IRIDEX (NASDAQ:IRIX) President and CEO Patrick Mercer outlined the ophthalmic laser company’s product strategy, market opportunities and recent profitability initiatives during a presentation at the Lytham Partners Spring 2026 Investor Conference.
Mercer said IRIDEX’s vision is to “transform laser-based eye care to preserve sight and improve quality of life” for patients with ophthalmic conditions globally. He described the company’s mission as delivering “innovative, clinically proven, non-invasive laser technologies” for retinal diseases and glaucoma.
Retina Portfolio Includes Capital Equipment and Disposable Probes
Mercer said IRIDEX has one of the broadest retina laser portfolios in the industry, including PASCAL pattern scanning systems, legacy lasers and IQ lasers with MicroPulse technology. The portfolio also includes delivery devices, disposable retina probes and accessories.
He said the retina business is primarily a capital equipment business, though 22% comes from high-margin retina probes. IRIDEX’s PASCAL platform supports several software options, including MicroPulse, Endpoint Management and PSLT, which Mercer described as a glaucoma treatment option.
Mercer pointed to a replacement opportunity in the company’s U.S. retina installed base, saying nearly three-quarters of its PASCAL and IQ systems are more than five years old, with many approaching end of service. He said that timing aligns with the company’s introduction of new product platforms.
Discussing the market backdrop, Mercer said the global retina laser market is growing due to diabetic eye disease and aging populations. He cited more than 8 million retina laser procedures each year and more than 55 million patients at risk of vision-threatening diabetic conditions.
Mercer also highlighted IRIDEX’s MicroPulse technology, saying it is designed to minimize thermal damage by allowing heat to dissipate during the laser’s off period. He said this enables treatment while preserving retinal tissue. He also referenced a diabetic macular edema trial intended to evaluate whether MicroPulse used with injections could reduce the number of pharmaceutical injections patients need.
Glaucoma Business Focused on MicroPulse TLT
On the glaucoma side, Mercer highlighted the company’s Cyclo G6 platform and MicroPulse and continuous wave probes. He said MicroPulse transscleral laser therapy, or MicroPulse TLT, is becoming a preferred option because it is “safe, predictable, and repeatable.”
Mercer said IRIDEX sees a significant U.S. opportunity among moderate glaucoma patients, citing 2.1 million moderate patients as the company’s “real opportunity.” He said rising interest in non-incisional treatments is helping drive momentum and allows IRIDEX to treat patients earlier in the course of disease.
Internationally, Mercer said the opportunity is larger, estimating a roughly $700 million probe opportunity in markets outside the United States. He said the company expects to increase utilization globally through improved distributor performance and enhanced training.
Mercer also emphasized the versatility of IRIDEX’s glaucoma technology, saying it can be used after or alongside other glaucoma procedures. He noted that glaucoma is now being diagnosed earlier while patients are living longer, which can extend disease management over 30 to 40 years.
In discussing clinical data, Mercer said prospective data showed greater than 50% reduction in intraocular pressure at 12 months with an excellent safety profile. He also referenced a study by Dr. Noecker that showed sustained intraocular pressure reduction after five years, including an average 32.5% reduction and a decrease in drops administered.
Reimbursement and Sales Strategy
Mercer said reimbursement volatility around minimally invasive glaucoma surgery, or MIGS, has affected the market. He said a local coverage determination that no longer allows stacking of mixed procedures has been a “tailwind” for IRIDEX because MicroPulse TLT is not a mixed procedure.
He also described the economics of the Cyclo G6 platform, saying payback for the purchase of the laser platform can be one year when a practice performs three or more procedures per month. Mercer said the economics are more favorable when the procedure is performed in a hospital setting.
Mercer said that since becoming CEO, he reduced the size of the sales force by half while maintaining revenue growth. He said tools such as MedScout have helped the company identify where clinicians are performing IRIDEX procedures, supporting efforts to increase utilization among mid-range users and target high-volume glaucoma users who have not tried MicroPulse.
Cost Reductions and Profitability Focus
Mercer said IRIDEX’s main focus in 2025 was profitability. Actions included reducing headcount, relocating general and administrative functions to the Philippines, increasing average selling prices on U.S. probe sales, outsourcing PASCAL to a third party and moving PASCAL Synthesis to a new contract manufacturer.
He said that after taking over as CEO in October 2024, management reviewed personnel and spending across the company to rightsize operations for its revenue base. Mercer said IRIDEX posted positive cash flow in the fourth quarter of 2025, reduced operating expenses by 29%, improved operating income and achieved positive adjusted EBITDA for the full year.
Looking ahead, Mercer said IRIDEX will continue to focus in 2026 on profitability, margin improvement and operating expense reductions while working toward cash flow positive operations.
About IRIDEX (NASDAQ:IRIX)
IRIDEX Corporation (NASDAQ: IRIX) is a medical technology company specializing in the development, manufacturing and commercialization of innovative ophthalmic laser and imaging systems. The company’s offerings focus on energy-based therapies designed to treat retinal vascular disorders, glaucoma and other ocular conditions. IRIDEX’s portfolio includes laser photocoagulation platforms, micro-pulse laser technology, and related consumable devices for use by ophthalmologists and retina specialists.
The company’s flagship products include the Cyclo G6 Glaucoma Laser System, which delivers precise, controlled micro-pulse laser therapy for patients with refractory glaucoma, and the IQ 532 Retina Laser System, designed to support minimally invasive laser treatments for diabetic retinopathy and age-related macular degeneration.
