Iridex Corporation (NASDAQ:IRIX) announced its second‑quarter results for the period ended July 4, 2026. The company posted a loss of $0.07 per share, compared with the analyst consensus expectation of a $0.02 loss per share. Total revenue for the quarter was $12.6 million, representing a 7% year‑over‑year decline from $13.6 million in the comparable prior‑year quarter and falling short of the $14.13 million estimate compiled by analysts.
Revenue weakness was driven primarily by the retina product line, which generated $6.5 million in sales versus $8.0 million in the prior year period. The decline was attributed to supply‑chain disruptions affecting the Middle East and reduced sell‑through in China. In contrast, the Cyclo G6 glaucoma product family performed strongly, delivering $3.9 million in revenue, a 19% increase over the $3.3 million recorded a year earlier. Probe volume for the Cyclo G6 rose approximately 35%, with 17,700 probes sold in the quarter versus 13,100 in the prior year.
The company reported a gross margin of 34.2%, essentially flat relative to the 34.5% margin recorded in the prior year period. Operating expenses declined 5% to $5.3 million from $5.6 million, mainly due to lower general and administrative costs. Adjusted EBITDA showed a loss of $0.4 million, widening from a modest adjusted EBITDA of $21,000 in the second quarter of 2025. Despite the revenue shortfall, Iridex generated positive operating cash flow for the quarter.
Iridex reaffirmed its full‑year 2026 revenue guidance of $51 million to $53 million, with the midpoint of $52 million aligning with its prior outlook. The company also maintained its expectation for adjusted operating expenses of $19 million to $19.5 million for fiscal year 2026. "Our second quarter results were highlighted by the continued momentum in our glaucoma business and operating positive cash flows," said Patrick Mercer, President and CEO of Iridex. "Our strong performance in glaucoma was offset by a weaker quarter in retina, due primarily to disruptions impacting the Middle East and reduced sell‑through in China."