One-glance verdict
Overvalued
$12.99 our estimate vs market $237.00
Wall Street consensus: $242.46 (1,767.1% higher than our fair-value estimate)
1725% above our estimate, beyond the bull case
Fundamentals snapshot
Glaukos Corporation
GKOS · NYQ · Healthcare · Medical Devices
Current price
$237.00
52-week range
$87.32 - $255.19
Market cap
$14.03B
Balance sheet
Healthy
-43.06x Concerning
Net cash $231.55M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 36.0% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -22.8% last year — the company lost money on shareholders' equity.
What this company does
Glaukos Corporation
Glaukos Corporation makes special medical devices and drugs to help people with eye conditions like glaucoma, which is a common cause of blindness where pressure builds up inside the eye. Most of their money comes from selling these patented treatments to eye doctors and hospitals, helping them manage the increasing sales of their new eye care products.
How the company got here
Glaukos was founded in 1998 with the goal of improving treatments for glaucoma, a condition that can lead to vision loss. The company's journey began with a focus on developing micro-invasive surgical techniques as an alternative to traditional, more invasive glaucoma surgeries. A significant turning point came in 2012 when Glaukos received FDA approval for its iStent, which was the first Micro-Invasive Glaucoma Surgery (MIGS) device approved in the U.S. This established Glaukos as a pioneer in this new category of eye care. In 2019, Glaukos expanded its focus beyond glaucoma by acquiring Avedro, which brought a corneal health platform into the company's offerings. More recently, the FDA approval of iDose TR in 2023 marked another key milestone, adding a new pharmaceutical therapy to its glaucoma treatment portfolio.
What it actually does
Glaukos is a company that develops and sells medical technologies and pharmaceuticals specifically for eye conditions. Think of them as creating specialized tools and treatments that eye doctors use to help people see better and prevent vision loss. Their products are designed to address issues like glaucoma (which damages the optic nerve), corneal disorders (problems with the clear front part of the eye), and retinal diseases (conditions affecting the back of the eye). They aim to offer less invasive and more effective treatment options compared to older methods.
Glaucoma Treatments
This is the area where Glaukos first made its name. Glaucoma is a group of eye diseases that damage the optic nerve, which connects the eye to the brain, and can lead to vision loss. Glaukos offers several solutions for this condition. The iStent family of products includes tiny devices, called micro-bypass stents, that are surgically implanted in the eye to help fluid drain more effectively, thereby reducing pressure inside the eye. They also have iDose TR, which is an implantable pharmaceutical therapy that continuously releases medication inside the eye to lower eye pressure over a long period. These treatments are designed for patients with mild to severe glaucoma, offering alternatives to daily eye drops or more invasive surgeries. This segment represents a significant portion of Glaukos' business.
Corneal Health
Through its acquisition of Avedro, Glaukos has developed a business focused on treating disorders of the cornea, the eye's clear outer layer. A key product here is the iLink system, which uses a special solution and ultraviolet light to strengthen the cornea. This is primarily used to treat keratoconus, a condition where the cornea thins and bulges into a cone shape, which can cause significant vision problems. This part of the business aims to halt the progression of such diseases and preserve vision.
Retinal Diseases
Glaukos is also developing treatments for diseases affecting the retina, the light-sensitive tissue at the back of the eye. These conditions include age-related macular degeneration (AMD) and diabetic macular edema, which are major causes of vision loss. The company is working on sustained-release drug delivery platforms, like the Retina XR platform, which are designed to deliver medication over a longer period, potentially reducing the need for frequent injections. This is a newer area of focus for Glaukos, representing a future growth opportunity.
What management is betting on now
Glaukos' management is focused on expanding its portfolio of innovative, minimally invasive treatments for eye diseases. They are heavily investing in research and development (R&D) to create new therapies, particularly in areas like sustained-release drug delivery for retinal diseases and advanced treatments for corneal conditions. A key strategy is to continue innovating within their established glaucoma business while also growing their presence in the corneal and retinal disease markets. They aim to offer "dropless" or less invasive treatment options that improve patient outcomes and convenience, positioning themselves as leaders in transforming eye care.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.23M
FY2025 Q1
$-20.46M
FY2025 Q2
$5.80M
FY2025 Q3
$-11.72M
FY2025 Q4
$3.93M
FY2026 Q1
$-16.48M
FY2026 Q2
$12.09M
FY2026 Q3
$36.49M
Revenue
$211.03M
Net income
$2.02M
Diluted EPS
0.03
Operating cash flow
$38.57M
Free cash flow
$36.49M
Fetching…
Sources
Revenue
$185.61M
Net income
$-18.38M
Diluted EPS
-0.31
Operating cash flow
$14.82M
Free cash flow
$12.09M
Fetching…
Sources
Revenue
$150.57M
Net income
$-19.78M
Diluted EPS
-0.34
Operating cash flow
$-12.53M
Free cash flow
$-16.48M
Fetching…
Sources
Revenue
$143.12M
Net income
$-133.66M
Diluted EPS
-2.34
Operating cash flow
$6.84M
Free cash flow
$3.93M
Fetching…
Sources
Revenue
$133.54M
Net income
$-16.23M
Diluted EPS
-0.28
Operating cash flow
$-10.09M
Free cash flow
$-11.72M
Fetching…
Sources
Revenue
$124.12M
Net income
$-19.66M
Diluted EPS
-0.34
Operating cash flow
$6.98M
Free cash flow
$5.80M
Fetching…
Sources
Revenue
$106.66M
Net income
$-18.15M
Diluted EPS
-0.32
Operating cash flow
$-18.52M
Free cash flow
$-20.46M
Fetching…
Sources
Revenue
$105.50M
Net income
$-33.58M
Diluted EPS
-0.56
Operating cash flow
$507.00K
Free cash flow
$-1.23M
Fetching…
Sources
Is it cheap or expensive?
Fair value $12.99 vs current price $237.00
Wall Street consensus is the average analyst price target: $242.46 (1,767.1% higher than our fair-value estimate).
Our most-likely fair value is $12.99 a share — about 94.5% below today's price of $237.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $231.6M - more cash than debt. Interest coverage -43.1x.
Net debt
$-231.55M
Interest coverage
-43.06x
Glaukos Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
GKOS
BASELINE
Glaukos Corporation
Total debt $105.15M Interest coverage -43.06x This is the baseline the peer rows are being compared against.
Total debt $42.11M Interest coverage -7.21x Neither company has much profit cushion over interest right now.
Total debt $5.30B Interest coverage 6.67x This peer still has a real interest-payment cushion, while GKOS does not.
Total debt $5.10B Interest coverage 0.45x This peer still has a real interest-payment cushion, while GKOS does not.
Total debt $33.64M Interest coverage -10.00x Neither company has much profit cushion over interest right now.
Total debt $22.37M Interest coverage -7,376.79x Neither company has much profit cushion over interest right now.
What you should know
The case for and against GKOS
2 Rewards
1 Risk
Rewards
-
Revenue grew 36.0% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -22.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
169.28x
P/B
19.55x
P/S
20.32x
EV/EBITDA
-694.30x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
81.1%
Operating margin
0.4%
Net margin
-24.6%
ROE
-22.8%
ROA
-3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
4.57x
Quick ratio
3.84x
Total debt
$105.15M
Total cash
$336.70M
Growth
How the business has been compounding
Revenue TTM
$690.33M
Revenue 5Y CAGR
14.6%
EPS TTM
-2.95
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$47.71M
Free CF TTM
$-22.45M
FCF margin
-3.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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