GKOS Stock Falls Despite Q2 Earnings & Revenues Beat, Guidance Raised

Glaukos Corporation GKOS reported second-quarter 2025 adjusted loss of 24 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 26 cents. The figure also improved from the year-ago quarter’s adjusted loss of 52 cents per share.

The GAAP loss per share was 34 cents compared with the prior-year quarter’s reported loss per share of $1.

Revenue Details

Glaukos registered revenues of $124.1 million in the second quarter, up 29.7% year over year on a reported basis and 29% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 8.1%.

Quarter in Detail

The company recorded net sales of $103.5 million for Glaucoma, up 36% year over year. Sales at Corneal Health were $20.6 million.

Glaukos Corporation Price, Consensus and EPS Surprise

Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote

Margin Analysis

Gross profit increased 32.9% year over year to $97.2 million. The adjusted gross margin was 83% compared with 82% in the year-ago period.

Selling, general and administrative expenses rose 25.9% year over year to $83.4 million. Research and development expenses totaled $36.5 million, up 6.1% year over year. Total operating expenses were $119.9 million, up 16.3% from the prior-year period.

The operating loss declined to $22.7 million from $29.9 million in the year-ago period. The adjusted operating loss was $16.6 million, narrower than the year-ago quarter’s reported loss of $23.7 million.

Financial Update

Glaukos exited the second quarter of 2025 with cash and cash equivalents and short-term investments of $278.6 million compared with $303.4 million at the end of first-quarter 2025.

2025 Guidance

The company raised its guidance for 2025 revenues. It now expects net sales in the range of $480-$486 million compared with previous guidance of $475-$485 million. The Zacks Consensus Estimate for the same is pegged at $480.2 million. The loss per share estimate is pinned at 81 cents, implying 56.5% improvement year over year.

Our Take

Glaukos exited the second quarter of 2025 with better-than-expected results, wherein earnings and revenues surpassed their respective consensus estimate. Management remains excited about the company’s continued top-line growth in the reported quarter.

Per management, GKOS’ top line in the second quarter was driven primarily by robust uptake of its iDose TR sustained-release therapy, which saw broad physician adoption following its U.S. commercial launch. The iStent franchise also contributed meaningfully despite pressure from policy-related procedure bundling. Corneal health sales, particularly Photrexa, were another highlight, aided by Medicare Drug Rebate Program benefits.

Glaukos made solid pipeline progress in the second quarter, highlighted by regulatory milestones for Epioxa, its novel, non-surgical keratoconus therapy, with FDA approval targeted by October 2025. The company is also advancing multiple programs across glaucoma, corneal, and retinal platforms, including pivotal trials for iStent infinite, iDose Tregs, and GLO-401. A strategic acquisition of Mobius Therapeutics further strengthens its glaucoma offering. Management emphasized disciplined investment and operational expansion, with cash balances increasing despite selective M&A and facility purchases. This broad, advancing pipeline reinforces long-term growth potential.

However, the company continues to face headwinds from restrictive Local Coverage Determinations, which are weighing on non-iDose stent volumes and contributing to a mid-single-digit decline in that part of the business. Cataract surgery trends and procedural bundling also pose short-term revenue mix challenges.

Shares of GKOS lost 2.2% during after-market trading following the second-quarter results. The company’s shares have lost 37.2% in the year-to-date period compared with the industry’s decline of 7.5%. The broader S&P 500 Index has increased 7.9% in the same time frame.

Zacks Rank and Other Stocks to Consider

Currently, Glaukos carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.

Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research