Iridex Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Iridex (Nasdaq: IRIX) reported Q4 and full-year 2025 results with revenue momentum and cost reductions. Q4 revenue was $14.7M (+16% YoY) and full-year revenue was $52.7M (+8% YoY). Operating expenses declined 22% for FY2025 and adjusted EBITDA turned positive at $1.1M.
The company forecasts 2026 revenue of $51M–$53M and expects positive operating cash flow, while noting Middle East disruptions affecting deliveries.
Positive
- Q4 revenue +16% to $14.7M
- Retina product revenue +22% in Q4
- Operating expenses down 22% for full year 2025
- Adjusted EBITDA improved to $1.1M in 2025 (positive)
Negative
- Gross margin fell to 37% in FY2025 from 40% due to tariffs and inventory write-downs
- Company forecasts flat-to-modest 2026 revenue ($51M–$53M) amid Middle East disruptions
- Q4 gross margin declined from 44% to 37% due to higher manufacturing costs
News Market Reaction – IRIX
On the day this news was published, IRIX declined 26.67%, reflecting a significant negative market reaction. Argus tracked a trough of -25.7% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $8M from the company's valuation, bringing the market cap to $23.21M at that time. Trading volume was exceptionally heavy at 7.4x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Sector peers showed mixed moves, with names like TRIB and PTHL up and ADGM, NSYS, VVOS down. Momentum scanner only flagged MYO moving down, while IRIX traded slightly lower, pointing to a stock-specific setup rather than a broad medical device move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| 2026-01-12 | Prelim Q4/FY 2025 | Positive | +28.7% | Preliminary Q4 and 2025 results with revenue growth and positive adjusted EBITDA. |
| 2025-11-11 | Q3 2025 earnings | Positive | -19.8% | Q3 2025 revenue growth, cost cuts, improving EBITDA but weak price reaction. |
| 2025-08-12 | Q2 2025 earnings | Positive | -9.2% | Q2 2025 revenue growth, expense reductions and positive adjusted EBITDA despite margin pressure. |
| 2025-05-13 | Q1 2025 earnings | Positive | -9.1% | Q1 2025 modest revenue growth, lower expenses and positive adjusted EBITDA. |
| 2025-04-14 | Prelim Q1 2025 | Positive | +1.0% | Preliminary Q1 2025 results showing stable revenue and higher Cyclo G6 volumes. |
Earnings and preliminary financial updates have often been positive operationally, yet share reactions skew negative, with several sizable selloffs around past earnings releases.
Over the last year, Iridex has reported steady revenue growth and recurring positive adjusted EBITDA across 2025 quarters, alongside material operating expense reductions. Preliminary and final earnings updates consistently highlighted probe and retina system strength and improving cash flow. Despite this, share reactions to quarterly earnings were frequently negative, while the strong preliminary Q4/2025 update drew the most positive move, framing today’s full results as a continuation rather than a surprise.
Historical Comparison
Across recent earnings-related releases, IRIX has averaged a -1.69% move, with several reports showing operational progress but negative price reactions, framing this full-year 2025 report as part of an established pattern.
Earnings updates through 2025 showed revenue growth, stronger Cyclo G6 and retina sales, reduced operating expenses, and a transition to positive adjusted EBITDA, culminating in full-year 2025 positive adjusted EBITDA and lower net loss reported in this release.
Market Pulse Summary
The stock dropped -26.7% in the session following this news. A negative reaction despite improving fundamentals would fit a pattern where prior earnings updates often coincided with selling pressure, even as revenue rose and expenses declined. This report shows full-year 2025 revenue of $52.7 million, reduced operating expenses of $21.8 million, and adjusted EBITDA of $1.1 million. Weakness could reflect concerns about margin compression, guidance of $51–$53 million, or sensitivity to any operational setbacks.
Key Terms
adjusted EBITDA financial
gross margin financial
operating cash flow financial
AI-generated analysis. Not financial advice.
Strong Q4 and Full Year 2025 Revenue Performance Underpinned by Continued Operational Efficiencies
MOUNTAIN VIEW, Calif., March 26, 2026 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today reported financial results for the fourth quarter and full year ended January 3, 2026.
Fourth Quarter 2025 Financial Highlights
- Generated total revenue of
$14.7 million , representing growth of16% year-over-year compared to$12.7 million in the prior year quarter - Cyclo G6® product family revenue was
$3.8 million , representing growth of15% year-over-year compared to$3.3 million in the prior year quarter- Sold 15,900 Cyclo G6 probes compared to 13,300 in the prior year quarter
- Sold 44 Cyclo G6 Glaucoma Laser Systems compared to 47 in the prior year quarter
- Retina product revenue was
$8.9 million , representing growth of22% year-over-year - Reduced operating expenses by
10% compared to the prior year period - Cash and cash equivalents as of January 3, 2026 were
$6.0 million , an increase of$0.4 million in the quarter.
Full Year 2025 Results
- Generated total revenue of
$52.7 million , compared to$48.7 million in 2024, representing growth of8% - Cyclo G6® Glaucoma product family revenue of
$13.8 million , compared to$12.7 million in 2024- Sold 57,800 Cyclo G6® probes, compared to 55,400 in 2024
- Sold 133 Cyclo G6® Glaucoma Laser Systems compared to 125 in 2024
- Retina product revenue was
$30.3 million , compared to$27.8 million in 2024 - Reduced operating expenses by
22% compared to the prior year
"2025 was a transformational year for Iridex, we grew revenue, reduced operating expenses, and achieved positive adjusted EBITDA for the first time in recent company history,” said Patrick Mercer, President and CEO of Iridex. “I am proud to announce that our fourth quarter was our strongest of the year, with momentum across both our glaucoma and retina businesses driving cash flow positive operations. As we enter 2026, we have a growing installed base of systems, manufacturing efficiency initiatives underway and leaner cost structure, that position us to build on our 2025 progress and drive sustainable profitability."
Fourth Quarter 2025 Financial Results
Revenue for the three months ended January 3, 2026 was
Gross profit in the fourth quarter of 2025 was
Operating expenses were
Net loss was
Non-GAAP adjusted EBITDA for Q4 2025 was
Cash and cash equivalents as of January 3, 2026 were
Full Year 2025 Financial Results
Revenue for the year ended January 3, 2026 was
Gross profit for the full year 2025 was
Operating expenses for 2025 decreased
Net loss for 2025 improved to
Total adjusted EBITDA for 2025 was
2026 Financial Outlook
The Company currently forecasts 2026 revenue of between
Webcast and Conference Call Information
Iridex’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by accessing the live and recorded webcast on the “Event Calendar” page of the “Investors” section of the Company’s website at www.iridex.com or by dialing +1-646-307-1963 from the US or +1-800-715-9871 internationally and providing Conference ID: 3693990.
About Iridex Corporation
Iridex Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated laser treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. Iridex’s current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. Iridex products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the Iridex website at www.iridex.com.
MicroPulse® is a registered trademark of Iridex Corporation, Inc. in the United States, Europe and other jurisdictions. © 2026 Iridex Corporation. All rights reserved.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning financial forecasts, expectations for profitability, positive cash flow and financial and operating results in fiscal year 2026. The Company can provide no assurance that it will achieve or sustain profitability. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks further described in the “Risk Factors” section of Iridex’s most recent Annual Report on Form 10-K, as well as in Iridex’s other reports filed with or furnished to the United States Securities and Exchange Commission (“SEC”), available at www.sec.gov. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management evaluates and makes operating decisions using various performance measures. In addition to Iridex’s GAAP results, we consider Adjusted EBITDA. This non-GAAP result should not be considered as an alternative to net income, net cash provided by operating activities, or any other performance measure derived in accordance with GAAP. We present this non-GAAP result because management considers it to be an important supplemental measure of Iridex’s performance and refers to such measures when analyzing Iridex’s strategy and operations. In calculating the above non-GAAP result: Adjusted EBITDA is defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as excluding certain other non-GAAP adjustments. Adjusted EBITDA exclude from their GAAP equivalents items listed below;
- Share-based compensation expense. We excluded from our non-GAAP results the expense related to equity-based compensation plans as it represents expenses that do not require cash settlement from Iridex.
- Severance-related expenses. We excluded from our non-GAAP results the expenses related to restructuring events, partially offset by reversals of previously recognized severance expenses in subsequent periods. These expenses are unrelated to our ongoing operations, vary in size and frequency and are subject to significant fluctuations from period to period due to varying levels of restructuring activity. We believe that excluding these expenses provides a more meaningful comparison of the financial results to our historical operations and to the financial results of peer companies.
- Nasdaq listing requirements compliance plan expenses. We excluded from our non-GAAP results the expenses related to plans for regaining compliance with the Nasdaq listing requirements. These expenses are unrelated to our ongoing operations, and we believe that excluding these expenses provides a more meaningful comparison of the financial results to our historical operations and to the financial results of peer companies.
- Loss on write-down of inventory. We excluded from our non-GAAP results the expenses related to the write down of inventory related to the transfer of production of several products to 3rd party contract manufacturers. In these types of transactions, not all applicable inventories are acquired by the contract manufacturers and thus, such inventory becomes excess and obsolete. These expenses are unrelated to our ongoing operations, and we believe that excluding these expenses provides a more meaningful comparison of the financial results to our historical operations and to the financial results of peer companies.
Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational or non-cash expenses involving stock compensation plans or other items.
A detailed reconciliation between Iridex’s non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release as well as in Iridex’s other reports filed with or furnished to the SEC.
Investor Relations Contact
Philip Taylor
Gilmartin Group
investors@iridex.com
| IRIDEX Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | |||||||||||||
| Total revenues | $ | 14,724 | $ | 12,696 | $ | 52,675 | $ | 48,669 | ||||||||
| Cost of revenues | 9,247 | 7,110 | 33,448 | 29,167 | ||||||||||||
| Gross profit | 5,477 | 5,586 | 19,227 | 19,502 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 949 | 1,113 | 3,668 | 5,449 | ||||||||||||
| Sales and marketing | 2,751 | 2,700 | 10,396 | 12,579 | ||||||||||||
| General and administrative | 1,792 | 2,275 | 7,734 | 9,776 | ||||||||||||
| Total operating expenses | 5,492 | 6,088 | 21,798 | 27,804 | ||||||||||||
| Loss from operations | (15 | ) | (502 | ) | (2,571 | ) | (8,302 | ) | ||||||||
| Other income (expense), net | (149 | ) | (338 | ) | (1,809 | ) | (540 | ) | ||||||||
| Loss from operations before provision for income taxes | (164 | ) | (840 | ) | (4,380 | ) | (8,842 | ) | ||||||||
| Provision for income taxes | 20 | (6 | ) | 57 | 68 | |||||||||||
| Net loss | $ | (184 | ) | $ | (834 | ) | $ | (4,437 | ) | $ | (8,910 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.26 | ) | $ | (0.54 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.26 | ) | $ | (0.54 | ) | ||||
| Weighted average shares used in computing net loss per common share: | ||||||||||||||||
| Basic | 17,187 | 16,636 | 16,934 | 16,439 | ||||||||||||
| Diluted | 17,187 | 16,636 | 16,934 | 16,439 | ||||||||||||
| IRIDEX Corporation Condensed Consolidated Balance Sheets (In thousands) | ||||||||
| January 3, 2026 | December 28, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,028 | $ | 2,387 | ||||
| Accounts receivable, net | 9,545 | 8,394 | ||||||
| Inventories | 7,877 | 10,817 | ||||||
| Prepaid expenses and other current assets | 1,802 | 1,964 | ||||||
| Total current assets | 25,252 | 23,562 | ||||||
| Property and equipment, net | 58 | 115 | ||||||
| Intangible assets, net | 984 | 1,307 | ||||||
| Goodwill | 965 | 965 | ||||||
| Operating lease right-of-use assets, net | 768 | 1,792 | ||||||
| Other long-term assets | 1,124 | 1,394 | ||||||
| Total assets | $ | 29,151 | $ | 29,135 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,502 | $ | 7,594 | ||||
| Accrued compensation | 2,340 | 1,672 | ||||||
| Accrued expenses | 608 | 477 | ||||||
| Convertible note payable, current | - | 1,734 | ||||||
| Other current liabilities | 1,899 | 1,812 | ||||||
| Deferred revenue, current | 2,160 | 2,176 | ||||||
| Operating lease liabilities, current | 699 | 1,094 | ||||||
| Total current liabilities | 13,208 | 16,559 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue | 6,801 | 8,350 | ||||||
| Operating lease liabilities | 98 | 811 | ||||||
| Convertible note payable | 3,735 | 1,004 | ||||||
| Other long-term liabilities | 387 | 314 | ||||||
| Total liabilities | 24,229 | 27,038 | ||||||
| Stockholders’ equity: | ||||||||
| Series B convertible preferred stock | 6,000 | - | ||||||
| Common stock | 174 | 174 | ||||||
| Additional paid-in capital | 91,208 | 89,881 | ||||||
| Accumulated other comprehensive income (loss) | (14 | ) | 51 | |||||
| Accumulated deficit | (92,446 | ) | (88,009 | ) | ||||
| Total stockholders’ equity | 4,922 | 2,097 | ||||||
| Total liabilities and stockholders’ equity | $ | 29,151 | $ | 29,135 | ||||
| IRIDEX Corporation Reconciliation of GAAP Net Loss to Adjusted EBITDA (In thousands) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | |||||||||||||
| Reconciliation of GAAP net loss to Adjusted EBITDA(a) | ||||||||||||||||
| GAAP net loss | $ | (184 | ) | $ | (834 | ) | $ | (4,437 | ) | $ | (8,910 | ) | ||||
| Interest (income) expense, net | (7 | ) | 269 | (38 | ) | 256 | ||||||||||
| Other expense, net | 156 | 68 | 1,847 | 283 | ||||||||||||
| Provision (benefit from) for income taxes | 20 | (6 | ) | 57 | 68 | |||||||||||
| Nasdaq listing compliance | — | — | 152 | — | ||||||||||||
| Depreciation and amortization | 422 | 377 | 1,547 | 1,424 | ||||||||||||
| Inventory write-down | — | — | 823 | — | ||||||||||||
| Stock-based compensation | 213 | 316 | 775 | 1,243 | ||||||||||||
| Severance related expense (for head count reduction) | 197 | 421 | 396 | 729 | ||||||||||||
| Strategic process legal expenses | — | — | — | 633 | ||||||||||||
| Adjusted EBITDA | 817 | 611 | 1,122 | (4,274 | ) | |||||||||||
(a)Defined as earnings before interest income and expense, taxes, depreciation, amortization, and share- based compensation, as well as certain non-GAAP adjustments.
FAQ
What were Iridex (IRIX) Q4 2025 revenues and growth?
How did Iridex perform for full-year 2025 and adjusted EBITDA?
What margin and cost trends did Iridex report for 2025?
What guidance did Iridex give for 2026 revenue and cash flow?
How did Iridex change operating expenses in 2025 and why does it matter for shareholders?
