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IRIX Stock Analysis 2026 - IRIDEX CORP AI Rating

IRIX Nasdaq Electromedical & Electrotherapeutic Apparatus DE CIK: 0001006045
Recently Updated • Analysis: Mar 29, 2026 • SEC Data: 2025-09-27
SELL
85% Conf
Pending
Analysis scheduled

📊 IRIX Key Takeaways

Revenue: $38.0M
Net Margin: -11.2%
Free Cash Flow: $-2.7M
Current Ratio: 1.94x
Debt/Equity: 0.21x
EPS: $-0.25
AI Rating: SELL with 85% confidence

Is IRIX a Good Investment? Thesis Analysis

Claude

IRIX is experiencing deteriorating operational performance with negative operating income, negative free cash flow, and declining revenue despite reasonable liquidity. The company is burning cash operationally while maintaining a modest equity base, creating significant downside risk if losses persist.

Why Buy IRIX? Key Strengths

Claude
  • + Adequate gross margin of 36.2% indicates viable underlying product economics
  • + Strong liquidity position with 1.94x current ratio and $5.6M cash provides runway
  • + Conservative debt structure with 0.21x debt-to-equity ratio limits financial distress risk

IRIX Investment Risks to Consider

Claude
  • ! Negative operating income of -$2.6M and negative net margin of -11.2% show structural unprofitability
  • ! Operating cash flow of -$2.7M indicates the business is not self-sustaining and burning capital
  • ! Revenue declining 6.2% YoY combined with losses suggests loss of market share or demand weakness
  • ! Negative ROE of -90.9% and ROA of -15.0% demonstrate poor capital utilization and value destruction
  • ! Interest coverage of -17.5x reflects inability to service debt from operations

Key Metrics to Watch

Claude
  • * Operating cash flow trend and path to positive FCF
  • * Revenue stabilization and return to growth
  • * Operating margin recovery toward breakeven
  • * Cash burn rate and runway remaining at current burn rate

IRIX Financial Metrics

Revenue
$38.0M
Net Income
$-4.3M
EPS (Diluted)
$-0.25
Free Cash Flow
$-2.7M
Total Assets
$28.4M
Cash Position
$5.6M

💡 AI Analyst Insight

IRIDEX CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

IRIX Profitability Ratios

Gross Margin 36.2%
Operating Margin -6.7%
Net Margin -11.2%
ROE -90.9%
ROA -15.0%
FCF Margin -7.2%

IRIX vs Healthcare Sector

How IRIDEX CORP compares to Healthcare sector averages

Net Margin
IRIX -11.2%
vs
Sector Avg 12.0%
IRIX Sector
ROE
IRIX -90.9%
vs
Sector Avg 15.0%
IRIX Sector
Current Ratio
IRIX 1.9x
vs
Sector Avg 2.0x
IRIX Sector
Debt/Equity
IRIX 0.2x
vs
Sector Avg 0.6x
IRIX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is IRIX Overvalued or Undervalued?

Based on fundamental analysis, IRIDEX CORP has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
-90.9%
Sector avg: 15%
Net Profit Margin
-11.2%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.21x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

IRIX Balance Sheet & Liquidity

Current Ratio
1.94x
Quick Ratio
1.35x
Debt/Equity
0.21x
Debt/Assets
83.5%
Interest Coverage
-17.51x
Long-term Debt
$1.0M

IRIX 5-Year Financial Trend & Growth Analysis

IRIX 5-year financial data: Year 2019: Revenue $43.4M, Net Income -$12.8M, EPS $-1.05. Year 2021: Revenue $53.9M, Net Income -$8.8M, EPS $-0.64. Year 2022: Revenue $57.0M, Net Income -$5.2M, EPS $-0.34. Year 2023: Revenue $57.0M, Net Income -$7.5M, EPS $-0.47. Year 2024: Revenue $51.9M, Net Income -$9.6M, EPS $-0.59.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: IRIDEX CORP's revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.59 indicates the company is currently unprofitable.

IRIX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-7.2%
Free cash flow / Revenue

IRIX Quarterly Performance

Quarterly financial performance data for IRIDEX CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $11.6M -$1.6M $-0.09
Q2 2025 $12.6M -$994.0K $-0.06
Q1 2025 $11.8M -$1.7M $-0.10
Q3 2024 $11.6M -$1.8M $-0.11
Q2 2024 $12.6M -$2.7M $-0.16
Q1 2024 $11.8M -$2.1M $-0.13
Q3 2023 $12.9M -$1.8M $-0.11
Q2 2023 $12.9M -$2.2M $-0.14

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

IRIX Capital Allocation

Operating Cash Flow
-$2.7M
Cash generated from operations
Stock Buybacks
$59.0K
Shares repurchased (TTM)
Capital Expenditures
$37.0K
Investment in assets
Dividends
None
No dividend program

IRIX SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for IRIDEX CORP (CIK: 0001006045)

📋 Recent SEC Filings

Date Form Document Action
Mar 26, 2026 8-K irix-20260326.htm View →
Mar 13, 2026 8-K irix-20260309.htm View →
Mar 9, 2026 4 xslF345X05/ownership.xml View →
Feb 17, 2026 4 xslF345X05/ownership.xml View →
Feb 12, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about IRIX

What is the AI rating for IRIX?

IRIDEX CORP (IRIX) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are IRIX's key strengths?

Claude: Adequate gross margin of 36.2% indicates viable underlying product economics. Strong liquidity position with 1.94x current ratio and $5.6M cash provides runway.

What are the risks of investing in IRIX?

Claude: Negative operating income of -$2.6M and negative net margin of -11.2% show structural unprofitability. Operating cash flow of -$2.7M indicates the business is not self-sustaining and burning capital.

What is IRIX's revenue and growth?

IRIDEX CORP reported revenue of $38.0M.

Does IRIX pay dividends?

IRIDEX CORP does not currently pay dividends.

Where can I find IRIX SEC filings?

Official SEC filings for IRIDEX CORP (CIK: 0001006045) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is IRIX's EPS?

IRIDEX CORP has a diluted EPS of $-0.25.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is IRIX a good stock to buy right now?

Based on our AI fundamental analysis in March 2026, IRIDEX CORP has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is IRIX stock overvalued or undervalued?

Valuation metrics for IRIX: ROE of -90.9% (sector avg: 15%), net margin of -11.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy IRIX stock in 2026?

Our dual AI analysis gives IRIDEX CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is IRIX's free cash flow?

IRIDEX CORP's operating cash flow is $-2.7M, with capital expenditures of $37.0K. FCF margin is -7.2%.

How does IRIX compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -11.2% (avg: 12%), ROE -90.9% (avg: 15%), current ratio 1.94 (avg: 2).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 29, 2026 | Data as of: 2025-09-27 | Powered by Claude AI