olivLaw · US equity research
IRIDEX Corporation IRIX
Electromedical & Electrotherapeutic Apparatus · SIC 3845 · Vertical: Electromedical & Electrotherapeutic Apparatus (SIC 3845)
IRIDEX is an ophthalmic medical technology company that develops and sells MicroPulse laser systems for glaucoma and retinal disease treatment. Fiscal 2025 revenue was 52.7 million USD, and the company has reaffirmed 2026 guidance of 51-53 million USD, as glaucoma grows while the retina segment is under pressure.
At the close of 04 Nov 2026, IRIDEX Corporation (IRIX) stock was 0.72 USD (+2.14% on the day), with market capitalisation 12.6 m USD, beta 0.96, 52-week range 0.61–1.56 USD. Latest reported quarter (Q2 2027): revenue of 12.6 m USD (−7.4% YoY), net income of -1.3 m USD, diluted EPS -0.07 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 44.2
- weak (30–45)
- Bollinger (20, 2)
- 0.65 – 0.91
- in the lower half of the band · %B 0.25 · band width 33.5%
- SMA 50 / 200
- 0.72 / 1.05
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.01 / 0.00
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +3.6% | −2.0% | +5.6 pp | — |
| 3 months | −14.9% | −2.2% | −12.7 pp | — |
| 6 months | −31.9% | +4.3% | −36.2 pp | — |
| Year to date | −37.3% | +10.6% | −47.8 pp | — |
| 1 year | −31.3% | +10.5% | −41.7 pp | −0.4% |
| 3 years | −69.6% | +73.7% | −143.2 pp | −17.4% |
| 5 years | −92.4% | +61.7% | −154.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.6 m | 12.7 m | 11.9 m | 13.6 m | 12.5 m | 14.7 m | 11.8 m | 12.6 m |
| Cost of revenue | 7.3 m | 7.1 m | 6.8 m | 8.9 m | 8.5 m | 9.2 m | 7.1 m | 8.3 m |
| Gross profit | 4.3 m | 5.6 m | 5.1 m | 4.7 m | 4.0 m | 5.5 m | 4.7 m | 4.3 m |
| Research & development | 1.3 m | 1.1 m | 876.0 k | 871.0 k | 972.0 k | 949.0 k | 905.0 k | 936.0 k |
| Operating income | -1.9 m | -502.0 k | -205.0 k | -940.0 k | -1.4 m | -15.0 k | -324.0 k | -1.0 m |
| Depreciation & amortisation | 137.0 k ≈ | 135.0 k | 135.0 k | 127.0 k ≈ | 110.0 k ≈ | 151.0 k | 100.0 k | 86.0 k ≈ |
| Interest expense | 58.0 k | 88.0 k | — | — | — | — | — | — |
| Pre-tax income | -1.9 m | -840.0 k | -1.7 m | -973.0 k | -1.6 m | -164.0 k | -466.0 k | -1.2 m |
| Income tax | 17.0 k | -6.0 k | 12.0 k | 21.0 k | 4.0 k | 20.0 k | 58.0 k | 70.0 k |
| Net income | -1.9 m | -834.0 k | -1.7 m | -994.0 k | -1.6 m | -184.0 k | -524.0 k | -1.3 m |
| Diluted EPS | -0.12 | -0.05 ≈ | -0.10 | -0.06 | -0.09 | -0.01 ≈ | -0.03 | -0.07 |
| Operating cash flow | -3.1 m ≈ | -1.2 m | -1.1 m | -397.0 k ≈ | -1.2 m ≈ | 589.0 k | -1.3 m | 174.0 k ≈ |
| Capex | 1.0 k ≈ | 9.0 k | 11.0 k | 13.0 k ≈ | 13.0 k ≈ | 106.0 k | 101.0 k | 50.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | ⚠ 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 41.6 m | 42.6 m | 43.4 m | 36.3 m | 57.0 m | 51.9 m | 48.7 m | 52.7 m |
| Revenue YoY | −9.9% | +2.4% | +2.0% | unavailable | — | −9.0% | −6.2% | unavailable |
| Net income | -12.9 m | -12.8 m | -8.8 m | -6.3 m | -7.5 m | -9.6 m | -8.9 m | -4.4 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | — | unavailable | unavailable | unavailable |
| Diluted EPS | -1.11 | -1.05 | -0.64 | -0.46 | -0.47 | -0.59 | -0.54 | -0.26 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | — | unavailable | unavailable | unavailable |
| net % | -30.9% | -30.1% | -20.3% | -17.4% | -13.2% | -18.5% | -18.3% | -8.4% |
| Free cash flow | -4.1 m | -10.5 m | -8.0 m | -3.3 m | -9.8 m | -6.9 m | -7.3 m | -2.3 m |
The series breaks before 2022: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 03 Jan 2026
- Cash
- 6.0 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 4.9 m USD
- Total assets
- 29.2 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.91x
- ROE
- unavailable
- ROA
- -15.2%
- FCF margin
- -4.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 43.4 m | 36.3 m | 57.0 m | 51.9 m | 48.7 m | 52.7 m | SEC (XBRL)· 02 Apr 2026verified |
| Cost of revenue | 25.5 m | 20.8 m | 31.6 m | 30.1 m | 29.2 m | 33.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Gross profit | 17.9 m | 15.6 m | 25.4 m | 21.8 m | 19.5 m | 19.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Research & development | 3.7 m | 3.3 m | 7.2 m | 6.8 m | 5.4 m | 3.7 m | SEC (XBRL)· 02 Apr 2026verified |
| Operating income | -9.0 m | -6.6 m | -7.5 m | -10.0 m | -8.3 m | -2.6 m | SEC (XBRL)· 02 Apr 2026verified |
| Depreciation & amortisation | 688.0 k | 504.0 k | 485.0 k | 1.1 m | 584.0 k | 523.0 k | SEC (XBRL)· 02 Apr 2026verified |
| EBITDA | -8.3 m ≈ | -6.1 m ≈ | -7.1 m ≈ | -8.9 m ≈ | -7.7 m ≈ | -2.0 m ≈ | SEC (XBRL)· 02 Apr 2026derived |
| Interest expense | — | — | — | — | 146.0 k | 58.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Pre-tax income | -8.8 m | -6.3 m | -7.5 m | -9.5 m | -8.8 m | -4.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Income tax | 48.0 k | 26.0 k | 65.0 k | 90.0 k | 68.0 k | 57.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Net income | -8.8 m | -6.3 m | -7.5 m | -9.6 m | -8.9 m | -4.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Diluted EPS | -0.64 | -0.46 | -0.47 | -0.59 | -0.54 | -0.26 | SEC (XBRL)· 02 Apr 2026verified |
| Weighted average diluted shares | 13.7 m | 13.8 m | 15.9 m | 16.1 m | 16.4 m | 16.9 m | SEC (XBRL)· 02 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 12.7 m | 11.6 m | 13.9 m | 7.0 m | 2.4 m | 6.0 m | SEC (XBRL)· 02 Apr 2026verified |
| Receivables | 9.3 m | 7.3 m | 6.2 m | 6.7 m | 6.0 m | 7.6 m | SEC (XBRL)· 02 Apr 2026verified |
| Inventories | 8.2 m | 5.7 m | 10.6 m | 9.9 m | 10.8 m | 7.9 m | SEC (XBRL)· 02 Apr 2026verified |
| Current assets | 30.6 m | 25.4 m | 35.8 m | 27.5 m | 23.6 m | 25.3 m | SEC (XBRL)· 02 Apr 2026verified |
| Property, plant & equipment, net | 730.0 k | 449.0 k | 462.0 k | 351.0 k | 115.0 k | 58.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Goodwill | 533.0 k | 533.0 k | 965.0 k | 965.0 k | 965.0 k | 965.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Intangibles (excl. goodwill) | 84.0 k | 68.0 k | 2.0 m | 1.6 m | 1.3 m | 984.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Total assets | 34.8 m | 28.0 m | 42.3 m | 34.4 m | 29.1 m | 29.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Accounts payable | 2.6 m | 1.1 m | 3.9 m | 4.5 m | 7.0 m | 5.4 m | SEC (XBRL)· 02 Apr 2026verified |
| Short-term debt | — | 1.2 m | — | — | 1.7 m | — | SEC (XBRL)· 27 Mar 2025verified |
| Long-term debt | — | 1.2 m | — | — | 1.0 m | — | SEC (XBRL)· 27 Mar 2025verified |
| Current liabilities | 9.8 m | 8.7 m | 12.5 m | 13.0 m | 16.6 m | 13.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Total liabilities | 12.1 m | 10.6 m | 25.1 m | 24.9 m | 27.0 m | 24.2 m | SEC (XBRL)· 02 Apr 2026verified |
| Equity | 22.7 m † | 17.4 m † | 17.2 m † | 9.5 m † | 2.1 m † | 4.9 m † | SEC (XBRL)· 02 Apr 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -7.9 m | -3.2 m | -9.5 m | -6.7 m | -7.3 m | -2.1 m | SEC (XBRL)· 02 Apr 2026verified |
| Capex | 128.0 k | 97.0 k | 286.0 k | 109.0 k | 13.0 k | 143.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Free cash flow | -8.0 m ≈ | -3.3 m ≈ | -9.8 m ≈ | -6.9 m ≈ | -7.3 m ≈ | -2.3 m ≈ | SEC (XBRL)· 02 Apr 2026derived |
| Investing cash flow | -509.0 k | -93.0 k | -286.0 k | -109.0 k | -13.0 k | -143.0 k | SEC (XBRL)· 02 Apr 2026verified |
| Financing cash flow | -156.0 k | 2.5 m | -73.0 k | -5.0 k | 2.6 m | 6.0 m | SEC (XBRL)· 02 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 12.6 m USD
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -6.9% | 64 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 0.5% | 4 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -47.9x | 0 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 1.8x | 85 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -15.9% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet34/100 · 2/3 factors with a value
- Growth· partial4/100 · 1/2 factors with a value
- Quality· partial64/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
IRIDEX CORP (IRIX). Latest full fiscal year: 2026; data up to 2026-07-04.
Figures computed from the financial statements: revenue 52.7 m USD in 2026; net margin -6.9%; ROE -73.1%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 1.8x
What contradicts it
- Revenue CAGR 3Y: 0.5%
- Interest coverage: -47.9x
- FCF yield: -15.9%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Electromedical & Electrotherapeutic Apparatus (SIC 3845) · same industry (4-digit SIC) · compared with 24 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MDTMedtronic plc | 126.5 bn | 24.3 | 10.7% | 13.9% | +8.4% | −6% / +25% |
| LIVNLivaNova PLC | 5.2 bn | 27.8 | 15.4% | 12.8% | +10.7% | +48% / +110% |
| ITGRInteger Holdings Corporation | 4.3 bn | 42.5 | 6.0% | 5.7% | +8.0% | +75% / +45% |
| AXGNAxogen, Inc. | 3.1 bn | — | -10.3% | -12.0% | +20.2% | +79% / +684% |
| TMDXTransMedics Group, Inc. | 2.5 bn | 18.9 | 36.3% | 22.7% | +37.1% | −50% / −4% |
| BLFSBioLife Solutions, Inc. | 1.9 bn | 33.5 | 15.1% | 56.4% | +28.9% | unavailable / unavailable |
| CNMDConmed Corporation | 1.6 bn | 21.8 | 7.1% | 5.4% | +5.2% | +24% / −50% |
| CBLLCeriBell, Inc. | 1.1 bn | — | -52.5% | -68.0% | +36.1% | +61% / unavailable |
| INMDInMode Ltd. | 899.7 m | 9.9 | 13.5% | 25.3% | −6.2% | −0% / −40% |
| CVCapsoVision, Inc | 342.8 m | — | — | -214.7% | +15.3% | +23% / unavailable |
| ELMDElectromed, Inc. | 234.3 m | 21.5 | 23.3% | 15.3% | +15.3% | +5% / +172% |
| FOCLEdap Tms SA | 162.9 m | — | -321.7% | -49.1% | +1.6% | +81% / −17% |
| VANIVivani Medical, Inc. | 96.5 m | — | -220.4% | — | unavailable | −21% / +13% |
| STXSStereotaxis, Inc. | 95.9 m | — | -325.9% | -74.2% | +20.3% | −61% / −42% |
| NRXSNeuraxis, Inc. | 86.1 m | — | -139.8% | -144.4% | +32.9% | +147% / +117% |
| OMOutset Medical, Inc. | 83.5 m | — | -59.2% | -63.1% | +5.1% | −3% / −94% |
| ECORelectroCore, Inc. | 75.7 m | — | — | -40.0% | +27.2% | +66% / +49% |
| POCIPrecision Optics Corporation, Inc. | 53.1 m | — | -22.3% | -11.5% | +65.2% | +3% / −18% |
| NXLNexalin Technology, Inc. | 34.4 m | — | -240.3% | -4,139.4% | +78.8% | −95% / −87% |
| QTIQt Imaging Holdings, Inc. | 32.1 m | — | -2,125.0% | -77.3% | +287.9% | −64% / −99% |
| NUWENuwellis, Inc. | 19.2 m | — | — | -125.6% | −5.4% | −94% / −100% |
| IRIXIridex Corp | 12.6 m | — | -73.1% | -6.9% | unavailable | −31% / −70% |
| NDRAEndra Life Sciences Inc. | 7.4 m | — | -152.0% | — | unavailable | −16% / −100% |
| HYPRHyperfine, Inc. | 0 | — | -97.0% | -210.8% | +5.2% | −30% / −41% |
| ITOCiTonic Holdings Ltd | — | — | -82.8% | -974.7% | +16.7% | −80% / unavailable |
1- and 3-year price returns: for IRIX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
IRIDEX is an ophthalmic medical technology company that develops and sells MicroPulse laser systems for glaucoma and retinal disease treatment. Fiscal 2025 revenue was 52.7 million USD, and the company has reaffirmed 2026 guidance of 51-53 million USD, as glaucoma grows while the retina segment is under pressure.
SWOT
Strengths
- MicroPulse technology has a documented clinical base and a differentiated position against traditional lasers 1. The glaucoma segment shows steady growth, supported by single-use probes 3.
- The recurring revenue model from consumables and service offers some stability 1. The company has an established distribution network in the United States and internationally 1.
- Cost control enabled positive operating cash flow in the second quarter of 2026 3.
Weaknesses
- Gross margin declined in fiscal 2025 due to inventory write-downs and tariff-related costs 1. The company continues to report net losses 1.
- Dependence on Topcon for international sales creates vulnerability 1. The retina segment is sensitive to delays in regulatory approvals 3.
- Liquidity is limited, and the company relies on convertible financing with costly terms 1.
Opportunities
- Broader international approvals for PASCAL could relaunch the retina segment 3. Growing interest in laser therapy for glaucoma could support Cyclo G6 sales 1.
- Moving production to contract manufacturers and relocating headquarters could lower costs over the long term 3. Markets where MicroPulse is not yet widely adopted offer growth potential 1.
- If reimbursement rules evolve favorably, laser procedures could become a more widespread alternative to invasive surgery 1.
Threats
- Macroeconomic uncertainty may cause hospitals to defer equipment purchases 1. Tariffs and trade wars can raise production costs 1.
- Competition from larger ophthalmic equipment makers could reduce market share 1. Changes in reimbursement policy could adversely affect demand 1.
- Geopolitical conflicts and restrictions in certain markets, including China, may reduce retina sales 3.
Risks
- Debt and conversion of the Novel noteshigh
The initial convertible note issued to Novel can be converted into shares at a discount to the trading price, and interest paid in shares can cause significant dilution 1. If the company cannot repay the debt at maturity, its financial position could become critical.
- Dependence on strategic partner Topconmedium
The Topcon relationship involves exclusive distribution rights and asset transactions, and a failure of the partnership could affect international revenue and financial results 1.
- Liquidity and going concernhigh
The company has incurred losses over several years and carries a significant accumulated deficit, and management assesses whether conditions could raise doubt about its ability to continue as a going concern 1.
- Supply chain disruption and tariffsmedium
Dependence on sole or limited source suppliers and third-party manufacturers can expose the company to interruptions, and tariffs can raise component costs 1.
- Regulation and product liabilitymedium
Compliance with FDA quality system rules and laser performance standards, along with product liability exposure, can generate unplanned costs or recalls 1.
Investment thesis
What would need to be true (bull case)
- Growth in the Cyclo G6 segment and probe sales shows real demand for MicroPulse therapy in glaucoma 3. If international approvals for PASCAL are completed, the retina segment could recover 3.
- Positive operating cash flow and cost reduction suggest improved financial discipline 3. Favorable LCD reimbursement rules could strengthen the company's position in glaucoma 1.
- The recurring consumables model offers a relatively predictable base, and the 2026 revenue guidance was reaffirmed 3.
What would break the thesis
- Quarterly revenue declined, and the retina segment, which generated most sales, weakened significantly 3. If this trend continues, the annual guidance could be hard to reach.
- The company continues to report net losses, and liquidity is limited 1. The convertible note with a discount could cause considerable dilution for shareholders.
- Gross margins have declined, and tariff pressure and inventory costs could continue to limit profitability 1.
What to watch
- Retina revenue trend and international approvals for PASCALQ3 2026
- Achievement of annual revenue guidance and gross margin trend2026
- Progress of production transfer and headquarters relocationQ4 2026
- Use of the Novel convertible notes and level of shareholder dilutionnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
IRIDEX Corporation is an ophthalmic medical technology company focused on developing and commercializing products and procedures for sight-threatening eye conditions, especially glaucoma and retinal diseases 1. Its proprietary MicroPulse and Endpoint Management technologies offer low-energy, tissue-sparing laser therapy available as optional modes in select laser consoles 1. Revenue comes from laser systems, recurring consumables such as single-use probes, and service contracts 1. Products are sold in the United States and Germany through a direct sales force, and internationally mainly through Topcon Corporation and other independent distributors 1.
The product structure has three categories: laser consoles, delivery devices and single-use probes 1. Consoles are grouped into glaucoma (Cyclo G6), medical retina (IQ and PASCAL) and surgical retina (OcuLight) 1. Probes such as MicroPulse P3, G-Probe and EndoProbe contribute an important part of recurring revenue 1.
In the second quarter of 2026 the company reported lower revenue but growth in the Cyclo G6 family, while management describes moving production to lower-cost contract manufacturers and relocating its headquarters 3. Cost pressure is evident, and the company reported positive operating cash flow in that quarter 3.
Segments
Glaucoma (Cyclo G6 and probes)
The glaucoma segment is built on MicroPulse Transscleral Laser Therapy and is the most dynamic part of the portfolio. In the second quarter of 2026, Cyclo G6 family revenue grew 19% 3. The LCD L37531 reimbursement rule supported physician interest in these treatments, since the products are not considered MIGS procedures 1.
Market context
The ophthalmology market is growing, driven by an aging population and the prevalence of chronic disease 1. Glaucoma is a leading cause of blindness worldwide, with an estimated 80-100 million candidates for treatment 1. The company argues there is an unmet medical need relative to pharmaceutical and invasive surgical alternatives 1.
Equipment demand depends on hospital and clinic budgets, which can defer purchases under macroeconomic uncertainty 1. The company notes that customers have extended purchase decision cycles, which can affect the timing of revenue 2.
Trends
- Changing reimbursement rules for glaucomatailwind
LCD L37531 on MIGS surgery took effect in November 2024 and, according to the company, increased physician interest in laser treatments 1. If reimbursement stays favorable, it could support demand for Cyclo G6 systems.
- Macroeconomic uncertainty and tariffsheadwind
Tariffs, trade wars, inflation and higher interest rates have led customers to extend purchase cycles, and the company flagged margin pressure from product costs 1. These conditions could continue to weigh on hospital capital spending.
- Geopolitical tensions and international market accessheadwind
Conflicts in the Middle East disrupted retina sales in the second quarter of 2026, and international regulatory approvals remain an important factor 3. The pace of these approvals could significantly influence the retina segment.
- Operational restructuring and cost reductionmixed
The company is moving production to lower-cost contract manufacturers and relocating its headquarters to a cheaper facility, aiming for sustained long-term profitability 3. If these measures succeed they could improve margins, though implementation carries operational risk.
Competitive position
The ophthalmic laser market is competitive, and the company acknowledges operating alongside rivals that may have greater resources 1. Its stated advantage is MicroPulse technology, presented as safer than traditional CW lasers 1.
The relationship with Topcon, which distributes products outside the United States under exclusive rights in certain regions, is both a sales channel and a risk factor 1. Dependence on one strategic partner could affect international revenue if the relationship changes 1.
- Topcon Corporation
Strategic partner and exclusive distributor of IRIDEX products in several regions outside the United States, and also an actor in the same market 1.
- Global ophthalmic laser manufacturers
The analyzed sources do not name individual competitors, but they mention general competitive pressure across the industry 1.
- Glaucoma pharmaceutical and surgical providers
Drug therapies and invasive surgical procedures compete with laser treatments, which the company itself considers less convenient 1.
- Intravitreal injection providers for retina
Injectable treatments are presented by the company as an alternative for retinal disease, with drawbacks in comfort and cost 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- IRIDEX (IRIX) Q2 2026 Earnings Call TranscriptYahoo Finance — News · 25 Aug 2026 · EN
The latest news item in our archive is from 25 Aug 2026; the newest SEC filing is from 02 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report02 Sept 2026Delisting notice · Financial statements and exhibits
- Quarterly report18 Aug 2026
- Current report18 Aug 2026Results of operations · Financial statements and exhibits
- Current report16 Jul 2026Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
- Current report18 Jun 2026Other events
- Quarterly report19 May 2026
- Current report19 May 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Apr 2026
- Annual report02 Apr 2026
- Current report26 Mar 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-03 · SEC / IRIDEX Corporation · 02 Apr 2026
- [2] Form 10-Q, quarter ended 2026-07-04 · SEC / IRIDEX Corporation · 18 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / IRIDEX Corporation · 18 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.