Liquidity remains a primary concern as the company recorded negative free cash flow in nine of the last ten quarters, including a $1.4M outflow in 2026Q1.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -2.3M | -2.12M | -7.29M | -6.75M | -9.52M | 8.22M | -3.24M | -7.91M | -10.03M | -3.56M | -144K | -593K | 4.01M | 767K | -443K | 3.05M | 3.48M | 6.8M | -96K | -522K | -1.39M | 2.77M | 771K | 5.1M | 2.52M | -3.63M | -74K | 2.86M | -2M | -100K | -1.3M |
| Operating CF Margin % | - | -4.02% | -14.97% | -13% | -16.71% | 15.24% | -8.91% | -18.21% | -23.53% | -8.57% | -0.31% | -1.42% | 9.38% | 2% | -1.31% | 9.19% | 7.96% | 15.73% | -0.2% | -0.94% | -3.86% | 7.48% | 2.35% | 16.1% | 8.22% | -13.33% | -0.22% | 10.69% | -8.47% | -0.55% | -10.48% |
| Operating CF Growth % | 263.77% | 70.97% | -8.01% | 29.14% | -215.85% | 353.85% | 59.09% | 21.07% | -181.21% | -2375.69% | 75.72% | -114.77% | 423.34% | 273.14% | -114.53% | -12.39% | -48.82% | 7181.25% | 81.61% | 62.31% | -150% | 259.27% | -84.89% | 102.58% | 169.3% | -4812.16% | -102.59% | 243.1% | -1900% | 92.31% | -244.44% |
| Net Income | -3.27M | -4.44M | -8.91M | -9.57M | -7.55M | -5.22M | -6.33M | -8.81M | -12.81M | -12.87M | -11.71M | 474K | 10.04M | 2.23M | -170K | 2.14M | 3.05M | 2.58M | -7.37M | -22.27M | -5.75M | 1.67M | -402K | 371K | 150K | -1.27M | 2.42M | 1.62M | 1.7M | 2.1M | 1M |
| Depreciation & Amortization | 1.54M | 1.55M | 1.42M | 2.03M | 1.38M | 1.71M | 504K | 688K | 809K | 858K | 648K | 522K | 420K | 490K | 427K | 410K | 515K | 899K | 3.22M | 3.82M | 542K | 435K | 384K | 703K | 869K | 859K | 893K | 817K | 700K | 400K | 200K |
| Stock-Based Compensation | 562K | 775K | 1.24M | 1.65M | 1.62M | 1.63M | 1.12M | 1.7M | 1.8M | 1.92M | 1.82M | 895K | 972K | 689K | 388K | 478K | 551K | 360K | 322K | 1.23M | 1.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K | -140K | 8.98M | -209K | -8.78M | 61K | 728K | 741K | 1K | 350K | 5.59M | -1.23M | 2.49M | 585K | -579K | -220K | -343K | -332K | -74K | -846K | -100K | 0 | 0 |
| Other Non-Cash Items | 1.16M | 2.38M | 328K | 0 | 187K | -2.46M | 198K | 74K | 149K | 260K | 337K | 67K | 1.31M | 355K | 215K | 280K | -3K | -12K | 1.65M | 19.08M | -155K | 626K | 1.07M | -205K | 79K | 552K | 424K | 261K | 0 | 300K | 0 |
| Working Capital Changes | -2.28M | -2.38M | -1.37M | -857K | -5.16M | 12.56M | 1.27M | -1.56M | 23K | 6.4M | -222K | -2.34M | 52K | -3.06M | -2.03M | -1M | -631K | 2.62M | -3.51M | -1.15M | -323K | -547K | 298K | 4.45M | 1.76M | -3.44M | -3.73M | 1.01M | -4.3M | -2.9M | -2.5M |
| Change in Receivables | 970K | -1.15M | 1.26M | 358K | -237K | -2.47M | 1.86M | -271K | -1.16M | 2.16M | -865K | -1.01M | -1.08M | -1.93M | 38K | -82K | -44K | 591K | 469K | 2.21M | 396K | 683K | -1.23M | 1.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -6K | 2.12M | -911K | 644K | -3.02M | 268K | 2.38M | 545K | 463K | 2.09M | -537K | -1.99M | 1.49M | -2.51M | -1.38M | -981K | -210K | 2.78M | 2.88M | -6.68M | -609K | -436K | -895K | 2.07M | 1.71M | -3.18M | -2.75M | -944K | -2.5M | -2.1M | -600K |
| Change in Payables | -295K | -1.95M | 2.49M | 641K | 1.09M | 1.63M | -1.45M | 76K | 788K | -270K | -229K | 465K | -520K | 173K | 525K | 66K | 109K | -543K | -472K | 282K | -274K | -139K | 204K | 372K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -233K | -143K | -13K | -109K | -286K | -5.56M | -93K | -509K | -827K | -782K | -1.47M | -1.3M | -1.03M | -253K | 3.91M | -278K | -418K | -232K | -223K | -26.48M | 8.23M | -1.46M | -2.32M | -4M | 1.85M | -1.99M | -133K | 982K | -2.4M | -4.4M | -10.8M |
| Capital Expenditures | -151K | -143K | -13K | -109K | -286K | -213K | -97K | -128K | -440K | -575K | -1.06M | -875K | -568K | -380K | -394K | -203K | -193K | -232K | 0 | -947K | -515K | -340K | -386K | -603K | -284K | -491K | -652K | -591K | -800K | -1.8M | -600K |
| CapEx % of Revenue | 0.29% | 0.27% | 0.03% | 0.21% | 0.5% | 0.4% | 0.27% | 0.29% | 1.03% | 1.38% | 2.3% | 2.1% | 1.33% | 0.99% | 1.16% | 0.61% | 0.44% | 0.54% | - | 1.71% | 1.43% | 0.92% | 1.18% | 1.9% | 0.93% | 1.8% | 1.95% | 2.21% | 3.39% | 9.94% | 4.84% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -5.34M | 0 | 0 | -387K | -382K | -406K | -423K | -459K | -383K | 0 | -75K | 0 | 0 | 0 | -25.53M | -60K | 340K | 386K | 603K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -82K | 0 | 0 | 0 | 0 | 0 | 4K | -381K | -387K | -207K | -406K | -423K | -459K | 127K | 4.3M | 0 | -225K | -223K | -223K | -947K | -515K | -340K | -386K | -603K | 0 | 0 | 0 | 0 | -100K | 0 | -100K |
| Cash from Financing | -76K | 5.96M | 2.6M | -5K | -73K | 9.47M | 2.47M | -156K | 10.38M | 2.31M | 15.36M | -1.42M | -3.13M | 1.03M | -2.39M | -327K | -3.43M | -2.48M | -79K | 11.85M | 1.55M | 968K | 1.39M | 254K | 205K | 241K | 560K | 10K | 200K | 300K | 15.8M |
| Debt Issued (Net) | -4M | 39K | -218K | 0 | 0 | 0 | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.52M | -2.48M | -3.88M | 9.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | -7K | 0 |
| Equity Issued (Net) | 0 | 6M | 3.37M | 82K | 21K | 9.88M | 0 | 0 | 10.47M | 2.26M | 14.75M | -1.56M | -4.67M | -426K | -2.83M | -648K | 0 | 5K | 0 | 5.77M | 1.55M | 968K | 1.39M | 269K | 205K | 241K | 560K | 10K | 248K | 306K | 15.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -59K | -1.56M | -4.67M | -426K | -2.83M | -648K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -115K | 0 | -315K | 0 | 0 | 0 |
| Other Financing | 3.92M | -75K | -547K | -87K | -94K | -412K | -30K | -156K | -96K | 44K | 610K | 146K | 1.54M | 1.46M | 445K | 321K | 88K | 0 | 3.8M | -3.8M | 0 | 0 | 0 | -15K | 0 | 0 | 0 | 0 | -45K | 1K | 0 |
| Net Change in Cash | -2.65M | 3.64M | -4.65M | -6.89M | -9.93M | 12.23M | -1.03M | -8.54M | -513K | -2.04M | 13.75M | -3.31M | -141K | 1.54M | 1.11M | 2.44M | -364K | 4.07M | -502K | -15.24M | 8.4M | 2.27M | -160K | 1.35M | 4.57M | -5.38M | 353K | 3.85M | 200K | 300K | 15.8M |
| Free Cash Flow | -2.45M | -2.26M | -7.3M | -6.85M | -9.8M | 8M | -3.33M | -8.04M | -10.46M | -4.14M | -1.21M | -1.47M | 3.45M | 387K | -837K | 2.85M | 3.29M | 6.57M | -96K | -1.47M | -1.9M | 2.43M | 385K | 4.5M | 2.23M | -4.13M | -726K | 2.27M | -2.8M | -1.9M | -1.9M |
| FCF Margin % | -4.66% | -4.29% | -15% | -13.21% | -17.21% | 14.85% | -9.17% | -18.51% | -24.57% | -9.95% | -2.61% | -3.52% | 8.05% | 1.01% | -2.47% | 8.58% | 7.52% | 15.19% | -0.2% | -2.65% | -5.29% | 6.56% | 1.17% | 14.2% | 7.3% | -15.13% | -2.17% | 8.49% | -11.86% | -10.5% | -15.32% |
| FCF Growth % | 63.98% | 69.06% | -6.48% | 30.1% | -222.5% | 340.07% | 58.54% | 23.16% | -152.78% | -243.28% | 17.85% | -142.6% | 790.44% | 146.24% | -129.42% | -13.42% | -49.95% | 6939.58% | 93.46% | 22.68% | -178.19% | 531.17% | -91.44% | 101.34% | 154.17% | -468.32% | -131.97% | 181.11% | -47.37% | 0% | -371.43% |
| FCF per Share | -0.14 | -0.13 | -0.44 | -0.42 | -0.62 | 0.52 | -0.24 | -0.59 | -0.86 | -0.36 | -0.12 | -0.14 | 0.33 | 0.04 | -0.09 | 0.28 | 0.32 | 0.73 | -0.01 | -0.18 | -0.25 | 0.31 | 0.05 | 0.61 | 0.32 | -0.61 | -0.10 | 0.33 | -0.41 | -0.28 | -0.30 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.48x | 0.82x | 0.70x | 1.26x | -1.57x | 0.51x | 0.90x | 0.78x | 0.28x | 0.01x | -1.25x | 0.40x | 0.34x | -0.31x | 1.17x | 1.14x | 2.63x | 0.01x | 0.02x | 0.24x | 1.66x | -1.92x | 13.75x | 16.79x | 2.86x | -0.03x | 1.77x | -1.18x | -0.05x | -1.30x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 57K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 15K | 0 | 0 | 15K | 0 | 14K | 13K | 7K | 22K | 27K | 35K | 0 | 0 | 522K | 439K | 160K | 20K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent cash burn risk
According to recent quarterly filings, IRIDEX consistently reports net losses that are frequently exacerbated by operating cash outflows, with the OCF/NI ratio showing extreme volatility and failing to demonstrate a reliable conversion of accounting earnings into actual cash generation for the business over the last ten quarters.
The persistent gap between net income and operating cash flow suggests that the company's accrual-based accounting does not reflect the underlying cash reality of its operations. Investors should monitor this divergence, as it indicates that the business model is currently unable to generate self-sustaining cash flow from its core activities.
As reported in financial statements, IRIDEX has struggled to maintain positive free cash flow, with the company recording negative FCF in nine of the last ten quarters, highlighting a structural inability to cover operational and capital requirements through its current revenue-generating activities and product mix.
The negative FCF margins, which reached a low of -26.5% in 2024Q3, underscore the difficulty the company faces in scaling its operations toward profitability. This trajectory suggests that without a significant shift in revenue composition or cost structure, the company will continue to rely on external financing to fund its ongoing operations.
Based on reported figures, IRIDEX exhibits significant swings in working capital, including a notable $1.4M outflow in 2026Q1, which suggests that the company's cash management is highly sensitive to inventory cycles and the timing of collections from its complex network of international distributors.
These fluctuations in working capital appear to be a primary driver of the company's inconsistent cash flow performance. The reliance on distributors may be creating lumpy cash inflows, which complicates the company's ability to maintain a stable liquidity position and meet its short-term obligations.
As indicated by the provided data, IRIDEX maintains a very low capital intensity, with CapEx/Revenue ratios frequently below 0.5%, which suggests that the company is not investing heavily in new production capacity despite its ongoing struggle to achieve operational scale and consistent profitability.
While low capital intensity can sometimes be a positive, in this context, it may indicate that the company is prioritizing survival over necessary investments in innovation or infrastructure. This warrants further investigation into whether the current level of maintenance CapEx is sufficient to support the long-term competitiveness of its laser technology.
Quick answers to the most common questions about buying IRIX stock.
IRIDEX Corporation (IRIX) generated $-2.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
IRIDEX Corporation (IRIX) reported negative free cash flow of $2.3M in 2025, indicating capital requirements exceeded cash from operations.
IRIDEX Corporation (IRIX) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.