IRIDEX (IRIX) investor relations material

Executive summary

• Achieved positive operating cash flow in Q2 2026, marking a key financial inflection point, supported by cost control and business restructuring.

• Revenue for Q2 2026 was $12.6 million, down 7.4% year-over-year, mainly due to lower retina product sales, partially offset by strong glaucoma growth.

• Ongoing cost structure transformation includes headquarters relocation and shift to third-party manufacturing.

• Glaucoma business delivered strong probe-led growth, while retina faced temporary headwinds from international disruptions and regulatory delays.

• Board tensions and disagreements with the largest shareholder could impact governance, strategy, and operations.

Financial highlights

• Q2 2026 revenue was $12.6 million, down 7.4% year-over-year from $13.6 million.

• Gross profit was $4.3 million (34.2% margin), nearly flat year-over-year.

• Net loss was $1.3 million ($0.07/share), compared to $1.0 million ($0.06/share) last year.

• Non-GAAP adjusted EBITDA loss of $0.4 million, versus $21,000 income in Q2 2025.

• Cash and equivalents at quarter-end were $4.7 million, up $0.1 million sequentially.

Outlook and guidance

• Reaffirmed 2026 revenue guidance of $51–$53 million, excluding Middle East revenue.

• Adjusted operating expenses expected at $19–$19.5 million for 2026.

• Management expects existing cash and equivalents to be sufficient for the next 12 months.

• Guidance implies 1%-5% pro forma growth over 2025.

• Retina segment expected to show low single-digit growth in H2 2026, with Q4 as the strongest quarter.