Glaukos Corporation (NYSE:GKOS) Is Expected To Breakeven In The Near Future

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. On 31 December 2024, the US$6.1b market-cap company posted a loss of US$146m for its most recent financial year. Many investors are wondering about the rate at which Glaukos will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

According to the 15 industry analysts covering Glaukos, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$48m in 2027. So, the company is predicted to breakeven approximately 2 years from today. 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 71%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Glaukos' upcoming projects, but, keep 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 rare for a loss-making growth company, which usually has a high level of 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:

There are key fundamentals of Glaukos which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Glaukos, take a look at Glaukos' company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

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.