Revenue and Growth - Revenue for Q3 2025 was $12.5 million, an 8% increase year-over-year from $11.6 million in Q3 2024[4] - Total product revenue from the Cyclo G6 product family was $3.5 million, representing a 13% year-over-year growth compared to $3.1 million in the prior year quarter[4] - Cyclo G6 probes sold increased to 14,900 compared to 13,600 in the prior year quarter[5] Expenses and Losses - Operating expenses decreased by 12% to $5.4 million in Q3 2025, down from $6.2 million in Q3 2024[6] - Net loss for Q3 2025 was $1.6 million, or $0.09 per share, an improvement from a net loss of $1.9 million, or $0.12 per share, in the same period of the prior year[7] - Non-GAAP adjusted EBITDA for Q3 2025 was a loss of $131 thousand, an improvement of $1.3 million compared to a loss of $1.4 million in Q3 2024[7] - GAAP net loss for Q3 2025 was $1,573 million, compared to a loss of $1,933 million in Q3 2024, showing an improvement of 18.6%[26] - Adjusted EBITDA for Q3 2025 was a loss of $131 million, significantly better than the loss of $1,362 million in Q3 2024[26] - For the nine months ended September 27, 2025, GAAP net loss was $4,253 million, down from $8,076 million in the same period of 2024, indicating a 47.4% reduction[26] Cash and Assets - Cash and cash equivalents as of September 27, 2025, were $5.6 million, a reduction of $1.2 million during the quarter[5] - Total assets as of September 27, 2025, were $28.4 million, a decrease from $29.1 million at the end of 2024[24] Inventory and Write-downs - Inventory write-downs amounted to $823 million for both Q3 2025 and the nine months ended September 27, 2025, with no write-downs reported in the same periods of 2024[26] Other Financial Metrics - Stock-based compensation expenses were $92 million in Q3 2025, down from $114 million in Q3 2024, reflecting a decrease of 19.3%[26] - Depreciation and amortization expenses increased to $366 million in Q3 2025 from $275 million in Q3 2024, representing a rise of 32.9%[26] - Interest income for Q3 2025 was $10 million, compared to $5 million in Q3 2024, marking a 100% increase[26] - Other expenses rose to $167 million in Q3 2025 from $51 million in Q3 2024, indicating a significant increase of 227.5%[26] - Provision for income taxes decreased to $4 million in Q3 2025 from $17 million in Q3 2024, a decline of 76.5%[26] - Nasdaq listing compliance expenses were $152 million for the nine months ended September 27, 2025, with no expenses reported in the same period of 2024[26] Future Outlook - The company expects to achieve cash flow breakeven in Q4 2025 and positive adjusted EBITDA for the full year 2025[8]

Core Viewpoint - IRIDEX reported its financial results for the third quarter of 2025, highlighting key performance metrics and strategic insights from the management team [2]. Financial Results - The earnings conference call was held to discuss the financial results for the quarter ended September 27, 2025 [2]. - The press release containing detailed financial results is available on the company's website [2]. Management Insights - The call featured insights from IRIDEX's CEO Patrick Mercer and CFO Romeo Dizon, emphasizing the company's strategic goals and priorities [2]. - Management will provide forward-looking statements regarding product development, sales trends, and market conditions during the call [3]. Forward-Looking Statements - All forward-looking statements are based on current estimates and various assumptions, which involve material risks and uncertainties [4]. - Actual results may differ significantly from those anticipated in the forward-looking statements due to these risks [4].

Financial Data and Key Metrics Changes - The company achieved strong year-over-year revenue growth of 8%, with total revenues for Q3 2025 reaching $12.5 million [5][14] - Operating expenses were reduced by 12% to $5.4 million compared to $6.2 million in Q3 2024, contributing to improved financial performance [5][18] - Adjusted EBITDA improved by $1.3 million, resulting in a loss of $131,000 for Q3 2025, compared to a loss of $1.4 million in the prior year [5][18] - Cash and cash equivalents totaled $5.6 million at the end of Q3 2025, a decrease of $1.2 million from the previous quarter [18] Business Line Data and Key Metrics Changes - The glaucoma product line saw a revenue increase of 13% year-over-year, totaling $3.5 million [15] - Retina product revenue increased by 4% to $6.7 million, driven by higher Pascal system sales, despite a decrease in surgical retina probe sales [15] - CycloG6 system sales increased to 30 units from 26 in the prior year, indicating strong demand and utilization [9] Market Data and Key Metrics Changes - International glaucoma performance was strong, particularly in Europe, the Middle East, and Africa, with positive contributions across geography [10] - The Asia market faced challenges due to macro factors, including a tariff dispute with China and currency fluctuations affecting Japan [10][12] - Latin America and Canada showed improved momentum following the appointment of new distributors [11] Company Strategy and Development Direction - The company is focused on streamlining operations and advancing towards profitability, with a goal of achieving cash flow positive operations in 2026 [4][20] - Cost reduction programs implemented in late 2024 have significantly lowered operating expenses and improved the financial position [5][18] - The company is negotiating with contract manufacturers to reduce the cost of goods sold and enhance gross margins [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flows in Q4 2025 and positive adjusted EBITDA for the full year [4][19] - The company remains committed to cost discipline and improving financial performance, with expectations of sustained cash flow positivity [20] - Management acknowledged the challenges in the Asia market but noted solid underlying demand for products [12] Other Important Information - A one-time inventory write-down impacted gross profit, but excluding this charge, gross margin would have improved to 38.7% [16][18] - The company is relocating certain administrative functions to generate savings, expected to be approximately $165,000 quarterly starting Q1 2026 [6] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Core Insights - Iridex Corporation reported a strong financial performance for Q3 2025, achieving year-over-year revenue growth for the fourth consecutive quarter, driven by sales of the G6 probe and Pascal retina laser system [3][4] - The company expects to maintain improved financial performance, aiming for adjusted EBITDA positivity for the full year 2025 and sustained cash flow positivity [3][8] Financial Highlights - Total revenue for Q3 2025 was $12.5 million, an 8% increase from $11.6 million in Q3 2024, primarily due to higher sales of glaucoma probes and Pascal systems [4][9] - Revenue from the Cyclo G6 product family reached $3.5 million, a 13% increase from $3.1 million in the prior year quarter [4][9] - Gross profit was $4.0 million with a gross margin of 32.1%, down from $4.3 million and 37.3% in the previous year, impacted by a one-time inventory write-down [5][9] Operating Expenses and Losses - Operating expenses decreased by 12% to $5.4 million in Q3 2025 from $6.2 million in Q3 2024, due to cost reduction measures [6][9] - The net loss for Q3 2025 was $1.6 million, or $0.09 per share, an improvement from a net loss of $1.9 million, or $0.12 per share, in the same period last year [6][9] Cash Flow and Outlook - Non-GAAP adjusted EBITDA for Q3 2025 was a loss of $131 thousand, an improvement of $1.3 million compared to a loss of $1.4 million in Q3 2024 [7][9] - Cash and cash equivalents as of September 27, 2025, were $5.6 million, a decrease of $1.2 million during the quarter [7][9] - The company plans to achieve cash flow breakeven in Q4 2025 and positive adjusted EBITDA for the full year [8]

Core Viewpoint - Iridex Corporation is set to release its financial results for Q3 2025 on November 11, 2025, along with a business update [1]. Company Overview - Iridex Corporation is a leader in developing, manufacturing, and marketing laser-based medical systems and devices for the ophthalmology market [3]. - The company specializes in innovative technologies, particularly its proprietary MicroPulse technology, which offers safe and effective treatments for eye conditions [3]. - Iridex's products are utilized for treating glaucoma, diabetic macular edema (DME), and other retinal diseases, and are distributed in over 100 countries [3]. Conference Call Details - A conference call will be held on November 11, 2025, at 2:00 p.m. PT / 5:00 p.m. ET for investors to discuss the financial results [2]. - Investors can join the call by dialing specific numbers and using a provided Conference ID [2].

Core Points - Iridex has received formal notice from Nasdaq confirming compliance with continued listing standards [1] Company Summary - Iridex is an ophthalmic medical technology company [1] - The company is listed on Nasdaq under the ticker symbol IRIX [1]

Core Points - Iridex Corporation has received formal notice from Nasdaq confirming compliance with continued listing requirements [1] - The company had previously been notified of non-compliance due to insufficient stockholders' equity as reported in its quarterly filing [2] - Iridex regained compliance by meeting the minimum stockholders' equity requirement of $2,500,000 based on its quarterly report [3] Company Overview - Iridex Corporation is a leader in developing and marketing laser-based medical systems and devices for ophthalmology [4] - The company's proprietary MicroPulse technology offers effective treatment for eye conditions such as glaucoma and diabetic macular edema [4] - Iridex products are distributed in over 100 countries, with sales in the U.S. through a direct sales force and internationally via independent distributors [4]

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]