Iridex Posts Q2 Results, Glaucoma Segment Shows Strength

(RTTNews) - Iridex Corporation (IRIX), a provider of laser-based medical systems for glaucoma and retinal disease treatment, reported second-quarter 2026 financial results, reflecting mixed performance across its product lines.

For the quarter ended July 4, 2026, total revenue was $12.6 million, down 7% from $13.6 million in the second quarter of 2025. The decline was driven by weaker retina product sales, which fell to $6.5 million from $8.0 million a year earlier, impacted by disruptions in the Middle East and reduced sell-through in China.

In contrast, the Cyclo G6 glaucoma product family delivered strong growth, with revenue rising 19% to $3.9 million compared to $3.3 million in the prior year. Probe sales increased to 17,700 units from 13,100, through system sales declined to 18 units from 35 in the same period last year. Other revenue remained flat at $2.2 million.

Gross margin in the second quarter of 2026 was 34.2%, relatively flat compared to a gross margin of 34.5% in the prior year period.

Net loss was $1.3 million, or $0.07 per share, for the second quarter of 2026, compared to a net loss of $1.0 million, or $0.06 per share, in the same period of 2025.

Non-GAAP adjusted EBITDA loss for the second quarter of 2026 was $0.4 million, compared to non-GAAP adjusted EBITDA of $21 thousand in the prior year quarter.

Cash and cash equivalents as of July 4, 2026 were $4.7 million.

President and CEO Patrick Mercer highlighted the company's positive operating cash flow and strong glaucoma momentum, noting that restructuring efforts— including shifting production to lower-cost contract manufacturers and relocating headquarters—are expected to support long-term profitability. He added that international regulatory approvals should help improve retina performance, particularly through the Pascal platform.

Looking ahead, the company reaffirmed its annual revenue guidance for full year 2026 of between $51 million and $53 million, compared to $52.7 million in FY2025.

Fiscal year 2026 adjusted operating expenses, excluding depreciation, amortization, and stock-based compensation, are expected to be in the range of $19 million to $19.5 million, compared with $21.8 million in FY2025.

IRIX has traded between $0.80 and $1.65 over the past year. The stock closed Tuesday's trading at $0.93, up 5.69%. During the overnight trading session the stock is at $0.94, up 1.06%.