Iridex (NASDAQ:IRIX) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below.
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Summary
Iridex reported flat revenue of $11.8 million for Q1 2026, aligning with guidance despite international supply chain and regulatory challenges.
The Glaucoma segment, particularly the G6 platform, showed strong performance with a 14% year-over-year increase in probe sales, despite flat system sales.
Operational improvements included cost reductions and strategic relocations, with expectations to complete manufacturing transitions by 2027 to enhance margins.
The company reaffirmed its 2026 revenue guidance of $51 million to $53 million, excluding Middle East contributions, indicating a 1-5% pro forma growth.
Management highlighted strategic partnerships, such as with IPRO GPO, to expand market reach and enhance sales of retina laser systems.
Full Transcript
OPERATOR
Thank you for standing by and welcome to IRIDEX First Quarter 2026 Earnings Conference Call. I’d like to remind everyone that this call is being recorded and all lines have been placed in mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star followed by the number one on your telephone keypad. If you would like to withdraw your question, press Star one again. Thank you. I would now like to turn the call over to Trip Taylor, Investor Relations. Please go ahead.
Trip Taylor (Investor Relations)
Thank you and thank you all for participating in today’s call. Joining me from the company are Patrick Mercer, Iridex Chief Executive Officer, and Romeo Dezon, the Company’s Chief Financial Officer. Earlier today, Iridex released financial results for the quarter ended April 4, 2026. A copy of the press release is available on the Company’s website. Before we begin, I’d like to remind you that management will make statements during this call that include forward looking statements within the meaning of federal securities laws which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements made during this call that are not statements of historical fact, including but not limited to statements concerning our strategic goals and priorities, products and development matters, sales trends and the markets in which we operate. All forward looking statements are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements. Accordingly, you should not place reliance on these statements for a discussion of the risks and uncertainties associated with our business, please see our most recent Form 10-K and Form 10-Q filings with the SEC. IRIDEX disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise. This conference call contains time sensitive information and is accurate only as of the live broadcast today, May 19, 2026.. And with that, I’ll turn the call over to Patrick.
Patrick Mercer (Chief Executive Officer)
Good afternoon everyone and thank you for joining us. I am pleased to share our first quarter results and the continued progress we’re making as we build on the positive momentum we delivered throughout last year. For context, before diving into the first quarter, I want to highlight some of the significant milestones we achieved last year. In 2025, we delivered positive adjusted EBITDA for the first time in the Company’s recent history and we also achieved positive cash flow from operations in Q4. These achievements represent a fundamental shift in Iridex’s financial profile and reflect the hard work completed to reposition the business for sustainable profitability going forward. As a result of this work and our solid start to the year, we remain on track to be cash flow positive in 2026. We executed according to plan in the first quarter despite several anticipated headwinds including the Iran conflict, temporary supply chain constraints and extended timelines associated with certain regulatory approvals. Against this backdrop, we delivered revenue of 11.8 million essentially flat year over year and above the guidance communicated on our last earnings call. Our Highest margin business, G6 Probes was a clear bright spot during the quarter. Continued growth and adoption of our glaucoma solution underscore the strength of our clinical value proposition and the loyalty physicians have to the G6 platform. Internationally, we operated in a challenging environment with supply disruptions, regulatory delays and geopolitical volatility, particularly impacting revenue in Asia and the Middle East. Importantly, underlying demand remains solid and we believe revenue and earnings would have been higher had we been able to fulfill certain orders that were backlogged at the end of the quarter. Looking ahead, supply chain conditions and regulatory processes are improving and we continue to actively manage through these dynamics. As a result, we believe some of the timing relating impacts that affected our first quarter performance represent incremental revenue opportunities for the balance of the year. On the operations front, we again reduced our operating expense compared to the prior year period as we continue to drive efficiencies across the organization. We are pleased to report that the relocation of certain general and administrative functions out of California again delivering quarterly savings starting in the first quarter 2026. We also remain on schedule to relocate our headquarters later this year which is expected to reduce our fixed cost base by approximately 600,000 on an annualized basis. Additionally, our multi year initiative to transition production to lower cost third party contract manufacturers is underway with meaningful transfers initiated in the first quarter. Full implementation is expected to be completed in 2027 and this transition will drive gross margin improvement as we progress through the year and into next year. Turning now to our commercial performance in the first quarter, starting with our glaucoma business. In total in the first quarter we sold 15,500 pros versus 13,900 in the prior year period. This represented growth in the competitive glaucoma market which is a testament to the strength of our value proposition and physician loyalty to the G6 platform. Utilizing MedScout to target G6 adopters with average utilization continues to be our most effective strategy. Our MedScout platform continues to be a valuable tool for targeted outreach. Here we are focused on two groups. The first are those who already have G6 systems and are average users and the second are high volume facilities that do not currently perform micropulse procedures. With the mid-utilization accounts, we focus on education, working with physicians to expand their patient selection criteria to treat patients earlier in the glaucoma severity continuum. With the second group, the focus is also on education with particular focus on the efficacy of those patients who have already had a mixed procedure. Speaking of mix, the Medicare LCDs introduced last year are creating tailwinds for us including expanding our target segments and supporting earlier adoption of G6 therapy for both the mild to moderate and post migs glaucoma patients. Combined with our updated sweep speed procedural techniques and clinical data demonstrating the IOP lowering efficacy of the procedure, we believe we are well positioned to drive sustainable growth in this business throughout 2026. Pricing discipline also supported our the first quarter performance as RASP increases on both probes and systems in the US …
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