Breakeven On The Horizon For Glaukos Corporation (NYSE:GKOS)

With the business potentially at an important milestone, we thought we'd take a closer look at Glaukos Corporation's (NYSE:GKOS) future prospects. Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, develops therapies for the treatment of glaucoma, corneal disorders, and retinal diseases in the United States and internationally. The US$5.9b market-cap company’s loss lessened since it announced a US$146m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$124m, as it approaches breakeven. Many investors are wondering about the rate at which Glaukos will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Consensus from 15 of the American Medical Equipment analysts is that Glaukos is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$51m in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 72%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Glaukos given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Glaukos

One thing we’d like to point out is that Glaukos has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Glaukos, so if you are interested in understanding the company at a deeper level, take a look at Glaukos' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Glaukos worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Glaukos is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Glaukos’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.