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1. Company Snapshot

1.a. Company Description

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology.It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser photocoagulation systems, which are used for the treatment of diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments.The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders.


It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures.The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics.It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally.


The company was formerly known as IRIS Medical Instruments, Inc.and changed its name to IRIDEX Corporation in November 1995.IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.

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1.b. Last Insights on IRIX

Iridex Corporation's recent performance was driven by several positive factors. The company's Q2 2025 earnings call revealed a strong financial performance, with a notable increase in revenue. Additionally, Iridex announced the enrollment of the first patient in an independent landmark investigator-led UK study evaluating MicroPulse technology as an adjunct to anti-VEGF therapy for diabetic macular edema. This development highlights the company's innovative approach to retinal disease treatment. Furthermore, Iridex received formal notification of Nasdaq listing compliance on September 9, 2025, demonstrating its adherence to regulatory requirements.

1.c. Company Highlights

2. IRIDEX Delivers Steady Progress Towards Profitability

IRIDEX reported a revenue growth of 8% year-over-year to $12.5 million in its third-quarter 2025 earnings, driven by the strength in its glaucoma and retina product lines. The company's net loss for the quarter was $1.6 million or $0.09 per share, compared to a net loss of $1.9 million or $0.12 per share in the same period of the prior year. The actual EPS came in at -$0.09, relative to estimates at -$0.06. Operating expenses decreased by 12% to $5.4 million, and adjusted EBITDA improved by $1.3 million to a loss of $131,000.

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth:: Achieved 8% YoY increase to $12.5M, driven by glaucoma and retina product lines.
  • Operating Expenses Reduction:: Cut operating costs by 12% to $5.4M, reflecting 25% reduction over nine months.
  • Adjusted EBITDA Improvement:: Loss narrowed to $131K ($1.3M improvement YoY), nearing profitability.
  • Cost Savings Target:: $165K quarterly savings expected from relocating functions outside California starting Q1 2026.
  • Cash Flow Outlook:: Anticipates positive cash flow in Q4 2025 and full-year 2026 positive adjusted EBITDA.

Operational Highlights

The glaucoma business saw significant growth with Cyclo G6 system sales reaching 30 units, and probe sales increasing to 14,900. The company is implementing cost reduction programs, including relocating general and administrative functions outside of California, expected to generate $165,000 in quarterly savings starting in the first quarter of 2026. IRIDEX is also in negotiations with contract manufacturers to reduce its cost of goods sold, further emphasizing its focus on cost discipline.

Cash Flow and Future Outlook

The company expects to achieve positive cash flows in the fourth quarter of 2025 and positive adjusted EBITDA for the full year. It also anticipates cash flow positive operations in 2026. With cash and cash equivalents totaling $5.6 million at the end of the third quarter, IRIDEX is on track to achieve its goals. Analysts estimate next year's revenue growth at 4.8%, indicating a steady trajectory for the company.

Valuation Metrics

IRIDEX's current valuation metrics indicate a 'P/S Ratio' of 0.33 and an 'EV/EBITDA' of -4.1. The 'P/E Ratio' stands at -2.96, reflecting the company's current loss-making status. With a 'P/B Ratio' of 2.66, the stock appears to be reasonably valued relative to its book value. The 'ROIC (%)' and 'ROE (%)' are -17.58 and -187.33, respectively, highlighting the need for continued improvement in profitability.

3. NewsRoom

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IRIDEX Corporation (IRIX) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -11

Source: seekingalpha.com

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Iridex Reports Third Quarter 2025 Financial Results

Nov -11

Source: globenewswire.com

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Iridex to Report Third Quarter 2025 Financial Results on November 11, 2025

Oct -28

Source: globenewswire.com

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Iridex Corporation Receives Formal Notification of Nasdaq Listing Compliance

Sep -09

Source: globenewswire.com

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IRIDEX Corporation (IRIX) Q2 2025 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

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Iridex Reports Second Quarter 2025 Financial Results

Aug -12

Source: globenewswire.com

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Iridex Announces First Patient Enrolled in an Independent Landmark Investigator-Led UK Study Evaluating MicroPulse® Technology as an Adjunct to anti-VEGF Therapy for Diabetic Macular Edema

Jun -24

Source: globenewswire.com

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IRIDEX Corporation, Inc. (IRIX) Q1 2025 Earnings Call Transcript

May -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.79%)

6. Segments

Retina

Expected Growth: 1.8%

Retina segment growth of 1.8% driven by increasing adoption of IRIDEX's MicroPulse laser therapy for diabetic macular edema, expanding sales of IQ 577 laser systems, and growing demand for minimally invasive glaucoma surgery (MIGS) procedures.

Cyclo G6

Expected Growth: 1.5%

Cyclo G6's 1.5% growth is driven by increasing adoption in ophthalmology, rising demand for minimally invasive glaucoma surgeries, and expanding indications for the treatment of diabetic macular edema. Additionally, IRIDEX's strategic partnerships and investments in clinical trials are expected to further boost sales.

Other

Expected Growth: 2.2%

Iridex Corporation's 2.2% growth is driven by increasing adoption of its proprietary MicroPulse laser technology in ophthalmology, expansion into new markets, and growing demand for minimally invasive glaucoma surgeries. Additionally, strategic partnerships and investments in research and development are expected to contribute to future growth.

7. Detailed Products

Cyclo G6

A laser system designed for the treatment of glaucoma, featuring a compact and portable design

Cyclo G3

A laser system designed for the treatment of glaucoma, featuring a compact and portable design

TX1

A laser system designed for the treatment of glaucoma, featuring a compact and portable design

IQ 532

A laser system designed for the treatment of retinal diseases, featuring a compact and portable design

IQ 577

A laser system designed for the treatment of retinal diseases, featuring a compact and portable design

MicroPulse

A laser system designed for the treatment of retinal diseases, featuring a compact and portable design

8. IRIDEX Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

IRIDEX Corporation's ophthalmic laser systems have some substitutes, but they are not highly effective, giving the company a moderate level of threat from substitutes.

Bargaining Power Of Customers

IRIDEX Corporation's customers, mainly ophthalmologists and medical professionals, have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

IRIDEX Corporation's suppliers of components and materials have some bargaining power, but the company's diversified supply chain and long-term contracts mitigate this risk.

Threat Of New Entrants

The ophthalmic laser system market has high barriers to entry, including regulatory hurdles and significant R&D investments, making it difficult for new entrants to compete with IRIDEX Corporation.

Intensity Of Rivalry

The ophthalmic laser system market is highly competitive, with several established players, leading to a high level of rivalry and competition for IRIDEX Corporation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.38%
Debt Cost 3.95%
Equity Weight 77.62%
Equity Cost 8.06%
WACC 7.14%
Leverage 28.84%

11. Quality Control: IRIDEX Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
iCAD

A-Score: 4.7/10

Value: 7.0

Growth: 3.1

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

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TriSalus Life Sciences

A-Score: 4.4/10

Value: 8.4

Growth: 4.2

Quality: 6.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

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Quanterix

A-Score: 3.3/10

Value: 8.6

Growth: 4.9

Quality: 4.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

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Anika Therapeutics

A-Score: 2.8/10

Value: 8.8

Growth: 1.3

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

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Bioventus

A-Score: 2.8/10

Value: 6.6

Growth: 3.4

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

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Iridex

A-Score: 2.6/10

Value: 8.4

Growth: 1.8

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.94$

Current Price

0.94$

Potential

-0.00%

Expected Cash-Flows