0001558370-25-010113
SEC filingRevenue grew 30% YoY in Q2 driven by iDose TR; gross margin improved to 78%; net loss narrowed 61%.
For the three months ended June 30, 2025, net sales increased 30% year-over-year to $124.1 million, driven primarily by higher volumes of iDose TR in the U.S. glaucoma market. Gross profit rose 33% to $97.2 million, with gross margin expanding to 78% from 76% in the prior-year period, benefiting from favorable product mix and production efficiencies. Operating expenses increased 16% to $119.9 million, largely due to higher selling, general and administrative costs (up 26% to $83.4 million) from increased compensation, stock-based compensation, and commercial infrastructure investments. Research and development expenses grew 6% to $36.5 million. Loss from operations improved to $22.7 million from $30.0 million, and net loss narrowed to $19.7 million from $50.5 million, aided by a swing to non-operating income of $3.3 million versus an expense of $20.2 million in the prior year (primarily due to the convertible notes exchange in 2024).
U.S. glaucoma net sales surged 45% to $72.3 million, driven by iDose TR adoption, partially offset by lower iStent family volumes due to final local coverage determinations (LCDs) restricting combination MIGS procedures. International glaucoma sales increased 20% to $31.3 million, with broad-based growth in Japan, France, the United Kingdom, and Germany, and favorable foreign exchange rate impacts (approximately 410 basis points). Corneal health sales grew modestly 4% to $20.6 million, as higher U.S. Photrexa volumes and average selling prices were partly offset by international declines and Medicaid Drug Rebate Program rebates.
Management expects continued growth from iDose TR as reimbursement matures across Medicare Administrative Contractors, but LCDs and physician fee reductions may pressure iStent volumes. The company received EU MDR certification for iStent devices in June 2025, with commercial launch anticipated in key EU markets in the second half of 2025. Key upcoming milestones include the October 20, 2025 PDUFA date for Epioxa (a topical keratoconus treatment) and a January 2026 PDUFA date for iDose TR re-administration. The acquisition of Mobius Therapeutics (May 2025) adds Mitosol, the only FDA-approved ophthalmic mitomycin-C, to the portfolio. Management expects capital expenditures to be higher in 2025 for facility expansions, including a new Huntsville, Alabama R&D and manufacturing facility. Despite net losses, the company maintains a strong liquidity position with $278.6 million in cash, equivalents, and short-term investments as of June 30, 2025.
As of June 30, 2025, Glaukos held $100.8M in cash and cash equivalents plus $174.0M in short-term investments (total $274.8M). Restricted cash was $3.8M. The company has no outstanding debt after fully redeeming its 2.75% convertible notes due 2027 in December 2024. Total assets were $987.0M, with shareholders' equity of $765.1M. Inventory increased to $64.6M (raw materials $22.8M, work in process $17.9M, finished goods $23.9M). Accounts receivable net rose to $83.0M due to iDose TR extended payment terms.
Glaukos has a $6.3M minimum compensation commitment under a four-year supply agreement with Celanese for raw materials used in iDose TR. Additionally, the company has operating and finance lease liabilities totaling $37.3M and $70.1M, respectively, with weighted-average remaining terms of approximately 10 years. The Mobius acquisition includes contingent consideration up to $80.0M in net sales milestones and single-digit royalty payments through 2030, with a fair value of $7.7M at acquisition.
No share buybacks or dividends were declared. Capital expenditures for H1 2025 were $19.7M, including $3.1M for property and equipment and $16.6M for the purchase of the Aliso Viejo building. The company also invested $12.4M net cash in the Mobius acquisition. Financing activities provided $4.2M, primarily from stock option exercises ($9.1M) and ESPP purchases ($3.0M), offset by $7.3M in employee tax payments for vested RSUs.
The company operates as a single segment: ophthalmic therapies. For the six months ended June 30, 2025, total net sales were $230.8M, comprising Glaucoma products ($191.7M, +34% YoY) and Corneal Health ($39.1M, +2% YoY). Geographically, U.S. sales were $165.6M (72%) and international $65.2M (28%). The increase in Glaucoma was driven by iDose TR commercial launch and continued iStent family growth.