IRIDEX Reports 7.4% Revenue Growth in Q2 2025, Net Loss Improves

IRIDEX Corporation reported its financial results for the second quarter of fiscal year 2025, revealing total revenues of $13.6 million, a 7.4% increase from $12.6 million in the same period last year. For the six months ended June 28, 2025, revenues reached $25.5 million, up 4.4% from $24.4 million in the prior year. The increase in revenue was primarily driven by growth in the retina product line, which saw a 10.3% rise in sales, while the glaucoma product line experienced a slight decline.

Despite the revenue growth, the company reported a net loss of $994,000 for the second quarter, an improvement from a loss of $2.7 million in the same quarter of the previous year. The loss per share for the quarter was $0.06, compared to $0.16 in the prior year. For the first half of the fiscal year, the net loss was $2.7 million, down from $6.1 million in the same period last year. The reduction in losses was attributed to cost-saving measures that led to decreased operating expenses, particularly in research and development, sales and marketing, and general administrative costs.

IRIDEX has made significant strategic moves, including the issuance of 600,000 shares of Series B convertible preferred stock and a convertible promissory note totaling $4 million. These actions were part of a broader financing strategy to bolster liquidity, which as of June 28, 2025, stood at $6.8 million in cash and cash equivalents, up from $2.4 million at the end of the previous fiscal year. The company also reported a working capital increase to $13.2 million, reflecting improved financial health.

Operationally, IRIDEX has focused on enhancing its product offerings and expanding its market reach. The company continues to rely on its partnership with Topcon Corporation, which accounted for approximately 32% of total revenues in both the current and prior year periods. The company’s product lines, including the Cyclo G6 and various retina systems, are marketed primarily in the U.S. and Germany through a direct sales force, while international sales are facilitated through distributors.

Looking ahead, IRIDEX remains cautious about the macroeconomic environment, which includes inflationary pressures and geopolitical uncertainties that could impact capital spending in healthcare. The company anticipates that these factors may prolong purchase decision cycles among customers. Nonetheless, management believes that existing cash reserves will be sufficient to meet operational needs over the next 12 months, while also planning for potential growth through new product introductions and expanded sales capabilities.