IRIDEX Reports 1.1% Revenue Growth and Reduced Net Loss in Q1 FY 2025

IRIDEX Corporation reported its financial results for the first quarter of fiscal year 2025, revealing total revenues of $11.9 million, a slight increase of 1.1% compared to $11.8 million in the same period last year. The company achieved a gross profit of $5.1 million, up from $4.5 million, resulting in a gross margin of 42.5%, an improvement from 37.9% in the prior year. Despite the revenue growth, IRIDEX recorded a net loss of $1.7 million, a reduction from a net loss of $3.5 million in the first quarter of 2024. The loss per share was $0.10, compared to $0.21 in the previous year.

The company noted significant changes in its operating expenses, which decreased to $5.3 million from $7.8 million year-over-year. This reduction was attributed to cost-saving measures, including workforce reductions and lower spending on sales and marketing initiatives. Research and development expenses also saw a notable decline of 43% to $0.9 million, reflecting a strategic shift in investment priorities. The decrease in operating expenses contributed to a loss from operations of $0.2 million, a significant improvement from a loss of $3.3 million in the prior year.

In terms of operational developments, IRIDEX reported a total of 16,789,027 shares of common stock outstanding as of May 8, 2025. The company continues to rely on its strategic partnership with Topcon Corporation, which accounted for approximately 30% of total revenues during the quarter. The company’s product lines, particularly the Cyclo G6 laser system, showed growth, with revenues from this segment increasing by 7.7% to $3.2 million. However, revenues from the retina product line decreased slightly, indicating mixed performance across its offerings.

Looking ahead, IRIDEX remains cautious about the macroeconomic environment, which includes inflation concerns and geopolitical uncertainties that could impact capital equipment purchasing decisions. The company has expressed optimism about its ability to maintain and expand its customer base, particularly through its innovative product offerings and strategic partnerships. Management believes that existing cash reserves of $7.2 million will be sufficient to meet anticipated cash needs over the next 12 months, while also planning for potential future financing to support growth initiatives.