Iridex Corporation reported fourth‑quarter revenue of $14.7 million, a 16% year‑over‑year increase, but the figure fell short of the $15.0 million consensus estimate, marking a $0.3 million miss. Full‑year revenue rose 8% to $52.7 million, driven by strong demand in its glaucoma and retina businesses, yet the company still reported a net loss of $4.4 million for 2025.
The company’s first‑time positive adjusted EBITDA of $1.1 million signals a turnaround, but gross margin contracted from 40% to 37% due to inventory write‑downs, higher manufacturing costs, tariff‑related product cost increases, and lower capitalization of overhead. The net loss margin widened, reflecting the impact of these cost pressures even as operating efficiency improved.
Management guided 2026 sales to $51 million–$53 million, a 1%–5% increase from 2025 on a pro‑forma basis that excludes Middle East revenue. The guidance sits below the $57.7 million consensus estimate, underscoring a cautious outlook amid geopolitical headwinds and margin compression.
"2025 was a transformational year for Iridex, we grew revenue, reduced operating expenses, and achieved positive adjusted EBITDA for the first time in recent company history. I am proud to announce that our fourth quarter was our strongest of the year, with momentum across both our glaucoma and retina businesses driving cash flow positive operations. As we enter 2026, we have a growing installed base of systems, manufacturing efficiency initiatives underway and leaner cost structure, that position us to build on our 2025 progress and drive sustainable profitability," said President and CEO Patrick Mercer.
Investors reacted with caution: the revenue miss, margin pressure, and conservative 2026 guidance tempered enthusiasm, even as the first‑time positive adjusted EBITDA and management’s confidence in cost‑control initiatives suggested a potential path to profitability.
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