Earnings release
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NEWS RELEASE Glaukos Announces Second Quarter 2025 Financial Results 2025-07-30 ALISO VIEJO, Calif.--(BUSINESS WIRE)-- Glaukos Corporation (NYSE: GKOS), an ophthalmic pharmaceutical and medical technology company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, today announced nancial results for the second quarter ended June 30, 2025. Key highlights include: Record net sales of $124.1 million in Q2 2025 increased 30% year-over-year on a reported basis and 29% year- over-year on a constant currency basis. Glaucoma record net sales of $103.5 million in Q2 2025 increased 36% year-over-year. U.S. Glaucoma record net sales of $72.3 million in Q2 2025 increased 45% year-over-year. Gross margin of approximately 78% and non-GAAP gross margin of approximately 83% in Q2 2025. Raised 2025 net sales guidance to $480 million to $486 million, compared to $475 million to $485 million previously. “Our record second quarter results re ect a sustained growth acceleration in our business driven by successful global execution of our key strategic plans,” said Thomas Burns, Glaukos chairman and chief executive o cer. “We continue to successfully advance our robust pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care and improve outcomes for patients su ering from chronic eye diseases.” Second Quarter 2025 Financial Results Net sales in the second quarter of 2025 of $124.1 million increased 30% on a reported basis, or 29% on a constant 1
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currency basis, compared to $95.7 million in the same period in 2024. Gross margin for the second quarter of 2025 was approximately 78%, compared to approximately 76% in the same period in 2024. Non-GAAP gross margin for the second quarter of 2025 was approximately 83%, compared to approximately 82% in the same period in 2024. Selling, general and administrative (SG&A) expenses for the second quarter of 2025 increased 26% to $83.4 million, compared to $66.2 million in the same period in 2024. Non-GAAP SG&A expenses for the second quarter of 2025 increased 27% to $83.1 million, compared to $65.5 million in the same period in 2024. GAAP and non-GAAP research and development (R&D) expenses for the second quarter of 2025 increased 6% to $36.5 million, compared to $34.4 million in the same period in 2024. Loss from operations in the second quarter of 2025 was $22.7 million, compared to operating loss of $30.0 million in the second quarter of 2024. Non-GAAP loss from operations in the second quarter of 2025 was $16.6 million, compared to non-GAAP operating loss of $23.7 million in the second quarter of 2024. Net loss in the second quarter of 2025 was $19.7 million, or ($0.34) per diluted share, compared to net loss of $50.5 million, or ($1.00) per diluted share, in the second quarter of 2024. Non-GAAP net loss in the second quarter of 2025 was $13.6 million, or ($0.24) per diluted share, compared to non-GAAP net loss of $26.3 million, or ($0.52) per diluted share, in the second quarter of 2024. Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the second quarter of 2024 is an acquired in-process R&D (IPR&D) charge of $2.5 million, which caused the non-GAAP loss per diluted share to have an additional loss of ($0.05) in the second quarter of 2024. The company ended the second quarter of 2025 with approximately $278.6 million in cash and cash equivalents, short-term investments and restricted cash, and no debt. 2025 Revenue Guidance The company expects 2025 net sales to be in the range of $480 million to $486 million based on the latest foreign currency exchange rates. Webcast & Conference Call The company will host a conference call and simultaneous webcast today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results and provide additional information about the company’s nancial outlook. A link to the webcast is 2
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available on the company’s website at http://investors.glaukos.com. To participate in the conference call, please dial 800-715-9871 (U.S.) or 646-307-1963 (international) and enter Conference ID 5255602. A replay of the webcast will be archived on the company’s website following completion of the call. Quarterly Summary Document The company has posted a document on its Investor Relations website under the “Financials & Filings – Quarterly Results” section titled “Quarterly Summary.” This Quarterly Summary document is designed to provide the investment community with a summarized and easily accessible reference document that details the key facts associated with the quarter, the state of the company’s business objectives and strategies and any forward statements or guidance the company may make. This document is provided alongside the company’s earnings press release and is designed to be read by investors before the regularly scheduled quarterly conference call. As such, today’s conference call will be in a format primarily consisting of a questions and answers session, during which Glaukos will address any queries investors have regarding the company’s results. It is the company’s goal that this format will make its quarterly earnings process more e cient and impactful for the investment community going forward. About Glaukos Glaukos (www.glaukos.com) is an ophthalmic pharmaceutical and medical technology company focused on developing and commercializing novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. Glaukos rst developed Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the traditional glaucoma treatment paradigm, launching its rst MIGS device commercially in 2012. In 2024, Glaukos commenced commercial launch activities for iDose® TR, a rst-of-its-kind, long-duration, intracameral procedural pharmaceutical designed to deliver 24/7 glaucoma drug therapy inside the eye for extended periods of time. Glaukos also markets the only FDA-approved corneal cross-linking therapy utilizing a proprietary bio-activated pharmaceutical for the treatment of keratoconus, a rarely diagnosed corneal disorder. Glaukos continues to successfully develop and advance a robust pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care and improve outcomes for patients su ering from chronic eye diseases. Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that 3
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they are based on current expectations about future events a ecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are di cult to predict and many of which are beyond our control, that may cause our actual results to di er materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to di er materially from those described in forward-looking statements include, without limitation, our ability to successfully commercialize our iDose TR therapy; the impact of general macroeconomic conditions including foreign currency uctuations and future health crises on our business; our ability to continue to generate sales of our commercialized products and develop and commercialize additional products; our dependence on a limited number of third-party suppliers, some of which are single-source, for components of our products; the occurrence of a crippling accident, natural disaster, or other disruption at our primary facility, which may materially a ect our manufacturing capacity and operations; securing or maintaining adequate coverage or reimbursement by third-party payors for procedures using the iStent, the iStent inject W, iAccess, iStent in nite, iDose TR, our corneal cross-linking products or other products in development, and our compliance with the requirements of participation in federal healthcare programs such as Medicare and Medicaid; our compliance with federal, state and foreign laws and regulations for the approval and sale and marketing of our products and of our manufacturing processes; the lengthy and expensive clinical trial process and the uncertainty of timing and outcomes from any particular clinical trial or regulatory approval processes; the risk of recalls or serious safety issues with our products and the uncertainty of patient outcomes; our ability to protect our information systems against cyber threats and cybersecurity incidents, and to comply with state, federal and foreign data privacy laws and regulations; our ability to protect, and the expense and time-consuming nature of protecting our intellectual property against third parties and competitors and the impact of any claims against us for infringement or misappropriation of third party intellectual property rights and any related litigation; and our ability to service our indebtedness. These and other known risks, uncertainties and factors are described in detail under the caption “Risk Factors” and elsewhere in our lings with the Securities and Exchange Commission (SEC), including in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was led with the SEC on May 1, 2025, and our Quarterly Report on Form 10- Q for the quarter ended June 30, 2025, which is expected to be led with the SEC by August 11, 2025. Our lings with the SEC are available in the Investor Section of our website at www.glaukos.com or at www.sec.gov. In addition, information about the risks and bene ts of our products is available on our website at www.glaukos.com. All forward-looking statements included in this press release are expressly quali ed in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law. Statement Regarding Use of Non-GAAP Financial Measures 4
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To supplement the consolidated nancial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical nancial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not re ect the core operational activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's nancial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations) (“Non- GAAP Purposes”). The Company uses the term "Non-GAAP" to exclude certain expenses, gains and losses to achieve the Non-GAAP Purposes, including external acquisition-related costs incurred to e ect a business combination; amortization of intangible assets acquired in a business combination, asset purchase transaction or other contractual relationship; impairment of goodwill and intangible assets; certain in-process R&D charges; fair value adjustments to contingent consideration liabilities and pre-acquisition contingencies arising from a business combination; integration and transition costs related to business combinations; fair market value adjustments to inventories acquired in a business combination or asset purchase transaction; restructuring charges, duplicative operating expenses, or asset write-o s (or reversals) associated with exiting or signi cantly downsizing a business; unusual non-recurring expenses associated with inventory write-downs; gain or loss from the sale of a business; gain or loss on the mark-to-market adjustment, impairment, or sale of long-term investments; mark-to-market adjustments on derivative instruments that hedge income or expense exposures in a future period; signi cant legal litigation costs and/or settlement expenses or proceeds; legal and other associated expenses that are both unusual and signi cant related to governmental or internal inquiries; expenses, acceleration of amortization of debt issuance costs and gain or loss on debt extinguishment associated with the exchange or redemption of convertible senior notes; signi cant discrete income and other tax adjustments related to transactions as well as changes in estimated acquisition-date tax e ects associated with business combinations, and the impact from implementation of tax law changes and settlements; and any other adjustment that is determined to be appropriate and consistent with the Non-GAAP Purposes. See “GAAP to Non-GAAP Reconciliations” for a reconciliation of each non-GAAP measure presented to the comparable GAAP nancial measure. In addition, in order to remove the impact of uctuations in foreign currency exchange rates, the Company also presents certain net sales information on a constant currency basis, which represents the outcome that would have resulted had exchange rates in the current period been the same as the average exchange rates in e ect in the comparable prior period. See “Reported Sales vs. Prior Periods” for a presentation of certain net sales information on a reported, GAAP and a constant currency basis. GLAUKOS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)(ith d t h t) 5
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(in thousands, except per share amounts)Three Months EndedSix Months EndedJune 30, June 30, 2025 2024 2025 2024 Net sales $ 124,120$ 95,690$ 230,784$ 181,312 Cost of sales 26,896 22,550 51,212 42,808 Gross pro t 97,224 73,140 179,572138,504Operating expenses:Selling, general and administrative83,375 66,188 154,048128,163Research and development36,538 34,426 68,891 65,152 Acquired in-process research and development- 2,500 - 14,229 Total operating expenses 119,913103,114222,939207,544 Loss from operations (22,689) (29,974) (43,367) (69,040)Non-operating income (expense):Interest income 2,574 2,828 5,650 5,911Interest expense (1,151) (3,355) (2,314) (6,805)Charges associated with convertible senior notes- (18,012) - (18,012) Other income (expense), net1,857 (1,701) 2,802 (2,729) Total non-operating income (expense)3,280 (20,240) 6,138 (21,635) Loss before taxes (19,409) (50,214) (37,229) (90,675) Income tax provision 248 331 574 708 Net loss $ (19,657) $ (50,545) $ (37,803) $ (91,383) Basic and diluted net loss per share$ (0.34) $ (1.00) $ (0.66) $ (1.82) Weighted-average shares outstanding used to compute basic anddiluted net loss per share 57,205 50,715 56,922 50,169 GLAUKOS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except par values)June 30,December 31,2025 2024 (unaudited)Assets Current assets:Cash and cash equivalents $ 100,813$ 169,626Short-term investments 173,973 149,289Accounts receivable, net 82,985 60,744Inventory 64,621 57,678 Prepaid expenses and other current assets13,673 12,455 Total current assets 436,065 449,792Restricted cash 3,834 4,733Property and equipment, net 111,816 97,867Operating lease right-of-use asset 31,985 30,254Finance lease right-of-use asset 40,610 41,816Intangible assets, net 270,491 263,445Goodwill 66,710 66,134 Deposits and other assets 25,447 20,715 Total assets $ 986,958$ 974,756 Liabilities and stockholders' equity Current liabilities:Accounts payable $ 13,684$ 13,026 Accrued liabilities 65,452 62,099 Total current liabilities 79,136 75,125Operating lease liability 36,200 33,936Finance lease liability 68,823 69,463Deferred tax liability, net 6,910 6,928 Other liabilities 30,777 22,373 Total liabilities 221,846 207,825Stockholders' equity:Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding asof June 30, 2025 and December 31, 2024 - -Common stock, $0.001 par value; 150,000 shares authorized; 57,277 and 56,472 shares issuedand 57,249 and 56,544 shares outstanding at June 30, 2025 and December 31, 2024,respectively 57 56Additional paid-in capital 1,545,5571,509,831Accumulated other comprehensive income2,872 2,615Accumulated de cit (783,242) (745,439)(132) (132) 6
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Less treasury stock (28 shares as of June 30, 2025 and December 31, 2024)(132) (132) Total stockholders' equity 765,112 766,931 Total liabilities and stockholders' equity$ 986,958$ 974,756 GLAUKOS CORPORATIONGAAP to Non-GAAP Reconciliations(in thousands, except per share amounts and percentage data)(unaudited) Q2 2025 Q2 2024 GAAPAdjustmentsNon-GAAPGAAPAdjustmentsNon-GAAP Cost of sales $26,896$ (5,764) (a)(b)$21,132$22,550$ (5,523) (a)$17,027 Gross Margin 78.3% 4.7% 83.0% 76.4% 5.8% 82.2%Operating expenses: Selling, general and administrative$83,375$ (295) (c)$83,080$66,188$ (705) (d)$65,483 Loss from operations$(22,689) $ 6,059$(16,630) $(29,974) $ 6,228$(23,746)Non-operating (expense) income:Charges associated with convertible seniornotes $ - $ - $ - $(18,012) $18,012(e)$ - Net loss $(19,657) $ 6,059(f) $(13,598) $(50,544) $24,240(f) $(26,304) Basic and diluted net loss per share$(0.34) $ 0.10 $ (0.24) $(1.00) $ 0.48 $ (0.52) (a)Cost of sales adjustment related to amortization of developed technology intangible assets associated with the acquisition of Avedro, Inc. (Avedro)of $5.5 million in Q2 2025 and Q2 2024.(b)Mobius acquisition-related amortization expense of developed intellectual property and distribution rights of $0.2 million.(c)Mobius acquisition-related transaction expense.(d)Avedro acquisition-related amortization expense of customer relationship intangible assets.(e)Expenses associated with the exchange of convertible senior notes, consisting of a non-cash inducement charge of $17.4 million and directtransaction costs of $0.6 million.(f)Includes total tax e ect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the U.S., the tax e ect is $0 given theCompany's U.S. taxable loss positions in both 2025 and 2024. GLAUKOS CORPORATIONGAAP to Non-GAAP Reconciliations(in thousands, except per share amounts and percentage data)(unaudited) Year-to-Date Q2 2025Year-to-Date Q2 2024 GAAPAdjustmentsNon-GAAPGAAPAdjustmentsNon-GAAP Cost of sales $51,212$(11,287)(a)(b)$39,925$42,808$(11,046)(a)$31,762 Gross Margin 77.8% 4.9% 82.7% 76.4% 6.1% 82.5%Operating expenses: Selling, general and administrative$154,048$ (295)(c) $153,753$128,163$ (1,410)(d)$126,753 Loss from operations$(43,367) $11,582$(31,785) $(69,040) $12,456$(56,584)Non-operating expense: Charges associated with convertible senior notes$ - $ - $ - $(18,012) $18,012(e)$ - Net loss $(37,803) $11,582(f) $(26,221) $(91,382) $30,468(f) $(60,914) Basic and diluted net loss per share$ (0.66) $ 0.20 $ (0.46) $ (1.82) $ 0.61 $ (1.21) 7
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(a)Cost of sales adjustment related to amortization of developed technology intangible assets associated with the acquisition of Avedro, Inc. (Avedro)of $11.0 million year-to-date Q2 2025 and year-to-date Q2 2024.(b)Mobius acquisition-related amortization expense of developed intellectual property and distribution rights of $0.2 million.(c)Mobius acquisition-related transaction expense.(d)Avedro acquisition-related amortization expense of customer relationship intangible assets of $1.4 million.(e)Expenses associated with the exchange of convertible senior notes, consisting of a non-cash inducement charge of $17.4 million and directtransaction costs of $0.6 million.(f)Includes total tax e ect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the U.S., the tax e ect is $0 given theCompany's U.S. taxable loss positions in both 2025 and 2024. Reported Sales vs. Prior Periods (in thousands) Year-over-Year PercentChange Quarter-over-QuarterPercent Change 2Q 20252Q 20241Q 2025ReportedOperations(1)Currency(2)ReportedOperations(1)Currency(2) International Glaucoma$ 31,251$ 26,131$ 29,00919.6% 15.5% 4.1% 7.7% 2.1% 5.6% Total Net Sales$ 124,120$ 95,690$ 106,66429.7% 28.6% 1.1% 16.4% 14.8% 1.6% (1) Operational growth excludes the e ect of translational currency(2) Calculated by converting the current period numbers using the prior period’s average foreign exchange rates Chris Lewis Vice President, Investor Relations & Corporate A airs (949) 481-0510 clewis@glaukos.com Source: Glaukos Corporation 8