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what it is
Iridex sells laser systems that treat glaucoma and retinal disease.
how it gets paid
Last year Iridex made $49M in revenue. Glaucoma laser systems was the main engine at $20M, or 41% of sales.
what just happened
Revenue hit $38M, while EPS came in at -$0.25.
At a glance
C+ balance sheet — struggling to keep the lights on
45/100 earnings predictability — expect surprises
-$0.54 fy2024 eps est
$2B fy2026 rev est
17.1% operating margin
xvary composite: 30/100 — weak
What they do
Iridex sells laser systems that treat glaucoma and retinal disease.
Its MicroPulse tech chops laser energy into microsecond pulses. That is jargon → short bursts of light → eye doctors can retreat faster without acting like they are poking the eye with a welding torch. The company has 93 employees and sells in the US and Germany, so your clinic does not swap systems casually.
How they make money
$49M
annual revenue
Glaucoma laser systems
$20M
+3.0%
Medical retina systems
$12M
+2.0%
Surgical retina systems
$9M
0.0%
Consumables and service
$8M
+5.0%
The products that matter
ophthalmic laser therapy
MicroPulse Laser Systems
core platform · part of a $26M segment
This is the flagship treatment platform inside the $26M laser systems business. If the turnaround works, this is where better placement and better sales execution have to show up first.
core technology
recurring probes and support
Consumables & Services
$23M · 47% of revenue
This $23M segment is the closest thing you have to recurring revenue. Nearly half of sales coming from consumables and services matters because it smooths demand more than one-time equipment sales alone.
repeat revenue
glaucoma treatment system
Cyclo G6 Glaucoma Laser System
portfolio focus · part of the $26M laser business
Management has kept this product line at the center of the strategy. For a company doing $49M in annual revenue, even modest traction in a flagship system can move the whole income statement.
turnaround watch
Key numbers
$49M
TTM revenue
That is the size of the whole business. When sales are $49M, one weak quarter matters.
17.1%
op margin
For every $100 sold, $17.10 disappears before interest and taxes. That is the company paying to exist.
$22M
market cap
The market values the whole company below yearly sales. That is tiny, even by microcap standards.
$4M
debt
Debt is small versus revenue, so leverage is not the main problem. Losses are.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $4M (15% of capital)
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for IRIX right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $38M, while EPS came in at -$0.25.
Sales were up 204% vs. prior year. Gross margin was 36.2%, so the company sold plenty, but not enough to stop losses.
$38M
revenue
$0.25
eps
36.2%
gross margin
revenue jump
Revenue was $38M, up 204% from last year, but the company still posted a -$0.25 EPS loss.
source: company earnings report, 2026
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What could go wrong
the #1 risk is turnaround execution under ceo patrick mercer.
high
turnaround execution
IRIDEX is trying to improve results from a -10.04% profit margin and a recent $1.6M quarterly loss. The CEO change only matters if the income statement starts cooperating.
If losses stay near current levels, a $22M equity value can keep shrinking faster than the turnaround narrative can grow.
high
small scale, thin margin for error
Annual revenue is just $49M, and the last quarter came in at $12.5M. At this size, one soft quarter or one delayed order has an outsized effect.
The company does not have megacap forgiveness. Misses hit the story immediately.
med
cost savings may be too small
Management expects about $400k in annual savings from the headquarters relocation. That helps, but it is modest against a $5.1M annual loss.
If the savings show up late or get offset elsewhere, investors may realize this was cleanup, not a turnaround.
low
thin ownership and signal quality
The recent insider buy was only $1,398. That is better than a sale, but it is not the kind of size that changes the thesis by itself.
For a micro-cap, small signals can get over-read. You want operating proof, not symbolism.
At a $22M market cap, another year anywhere near a $5.1M loss would keep pressure on both valuation and credibility.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q4 and full-year 2025 earnings
The report is scheduled for march 26, 2026. If revenue stays around $12.5M and losses stay near $1.6M, the turnaround still has not arrived.
trend
gross margin versus profit margin
Gross margin is 36.2%, but net margin is -10.04%. You want to see that gap narrow, because that is where execution should show up first.
risk
whether the $400k savings are real
The headquarters move needs to show up in reported expenses. For a company this small, $400k matters. If it disappears into the noise, that is telling.
metric
follow-through from insider buying
The CFO bought $1,398 of stock in late january 2026. One tiny purchase is not a thesis, but a pattern of buying would be more interesting.
Analyst rankings
earnings predictability
45 / 100
Low predictability means the quarter can move around more than you want. In human-speak, analysts do not trust this business to print cleanly yet.
beta
1.1
Beta measures how much a stock moves versus the market. At 1.1, IRIX is not wildly detached from market swings — the bigger issue is company-specific risk.
average analyst target
$3.00
That implies about 92% upside from $1.56. Treat it as a turnaround bet, not a crowd verdict.
source: institutional data
Institutional activity
institutional ownership data for IRIX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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