Glaukos(GKOS) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Glaukos reported record fourth quarter consolidated net sales of $143.1 million, up 36% on a reported basis and 34% on a constant currency basis compared to the same quarter last year [5] - For the full year 2025, consolidated net sales reached $507.4 million, growing 32% versus 2024 [5] - The company reaffirmed its full year 2026 net sales guidance range of $600 million to $620 million, implying over 20% year-over-year growth at the midpoint [5] Business Line Data and Key Metrics Changes - The U.S. glaucoma franchise achieved record fourth quarter net sales of $86.4 million, reflecting a strong year-over-year growth of 53%, driven by iDose TR, which generated approximately $45 million in sales during the fourth quarter [8] - The international glaucoma franchise delivered net sales of $32.8 million, with year-over-year growth of 18% on a reported basis and 13% on a constant currency basis [10] - The corneal health franchise reported net sales of $24 million, with year-over-year growth of 12%, including T-Rex with net sales of $21.4 million [11] Market Data and Key Metrics Changes - The company noted strong physician adoption of iDose TR, with sales of approximately $136 million in 2025, reflecting positive clinical outcomes and growing contributions [9] - The international market is expected to face competitive product trialing headwinds in major markets, partially offset by contributions from iStent infinite following its EU MDR certification [11] Company Strategy and Development Direction - Glaukos aims to advance the interventional glaucoma treatment paradigm with iDose TR and the launch of Epioxa, targeting new markets in interventional keratoconus and rare diseases [7] - The company is focused on disciplined capital allocation, emphasizing ROI-driven investments and cash flow while advancing a robust industry-leading pipeline [8] - The FDA approval of Epioxa is seen as a pivotal moment, allowing the company to redefine its go-to-market approach and expand patient care access [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong growth momentum into 2026, driven by transformational growth drivers [6] - The company anticipates continued sequential growth in iDose TR, despite being in a seasonally low quarter for procedure volumes [29] - Management acknowledged potential volatility in the corneal health franchise due to the transition from Photrexa to Epioxa, expecting modest growth year-over-year [36] Other Important Information - Glaukos has invested over $1 billion in R&D since inception, focusing on chronic and rare ophthalmic diseases [19] - The company is establishing a network for Epioxa treatment, aiming to cover nearly 90% of the U.S. population [14] Q&A Session Summary Question: Can you elaborate on early positive coverage determinations for Epioxa? - Management noted that early positive outcomes have been observed with several Medicaid societies and a major blue plan, with no formal pushback on pricing dynamics [24] Question: What drove the sequential deceleration in iDose revenue in Q4? - Management indicated that the mix shifted towards Medicare Advantage, impacting revenue dynamics, but expects continued growth in Q1 [28][29] Question: Can you provide insights on the components of the FY 2026 guidance? - Management expects U.S. glaucoma growth driven by iDose TR, with modest growth in corneal health, particularly as Epioxa becomes available [34][36] Question: How will operating expenses be managed in 2026? - Management plans to balance capital investments against revenues, expecting mid-teen year-over-year growth in operating expenses [51]