Iridex Financials
This page shows Iridex (IRIX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 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
Scored against emerging companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. 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 scores -2.15, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($15.5M) relative to total liabilities ($23.5M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Iridex passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 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 Altman Z-Score?
Iridex (IRIX) has an Altman Z-Score of -2.15, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Iridex's Piotroski F-Score?
Iridex (IRIX) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 52 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.