Ophthalmic medical technology company, Iridex (NASDAQ:IRIX) on Tuesday said that it has received formal notice from Nasdaq confirming it has regained compliance with continued listing standards. ...

MOUNTAIN VIEW, Calif., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today announced that it has received formal notice from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that Iridex has evidenced compliance with the continued listing requirements. As previously reported, on May 14, 2025, Iridex received a n ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $13,600,000, representing a 7% year-over-year growth and a 14% sequential growth [19] - Gross profit was $4,700,000 with a gross margin of 34.5%, a decrease from $5,100,000 and 40.7% in Q2 2024 [20] - Operating expenses decreased to $5,600,000, down $2,200,000 from $7,800,000 in Q2 2024 [21] - Net loss for Q2 2025 was $1,000,000 or $0.06 per share, compared to a net loss of $2,700,000 or $0.16 per share in the same period of the prior year [21] - Non-GAAP adjusted EBITDA for Q2 2025 was $21,000, an improvement of $1,700,000 compared to a loss of $1,700,000 in Q2 2024 [21] Business Line Data and Key Metrics Changes - Retina product revenue increased 10% to $8,000,000 in Q2 2025, driven by higher PASCAL system sales [20] - Total product revenue from the Cyclo G6 glaucoma product group was $3,300,000, essentially flat year-over-year [20] - Other revenue increased by $200,000 to $2,200,000, primarily due to an increase in service revenue [20] Market Data and Key Metrics Changes - In the U.S., PASCAL sales exceeded expectations, showing strong momentum [10] - EMEA revenue remained strong, particularly in the Middle East and Africa, driven by robust PASCAL system sales [11] - Challenges in the GmbH market included service issues and delays in MDR certification for the PASCAL system [11] - In Asia, uncertainty around the tariff dispute with China affected stock orders and supply chains [12] - Latin America and Canada saw PASCAL sales fall short of expectations due to pricing pressures [13] Company Strategy and Development Direction - The company is focused on driving adoption of the PASCAL system and achieving international regulatory approvals for newer retina systems [10] - Plans to further reduce operating expenses and improve gross margins include negotiating with contract manufacturers and relocating to a smaller facility [7] - The strategy for the G6 system in the U.S. involves leveraging the installed base and increasing system utilization [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, citing strong fundamentals and plans to address obstacles [24] - The company is on track to achieve cash flow breakeven and positive adjusted EBITDA in 2025 [7] - Management acknowledged isolated challenges but highlighted resilience and execution across key areas [24] Other Important Information - Cash and cash equivalents totaled $6,800,000 at the end of Q2 2025, a reduction of $400,000 compared to the end of Q1 [22] - The company has identified additional opportunities to improve its financial profile [6] Q&A Session Summary - No specific questions or answers were documented in the provided content.

[Iridex Reports Second Quarter 2025 Financial Results](index=1&type=section&id=Iridex%20Reports%20Second%20Quarter%202025%20Financial%20Results) This report details Iridex Corporation's second quarter 2025 financial performance, highlighting revenue growth, expense reductions, and progress towards profitability [Executive Summary](index=1&type=section&id=Executive%20Summary) Iridex's Q2 2025 results highlight a strategic shift to profitability, marked by revenue growth, reduced operating expenses, and consistent positive adjusted EBITDA [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) Iridex Corporation, a global leader in laser-based medical systems, announced its financial results for the second quarter ended June 28, 2025 - Iridex Corporation, a worldwide leader in laser-based medical systems for glaucoma and retinal diseases, reported financial results for the second quarter ended **June 28, 2025**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Patrick Mercer highlighted transformational progress towards profitability, driven by revenue growth, reduced operating expenses, and positive adjusted EBITDA - President and CEO Patrick Mercer highlighted transformational progress towards profitability, achieving **year-over-year revenue growth**, **reduced operating expenses**, and **breakeven or better adjusted EBITDA** for the **third consecutive quarter**[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 financial highlights include **7%** year-over-year revenue growth, reduced operating expenses, and positive non-GAAP adjusted EBITDA, reflecting a strategic shift to profitability [Revenue Performance](index=1&type=section&id=Revenue%20Performance) Q2 2025 revenue saw a **7%** year-over-year increase, primarily driven by higher Pascal system sales and medical/surgical retina system sales Q2 2025 Revenue Performance | Metric | Q2 2025 | YoY Growth | Sequential Growth (vs Q1 2025) | | :----------------------- | :---------- | :--------- | :------------------------------- | | Total Revenue | $13.6 million | 7% | 14% | | Cyclo G6® product family revenue | $3.3 million | Flat | N/A | | Retina product revenue | $8.0 million | 10% | 21% | - Growth was primarily driven by higher Pascal system sales and medical/surgical retina system sales, partially offset by a decrease in surgical retina probe sales. Other revenue increased by **$0.2 million** due to service revenue[4](index=4&type=chunk) Cyclo G6 Product Sales | Product | Q2 2025 Units Sold | Q2 2024 Units Sold | Change | | :------------------ | :----------------- | :----------------- | :----- | | Cyclo G6 probes | 13,100 | 15,100 | -2,000 | | Cyclo G6 Glaucoma Laser Systems | 35 | 28 | +7 | [Profitability and Expenses](index=1&type=section&id=Profitability%20and%20Expenses) Profitability metrics for Q2 2025 show a decrease in gross margin but a significant reduction in operating expenses, leading to a lower net loss and positive adjusted EBITDA Q2 2025 Profitability Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :---------------------- | :---------- | :---------- | :---------- | | Gross Profit | $4.7 million | $5.1 million | -$0.4 million | | Gross Margin | 34.5% | 40.7% | -6.2 percentage points | | Operating Expenses | $5.6 million | $7.8 million | -$2.2 million (-28%) | | Net Loss | $1.0 million | $2.7 million | -$1.7 million | | Net Loss Per Share | $0.06 | $0.16 | -$0.10 | | Non-GAAP Adjusted EBITDA | $21 thousand | -$1.7 million | +$1.7 million | - Gross margin decrease was primarily due to increased overall manufacturing costs, product mix weighing toward capital system sales, and geographic mix weighting toward international sales, partially offset by increases in **ASPs**[5](index=5&type=chunk) - Operating expense reduction was mainly due to expense reduction measures taken in **late 2024**[7](index=7&type=chunk) [Cash and Liquidity](index=1&type=section&id=Cash%20and%20Liquidity) Cash and cash equivalents decreased slightly in Q2 2025, reflecting ongoing operational activities Cash and Cash Equivalents | Metric | As of June 28, 2025 | Change in Q2 2025 | | :---------------------- | :------------------ | :---------------- | | Cash and Cash Equivalents | $6.8 million | -$0.4 million | [Detailed Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) This section details Iridex's Q2 2025 financial performance, covering revenue drivers, gross profit, and the impact of expense reduction on operating results and net loss [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) A detailed breakdown of Q2 2025 revenue highlights growth in total revenue, with specific contributions from the Cyclo G6 product family and service revenue Q2 2025 Revenue Breakdown | Revenue Category | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | $13.6 | $12.6 | +7% | | Cyclo G6 product family | $3.3 | $3.3 | Flat | | Other revenue (service) | $2.2 | $2.0 | +$0.2 million | - Revenue growth was primarily driven by higher Pascal system sales and medical/surgical retina system sales[4](index=4&type=chunk) [Gross Profit and Margin Analysis](index=1&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Analysis of Q2 2025 gross profit and margin reveals a decline attributed to increased manufacturing costs, product mix shifts, and geographic sales weighting Q2 2025 Gross Profit and Margin | Metric | Q2 2025 | Q2 2024 | Change | | :----------- | :---------- | :---------- | :----------------------- | | Gross Profit | $4.7 million | $5.1 million | -$0.4 million | | Gross Margin | 34.5% | 40.7% | -6.2 percentage points | - The decline in gross profit and margin was attributed to higher overall manufacturing costs, a product mix shift towards capital system sales, and a geographic mix weighting towards international sales, partially offset by higher **Average Selling Prices (ASPs)**[5](index=5&type=chunk) [Operating Expenses and Net Loss](index=2&type=section&id=Operating%20Expenses%20and%20Net%20Loss) Q2 2025 operating expenses significantly decreased due to cost reduction measures, leading to a reduced net loss compared to the prior year Q2 2025 Operating Expenses and Net Loss | Metric | Q2 2025 | Q2 2024 | Change | | :------------------ | :---------- | :---------- | :---------- | | Operating Expenses | $5.6 million | $7.8 million | -$2.2 million (-28%) | | Net Loss | $1.0 million | $2.7 million | -$1.7 million | | Net Loss Per Share | $0.06 | $0.16 | -$0.10 | - The significant reduction in operating expenses was a direct result of expense reduction measures implemented in **late 2024**[7](index=7&type=chunk) [Non-GAAP Adjusted EBITDA](index=2&type=section&id=Non-GAAP%20Adjusted%20EBITDA) Iridex achieved positive non-GAAP adjusted EBITDA for Q2 2025, marking the third consecutive quarter of improvement towards profitability Q2 2025 Non-GAAP Adjusted EBITDA | Metric | Q2 2025 | Q2 2024 | Improvement | | :----------------------- | :---------- | :---------- | :------------ | | Non-GAAP Adjusted EBITDA | $21 thousand | -$1.7 million | +$1.7 million | - This marks the **third consecutive quarter** of positive non-GAAP adjusted EBITDA, indicating progress towards profitability[6](index=6&type=chunk) [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Iridex aims for cash flow breakeven and positive adjusted EBITDA in 2025, with revenue consistent with 2024 levels - The Company plans to achieve **cash flow breakeven** and **positive adjusted EBITDA** in **2025**[9](index=9&type=chunk) - Revenue generation for **2025** is expected to be consistent with **2024**[9](index=9&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides background on Iridex, investor engagement details, and legal disclaimers for forward-looking statements and non-GAAP financial measures [About Iridex Corporation](index=2&type=section&id=About%20Iridex%20Corporation) Iridex Corporation is a global leader in laser-based medical systems for ophthalmology, specializing in treatments for glaucoma and retinal diseases - Iridex Corporation is a worldwide leader in developing, manufacturing, and marketing innovative laser-based medical systems, delivery devices, and consumable instrumentation for the ophthalmology market[11](index=11&type=chunk) - The company's proprietary **MicroPulse® technology** provides safe, effective, and proven treatment for targeted sight-threatening eye conditions like glaucoma and diabetic macular edema (**DME**)[11](index=11&type=chunk) - Iridex products are sold in the **United States** through a direct sales force and internationally primarily through a network of independent distributors into more than **100 countries**[11](index=11&type=chunk) [Webcast and Conference Call Information](index=2&type=section&id=Webcast%20and%20Conference%20Call%20Information) Details for accessing the Q2 2025 earnings conference call and webcast are provided for investor convenience - Iridex's management team hosted a conference call on **August 12, 2025**, at **2:00 p.m. PT / 5:00 p.m. ET**, with live and recorded webcast access available on the company's website[10](index=10&type=chunk) [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor%20Statement) This statement advises investors that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially - This announcement contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from those described[13](index=13&type=chunk) - Investors are advised to review a detailed description of these and other risks in Iridex's most recent **Annual Report on Form 10-K** and other **SEC filings**. Forward-looking statements are made as of this date and will not be updated[13](index=13&type=chunk)[14](index=14&type=chunk) [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) This section clarifies the use and definition of non-GAAP financial measures, specifically Adjusted EBITDA, for evaluating company performance - The press release contains non-GAAP financial measures, specifically **Adjusted EBITDA**, which management uses to evaluate performance and make operating decisions[15](index=15&type=chunk) - **Adjusted EBITDA** is defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as excluding certain other non-GAAP adjustments like severance-related expenses and Nasdaq listing compliance plan expenses[16](index=16&type=chunk)[18](index=18&type=chunk) - Non-GAAP results should be considered supplemental to **GAAP results**, with a detailed reconciliation provided in the financial tables at the end of the press release[15](index=15&type=chunk)[17](index=17&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations is provided for inquiries regarding Iridex Corporation - Philip Taylor of Gilmartin Group serves as the investor relations contact for Iridex Corporation, reachable via **investors@iridex.com**[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and GAAP net loss to Adjusted EBITDA reconciliation [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Unaudited condensed consolidated statements of operations detail revenues, costs, expenses, and net loss for the three and six months ended June 28, 2025, and June 29, 2024 Condensed Consolidated Statements of Operations (Unaudited, In thousands, except per share data) | | Three Months Ended | | | Six Months Ended | | | :-------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | | Total revenues | $ 13,571 | $ 12,631 | $ 25,467 | $ 24,392 | | Cost of revenues | 8,889 | 7,496 | 15,730 | 14,799 | | Gross profit | 4,682 | 5,135 | 9,737 | 9,593 | | Operating expenses: | | | | | | | Research and development | 871 | 1,501 | 1,747 | 3,037 | | Sales and marketing | 2,535 | 3,487 | 4,988 | 7,233 | | General and administrative | 2,216 | 2,785 | 4,147 | 5,253 | | Total operating expenses | 5,622 | 7,773 | 10,882 | 15,523 | | Loss from operations | (940) | (2,638) | (1,145) | (5,930) | | Other expense, net | (33) | (22) | (1,502) | (156) | | Loss from operations before provision for income taxes | (973) | (2,660) | (2,647) | (6,086) | | Provision for income taxes | 21 | 19 | 33 | 57 | | Net loss | $ (994) | $ (2,679) | $ (2,680) | $ (6,143) | | Net loss per share: | | | | | | | Basic | $ (0.06) | $ (0.16) | $ (0.16) | $ (0.38) | | Diluted | $ (0.06) | $ (0.16) | $ (0.16) | $ (0.38) | | Weighted average shares used in computing net loss per common share: | | | | | | | Basic | 16,793 | 16,287 | 16,760 | 16,270 | | Diluted | 16,793 | 16,287 | 16,760 | 16,270 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheets present assets, liabilities, and stockholders' equity as of June 28, 2025, and December 28, 2024 Condensed Consolidated Balance Sheets (In thousands) | | June 28, 2025 | December 28, 2024 | | :------------------------------------ | :-------------- | :---------------- | | ASSETS | | | | Current assets: | | | | Cash and cash equivalents | $ 6,778 | $ 2,387 | | Accounts receivable, net | 10,030 | 8,394 | | Inventories | 8,435 | 10,817 | | Prepaid expenses and other current assets | 1,625 | 1,964 | | Total current assets | 26,868 | 23,562 | | Property and equipment, net | 40 | 115 | | Intangible assets, net | 1,144 | 1,307 | | Goodwill | 965 | 965 | | Operating lease right-of-use assets, net | 1,295 | 1,792 | | Other long-term assets | 1,273 | 1,394 | | Total assets | $ 31,585 | $ 29,135 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current liabilities: | | | | Accounts payable | $ 5,749 | $ 7,594 | | Accrued compensation | 1,861 | 1,672 | | Accrued expenses | 584 | 477 | | Convertible note payable, current | - | 1,734 | | Other current liabilities | 2,101 | 1,812 | | Deferred revenue, current | 2,269 | 2,176 | | Operating lease liabilities, current | 1,145 | 1,094 | | Total current liabilities | 13,709 | 16,559 | | Long-term liabilities: | | | | Deferred revenue | 7,587 | 8,350 | | Operating lease liabilities | 248 | 811 | | Convertible note payable | 3,675 | 1,004 | | Other long-term liabilities | 307 | 314 | | Total liabilities | 25,526 | 27,038 | | Stockholders' equity: | | | | Series B convertible preferred stock | 6,000 | - | | Common stock | 174 | 174 | | Additional paid-in capital | 90,587 | 89,881 | | Accumulated other comprehensive (loss) income | (13) | 51 | | Accumulated deficit | (90,689) | (88,009) | | Total stockholders' equity | 6,059 | 2,097 | | Total liabilities and stockholders' equity | $ 31,585 | $ 29,135 | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) This table provides a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, detailing adjustments for non-cash and non-recurring items Reconciliation of GAAP Net Loss to Adjusted EBITDA (In thousands) | | Three Months Ended | | | Six Months Ended | | | :---------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | | GAAP net loss | $ (994) | $ (2,679) | $ (2,680) | $ (6,143) | | Interest income | (14) | - | (21) | (8) | | Other expense | 48 | 23 | 1,524 | 164 | | Provision for income taxes | 21 | 19 | 33 | 57 | | Nasdaq listing compliance | 152 | - | 152 | - | | Depreciation and amortization | 378 | 369 | 759 | 772 | | Stock-based compensation | 257 | 419 | 470 | 813 | | Severance related expense (for head count reduction) | 173 | 161 | 199 | 189 | | Adjusted EBITDA | $ 21 | $ (1,688) | $ 436 | $ (4,156) | - **Adjusted EBITDA** is calculated by adding back interest income, other expense, provision for income taxes, Nasdaq listing compliance expenses, depreciation and amortization, stock-based compensation, and severance-related expenses to **GAAP net loss**[25](index=25&type=chunk)

Core Insights - Iridex Corporation reported a revenue of $13.6 million for Q2 2025, marking a 7% year-over-year growth and a 14% sequential growth compared to Q1 2025 [4][10] - The company achieved its third consecutive quarter of positive non-GAAP adjusted EBITDA, with an adjusted EBITDA of $21 thousand, an improvement of $1.7 million from a loss of $1.7 million in Q2 2024 [6][10] - Operating expenses were reduced by 28% year-over-year, totaling $5.6 million in Q2 2025, down from $7.8 million in Q2 2024 [6][10] Financial Performance - Revenue growth was primarily driven by increased sales of Pascal systems and medical and surgical retina systems, despite a decrease in surgical retina probe sales [4] - Gross profit for Q2 2025 was $4.7 million, representing a gross margin of 34.5%, down from $5.1 million and a 40.7% gross margin in Q2 2024 [5] - The net loss for Q2 2025 was $1.0 million, or $0.06 per share, compared to a net loss of $2.7 million, or $0.16 per share, in the same period of the prior year [6][10] Product Performance - Revenue from the Cyclo G6 product family was $3.3 million, remaining essentially flat year-over-year, with 13,100 probes sold compared to 15,100 in the prior year quarter [4][10] - Retina product revenue reached $8.0 million, reflecting a 10% year-over-year growth and a 21% sequential growth compared to Q1 2025 [10] Cash Position - As of June 28, 2025, cash and cash equivalents were $6.8 million, a decrease of $0.4 million during the quarter [7][10] Future Outlook - The company aims to achieve cash flow breakeven and positive adjusted EBITDA in 2025, with revenue generation expected to be consistent with 2024 [8]

Core Viewpoint - Iridex Corporation is set to release its financial results for Q2 2025 and provide a business update on August 12, 2025, indicating ongoing developments in the company's operations and financial performance [1]. Company Overview - Iridex Corporation is a leader in the development, manufacturing, and marketing of innovative laser-based medical systems and devices for the ophthalmology market [3]. - The company specializes in products for treating glaucoma and diabetic macular edema (DME), utilizing its proprietary MicroPulse® technology for effective laser treatments [3]. - Iridex's products are distributed in over 100 countries, with sales in the U.S. conducted through a direct sales force and international sales through independent distributors [3]. Upcoming Events - A conference call will be held on August 12, 2025, at 2:00 p.m. PT / 5:00 p.m. ET for investors to discuss the financial results and business updates [2]. - Investors can access the call by dialing +1-888-596-4144 with the passcode 2197032, and a live and recorded webcast will be available on the company's website [2].

Core Insights - Iridex Corporation has announced the successful enrollment of the first patient in the DAME Trial, which aims to evaluate the efficacy, safety, cost-effectiveness, and patient acceptability of adding subthreshold MicroPulse treatments to anti-VEGF therapy for severe diabetic macular edema (DME) [1][2] Company Overview - Iridex Corporation is a leader in developing and marketing innovative laser-based medical systems for ophthalmology, including treatments for glaucoma and retinal diseases [7][8] - The company's proprietary MicroPulse technology minimizes tissue damage while delivering therapeutic benefits, making it a safe and effective treatment option [7] Trial Details - The DAME Trial is an independent, investigator-led study involving at least 20 clinical sites and 264 participants across the UK, focusing on patients with severe DME [2][5] - The trial aims to establish a new treatment pathway by assessing the addition of subthreshold MicroPulse laser therapy after anti-VEGF treatment, specifically when central retinal thickness (CRT) is below 400 μm [2][5] Expected Outcomes - The primary goal of the DAME Trial is to demonstrate equivalence in best-corrected visual acuity outcomes between the two treatment arms over a 24-month period [5] - Secondary outcomes will include quality of life, cost-effectiveness, treatment burden, and patient-reported experiences [5] Significance of the Trial - The DAME Trial could potentially transform the management of DME by reducing the frequency of anti-VEGF injections, thereby lowering associated risks, costs, and patient burden [3][4] - The trial builds on the success of the DIAMONDS study, which previously demonstrated the safety and effectiveness of subthreshold MicroPulse laser treatment for DME [6]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $11,900,000, a slight increase from $11,800,000 in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $400,000, an improvement of $2,900,000 compared to an adjusted EBITDA loss of $2,500,000 in Q1 2024 [9][20] - Net loss for Q1 2025 was $1,700,000 or $0.10 per share, compared to a net loss of $3,500,000 or $0.21 per share in the same period last year [20] Business Line Data and Key Metrics Changes - Revenue from the Cyclo G6 glaucoma product family increased by 8% year over year to $3,200,000, driven by higher probe sales [19] - Retina product revenue decreased by 3% to $6,600,000, primarily due to lower PASCAL system sales, partially offset by higher medical and surgical retina system sales [17][18] - Surgical retina sales exceeded expectations, with notable increases in TX product sales, marking the highest volume since Q3 2023 [12] Market Data and Key Metrics Changes - EMEA remains the most stable revenue generator with strong growth potential in the glaucoma segment [14] - In Asia, regulatory approvals for the IRIDEX PASCAL system are driving strong capital equipment sales, particularly in India and Japan [14] - Latin America is stabilizing with clear growth momentum following the approval of IRIDEX PASCAL systems in key markets [14] Company Strategy and Development Direction - The company is focused on innovation and long-term value creation in partnership with Novel Inspiration, aiming to leverage its global customer base and improve operations [15] - Future strategies include optimizing gross margins and exploring partnerships, distribution agreements, or small acquisitions to expand the product portfolio [16] - The company aims to achieve cash flow breakeven and positive adjusted EBITDA results in 2025, contingent on current conditions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved financial condition and operational efficiency, highlighting the positive trajectory towards profitability [6][23] - The company anticipates minimal direct exposure to new tariff policies due to its manufacturing and sourcing primarily within the United States [22] - Management emphasized the importance of maintaining financial discipline and continuing to reduce costs while driving revenue growth [28] Other Important Information - A strategic investment of $10,000,000 from Novel Inspiration was made in March 2025, strengthening the company's balance sheet [7][21] - The company has implemented significant cost reduction measures, resulting in a decrease in operating expenses from $7,800,000 in Q1 2024 to $5,300,000 in Q1 2025 [20] Q&A Session Summary Question: Impact of tariffs on the company - The company expects minimal direct exposure to recent tariff policies as most products are sourced and manufactured in the U.S., providing a pricing and supply chain advantage [24][25] Question: Product extension discussions with Novel - The company is exploring opportunities to expand its product portfolio through distribution agreements, partnerships, or small acquisitions, supported by Novel [26][27] Question: Change in cash burn and achieving cash flow breakeven - Management confirmed that the company is on track to end cash burn, with a significant reduction in operating expenses and a plan to achieve positive adjusted EBITDA and cash flow breakeven this year [28][29]

Financial Data and Key Metrics Changes - The company reported total revenues of $11,900,000 for Q1 2025, a slight increase from $11,800,000 in Q1 2024 [16] - Adjusted EBITDA for Q1 2025 was $400,000, an improvement of $2,900,000 compared to an adjusted EBITDA loss of $2,500,000 in Q1 2024 [19] - The net loss for Q1 2025 was $1,700,000 or $0.10 per share, compared to a net loss of $3,500,000 or $0.21 per share in the same period last year [19] Business Line Data and Key Metrics Changes - Revenue from the Cyclo G6 glaucoma product family increased by 8% year over year to $3,200,000, driven by higher probe sales [16][18] - Retina product revenue decreased by 3% to $6,600,000, primarily due to lower PASCAL system sales, although medical and surgical retina system sales increased [16][18] - Surgical retina sales exceeded expectations, with notable increases in TX product sales, marking the highest volume since Q3 2023 [12] Market Data and Key Metrics Changes - In the EMEA region, strong growth potential in the glaucoma segment was noted, with robust sales of PASCAL systems driving revenue expansion [13] - In Asia, regulatory approvals for the IRIDEX PASCAL system have led to strong capital equipment sales, particularly in India and Japan [13] - The Latin American market is stabilizing with clear growth momentum following the approval of IRIDEX PASCAL systems in key markets [13] Company Strategy and Development Direction - The company is focused on innovation and long-term value creation in partnership with Novel Inspiration, aiming to leverage its global customer base while improving operations [14] - Future strategies include optimizing gross margins in light of new tariff policies and exploring partnerships, distribution agreements, or small acquisitions to expand the product portfolio [15] - The company aims to achieve cash flow breakeven and positive adjusted EBITDA results in 2025, contingent on maintaining current conditions [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved financial condition and operational efficiency, highlighting the positive indicators in the business [5][7] - The management team emphasized the importance of driving adoption of differentiated glaucoma and retina technology platforms to create shareholder value [22] - The company expects minimal direct exposure to recent tariff policies due to its manufacturing and sourcing strategy primarily within the United States [21] Other Important Information - A strategic investment of $10,000,000 from Novel Inspiration was made in March 2025, strengthening the company's balance sheet [6][20] - The gross profit for Q1 2025 was $5,100,000, with a gross margin of 42.5%, an increase from 37.9% in Q1 2024 [18] Q&A Session Summary Question: Impact of tariffs on the company - The company expects minimal direct exposure to recent tariff policies as most products are sourced and manufactured in the U.S., providing a pricing and supply chain advantage [23][24] Question: Product extension discussions with Novel - The company is exploring opportunities to expand its product portfolio through distribution agreements, partnerships, or small acquisitions, supported by Novel [25][26] Question: Change in cash burn and achieving cash flow breakeven - The company confirmed it is on track to end cash burn, with a net cash used in operating activities of $1,100,000 in Q1 2025, a decrease of 31% compared to the previous year [27][28]

Core Insights - Iridex Corporation reported a return to year-over-year revenue growth and achieved positive adjusted EBITDA for the first two quarters of 2025, indicating a transformation in operations [3][7] - The company aims to achieve cash flow breakeven and positive adjusted EBITDA in 2025, maintaining revenue generation consistent with 2024 [10] Financial Performance - Total revenue for Q1 2025 was $11.9 million, slightly up from $11.8 million in Q1 2024 [4][9] - Retina product revenue decreased by 3% to $6.6 million, while Cyclo G6 Glaucoma product revenue increased by 8% to $3.2 million [4][9] - Gross profit for Q1 2025 was $5.1 million, representing a gross margin of 42.5%, an increase from 37.9% in Q1 2024 [5] - Operating expenses were reduced by 32% to $5.3 million compared to $7.8 million in Q1 2024 [5][9] - The net loss for Q1 2025 was $1.7 million, or $0.10 per share, an improvement from a net loss of $3.5 million, or $0.21 per share, in the same period of the prior year [7][9] Strategic Developments - The company received a strategic investment of $10 million from Novel Inspiration, which helped to strengthen its balance sheet and settle a note payable [8][9] - Iridex is exploring additional partnerships and distribution agreements to leverage its global customer base [3]