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]

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]