IRIDEX Corporation (IRIX) Earnings
IRIDEX Corporation is expected to report next earnings on August 18, 2026 (in NaN days), with a consensus EPS estimate of $-0.01. IRIX has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +35.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 19, 2026 | $-0.07 | $-0.03 | +57.1% | $12M | -0.9% |
| Mar 26, 2026 | $-0.02 | $-0.01 | +50.0% | $15M | -0.1% |
| Aug 12, 2025 | $-0.09 | $-0.06 | +33.3% | $14M | +3.6% |
| Mar 27, 2025 | $-0.05 | $-0.05 | +0.0% | $13M | -0.8% |
| Aug 8, 2024 | $-0.12 | $-0.16 | -33.3% | $13M | +0.2% |
| May 14, 2024 | $-0.12 | $-0.21 | -75.0% | $12M | -2.0% |
| Nov 14, 2023 | $-0.13 | $-0.11 | +15.4% | $13M | -10.5% |
| Aug 10, 2023 | $-0.11 | $-0.17 | -54.5% | $13M | -9.7% |
| May 11, 2023 | $-0.12 | $-0.13 | -8.3% | $14M | -4.6% |
| Mar 9, 2023 | $-0.11 | $-0.07 | +36.4% | $15M | +0.2% |
| Nov 10, 2022 | $-0.15 | $-0.11 | +26.7% | $15M | +5.5% |
| Aug 15, 2022 | $-0.16 | $-0.14 | +12.5% | $14M | -1.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 19, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Financial and Strategic Milestones * In 2025, Iridex achieved positive adjusted EBITDA for the first time in recent company history, and positive operating cash flow in Q4 2025, representing a fundamental shift to a sustainable profitability profile. * The company remains on track to deliver full-year 2026 positive operating cash flow. - Cost Optimization * Operating expenses decreased 4% year-over-year to $5.1 million in Q1 2026, driven by lower general and administrative (G&A) costs. * 70% of the initiative to relocate certain G&A functions out of California was completed, delivering $100,000 in Q1 2026 savings. Full relocation of headquarters by end-2026 is expected to reduce annualized fixed costs by approximately $600,000. - Operational Transitions * The multi-year initiative to transition production to lower-cost third-party contract manufacturers is underway, with meaningful transfers initiated in Q1. Full completion is targeted for 2027, with expected gross margin improvements through 2026 and 2027. - Commercial Developments * In early April 2026, Iridex announced a new partnership with iPro GPO that expands access to its entire retina laser portfolio to over 1,800 U.S. members (including ophthalmology practices, ambulatory surgery centers, and hospitals), adding to the existing Cyclo-G6 contract and expanding the company's addressable U.S. retina market. * New Medicare local coverage determinations (LCD) introduced in 2025 are creating tailwinds for G6, expanding the target patient pool and supporting earlier adoption for mild-to-moderate and post-incisional glaucoma patients. * The MedScout data platform is being used to target two high-priority G6 segments: mid-utilization existing accounts to expand treatment to earlier-stage patients, and high-volume facilities that do not currently offer micropulse glaucoma procedures.
Guidance
- Management reaffirmed full-year 2026 revenue guidance of $51 million to $53 million. The guidance excludes any revenue from the conflict-impacted Middle East region, and represents 1% to 5% pro forma year-over-year growth compared to 2025. - Full-year 2026 adjusted operating expenses (excluding depreciation, amortization, and stock compensation) are reaffirmed to be in the range of $19 million to $19.5 million. - Management continues to expect the full-year 2026 to generate positive operating cash flow, in line with prior commitments. - Q1 is historically the lowest revenue quarter of the year, averaging 22% of annual revenue, with Q2 and Q4 expected to be seasonally stronger (Q4 the strongest), and Q3 expected to see a sequential decline from Q2, in line with historical seasonality. The $0.8 million in Q1 backlogged revenue is expected to shift to Q2 2026.
Segment performance
Iridex reported total Q1 2026 revenue of $11.8 million, flat year-over-year compared to $11.9 million in Q1 2025. 1. Glaucoma (Cyclo-G6 product family): Revenue totaled $3.6 million, growing 14% year-over-year from $3.2 million in Q1 2025, accounting for 30.5% of total Q1 2026 revenue. 15,500 probes were sold, up from 13,900 in the prior year, with 24 G6 systems sold in line with year-ago levels. Domestic average selling price (ASP) increased for both probes and systems. 2. Retina: Revenue totaled $5.8 million, down 12.1% year-over-year from $6.6 million in Q1 2025, accounting for 49.2% of total Q1 2026 revenue. The decline was driven by lower international retina system sales, partly offset by strong U.S. performance of Pascal, SLX TX, and LIO products. 3. Other revenue: Totaled $2.3 million, up $0.2 million year-over-year from $2.1 million in Q1 2025, accounting for 19.5% of total Q1 2026 revenue, driven by higher service and legacy product revenue.
Risks & headwinds
- Geopolitical volatility, including the ongoing Iran conflict, created headwinds for international operations, particularly in the Middle East and Asia, and all Middle East revenue has been excluded from 2026 guidance due to market disruption. - Temporary supply chain constraints created backlogged orders in Q1 2026, with specific material issues for retina endoprobes impacting China sales, and inventory fulfillment delays across regions. - Extended regulatory approval timelines internationally delayed order shipments, including large Pascal orders in Japan deferred to Q2 due to electrical safety testing delays, and lack of MDR approval continues to constrain Pascal growth in Europe. - Macroeconomic weakness in Asia, particularly in Japan, created ongoing headwinds for commercial execution despite stable underlying product demand. - Uncertainty around regulatory timelines means order fulfillment timing is dependent on third-party regulatory bodies, which can cause unexpected quarterly revenue shifts. - Higher manufacturing costs, including increased product costs tied to recent tariff developments, put downward pressure on gross margins compared to the prior year.
Analyst Q&A
Q: Scott Henry (AGP) asked if weak Q1 retina revenue was mostly driven by international headwinds, and if full-year 2026 retina revenue will decline year-over-year following 2025's strong performance. /
A: Management confirmed Q1 weakness stemmed from temporary international headwinds: regulatory delays pushed large Pascal orders in Japan to Q2, and endoprobe supply issues created backlogged orders. Both issues have now been resolved. U.S. retina performed very well, the Pascal upgrade cycle remains ongoing domestically and internationally, and the new iPro GPO partnership is expected to drive future growth, with no sustained weakness expected.
Q: Henry asked for the size and segment split of Q1 ending backlog, and if it will boost Q2 performance. /
A: Management stated total backlog was approximately $800,000, all in the retina segment. While the endoprobe backlog was anticipated, the regulatory delays that created additional backlog were not expected. The entire backlog is expected to be recognized as revenue in Q2 2026.
Q: Henry asked if G6 system sales will grow in 2026, or if focus will remain entirely on probe sales, which grew strongly in Q1. /
A: Management expects modest G6 system growth in 2026, but the core strategic focus is on increasing probe utilization among existing users, particularly to expand treatment of the large underpenetrated 2.1 million U.S. moderate glaucoma patient population. Higher ASP for both G6 probes and systems already contributed to Q1 growth, and the overall glaucoma business position remains strong for the full year.
Q: Henry asked how gross margin will trend in Q2 and Q3 2026, after sequential improvement in Q1, following year-ago middle quarter margin dips. /
A: CFO Romeo Dazon explained that prior quarter margin dips were tied to one-time expenses for reserves related to the contract manufacturing transition. Production costs have now normalized, and gross margin is expected to stay in the high 30% to low 40% range for coming quarters, with variation dependent on product and regional mix.