GKOS — Glaukos Corporation

Summary of Glaukos Corporation Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Net Sales: Glaukos reported record consolidated net sales of $185.6 million, a 50% increase year-over-year (49% on a constant currency basis).
• U.S. Glaucoma Franchise: Achieved $118.5 million in net sales, up 64% year-over-year, driven by iDose TR sales of approximately $74 million.
• International Glaucoma Franchise: Recorded $36.6 million in net sales, reflecting 17% growth year-over-year.
• Corneal Health Franchise: Generated $30.4 million in net sales, with Epioxa contributing about $11 million.
• Gross Margin: Reached approximately 85%, up from the previous quarter, with expectations for modest accretion moving forward.
• Operating Expenses: Projected to be around $600 million for the year, reflecting continued investment in commercial and R&D initiatives.

2. Strategic Updates and Business Highlights

• Product Launches: The company highlighted the successful launch of Epioxa, the first FDA-approved therapy for keratoconus, with strong surgeon interest and expanding market access.
• Pipeline Development: Glaukos is advancing various clinical programs across its platforms, including iDose TREX and iLink, with a focus on innovative therapies for chronic eye diseases.
• Market Positioning: The company is positioning itself as a leader in ophthalmology, emphasizing the transformational potential of its products and the establishment of new treatment paradigms.

3. Forward Guidance and Outlook

• Revised Sales Guidance: Glaukos raised its full-year 2026 net sales guidance to $680 million to $700 million, an increase of $60 million to $65 million from previous estimates.
• Growth Expectations: Anticipated growth drivers include continued adoption of iDose TR and the ongoing rollout of Epioxa. The U.S. glaucoma business is expected to grow around 50% for the year, with international glaucoma growth projected at low to mid-teens.

4. Bad News, Challenges, or Points of Concern

• Market Headwinds: The company expects competitive product trialing headwinds in international markets and potential reimbursement challenges in Germany and Switzerland.
• Epioxa Transition: Anticipated volatility in the third quarter due to the transition to a permanent J-code for Epioxa, which may affect revenue as the market adjusts.
• Conservative Outlook: Management expressed caution regarding the sustainability of Q2 performance, particularly for iDose TR, due to seasonal trends and the need for continued market validation.

5. Notable Q&A Insights

• iDose LCD Confidence: Management remains optimistic about the final LCD for iDose TR, citing strong physician support and clinical evidence presented during public comment periods.
• Epioxa Pricing Dynamics: Initial gross-to-net pricing for Epioxa is expected to be around $60,000, factoring in Medicaid pricing and discounts.
• Market Share Strategy: The company aims to solidify its market position against competitors, emphasizing the transformative nature of Epioxa and its potential to redefine treatment standards for keratoconus.
• Utilization Trends: Early adopters of Epioxa are showing strong utilization, with a focus on optimizing treatment pathways and expanding patient access.

Overall, Glaukos demonstrated robust financial performance in Q2 2026, with strategic initiatives aimed at sustaining growth and addressing market challenges. The company is optimistic about its future, despite acknowledging potential headwinds in the coming quarters.