IRIDEX Corporation

What they do

IRIDEX develops and commercializes laser-based systems and delivery devices used by ophthalmologists to treat sight-threatening eye conditions, including glaucoma and retinal diseases. Products consist of laser consoles, delivery devices and consumable probes, with proprietary MicroPulse and Endpoint Management technologies offered as optional modes alongside standard continuous-wave treatment. Consoles include the Cyclo G6 glaucoma system, IQ 532/IQ 577 and PASCAL medical-retina systems, and OcuLight TX/SLx surgical-retina systems. Consumables include glaucoma probes (MicroPulse P3, G-Probe, G-Probe Illuminate) and surgical retina EndoProbe handpieces, sold direct in the U.S. and Germany and largely through Topcon and other distributors internationally.

Revenue drivers

• Cyclo G6 glaucoma product family — Consoles plus single-use probes; Q2 2026 revenue was $3.9M, up 19% year over year, on 17,700 probes sold versus 13,100 a year earlier, though only 18 G6 laser systems were sold versus 35.
• Retina product line — Medical and surgical retina consoles and probes; Q2 2026 revenue was $6.5M, down from $8.0M a year earlier, the larger of the two product categories and the source of the quarterly decline.
• Other revenue — Service, repair, extended service contracts and other instrumentation; Q2 2026 was $2.2M, essentially flat versus $2.2M in the prior-year period.

Recent performance

Second quarter 2026 revenue was $12.6M, down 7% from $13.6M in the prior-year period, driven by lower retina sales. Cyclo G6 revenue rose 19% to $3.9M on roughly 35% higher probe volume, while retina fell to $6.5M from $8.0M. Gross margin was 34.2% versus 34.5%, and operating expenses fell 5% to $5.3M. Net loss was $1.3M, or $0.07 per share, compared with a $1.0M net loss, or $0.06 per share, a year earlier, and non-GAAP adjusted EBITDA was a $0.4M loss versus $21 thousand positive. Cash and equivalents were $4.7M at July 4, 2026.

Strategy

Management is restructuring operations by transferring production to lower-cost contract manufacturers and relocating headquarters to a lower-cost facility. It is also shifting administrative functions, which contributed to the 5% year-over-year reduction in operating expenses. The company expects to spend more working capital on inventory ahead of the headquarters and production move, to secure international supply chains and protect distributor revenue. It is pursuing international regulatory approvals, particularly for the PASCAL retina platform, to improve retina performance. Management reaffirmed full-year 2026 revenue guidance of $51M to $53M and adjusted operating expenses of $19M to $19.5M.

Risks

• Dependence on Topcon distribution — The company relies on Topcon as its strategic partner and main international distributor, and the 10-K lists the success of that relationship as a risk.
• Retina revenue concentration and external headwinds — Retina is the largest product category and fell to $6.5M in Q2 2026 from $8.0M due to Middle East disruptions, reduced sell-through in China, and regulatory approval timing.
• Thin liquidity and recurring losses — Cash and equivalents were $4.7M against total liabilities of $23.6M and shareholder equity of $3.6M at July 4, 2026, with a $1.3M quarterly net loss.
• Nasdaq listing-rule failure — The company disclosed a delisting notice or listing-rule failure in a September 2, 2026 8-K.

Outlook

Management reaffirmed full-year 2026 revenue guidance of $51M to $53M and expects adjusted operating expenses of $19M to $19.5M. The company plans to use more working capital for inventory ahead of its headquarters and production relocation later in the year, to protect distributor revenue against possible supply interruptions tied to international regulatory approvals. It expects international approvals, particularly for the PASCAL platform, to improve retina performance.