IRIDEX (IRIX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $11.8 million, flat to down 1% year-over-year, with strong G6 glaucoma probe growth offsetting weaker Retina system sales due to international headwinds and regulatory delays.

• Net loss narrowed to $0.5 million ($0.03/share) from $1.7 million ($0.10/share) in Q1 2025, reflecting cost-saving initiatives and improved margins.

• Operating expenses decreased by 4% year-over-year, driven by cost reduction and administrative function transfers.

• Company leverages proprietary MicroPulse and Endpoint Management technologies for safer, effective laser therapies in ophthalmology.

• International operations faced challenges from geopolitical volatility, supply disruptions, and regulatory delays, particularly in Asia and the Middle East.

Financial highlights

• Q1 2026 revenue was $11.8 million, nearly unchanged from $11.9 million in Q1 2025.

• Gross profit was $4.7 million (40% margin), down from $5.0 million (43%) year-over-year, due to higher manufacturing and product costs.

• Net loss was $0.5 million, a significant improvement from $1.7 million prior year.

• Non-GAAP Adjusted EBITDA was $0.3 million, compared to $0.4 million in Q1 2025.

• Cash and equivalents were $4.6 million at quarter end, with working capital of $11.8 million.

Outlook and guidance

• Reaffirmed 2026 revenue guidance of $51–$53 million, representing 1–5% pro forma growth over 2025, excluding Middle East revenue.

• Expects positive operating cash flow for full year 2026.

• Adjusted operating expenses (excluding D&A and stock comp) expected to be $19–$19.5 million for 2026.

• Management believes existing cash and equivalents are sufficient for the next 12 months, but future capital needs depend on growth, R&D, and market conditions.

• Q1 typically represents 22% of annual revenue; Q2 and Q4 are seasonally stronger.