Here's Why You Should Retain Glaukos Stock in Your Portfolio

Glaukos (GKOS) is experiencing strong product demand, particularly for iStent and iDose TR, driving a 24.6% year-over-year revenue increase in Q1 2025 and leading to projected 2025 revenue of $475-$485 million, with sales and earnings expected to improve 25.5% and 53.4%, respectively; however, the company faces challenges from restrictive Medicare policies impacting stent procedures and relies on a limited number of third-party suppliers, contributing to a 34.9% stock decline year-to-date, despite a narrowed 2025 loss estimate of $0.87.

Analysis

Glaukos Corporation (GKOS) presents a mixed investment profile, characterized by strong product-driven growth and a promising pipeline, counterbalanced by significant market headwinds and substantial stock underperformance. The company reported a 24.6% year-over-year revenue increase in the first quarter of 2025, primarily fueled by robust demand for its flagship iStent and the innovative iDose TR, the latter contributing to a 41% year-over-year growth in the U.S. glaucoma segment. Management projects full-year 2025 revenues between $475-$485 million, anticipating a 25.5% sales increase and a 53.4% improvement in earnings. Further bolstering its outlook, Glaukos is advancing its product portfolio with the FDA's acceptance of the Epioxa New Drug Application (NDA), targeting an October 2025 PDUFA date, the initiation of a pivotal study for PRESERFLO MicroShunt, and ongoing development of next-generation therapies like iDose TREX. International glaucoma sales also achieved a record $29 million in the first quarter, an 18.7% year-over-year operational growth. However, GKOS shares have declined 34.9% year-to-date, significantly underperforming the industry's 7.5% decline. This is attributed to concerns including reliance on a limited number of third-party suppliers and, critically, restrictive Medicare Local Coverage Determinations (LCDs) that have led to a mid-single-digit decline in the U.S. stent business and are expected to remain a challenge throughout 2025. Despite these issues, the 2025 bottom-line loss estimate has narrowed by 8.4% in the past 30 days to $0.87 per share, with the Zacks Consensus Estimate for 2025 revenues at $480 million, and the company currently holds a Zacks Rank #3 (Hold).

Key Decisions for Investors

• Investors should closely monitor Glaukos's progress in navigating Medicare LCD restrictions and the commercial ramp-up of iDose TR, as these are critical factors for its near-term U.S. performance and investor sentiment.
• The upcoming PDUFA date for Epioxa in October 2025 and clinical advancements in the broader pipeline, including PRESERFLO MicroShunt and iDose TREX, represent potential value inflection points that warrant careful observation.
• Given the significant stock underperformance despite strong operational results and revenue growth, maintaining a hold position may be prudent until there is greater clarity on the sustainable impact of new products and effective mitigation of supplier concentration and reimbursement headwinds.