Glaukos (GKOS) Stock Forecast & Price Target

Glaukos Corp is demonstrating positive financial momentum, evidenced by a significant improvement in operating margin, which rose to (17.3%), reflecting a 2,200 basis points year-over-year increase and surpassing consensus estimates. The company reported impressive glaucoma revenue of $84 million, exceeding expectations and growing by 39% year-over-year, with domestic sales reaching $56 million and international sales achieving a 29% increase on a constant currency basis. Furthermore, the anticipation of upcoming product launches and the expansion of the pipeline suggests strong potential for revenue growth, which could facilitate a pathway to profitability in the coming years.

Glaukos Corp's financial performance indicates troubling trends, particularly evident in its Corneal Health segment, which generated $21 million in revenue, falling short of the consensus estimate and showing a deceleration in growth from 5% to 2% year-over-year. The company's outlook for 2025 suggests stagnation in its U.S. iStent franchise revenue, potentially resulting in an estimated $115-120 million for U.S. iDose, compounded by risks including poor sales execution and competitive pressures in the micro-invasive glaucoma surgery (MIGS) market. Additionally, although gross margins remained relatively high at 82.3%, they decreased compared to the previous year and slightly missed consensus expectations, highlighting ongoing cost management challenges.