
Iridex has not yet demonstrated consistent positive cash generation, with both TTM operating and free cash flow remaining negative. Continued losses and cash burn can reduce financial flexibility, increase dependence on funding, and constrain investment in commercial initiatives or product development.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables and service model
Iridex combines one-time laser placements with repeat purchases of probes, fibers, service, and maintenance. This installed-base model can make revenue more durable than capital equipment sales alone, while procedure growth and utilization provide avenues for recurring revenue expansion.
Read all positive factors
Iridex (IRIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.26M
Dividend YieldN/A
Average Volume (3M)750.13K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth3.68%
EPS Growth36.91%
CountryUS
Employees93
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.20
Shares Outstanding17,564,913
10 Day Avg. Volume2,146,977
30 Day Avg. Volume750,133
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 Cap1.89
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit1.34
Enterprise Value/Ebitda-14.66
Forecast
1Y Price Target
$2.75Price Target Upside281.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.05
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 (1) capital equipment and (2) recurring consumables and service tied to the installed base of its laser systems.
1) Capital equipment (laser systems): A portion of revenue comes from one-time sales of Iride...
Iridex Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear operational progress and cost discipline produced positive operating cash flow and meaningful glaucoma momentum (notably probe volumes and G6 revenue growth), and management reaffirmed full-year guidance and laid out plans to improve margins via a headquarters relocation and contract manufacturing. Offsetting these positives were a year-over-year revenue decline driven by a pronounced drop in retina sales, a wider net loss and a swing to negative adjusted EBITDA, fewer system placements, and temporary working capital strain tied to inventory buildup and regulatory transitions. Management expects these issues to normalize over H2 and into 2027, but near-term volatility remains.Positive Updates
Positive Cash Flow in Q2
Management reported positive cash flow from operations in Q2 2026. Cash and cash equivalents were $4.7M as of 07/04/2026, a $0.1M increase quarter-over-quarter. Management expects sequential cash generation to build as inventory is sold and receivables collected.
Negative Updates
Overall Revenue Decline
Total revenue for Q2 2026 was $12.6M, down 7% year-over-year from $13.6M in Q2 2025, driven primarily by weaker retina product sales and temporary commercial/regulatory headwinds internationally.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive Cash Flow in Q2
Management reported positive cash flow from operations in Q2 2026. Cash and cash equivalents were $4.7M as of 07/04/2026, a $0.1M increase quarter-over-quarter. Management expects sequential cash generation to build as inventory is sold and receivables collected.
Read all positive updates
Company Guidance
IRIDEX reaffirmed 2026 revenue guidance of $51.0–$53.0 million (excluding the Middle East), which management says implies roughly 1%–5% pro forma growth versus 2025, and reiterated full‑year operating expenses of $19.0–$19.5 million (including depreciation, amortization and stock compensation); despite delivering positive cash flow in Q2, the company warned of a temporary working‑capital reinvestment to build safety stock that will reduce cash on hand through 2026 (cash and cash equivalents were $4.7M as of 07/04/2026) but still expects positive cash flow from operations for the year and sequentially stronger quarterly cash generation as inventory is sold and receivables collected; product expectations include low‑single‑digit growth for retina in H2 and low‑double‑digit growth for glaucoma in H2, while Q2 results were $12.6M revenue, 34.2% gross margin, a $1.3M net loss ($0.07/share) and a non‑GAAP adjusted EBITDA loss of $0.4M.Iridex Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.57M | 52.67M | 48.67M | 51.87M | 56.97M | 53.90M |
| Gross Profit | 18.68M | 19.31M | 19.50M | 21.81M | 25.37M | 22.83M |
| EBITDA | -1.71M | -2.83M | -7.42M | -7.45M | -6.10M | -3.48M |
| Net Income | -3.55M | -4.44M | -8.91M | -9.57M | -7.55M | -5.22M |
Balance Sheet | ||||||
| Total Assets | 27.26M | 29.15M | 29.14M | 34.44M | 42.29M | 48.69M |
| Cash, Cash Equivalents and Short-Term Investments | 4.68M | 6.03M | 2.39M | 7.03M | 13.92M | 23.85M |
| Total Debt | 4.01M | 4.53M | 4.64M | 2.75M | 1.77M | 2.66M |
| Total Liabilities | 23.62M | 24.23M | 27.04M | 24.91M | 25.06M | 25.39M |
| Stockholders Equity | 3.64M | 4.92M | 2.10M | 9.52M | 17.23M | 23.30M |
Cash Flow | ||||||
| Free Cash Flow | -1.77M | -2.26M | -7.30M | -6.85M | -9.80M | 8.00M |
| Operating Cash Flow | -1.73M | -2.12M | -7.29M | -6.75M | -9.52M | 8.22M |
| Investing Cash Flow | -270.00K | -143.00K | -13.00K | -109.00K | -286.00K | -5.56M |
| Financing Cash Flow | -100.00K | 5.96M | 2.60M | -5.00K | -73.00K | 9.47M |
Iridex Technical Analysis
Negative
0.72
Price Trends
0.73
Positive
0.88
Negative
1.06
Negative
Market Momentum
0.02
Positive
50.06
Neutral
5.80
Positive
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 0.72 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.73, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 5.80 is Positive, 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 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% | |
51 Neutral | $13.00M | -0.32 | -565.55% | ― | -28.53% | 47.55% | |
46 Neutral | $13.26M | -3.77 | -78.94% | ― | 3.68% | 36.91% | |
43 Neutral | $4.73M | -0.07 | 2616.82% | ― | 45.21% | -10.29% | |
42 Neutral | $16.75M | -0.13 | -33.51% | ― | -89.02% | -107.75% | |
42 Neutral | $3.31M | -0.08 | -661.85% | ― | -100.00% | 70.33% | |
42 Neutral | $50.08M | -0.96 | 1719.71% | ― | -6.76% | 42.70% |
* Healthcare Sector Average
IRIX
Iridex
0.76
-0.33
-30.09%
SINT
Sintx Technologies
1.64
-1.82
-52.60%
PAVM
PAVmed
2.05
-10.83
-84.08%
VVOS
Vivos Therapeutics
0.13
-2.84
-95.56%
ADGM
Adagio Medical Holdings
0.11
-1.20
-91.60%
COCH
Envoy Medical
0.60
-0.23
-27.62%
Iridex Corporate Events
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Iridex Receives Nasdaq Notice Over Minimum Bid Price
Negative
Sep 2, 2026
On August 27, 2026, Iridex Corporation disclosed that it received a non‑compliance notice from Nasdaq after its common stock traded below the $1.00 minimum bid price for 30 consecutive business days, triggering a 180‑day cure period th...
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.