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IRIX Stock Up 4% As Q1 Loss Narrows Y/Y on Glaucoma Product Growth
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Shares of IRIDEX Corporation (IRIX - Free Report) have gained 3.6% since the company reported earnings for the quarter ended April 4, 2026, outperforming the S&P 500 index’s 0.6% increase over the same period. However, over the past month, the stock has declined 5.1%, lagging behind the S&P 500’s 4.5% gain.
IRIDEX incurred a first-quarter 2026 net loss of 3 cents per share, narrower than a loss of 10 cents per share a year earlier.
Revenues of $11.8 million indicated a 1% decline from $11.9 million in the prior-year quarter, as weaker retina system sales offset growth in glaucoma-related products. Net loss narrowed significantly to $0.5 million from a loss of $1.7 million a year earlier. Gross profit declined to $4.7 million from $5.1 million, while gross margin contracted to 40% from 43%. Operating expenses fell 4% year over year to $5.1 million.
IRIDEX Corporation Price, Consensus and EPS Surprise
The company’s Cyclo G6 glaucoma franchise remained a bright spot during the quarter. Revenue from the Cyclo G6 product family increased 14% year over year to $3.6 million from $3.2 million. Probe sales rose to 15,500 units from 13,900 in the prior-year quarter, while Cyclo G6 laser system placements remained flat at 24 units. Management attributed the growth to continued adoption of MicroPulse technology and increased physician utilization in the U.S. market.
Management highlighted increased use of MedScout targeting tools and growing acceptance of MicroPulse procedures for mild-to-moderate glaucoma patients. Executives also pointed to favorable Medicare Local Coverage Determinations introduced last year as supporting broader adoption trends. Average selling prices for both probes and systems increased following price hikes implemented in 2025.
By contrast, retina product revenue fell to $5.8 million from $6.6 million in the prior-year period. The company cited international supply-chain disruptions, delayed regulatory approvals and weaker international sell-through as the primary reasons for the decline. Management noted that U.S. retina sales remained strong, particularly for the company’s PASCAL platform.
Margin Pressure and Cost Reduction Efforts
Gross margin declined due to higher manufacturing costs and tariff-related product cost increases as IRIDEX continues transitioning production to lower-cost third-party contract manufacturers. Despite the year-over-year decline, management said gross margin improved sequentially from the fourth quarter of 2025 and expects normalization in the “high 30s to low 40s” range going forward.
Operating expenses decreased primarily because of lower consulting costs, reduced legal expenses tied to prior deal activity and savings generated from transferring certain general and administrative functions out of California. Management said approximately 70% of the transfer initiative had been completed and generated roughly $0.1 million in quarterly savings during the first quarter.
Adjusted EBITDA was $0.3 million compared with $0.4 million in the prior-year quarter. Cash and cash equivalents totaled $4.6 million at the quarter’s end, down from $6 million at the beginning of the year, reflecting seasonal first-quarter cash usage associated with annual compensation payments and accrued expenses.
Management Commentary and Market Conditions
Chief Executive Officer Patrick Mercer said first-quarter performance was in line with expectations and supports the company’s goal of achieving positive cash flow for full-year 2026. He acknowledged ongoing geopolitical and supply-chain challenges, particularly in Asia and the Middle East, but said conditions are improving.
Management also disclosed that approximately $0.8 million of backlog, largely tied to international retina business, remained unfulfilled at quarter-end because of regulatory delays and supply issues. Executives expect most of this backlog to convert into revenue during the second quarter.
2026 Outlook Reaffirmed
IRIDEX reaffirmed its 2026 revenue guidance range of $51 million to $53 million. The company said the forecast incorporates expected disruptions stemming from conflict in the Middle East, which continues to affect delivery timelines. Management also reiterated expectations for adjusted operating expenses of $19 million to $19.5 million and positive operating cash flow for the full year.
Other Developments
During the quarter, IRIDEX announced a partnership with EyeProGPO that expands access to retina products through a network of more than 1,800 ophthalmology practices and surgery centers. Under the agreement, EyeProGPO members receive preferred pricing on PASCAL laser platforms and OcuLight TX systems. Management described the arrangement as a strategic commercial milestone expected to support retina system placements in the coming quarters.
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IRIX Stock Up 4% As Q1 Loss Narrows Y/Y on Glaucoma Product Growth
Shares of IRIDEX Corporation (IRIX - Free Report) have gained 3.6% since the company reported earnings for the quarter ended April 4, 2026, outperforming the S&P 500 index’s 0.6% increase over the same period. However, over the past month, the stock has declined 5.1%, lagging behind the S&P 500’s 4.5% gain.
IRIDEX incurred a first-quarter 2026 net loss of 3 cents per share, narrower than a loss of 10 cents per share a year earlier.
Revenues of $11.8 million indicated a 1% decline from $11.9 million in the prior-year quarter, as weaker retina system sales offset growth in glaucoma-related products. Net loss narrowed significantly to $0.5 million from a loss of $1.7 million a year earlier. Gross profit declined to $4.7 million from $5.1 million, while gross margin contracted to 40% from 43%. Operating expenses fell 4% year over year to $5.1 million.
IRIDEX Corporation Price, Consensus and EPS Surprise
IRIDEX Corporation price-consensus-eps-surprise-chart | IRIDEX Corporation Quote
Glaucoma Business Offsets Retina Weakness
The company’s Cyclo G6 glaucoma franchise remained a bright spot during the quarter. Revenue from the Cyclo G6 product family increased 14% year over year to $3.6 million from $3.2 million. Probe sales rose to 15,500 units from 13,900 in the prior-year quarter, while Cyclo G6 laser system placements remained flat at 24 units. Management attributed the growth to continued adoption of MicroPulse technology and increased physician utilization in the U.S. market.
Management highlighted increased use of MedScout targeting tools and growing acceptance of MicroPulse procedures for mild-to-moderate glaucoma patients. Executives also pointed to favorable Medicare Local Coverage Determinations introduced last year as supporting broader adoption trends. Average selling prices for both probes and systems increased following price hikes implemented in 2025.
By contrast, retina product revenue fell to $5.8 million from $6.6 million in the prior-year period. The company cited international supply-chain disruptions, delayed regulatory approvals and weaker international sell-through as the primary reasons for the decline. Management noted that U.S. retina sales remained strong, particularly for the company’s PASCAL platform.
Margin Pressure and Cost Reduction Efforts
Gross margin declined due to higher manufacturing costs and tariff-related product cost increases as IRIDEX continues transitioning production to lower-cost third-party contract manufacturers. Despite the year-over-year decline, management said gross margin improved sequentially from the fourth quarter of 2025 and expects normalization in the “high 30s to low 40s” range going forward.
Operating expenses decreased primarily because of lower consulting costs, reduced legal expenses tied to prior deal activity and savings generated from transferring certain general and administrative functions out of California. Management said approximately 70% of the transfer initiative had been completed and generated roughly $0.1 million in quarterly savings during the first quarter.
Adjusted EBITDA was $0.3 million compared with $0.4 million in the prior-year quarter. Cash and cash equivalents totaled $4.6 million at the quarter’s end, down from $6 million at the beginning of the year, reflecting seasonal first-quarter cash usage associated with annual compensation payments and accrued expenses.
Management Commentary and Market Conditions
Chief Executive Officer Patrick Mercer said first-quarter performance was in line with expectations and supports the company’s goal of achieving positive cash flow for full-year 2026. He acknowledged ongoing geopolitical and supply-chain challenges, particularly in Asia and the Middle East, but said conditions are improving.
Management also disclosed that approximately $0.8 million of backlog, largely tied to international retina business, remained unfulfilled at quarter-end because of regulatory delays and supply issues. Executives expect most of this backlog to convert into revenue during the second quarter.
2026 Outlook Reaffirmed
IRIDEX reaffirmed its 2026 revenue guidance range of $51 million to $53 million. The company said the forecast incorporates expected disruptions stemming from conflict in the Middle East, which continues to affect delivery timelines. Management also reiterated expectations for adjusted operating expenses of $19 million to $19.5 million and positive operating cash flow for the full year.
Other Developments
During the quarter, IRIDEX announced a partnership with EyeProGPO that expands access to retina products through a network of more than 1,800 ophthalmology practices and surgery centers. Under the agreement, EyeProGPO members receive preferred pricing on PASCAL laser platforms and OcuLight TX systems. Management described the arrangement as a strategic commercial milestone expected to support retina system placements in the coming quarters.