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Iridex Corp (IRIX)
NASDAQ:IRIX
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Iridex
(NASDAQ:IRIX)
51Neutral
Iridex (IRIX) vs. S&P 500 (SPY)
Market Cap
$19.46M
Dividend YieldN/A
Average Volume (3M)36.48K
Price to Earnings (P/E)―
Beta (1Y)-0.11
Revenue Growth-11.31%
EPS Growth-40.04%
CountryUS
Employees111
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.68
Shares Outstanding16,636,380
10 Day Avg. Volume38,554
30 Day Avg. Volume36,485
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)-1.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Iridex Business Overview & Revenue Model
Company DescriptionIridex Corporation (IRIX) is a leading provider of innovative laser-based medical systems, specializing in the treatment of eye diseases. Operating primarily within the ophthalmology sector, the company focuses on developing and manufacturing laser systems, delivery devices, and consumable instrumentation that address the treatment of glaucoma and retinal diseases. Iridex's products are used by ophthalmologists and optometrists globally to provide minimally invasive treatment options for patients, aiming to improve eye health and preserve vision.
How the Company Makes MoneyIridex generates revenue primarily through the sale of its medical laser systems and related consumables, which include laser probes and other accessories. The company's key revenue streams include product sales, which encompass its Cyclo G6 Glaucoma Laser System and IQ Laser Systems for retinal therapy. Additionally, Iridex benefits from recurring revenue through the sale of disposable probes and other consumable products that are used in conjunction with its laser systems. The company also engages in service contracts and warranty agreements, providing ongoing support and maintenance for its products. Strategic partnerships with healthcare providers, research institutions, and distributors further enhance Iridex's market reach and contribute to its earnings.
Iridex Financial Statement Overview
Summary
Iridex faces significant financial challenges with declining revenues, negative profit margins, increased leverage, and negative cash flows. These factors collectively suggest a pressing need for financial restructuring to improve profitability and liquidity.Income Statement
Iridex has experienced declining revenues and increasing losses over the TTM. The gross profit margin has decreased to 38.3%, and the net profit margin is negative at -22.8%, reflecting significant profitability challenges. Revenue has declined by 6.6% in the TTM compared to the previous annual period. These metrics suggest financial difficulties with maintaining profitability and growth.45
Neutral
Balance Sheet
The debt-to-equity ratio has worsened significantly to 0.82, indicating increased leverage risk. The equity ratio has also dropped to 8.7%, reflecting weakened financial stability. However, despite these concerns, the company's low absolute debt levels provide some cushion against financial strain. Nonetheless, the diminishing equity level is a concern for long-term sustainability.50
Neutral
Cash Flow
Iridex's cash flow performance is concerning, with negative operating and free cash flows. The operating cash flow to net income ratio is negative, indicating that cash flow issues are exacerbating the company's loss position. The free cash flow has deteriorated further by 2.0% compared to the previous period, highlighting ongoing cash management challenges.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 48.43M | 51.87M | 56.97M | 53.90M | 36.35M | 43.45M | Gross Profit |
| 18.55M | 21.81M | 25.37M | 22.83M | 15.56M | 17.94M | EBIT |
| -10.88M | -10.01M | -7.54M | -7.53M | -6.58M | -8.97M | EBITDA |
| -9.18M | -7.97M | -6.10M | -6.73M | -6.08M | -8.29M | Net Income Common Stockholders |
| -11.04M | -9.57M | -7.55M | -5.22M | -6.33M | -8.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.63M | 7.03M | 13.92M | 23.85M | 11.63M | 12.65M | Total Assets |
| 27.97M | 34.44M | 42.29M | 48.69M | 27.97M | 34.81M | Total Debt |
| 4.19M | 2.75M | 1.77M | 2.66M | 4.19M | 3.21M | Net Debt |
| -7.44M | -4.29M | -12.15M | -21.20M | -7.44M | -9.44M | Total Liabilities |
| 10.60M | 24.91M | 25.06M | 25.39M | 10.60M | 12.11M | Stockholders Equity |
| 17.37M | 9.52M | 17.23M | 23.30M | 17.37M | 22.70M |
| Cash Flow | Free Cash Flow | ||||
| -6.99M | -6.85M | -9.80M | 8.00M | -3.33M | -8.04M | Operating Cash Flow |
| -7.03M | -6.75M | -9.52M | 8.22M | -3.24M | -7.91M | Investing Cash Flow |
| 28.00K | -109.00K | -286.00K | -5.56M | -93.00K | -509.00K | Financing Cash Flow |
| 2.87M | -5.00K | -73.00K | 9.47M | 2.47M | -156.00K |
Iridex Technical Analysis
Negative
1.23
Price Trends
1.56
Negative
1.61
Negative
1.80
Negative
Market Momentum
-0.10
Positive
33.32
Neutral
15.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRIX, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.56, and below the 200-day MA of 1.80, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 15.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRIX.
Iridex Risk Analysis
Iridex disclosed 49 risk factors in its most recent earnings report. Iridex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iridex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $215.38M | 33.34 | 16.11% | ― | 15.35% | 71.35% | |
70 Outperform | $3.39B | 26.55 | 14.06% | ― | 8.14% | 2.55% | |
58 Neutral | $216.86M | 5.51 | 10.22% | ― | 3.40% | -43.86% | |
53 Neutral | $3.41B | ― | -5.76% | ― | 5.28% | -292.14% | |
51 Neutral | $19.46M | ― | -150.28% | ― | -11.31% | -40.04% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
36 Underperform | $2.59M | ― | 52.08% | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
IRIX
Iridex
1.23
-1.35
-52.33%
CUTR
Cutera
0.11
-1.91
-94.55%
ELMD
Electromed
25.17
7.97
46.34%
HAE
Haemonetics
68.30
-8.57
-11.15%
ICUI
ICU Medical
138.99
38.15
37.83%
VYGR
Voyager Therapeutics
3.97
-5.12
-56.33%
Iridex Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -4.65% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were challenges with a revenue decline and increased losses, positive steps have been taken towards cost reduction and strategic progress. The upcoming changes in glaucoma reimbursement and positive fourth-quarter outlook add optimism.Highlights
Cost-Cutting Measures and Strategic Review Progress
The company has implemented cost-cutting measures, expected to make the fourth quarter EBITDA positive. The strategic review has accelerated, with strong interest in IRIDEX's products and potential transactions expected before year-end.
Positive Outlook for Fourth Quarter
Despite the third-quarter challenges, there's a positive outlook for the fourth quarter with increasing momentum in glaucoma products and promising leads from the American Academy of Ophthalmology meeting.
Revenue Growth in Glaucoma Products
Revenue from the Cyclo G6 product family increased by 3% in the third quarter compared to the previous year.
Improved Glaucoma Reimbursement Landscape
The new LCD reimbursement changes for glaucoma procedures, effective November 17, are expected to increase physician adoption of IRIDEX laser consoles and probes.
Lowlights
Third Quarter Revenue Decline
Total revenue in the third quarter was $11.6 million, a 10% decline compared to $12.9 million in the same period of the prior year.
Decline in Retina Segment Revenue
The retina segment revenue declined by 18% year-over-year, affected by regulatory hurdles and lengthening capital sales cycles.
Gross Margin Decrease
Gross profit in the third quarter was $4.3 million, with a gross margin of 37.3%, down from 43.7% in the prior year period.
Net Loss in Third Quarter
The net loss for the third quarter was $1.9 million or $0.12 per share, compared to a net loss of $1.8 million or $0.11 per share in the same period last year.
Company Guidance
During the Q3 2024 earnings call for IRIDEX, several key metrics and strategic initiatives were discussed. The company reported a total revenue of $11.6 million for the quarter, a 10% decline from the previous year, mainly due to challenges in the retina business, though this was attributed to timing issues. Revenue from the Cyclo G6 product family rose by 3% to $3.1 million, with 13,600 probes sold, despite a sequential 10% decline. The retina segment saw an 18% year-over-year decrease to $6.5 million, caused by regulatory shipping delays, expected to be resolved by Q4. Gross profit stood at $4.3 million, down from $5.6 million, with a reduced gross margin of 37.3% due to a shift in product mix. Operating expenses decreased by $1.1 million to $6.2 million, thanks to cost reduction initiatives, contributing to a net loss of $1.9 million or $0.12 per share. The company is focused on improving its cash position, which was $3.9 million, including proceeds from a convertible note offering. IRIDEX aims to achieve EBITDA breakeven in Q4 2024 through aggressive cost-cutting measures and improved revenue alignment. Additionally, the company anticipates a favorable shift in the competitive landscape due to changes in glaucoma procedure reimbursements, potentially boosting the adoption of its products.Iridex Corporate Events
Executive/Board Changes
Iridex CEO Patrick Mercer Joins Board of Directors
Neutral
Nov 26, 2024
IRIDEX Corporation has appointed its current President and CEO, Patrick Mercer, to its board of directors, with his term extending until the 2025 annual stockholders meeting. This decision, effective immediately, sees no changes to Mercer’s existing compensation, adhering to the company’s non-employee director policy.
Executive/Board ChangesBusiness Operations and Strategy
Iridex Leadership Changes and Strategic Appointments
Neutral
Nov 13, 2024
In a significant leadership change, Dave Bruce was terminated as CEO on October 1, 2024, and resigned from the Board on November 11, 2024, receiving a separation package including accelerated vesting of stock options. Patrick Mercer, now CEO, retains a base salary of $360,000 with a potential 65% bonus, alongside a severance agreement offering 150% of his salary under specific conditions. Additionally, Kenneth E. Ludlum joins the Compensation Committee, influencing the company’s strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.