Glaukos Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached a record $211.0 million in Q3 2026, a 58% increase year-over-year on both reported and constant currency bases compared to $133.5 million in Q3 2025.
• Gross margin was approximately 85% in Q3 2026, up from 78% in the prior year period; non-GAAP gross margin was approximately 88%, up from 84%.
• Net income was $2.0 million ($0.03 diluted EPS) in Q3 2026, compared to a net loss of $16.2 million ($0.28 diluted EPS) in Q3 2025.
• Non-GAAP net income was $28.5 million ($0.47 diluted EPS) in Q3 2026, compared to a non-GAAP net loss of $9.2 million ($0.16 diluted EPS) in Q3 2025.
• Income from operations was $0.8 million in Q3 2026, reversing an operating loss of $16.4 million in Q3 2025; non-GAAP income from operations was $27.3 million, compared to a non-GAAP operating loss of $9.3 million.
• Selling, general and administrative (SG&A) expenses increased 58% to $130.9 million in Q3 2026 from $83.0 million in Q3 2025; non-GAAP SG&A increased 32% to $109.7 million from $83.2 million.
• Research and development (R&D) expenses increased 26% to $48.1 million in Q3 2026 from $38.1 million in Q3 2025.
• The company ended Q3 2026 with $339.8 million in cash, cash equivalents, short-term investments, and restricted cash, an increase of $50.5 million from $289.3 million at the end of Q2 2026.
• The company reported no debt as of September 30, 2026.

Guidance and Future Outlook:

• Raised 2026 net sales guidance to a range of $775 million to $785 million, up from the previous range of $680 million to $700 million.
• Introduced preliminary 2027 net sales guidance of $1 billion.
• Management cited two transformational growth drivers, iDose TR and Epioxa, as key factors sustaining strong growth momentum.

Business Segments and Product Lines:

• U.S. Glaucoma segment recorded record net sales of $118.6 million in Q3 2026, a 47% year-over-year increase.
• Corneal Health segment recorded record net sales of $59.0 million in Q3 2026, a 154% year-over-year increase.
• International Glaucoma sales were $33.4 million in Q3 2026, representing a 13.3% year-over-year increase.

Market and Competitive Landscape:

• The company operates as an ophthalmic pharmaceutical and medical technology firm focused on novel therapies for glaucoma, corneal disorders, and retinal diseases.
• iDose TR is described as a first-of-its-kind, long-duration, intracameral procedural pharmaceutical delivering 24/7 glaucoma drug therapy.
• The company markets the only FDA-approved corneal cross-linking therapy utilizing a proprietary bio-activated pharmaceutical for keratoconus.
• The company continues to develop a pipeline of novel, dropless platform technologies.

Risks and Challenges:

• Forward-looking statements identify risks including the ability to successfully commercialize iDose TR and Epioxa therapies.
• Potential risks include macroeconomic conditions, foreign currency fluctuations, supply and manufacturing disruptions, and product recalls or safety issues.
• Risks related to international operations, reimbursement coverage, regulatory compliance costs, and the lengthy clinical trial process are noted.
• Litigation risks include trade secrets litigation and other legal matters, with $5.9 million in litigation expenses recorded in Q3 2026.
• A resolution agreement with the Regents of the University of California resulted in $14.1 million in expenses in Q3 2026.

Management Commentary and Tone:

• Thomas Burns, Chairman and CEO, stated that record results reflect successful global execution and position the company to sustain growth momentum.
• Management expressed confidence in advancing the standard of care and improving outcomes for patients with chronic eye diseases through their pipeline.

Other Key Points:

• The company hosts a conference call and webcast to discuss results and financial outlook.
• A "Quarterly Summary" document is available on the Investor Relations website to provide a summarized reference for the investment community.
• Non-GAAP financial measures exclude items such as amortization of intangible assets, litigation costs, acquisition-related expenses, and inventory write-downs to reflect core operational activities.
• Year-to-date Q3 2026 GAAP net loss was $36.1 million, while non-GAAP net income was $9.8 million.