Glaukos Corporation GKOS reported record fourth-quarter 2024 revenues of $105.5 million, reflecting a 28% year-over-year increase. This growth was driven by strong demand for its innovative glaucoma and corneal health solutions. The company’s success in expanding its iDose TR adoption and international footprint further bolstered its financial performance. As GKOS continues to expand its footprint in the ophthalmology sector, key elements should shape its trajectory this year.

The increasing prevalence of glaucoma and keratoconus is driving demand for innovative solutions. With millions of patients worldwide requiring more effective and long-lasting treatments, GKOS is well-positioned to capitalize on the growing need for interventional glaucoma therapies and minimally invasive procedures. Key products such as iDose TR, iStent Infinite, and Epioxa are expected to play a crucial role in meeting this demand, providing advanced, patient-friendly alternatives to traditional treatments.

However, GKOS’ shares crashed 24.8% in the four trading sessions following its fourth-quarter earnings release on Feb. 20. The company’s share price also crossed both 50-DMA and 200-DMA during this fall, implying a weakness. Let see how the company’s fundamentals are shaping up for 2025.

Share Price Below 50 & 200 DMA

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iDose TR: A Key Driver for 2025

iDose TR, Glaukos’ innovative sustained-release drug implant is designed to provide long-term intraocular pressure (IOP) reduction for glaucoma patients. Unlike traditional daily eye drops, iDose TR delivers a continuous, controlled release of medication, reducing patient burden and improving adherence. The product has emerged as a transformational advancement in glaucoma treatment. The company successfully expanded physician training and built a robust clinical foundation in 2024.

In 2025, broader adoption and deeper market penetration will be key drivers of revenue growth. Additionally, upcoming regulatory progress on re-administration approvals and the launch of iDose TREX (next-gen implant with higher drug capacity) could further boost its potential. GKOS has also made significant progress in securing reimbursement for iDose TR, with five out of seven Medicare Administrative Contractors now offering coverage. As reimbursement confidence increases, the product’s adoption rate is expected to accelerate, particularly among surgeons transitioning from traditional eye drop treatments.

iDose TR Development Timeline

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Beyond iDose TR, GKOS is advancing its corneal health portfolio, including the anticipated FDA approval of Epioxa, a next-generation corneal cross-linking therapy. The FDA accepted the regulatory application seeking approval for Epioxa earlier this week, with a decision expected in October.

GKOS Faces Rising Competition & FX Risk

Glaukos faces several challenges that could influence its performance in 2025, requiring strategic execution to sustain growth. The ophthalmology market is becoming increasingly competitive, with companies like Alcon launching new minimally invasive glaucoma surgery (MIGS) devices. Additionally, sustained-release drug implants like DURYSTA pose a threat to iDose TR’s market share. GKOS must continue demonstrating superior clinical outcomes and expanding its physician adoption base to maintain leadership.

With a growing international presence, GKOS is vulnerable to currency fluctuations, particularly in key markets such as Europe and Japan. Additionally, global economic uncertainty, inflation, and healthcare budget constraints could affect purchasing decisions and slow adoption rates. The company is also investing in a new research, development, and manufacturing facility in Huntsville, AL. While this expansion supports long-term growth, potential supply-chain disruptions, regulatory hurdles, and capital expenditure pressures could affect near-term profitability.

Furthermore, the expiration of the Hydrus stent royalty revenues presents an additional challenge to sustaining historical growth rates. Addressing these challenges will be crucial for GKOS to maintain its market position and drive long-term success.

GKOS’ Growth Strategies for 2025

Glaukos is currently focusing on expanding iDose TR adoption and international growth in 2025. iDose TR, a sustained-release glaucoma therapy, is set for broader market penetration through increased physician training, improved reimbursement policies and ongoing clinical validation. Additionally, GKOS aims to scale its global presence, particularly in Europe and Asia, by securing regulatory approvals and increasing adoption of its MIGS devices. While challenges such as foreign exchange fluctuations and competitive pressures persist, these strategic efforts position the company for sustained revenue growth and strengthened market leadership in the ophthalmology sector.

GKOS’ One-Year Performance

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GKOS’ Valuation Looks Expensive

Although GKOS shares crashed significantly this week, they rallied nearly 70% in a year until Feb. 20. Given the rise in GKOS shares, its valuation appears expensive relative to the industry. The stock is, at present, trading at the forward 12-month price/sales (P/S) of 13.36X. This is significantly above the industry’s 4.67X and the GKOS’ five-year median of 9.38X, reflecting a stretched valuation.

Five-Year P/S F12M

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Analyst Sentiments Bullish for GKOS

Although the company’s shares crashed and valuation looks expensive, analysts seem to be bullish about Glaukos’ prospects. The company’s loss per share estimates have improved 11.1% in the past 30 days to 96 cents. Moreover, loss per share estimate for first-quarter 2025 improved 2 cents in the past week to 33 cents. Per analyst estimates, GKOS is likely to report breakeven earnings in 2026.

Improving Estimates

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The improving estimates paint a rosy picture as this may lead to lower valuation without any major correction in share price.

Conclusion: Sell Micron Stock for Now

Glaukos currently holds a Zacks Rank #3 (Hold). The company’s expensive valuation is a deterrent for any new position in the stock. Although GKOS’ loss per share estimate keeps improving and an approval for Epioxa is expected in the fourth quarter, the company is facing margin pressure. This trend is likely to continue in 2025 as the company expands its manufacturing facility. Preparations for Epioxa launch following a potential approval should also drive expenses higher. Meanwhile, any loss of market share amid rising competition will hurt the company’s prospects.

GKOS’ Momentum score of ‘A’ suggests that continued pressure on share price may continue in the upcoming days. Investors must keep a watch on the stock and check for any deterioration in Zacks Rank. A change of Zacks Rank to #4 (Sell) or #5 (Strong Sell) must be followed by exiting all positions in the stock.

Stocks to Consider

Masimo MASI, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 6.1% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 63.5% against the industry’s 1.9% decline in the past six months.

Alphatec ATEC, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.

ATEC’s shares have gained 77% against the industry’s 1.9% decline in the past six months.

Avenna Healthcare AVAH, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 666.7% for 2025.

AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 21.8% in the past six months compared with the industry’s 2.9% decline.

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