Second quarter 2026
Filed Aug 18, 2026Iridex reported second-quarter revenue of $12.6 million, down 7%, as 19% Cyclo G6 growth was offset by lower retina sales; the company reaffirmed full-year revenue guidance of $51 million to $53 million.
Glaucoma probe demand, cost controls and positive operating cash flow were constructive, but total revenue declined 7%, retina revenue fell to $6.5 million, GAAP net loss widened to $1.3 million, and adjusted EBITDA moved to a loss.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $12.6 million | – | decline of 7% |
| Total revenuesGAAP | $12,566 thousand | – | – |
| Cost of revenuesGAAP | $8,270 thousand | – | – |
| Gross profitGAAP | $4,296 thousand | – | – |
| Gross marginGAAP | 34.2% | – | relatively flat |
| Research and development expenseGAAP | $936 thousand | – | – |
| Sales and marketing expenseGAAP | $2,547 thousand | – | – |
| General and administrative expenseGAAP | $1,842 thousand | – | – |
| Total operating expensesGAAP | $5.3 million | – | decrease of $0.3 million, or 5% |
| Total operating expensesGAAP | $5,325 thousand | – | – |
| Loss from operationsGAAP | $(1,029) thousand | – | – |
| Other expense, netGAAP | $(167) thousand | – | – |
| Loss from operations before provision for income taxesGAAP | $(1,196) thousand | – | – |
| Provision for income taxesGAAP | $70 thousand | – | – |
| Net lossGAAP | $1.3 million | – | – |
| Net lossGAAP | $(1,266) thousand | – | – |
| Net loss per share, basicGAAP | $(0.07) | – | – |
| Net loss per share, dilutedGAAP | $(0.07) | – | – |
| Adjusted EBITDA lossnon-GAAP | $0.4 million | – | – |
| Adjusted EBITDAnon-GAAP | $(353) thousand | – | – |
| Operating cash flowGAAP | positive | – | – |
| Six-month total revenuesGAAP | $24,365 thousand | – | – |
| Six-month gross profitGAAP | $9,037 thousand | – | – |
| Six-month loss from operationsGAAP | $(1,353) thousand | – | – |
| Six-month net lossGAAP | $(1,790) thousand | – | – |
| Six-month diluted net loss per shareGAAP | $(0.10) | – | – |
| Six-month adjusted EBITDAnon-GAAP | $(94) thousand | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cyclo G6 product familyStrong Cyclo G6 probe demand; Cyclo G6 probe volume increased by approximately 35%. | $3.9 million | – | growth of 19% compared to $3.3 million in the prior year period |
| Retina productTemporary external headwinds, including international commercial transitions and regulatory approval related factors; management also cited disruptions impacting the Middle East and reduced sell through in China. | $6.5 million | – | compared to $8.0 million in the prior year period |
| Other revenueNo specific driver reported. | $2.2 million | – | essentially flat compared to $2.2 million in the prior year period |
Full year 2026 outlook
- Revenuebetween $51 million and $53 million
- Operating expenses$19 million to $19.5 million of adjusted operating expenses, which exclude depreciation and amortization and stock-based compensation
- NoteThe Company plans to use more of its working capital to procure additional inventory in anticipation of transitioning to its new headquarters and production facility.
- NoteThe additional inventory is intended to secure international product supply chains and protect distributor revenue streams against potential interruptions related to obtaining required international regulatory approvals following the headquarters relocation later in 2026.
What drove it
- Cyclo G6 product family revenue grew 19%, driven by strong Cyclo G6 probe demand.
- The company sold 17,700 Cyclo G6 probes, compared to 13,100 in the prior-year period.
- Operating expenses declined $0.3 million, or 5%, primarily due to lower general and administrative expenses resulting from the administrative function transfer initiative.
- The company is transferring production to lower-cost contract manufacturers and relocating its headquarters to a lower-cost facility.
Concerns
- Total revenue declined 7% to $12.6 million.
- Retina product revenue declined to $6.5 million from $8.0 million in the prior-year period.
- Management cited disruptions impacting the Middle East and reduced sell through in China for weaker retina performance.
- Cyclo G6 Glaucoma Laser Systems unit sales were 18, compared to 35 in the prior-year period.
- GAAP net loss increased to $1.3 million from $1.0 million, and adjusted EBITDA changed to a $0.4 million loss from adjusted EBITDA of $21 thousand.
- The company expects to use more working capital for inventory as it transitions to a new headquarters and production facility.
What to watch
- Whether international regulatory approvals advance and improve retina performance through the Pascal platform.
- The duration and resolution of commercial disruptions in the Middle East and reduced sell through in China.
- Cyclo G6 probe demand and the contrast between probe volume growth and lower Cyclo G6 Glaucoma Laser Systems unit sales.
- Execution of production transfer to lower-cost contract manufacturers and relocation to the lower-cost headquarters facility.
- Inventory procurement and its effect on working capital, international supply chains and distributor revenue continuity.
- Delivery against reaffirmed full-year 2026 revenue guidance of between $51 million and $53 million and adjusted operating expense guidance of $19 million to $19.5 million.
Balance sheet and cash flow
- Cash and cash equivalents were $4.7 million as of July 4, 2026, an increase of $0.1 million compared to April 4, 2026.
- Cash and cash equivalents were $4,680 thousand as of July 4, 2026, compared to $6,028 thousand as of January 3, 2026.
- Inventories were $9,752 thousand as of July 4, 2026, compared to $7,877 thousand as of January 3, 2026.
- Accounts receivable, net were $7,089 thousand as of July 4, 2026, compared to $9,545 thousand as of January 3, 2026.
- Convertible note payable was $3,795 thousand as of July 4, 2026, compared to $3,735 thousand as of January 3, 2026.
- Total liabilities were $23,619 thousand as of July 4, 2026, compared to $24,229 thousand as of January 3, 2026.
- Total stockholders' equity was $3,639 thousand as of July 4, 2026, compared to $4,922 thousand as of January 3, 2026.
- Operating cash flow was positive in the second quarter of 2026.
Analysis
Iridex delivered a mixed second quarter. Total revenue was $12.6 million, a 7% decline from $13.6 million in the prior-year period. The core offset within the revenue mix was glaucoma: Cyclo G6 product family revenue rose 19% to $3.9 million, supported by sales of 17,700 Cyclo G6 probes versus 13,100 a year earlier. That progress did not fully offset retina revenue declining to $6.5 million from $8.0 million, while other revenue was essentially flat at $2.2 million.
Management, verbatim
Our second quarter results were highlighted by the continued momentum in our glaucoma business and operating positive cash flows.
Patrick Mercer, President and CEO
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.
Patrick Mercer, President and CEO
We are continuing to make significant progress transforming our business, including the transfer of production to lower cost contract manufacturers and relocation of our headquarters to a lower cost facility.
Patrick Mercer, President and CEO
Not in the filing
stated, not guessed- Prior-quarter revenue, profitability and segment results were not provided.
- Free cash flow was not provided.
- The amount of operating cash flow was not provided.
- Capital-return information, including share repurchases and dividends, was not provided.
- Non-GAAP earnings per share was not provided.
- Full-year 2026 gross-margin guidance was not provided.
- Full-year 2026 tax-rate guidance was not provided.
- Previous-quarter outlook was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.