IRIDEX Corp. (IRIX) reported a second-quarter net loss of $1.3 million, or 7 cents per share, widening from a $1.0 million loss, or 6 cents per share, in the same period last year. Revenue declined 7% to $12.6 million, missing Wall Street’s $14.13 million estimate by $1.53 million.
Gross profit totaled $4.3 million, with a gross margin of 34.2%, while operating expenses fell 5% to $5.3 million. Adjusted EBITDA turned negative at a $400,000 loss, compared with a $21,000 profit a year earlier. Cash and cash equivalents increased by $100,000 to $4.7 million during the quarter.
The company’s glaucoma business, driven by the Cyclo G6 platform, grew 19% year-over-year to $3.9 million, with probe volume up 35% to 17,700 units. System placements, however, declined to 18 from 35 in the prior-year period. Retina revenue fell 19% to $6.5 million amid operational challenges and market dynamics.
Chief Executive Officer Patrick Mercer highlighted the company’s positive operating cash flow as an "important inflection point," citing two years of cost restructuring and improved working capital. He noted steady adoption of the Cyclo G6 platform across regions but acknowledged difficulties in the retina segment.
Chief Financial Officer Romeo Dizon described the cash flow improvement as a "meaningful marker" of financial discipline, adding that safety stock buildup for distributors preceded a headquarters relocation. IRIDEX reaffirmed its full-year 2026 revenue guidance of $51 million to $53 million, excluding Middle East revenue due to regional conflict, implying 1% to 5% pro forma growth over 2025.
Shares rose 5.69% to $0.93 in regular trading but fell 4.31% to $0.89 in after-hours activity. The stock has traded between $0.804 and $1.648 over the past 52 weeks.
