GKOS Stock Falls Despite Q1 Earnings & Revenue Beat, Margins Decline

Glaukos Corporation GKOS reported first-quarter 2025 adjusted loss of 22 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 33 cents. The figure also improved from the year-ago quarter’s adjusted loss of 70 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The GAAP loss per share was 32 cents compared with the prior-year quarter’s reported loss of 82 cents.

Revenue Details

Glaukos registered revenues of $106.7 million in the first quarter, up 24.6% year over year on a reported basis and 26% at constant currency (cc). The figure also surpassed the Zacks Consensus Estimate by 3.8%.

Quarter in Detail

The company recorded net sales of $88.1 million for Glaucoma, up 31% year over year. Sales at Corneal Health were $18.5 million.

Margin Analysis

Gross profit increased 25.9% year over year to $82.3 million. However, the adjusted gross margin was 82% compared with 83% in the year-ago period.

Selling, general and administrative expenses rose 14% year over year to $70.7 million. Research and development expenses totaled $32.4 million, up 5.3% year over year. Total operating expenses were $103 million, down 1.4% from the prior-year period.

The operating loss declined to $20.7 million from $39.1 million in the year-ago period. The adjusted operating loss was $15.2 million, narrower than the year-ago quarter’s reported loss of $32.8 million.

Glaukos Corporation Price, Consensus and EPS Surprise

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

Financial Update

Glaukos exited the first quarter of 2025 with cash and cash equivalents and short-term investments of $303.4 million compared with $323.6 million at the end of fourth-quarter of 2024.

2025 Guidance

The company reiterated its guidance for 2025 revenues. It expects net sales in the range of $475-$485 million. The Zacks Consensus Estimate for the same is pegged at $480.9 million. The loss per share estimate is pinned at 95 cents, implying 48.9% improvement year over year.

Our Take

Glaukos' exited the first 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 first quarter was driven significantly by the strong adoption of its innovative iDose TR product. The U.S. glaucoma segment saw 41% year-over-year growth, with iDose TR continuing to gain traction due to its ability to deliver continuous therapy for up to three years. The company also emphasized the strategic rollout of iDose TR, with efforts focused on expanding surgeon training, payer access, and clinical validation. Progress in Medicare Administrative Contractors like Noridian, Novitas, and First Coast has helped streamline reimbursement, boosting procedural volumes and commercial confidence.

Beyond iDose TR, Glaukos is making notable headway in product innovation and pipeline development. Key highlights include the FDA’s acceptance of the NDA for Epioxa, a next-gen, non-invasive corneal cross-linking therapy for keratoconus, targeting an October 2025 PDUFA date. Additionally, the company initiated a pivotal study for the PRESERFLO MicroShunt and continues progressing on multiple clinical fronts, including the iStent infinite trial, third-gen iLink therapy, GLK-401 for wet AMD, and iDose TREX, the next-gen iDose variant. Glaukos also deepened its collaboration with Radius XR and Topcon Healthcare to enhance glaucoma diagnostics and care efficiency through digital tools.

On the downside, Glaukos faced headwinds from restrictive Medicare LCDs (Local Coverage Determinations) impacting the use of multiple glaucoma surgical devices in the same procedure. This policy led to a mid-single-digit decline in the U.S. stent business despite iDose growth. Management acknowledged this challenge and is working on generating supporting clinical evidence and potential advocacy efforts to influence future policy changes. These LCD restrictions are expected to continue weighing on stent performance throughout 2025.

Shares of GKOS lost 6.6% during after-market trading following the first-quarter results. The company’s shares have lost 37.1% in the year-to-date period compared with the industry’s decline of 9.1%. The broader S&P 500 Index has decreased 5.8% in the same time frame.

Zacks Rank and Stocks to Consider

Currently, Glaukos carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same medical industry are Fresenius Medical Care FMS, Masimo MASI and AdaptHealth AHCO.

Fresenius Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 28.9% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FMS’ earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 15.67%. The company is expected to release first-quarter results next month.

FMS’ shares have gained 10.3% so far this year.

Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 20% for 2025.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 58.5% compared with the industry’s 3.9% growth year to date. The company is expected to release first-quarter results in May.

MASI’s shares have lost 1.3% so far this year.

AdaptHealth, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 16.7% for 2025.  The company’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering a negative average surprise of 4.17%. The company is expected to release first-quarter results next month.

AHCO's shares have lost 12.1% so far this year.

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

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