Iridex Financials
This page shows Iridex (IRIX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Expense cuts, not richer unit economics, drove IRIDEX's recovery as operating losses narrowed despite a gross-margin decline.
The least obvious shift is that profitability improved while product economics weakened over the last two valid annual periods: gross margin fell to36.5% , yet operating margin improved to-4.9% . That combination points to a business that got closer to break-even mainly by cutting SG&A and R&D, not by making each sales dollar more profitable, which matters because cost-led improvement is structurally different from a better gross-margin model.
Cash burn also became much less severe, but the cash balance recovery was externally financed: free cash flow was still
Working capital looks less inventory-heavy, with inventory down to
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Iridex's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Iridex has an operating margin of -4.9%, meaning the company retains $-5 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -17.1% the prior year.
Iridex's revenue grew 8.2% year-over-year to $52.7M, a solid pace of expansion. This earns a growth score of 35/100.
Iridex has elevated debt relative to equity (D/E of 4.98), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 1/100, reflecting increased financial risk.
Iridex's current ratio of 1.92 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.
While Iridex generated -$2.1M in operating cash flow, capex of $143K consumed most of it, leaving -$2.3M in free cash flow. This results in a low score of 2/100, reflecting heavy capital investment rather than weak cash generation.
Iridex generates a -93.8% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -424.9% the prior year.
Iridex passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Iridex generates $0.48 in operating cash flow (-$2.1M OCF vs -$4.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Iridex earns $-44.3 in operating income for every $1 of interest expense (-$2.6M vs $58K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Iridex generated $52.7M in revenue in fiscal year 2026. This represents an increase of 8.2% from the prior year.
Iridex's EBITDA was -$2.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 73.5% from the prior year.
Iridex reported -$4.4M in net income in fiscal year 2026. This represents an increase of 50.2% from the prior year.
Iridex earned $-0.26 per diluted share (EPS) in fiscal year 2026. This represents an increase of 51.9% from the prior year.
Cash & Balance Sheet
Iridex generated -$2.3M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 69.1% from the prior year.
Iridex held $4.6M in cash against $0 in long-term debt as of fiscal year 2026.
Iridex had 17M shares outstanding in fiscal year 2026. This represents an increase of 4.0% from the prior year.
Margins & Returns
Iridex's gross margin was 36.5% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 3.6 percentage points from the prior year.
Iridex's operating margin was -4.9% in fiscal year 2026, reflecting core business profitability. This is up 12.2 percentage points from the prior year.
Iridex's net profit margin was -8.4% in fiscal year 2026, showing the share of revenue converted to profit. This is up 9.9 percentage points from the prior year.
Iridex's ROE was -93.8% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 331.1 percentage points from the prior year.
Capital Allocation
Iridex invested $3.7M in research and development in fiscal year 2026. This represents a decrease of 32.7% from the prior year.
Iridex invested $143K in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 1000.0% from the prior year.
IRIX Income Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $11.8M-19.9% | $14.7M+17.9% | $12.5M-8.0% | $13.6M+14.1% | $11.9M-6.3% | $12.7M+9.6% | $11.6M-8.3% | $12.6M |
| Cost of Revenue | $7.1M-23.7% | $9.2M+9.2% | $8.5M-4.7% | $8.9M+29.9% | $6.8M-3.8% | $7.1M-2.0% | $7.3M-3.2% | $7.5M |
| Gross Profit | $4.7M-13.4% | $5.5M+36.5% | $4.0M-14.3% | $4.7M-7.4% | $5.1M-9.5% | $5.6M+29.2% | $4.3M-15.8% | $5.1M |
| R&D Expenses | $905K-4.6% | $949K-2.4% | $972K+11.6% | $871K-0.6% | $876K-21.3% | $1.1M-14.3% | $1.3M-13.5% | $1.5M |
| SG&A Expenses | $1.6M-9.4% | $1.8M-0.2% | $1.8M-19.0% | $2.2M+14.8% | $1.9M-15.1% | $2.3M+1.2% | $2.2M-19.3% | $2.8M |
| Operating Income | -$324K-2060.0% | -$15K+98.9% | -$1.4M-50.1% | -$940K-358.5% | -$205K+59.1% | -$501K+73.2% | -$1.9M+29.1% | -$2.6M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | $58K | N/A |
| Income Tax | $58K+190.0% | $20K+400.0% | $4K-81.0% | $21K+75.0% | $12K+300.0% | -$6K-135.3% | $17K-10.5% | $19K |
| Net Income | -$524K-184.8% | -$184K+88.3% | -$1.6M-58.2% | -$994K+41.0% | -$1.7M-102.2% | -$834K+56.9% | -$1.9M+27.8% | -$2.7M |
| EPS (Diluted) | $-0.03 | N/A | $-0.09-50.0% | $-0.06+40.0% | $-0.10 | N/A | $-0.12+25.0% | $-0.16 |
IRIX Balance Sheet
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $28.3M-3.0% | $29.2M+2.8% | $28.4M-10.2% | $31.6M-7.7% | $34.2M+17.5% | $29.1M-3.4% | $30.2M-3.5% | $31.2M |
| Current Assets | $24.6M-2.6% | $25.3M+4.9% | $24.1M-10.4% | $26.9M-7.8% | $29.1M+23.6% | $23.6M-3.2% | $24.3M-2.7% | $25.0M |
| Cash & Equivalents | $4.6M-23.8% | $6.0M+8.2% | $5.6M-17.8% | $6.8M-6.4% | $7.2M+203.5% | $2.4M-38.2% | $3.9M-6.1% | $4.1M |
| Inventory | $9.3M+18.4% | $7.9M+7.9% | $7.3M-13.4% | $8.4M-16.8% | $10.1M-6.2% | $10.8M-1.1% | $10.9M-1.6% | $11.1M |
| Accounts Receivable | $6.8M-10.1% | $7.6M+6.7% | $7.1M-0.1% | $7.1M+6.8% | $6.7M+12.3% | $6.0M-0.1% | $6.0M-5.0% | $6.3M |
| Goodwill | $965K0.0% | $965K0.0% | $965K0.0% | $965K0.0% | $965K0.0% | $965K0.0% | $965K0.0% | $965K |
| Total Liabilities | $23.5M-2.8% | $24.2M+2.4% | $23.7M-7.3% | $25.5M-6.8% | $27.4M+1.3% | $27.0M-1.8% | $27.5M+2.0% | $27.0M |
| Current Liabilities | $12.8M-2.9% | $13.2M+6.6% | $12.4M-9.6% | $13.7M-8.3% | $14.9M-9.7% | $16.6M+4.5% | $15.9M-1.8% | $16.1M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | $1.0M-28.6% | $1.4M | N/A |
| Total Equity | $4.7M-3.9% | $4.9M+5.1% | $4.7M-22.7% | $6.1M+611.2% | $852K-59.4% | $2.1M-20.1% | $2.6M-38.2% | $4.2M |
| Retained Earnings | -$93.0M-0.6% | -$92.4M-0.2% | -$92.3M-1.7% | -$90.7M-1.1% | -$89.7M-1.9% | -$88.0M-1.0% | -$87.1M-2.3% | -$85.2M |
IRIX Cash Flow Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.3M-326.7% | $589K+150.9% | -$1.2M-191.7% | -$397K+65.4% | -$1.1M+7.2% | -$1.2M+59.7% | -$3.1M-131.7% | -$1.3M |
| Capital Expenditures | $101K-4.7% | $106K+715.4% | $13K0.0% | $13K+18.2% | $11K+22.2% | $9K+800.0% | $1K | $0 |
| Free Cash Flow | -$1.4M-397.3% | $483K+141.2% | -$1.2M-185.6% | -$410K+64.7% | -$1.2M+7.0% | -$1.2M+59.4% | -$3.1M-131.8% | -$1.3M |
| Investing Cash Flow | -$101K+4.7% | -$106K-715.4% | -$13K0.0% | -$13K-18.2% | -$11K-22.2% | -$9K-800.0% | -$1K | $0 |
| Financing Cash Flow | -$1K+96.3% | -$27K+20.6% | -$34K-142.9% | -$14K-100.2% | $6.0M+2870.2% | -$218K-107.7% | $2.8M | $0 |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
IRIX Financial Ratios
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.2%+3.0pp | 37.2%+5.0pp | 32.1%-2.3pp | 34.5%-8.0pp | 42.5%-1.5pp | 44.0%+6.7pp | 37.3%-3.3pp | 40.6% |
| Operating Margin | -2.8%-2.6pp | -0.1%+11.2pp | -11.3%-4.4pp | -6.9%-5.2pp | -1.7%+2.2pp | -4.0%+12.2pp | -16.2%+4.7pp | -20.9% |
| Net Margin | -4.4%-3.2pp | -1.3%+11.3pp | -12.6%-5.3pp | -7.3%+6.8pp | -14.2%-7.6pp | -6.6%+10.1pp | -16.7%+4.5pp | -21.2% |
| Return on Equity | -11.1%-7.3pp | -3.7%+29.9pp | -33.6%-17.2pp | -16.4%+181.5pp | -197.9%-158.1pp | -39.8%+33.9pp | -73.7%-10.6pp | -63.1% |
| Return on Assets | -1.8%-1.2pp | -0.6%+4.9pp | -5.5%-2.4pp | -3.1%+1.8pp | -4.9%-2.1pp | -2.9%+3.6pp | -6.4%+2.2pp | -8.6% |
| Current Ratio | 1.920.0 | 1.91-0.0 | 1.94-0.0 | 1.96+0.0 | 1.95+0.5 | 1.42-0.1 | 1.54-0.0 | 1.55 |
| Debt-to-Equity | 4.98+0.1 | 4.92-0.1 | 5.06+0.8 | 4.21-27.9 | 32.14+31.7 | 0.48-0.1 | 0.53-5.8 | 6.36 |
| FCF Margin | -12.2%-15.4pp | 3.3%+12.7pp | -9.4%-6.4pp | -3.0%+6.7pp | -9.8%+0.1pp | -9.8%+16.7pp | -26.5%-16.0pp | -10.5% |
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Frequently Asked Questions
What is Iridex's annual revenue?
Iridex (IRIX) reported $52.7M in total revenue for fiscal year 2026. This represents a 8.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Iridex's revenue growing?
Iridex (IRIX) revenue grew by 8.2% year-over-year, from $48.7M to $52.7M in fiscal year 2026.
Is Iridex profitable?
No, Iridex (IRIX) reported a net income of -$4.4M in fiscal year 2026, with a net profit margin of -8.4%.
What is Iridex's EBITDA?
Iridex (IRIX) had EBITDA of -$2.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Iridex's gross margin?
Iridex (IRIX) had a gross margin of 36.5% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Iridex's operating margin?
Iridex (IRIX) had an operating margin of -4.9% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Iridex's net profit margin?
Iridex (IRIX) had a net profit margin of -8.4% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Iridex's return on equity (ROE)?
Iridex (IRIX) has a return on equity of -93.8% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Iridex's free cash flow?
Iridex (IRIX) generated -$2.3M in free cash flow during fiscal year 2026. This represents a 69.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Iridex's operating cash flow?
Iridex (IRIX) generated -$2.1M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Iridex's total assets?
Iridex (IRIX) had $28.3M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Iridex's capital expenditures?
Iridex (IRIX) invested $143K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Iridex spend on research and development?
Iridex (IRIX) invested $3.7M in research and development during fiscal year 2026.
What is Iridex's current ratio?
Iridex (IRIX) had a current ratio of 1.92 as of fiscal year 2026, which is generally considered healthy.
What is Iridex's debt-to-equity ratio?
Iridex (IRIX) had a debt-to-equity ratio of 4.98 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Iridex's return on assets (ROA)?
Iridex (IRIX) had a return on assets of -15.7% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Iridex's cash runway?
Based on fiscal year 2026 data, Iridex (IRIX) had $4.6M in cash against an annual operating cash burn of $2.1M. This gives an estimated cash runway of approximately 26 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Iridex's Piotroski F-Score?
Iridex (IRIX) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Iridex's earnings high quality?
Iridex (IRIX) has an earnings quality ratio of 0.48x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Iridex cover its interest payments?
Iridex (IRIX) has an interest coverage ratio of -44.3x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Iridex?
Iridex (IRIX) scores 12 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.