Iridex Corporation on Tuesday reported a second-quarter loss that exceeded analyst expectations as revenue fell short of projections, reflecting weaker-than-anticipated sales in its retina business.
The Mountain View, California-based medical device company posted a net loss of $0.07 per share, compared with a projected loss of $0.02 per share, according to market estimates. Revenue totaled $12.6 million, down 7% from $13.6 million in the same period last year and below the $14.13 million consensus estimate.
The company’s retina product line generated $6.5 million in sales, a decline from $8.0 million in the prior-year quarter. Management attributed the drop to disruptions in the Middle East and reduced sell-through in China. In contrast, Iridex’s Cyclo G6 glaucoma product family revenue rose 19% year-over-year to $3.9 million, supported by a 35% increase in probe volume to 17,700 units.
Despite the revenue shortfall, Iridex achieved positive operating cash flow for the quarter. Gross margin remained stable at 34.2%, while operating expenses decreased 5% to $5.3 million, primarily due to lower general and administrative costs. Adjusted EBITDA swung to a loss of $0.4 million from a $21,000 gain in the year-ago period.
Shares of Iridex were down 0.2% in after-hours trading following the release.
For the full fiscal year 2026, Iridex reaffirmed its revenue guidance of $51 million to $53 million, with adjusted operating expenses expected between $19 million and $19.5 million. Chief Executive Patrick Mercer highlighted the company’s progress in glaucoma while noting the challenges in retina sales.
"Our second quarter results were highlighted by the continued momentum in our glaucoma business and operating positive cash flows," Mercer said. "Our strong performance in glaucoma was offset by a weaker quarter in retina, due primarily to disruptions impacting the Middle East and reduced sell through in China."
