Glaukos reports $211M revenue for Q3 2026

Cover page 3 changes

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For the quarterly period ended June September 30, 2026

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As of July 27, October 26, 2026, there wer e 58,983,937 were 59,196,870 sh ares of the registrant s Common Stock, $0.001 par value per share, outstanding.

For the Quarterly Period Ended June September 30, 2026

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Exhibits 2 changes

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Investing in our securities involves a high degree of risk. The following is a summary of the principal factors that make an investment in our securities speculative or risky, all of which are further described below in the section titled Risk Factors in Part II, Item 1A of this report. This summary should be read in conjunction with the Risk Factors section and the other information contained in this report before investing in our securities, and should not be relied upon as an exhaustive summary of the material risks facing our business. In addition to the following summary, you should consider the information set forth in the Risk Factors section and the other information contained in this report before investing in our securities.

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Our net operating loss tax carryforwards and tax credits may not be available, or may be subject to certain limitations, to offset future taxable income.

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Financial statements 33 changes

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Preferred stock, $ 0.001 par value; 5,000 shares authorized; no shares issued and outstanding as of June September 30, 2026 and December 31, 2025

Common stock, $ 0.001 par value; 150,000 shares authorized; 58,886 59,196 and 57,539 shares issued and 58,858 59,168 and 57,511 shares outstanding as of June September 30, 2026 and December 31, 2025, respectively

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Less treasury stock ( 28 shares as of June September 30, 2026 and December 31, 2025)

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Income (loss) from operations

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Other (expense) income, net

Other income (expense), net

Total non-operating (expense) income

Income (loss) before taxes

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Basic net income (loss) per share

Basic and Diluted net income (loss) per share

Weighted-average shares outstanding used to compute basic and diluted net income (loss) per share

Weighted-average shares outstanding used to compute diluted net income (loss) per share

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CONDENSED CONSOLIDATED STA TEMENTS OF COMPREHENSIVE INCOME (LOSS)

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Foreign currency translation income (loss) income

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Total comprehensive loss

Total comprehensive income (loss)

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Common stock issued under stock plans, net

Stock-based compensation

Other comprehensive loss

Balance at September 30, 2026

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Common stock issued under stock plans, net

Stock-based compensation

Other comprehensive income

Balance at September 30, 2025

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Six Months Ended June 30,

Nine Months Ended September 30,

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Unrealized foreign currency loss (gain)

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Resolution agreement liability

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Net cash provided by used in investing activities

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Payment of employee taxes related to vested restricted stock units ( 8,412 ( 7,294 7,943

Payment of contingent consideration

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Effect of exchange rate changes on cash and cash equivalents ( 1,302 ( 4,635 1,174

Net increase (decrease) in cash, cash equivalents and restricted cash ( 69,712 72,279

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Note 1: Organization and Basis of Presentation 4 changes

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Glaukos Corporation (Glaukos or the Company), incorporated in Delaware on July 14, 1998, is an ophthalmic pharmaceutical and medical technology company focused on developing novel dropless platform therapies and commercializing associated products for the treatment of glaucoma, corneal disorders, and retinal diseases. The Company first developed Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the traditional glaucoma treatment paradigm, launching its first MIGS device commercially in 2012. Since that time, the Company has launched additional MIGS products. In 2024, the Company commenced commercial launch activities for iDose TR , a sustained-release pharmaceutical product used in the treatment of glaucoma. The Company also recently commenced its controlled commercial launch of Epioxa , a proprietary bio-activated and incision-free pharmaceutical therapy for the treatment of a rare corneal disorder, keratoconus, that was approved by the United States (U.S.) Food and Drug Administration (FDA) in 2025. Glaukos first-generation corneal cross-linking therapy, known as Photrexa , which requires removal of the corneal epithelium, received U.S. FDA approval in 2016. All of these products are part of a portfolio of platforms the Company is developing to support ongoing pharmaceutical and medical device innovations. Products or product candidates for each of these platforms are designed to advance the standard of care through better treatment options across the areas of glaucoma; corneal disorders such as keratoconus, dry eye and refractive vision correction; and retinal diseases such as neovascular age-related macular degeneration, diabetic macular edema and retinal vein occlusion.

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As permitted by Form 10-Q and Article 10 of Regulation S-X, certain footnotes and other financial information that are normally required by GAAP have been condensed or omitted. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements. In the opinion of management, the unaudited interim financial statements reflect all adjustments necessary for the fair presentation of the Company s financial information contained herein. All such adjustments are of a normal and recurring nature. The condensed consolidated balance sheet as of December 31, 2025 has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. These interim financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company s financial statements and accompanying notes for the fiscal year ended December 31, 2025, which are contained in the Company s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on February 23, 2026. The Company s results of operations for the three and six nine months ended June September 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or for any other interim period.

On September 29, 2026, the Company entered into a resolution agreement (the Resolution Agreement) with the Regents of the University of California (the Regents) to resolve the final payment relating to certain U.S. patents under the December 2014 UC-Glaukos Agreement. Pursuant to the Resolution Agreement, the Company agreed to pay the Regents $ 14.1 million, a portion of which will be directed to the Gavin Herbert Eye Institute and other recipients to develop innovative technologies to diagnose and treat ophthalmic and other diseases and disorders (the Resolution Amount), in exchange for a release of all claims relating to the December 2014 agreement and the specified patents, including claims for past or future payments under the December 2014 agreement. As of September 30, 2026, the Resolution Amount is included in accrued liabilities on the condensed consolidated balance sheets, and was paid in October 2026.

On April 15, 2026, the U.S. Centers for Medicare & Medicaid Services (CMS) assigned a unique, permanent Healthcare Common Procedure Coding System (HCPCS) J-code for Epioxa, J2789 The new J-code for Epioxa which became effective on July 1, 2026. J-codes are used by U.S. government and commercial payers to streamline the billing and reimbursement process for procedural pharmaceuticals administered by a healthcare professional, such as Epioxa . The Company began its controlled also advanced initial commercial launch plans of Epioxa, in the first quarter of 2026. and as part of the launch, the Company is transitioning completed the transition of commercial efforts and manufacturing from Photrexa to Epioxa over during the course third quarter of 2026.

Note 2: Summary of Significant Accounting Policies 3 changes

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The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statements of cash flows as of the beginning and end of the six nine months ended June September 30, 2026 (in thousands):

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Advertising costs consist primarily of print media, digital media, and spokesperson endorsements. Print and digital media advertising costs are expensed as incurred, while costs associated with spokesperson endorsements are capitalized and expensed upon the first showing or distribution of the related advertisement.

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In November 2024, the FASB issued ASU No. 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregated disclosure of certain costs and expenses on an interim and annual basis. ASU No. 2024-03 is effective for interim annual reporting periods within annual beginning after December 15, 2026 and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of adopting ASU No. 2024-03 on its condensed consolidated financial statements and related disclosures.

Note 3: Balance Sheet Details 5 changes

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At September 30, 2026

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The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest expense in the accompanying condensed consolidated statements of operations through an allowance for credit losses. Unrealized gains and losses that are not credit-related are included in accumulated other comprehensive loss. Unrealized losses on available-for-sale debt securities as of June September 30, 2026 and December 31, 2025 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. Further, the Company does not intend to sell these investments prior to maturity and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis. Accordingly, the Company did not record an allowance for credit losses with respect to these investments as of June September 30, 2026 and December 31, 2025.

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Accounts receivable, net increased as of June September 30, 2026 compared to December 31, 2025 primarily due to an increased proportion of net sales from iDose TR and Epioxa during the first six nine months of 2026 given iDose TR and Epioxa have extended payment terms and higher net sales price per unit than the Company s other products. The Company s allowance for credit losses represents management s estimate of current expected credit losses related to customer receivables. Bad-debt write-offs charged during the three and six nine months ended June September 30, 2026 were not significant.

Additionally, one customer, the Company's specialty pharmacy, accounted for approximately 17 % of net accounts receivable as of September 30, 2026. No single customer accounted for more than 10% of net accounts receivable as of either June 30, 2026 or December 31, 2025.

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Accrued resolution agreement liability

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Note 4: Fair Value Measurements 8 changes

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The following tables present information about the Company s financial assets and liabilities measured at fair value on a recurring basis as of June September 30, 2026 and December 31, 2025 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands):

At September 30, 2026

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(vi) (v) One commercial paper U.S. treasury security totaling $ 709 1,491 (in thousands) is included in cash and cash equivalents on the condensed consolidated balance sheets, as the investment has a maturity of three months or less from the date of purchase on the condensed consolidated balance sheets.

(v) Two U.S. treasury securities (vi) One commercial paper security totaling $ 4,090 928 (in thousands) are is included in cash and cash equivalents on the condensed consolidated balance sheets, as the investment has a maturity of three months or less from the date of purchase on the condensed consolidated balance sheets.

(vii) Of the total $ 8.7 9.1 million, $ 7.8 8.4 million and $ 0.9 0.7 million are included in other liabilities and accrued liabilities, respectively, on the condensed consolidated balance sheets.

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As of June September 30, 2026 and December 31, 2025, the contingent consideration liability was $ 8.7 9.1 million and $ 9.3 million, respectively. A roll forward of activity for the six nine months ended June September 30, 2026 is as follows:

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Changes in fair value

Balance at June September 30, 2026

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Note 6: Intangible Assets and Goodwill 4 changes

The Company evaluated its indefinite-lived intangible assets for impairment and concluded there were no indicators of impairment as of June September 30, 2026.

The assessment of goodwill by reporting unit is performed annually, in the fourth quarter, or more frequently if events or circumstances indicate the carrying value may no longer be recoverable and that an impairment loss may have occurred. The Company considered the current and expected future economic and market conditions and its impact on the Company s reporting unit. Based on interim assessments, the Company did not identify any triggering events which would indicate an impairment of goodwill as of June September 30, 2026.

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As of September 30, 2026

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As of June September 30, 2026, expected amortization expense for unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in thousands):

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Note 7: Revenue from Contracts with Customers 8 changes

The Company s net sales are generated primarily from sales of iDose TR , its iStent family of products, Epioxa , Photrexa and associated drug formulations, and the proprietary bioactivation systems. The Company s customers are primarily comprised of ambulatory surgery centers, hospitals, a specialty pharmacy and physician private practices, with third party distributors being used in certain international locations where the Company currently does not have a direct commercial presence.

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Revenue is recognized at an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services, and substantially all of the Company s net sales for the three and six nine months ended June September 30, 2026 and June 30, 2025 are considered revenue from contracts with customers.

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The Company s revenues disaggregated by product category and geography for the three and six nine months ended June September 30, 2026 and June 30, 2025 were as follows (in thousands):

Amounts are recorded as accounts receivable when the Company s right to consideration becomes unconditional. Payment terms on invoiced amounts are typically between 30 60 days for glaucoma and corneal health products, though extended payment terms have been offered as part of the iDose TR and Epioxa commercial launches. However, the Company does not consider any significant financing components in customer contracts given the expected time between transfer of the promised products and the payment of the associated consideration is less than one year. As of June September 30, 2026 and December 31, 2025, substantially all amounts included in accounts receivable, net on the condensed consolidated balance sheets are related to contracts with customers.

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The Company s total accrued volume-based rebates and MDRP allowances are included in accrued liabilities on the condensed consolidated balance sheets. A roll forward of activity for the six nine months ended June September 30, 2026 is as follows:

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Reserve balance, June September 30, 2026

Additionally, the Company has performance obligations related to co-payment and voluntary patient assistance programs to provide financial assistance to qualified patients. These performance obligations are expected to be recognized when the customer or patient elects to utilize the discount, which is generally within one year. The impact of these programs on revenue were not material for the periods presented.

During the three and six nine months ended June September 30, 2026 and June 30, 2025, the Company did not recognize any revenue related to material changes in transaction prices regarding its contracts with customers and did not recognize any material changes in revenue related to amounts included in contract liabilities at the beginning of the period.

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Note 9: Stock-Based Compensation 4 changes

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At June September 30, 2026, the total unamortized stock based compensation expense was approximately $ 122.1 112.9 million, of which $ 16.7 17.5 million and $ 105.3 95.4 million was attributable to stock options and RSUs, respectively. The Company currently issues its annual stock options and RSU grants to senior executives during the first quarter and all other eligible employees during the second quarter, of each year.

Of the $ 16.7 17.5 million related to stock options, $ 14.8 mi llion 13.0 million is attributable to time-based stock options and will be recognized over the time-based stock options remaining vesting terms of approximately 4.0 years (2 .8 ( 2.6 years on a weighted average basis). The remaining $ 1.9 millio n 4.5 million is attributable to performance-based options and will be recognized over the performance-based stock options remaining vesting terms of less than approximately one year ( 0.9 1.1 years o n on a weighted average basis).

Of the $ 105.3 95.4 million related to RS Us, RSUs, $ 97.9 millio n 88.0 million is attributable to time-based RSUs and will be recognized over the RSUs vesting terms of approximately 4.0 years ( 2.9 ye ars 2.8 years on a weighted-average basis). The remaining $ 7.4 m illion million is attributable to performance-based RSUs and will be recognized over the performance-based RSUs remaining vesting terms of less than two years ( 1.0 1.2 years o n on a weighted average basis).

The total stock-based compensation cost capitalized in inventory was not significant for the three and six nine months ended June September 30, 2026 or June 30, 2025 .

Note 10: Income Taxes 3 changes

For the three and six nine months ended June September 30, 2026 , the Company recorded a provision for income taxes of $ 0.7 0.3 million and $ 1.1 1.4 million, respectively, with an effective tax rate of ( 3.70 13.06 % and ( 3.08 4.16 )%, respectively. For the three and six nine months ended June September 30, 2025 , the Company recorded a provision for income taxes of $ 0.2 million and $ 0.6 0.8 million, respectively. For each of the three and six nine months ended June September 30, 2026 and June 30, 2025, the provision for income taxes was primarily comprised of state and foreign income tax expense, net of release of uncertain tax positions for which the statute of limitations has expired.

On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). Key provisions of the OBBBA include the extension and modification of certain provisions of the Tax Cuts and Jobs Act of 2017, changes to bonus depreciation, adjustments to business interest expense limitations, and modifications to the treatment of research and development expenditures. The OBBBA has multiple effective dates, with certain changes effective in 2025 and others in 2026. The Company has reflected the effect of the OBBBA within the provision for income taxes and the deferred tax balances as of June 30, 2026 . The OBBBA did not materially impact the Company's effective tax rate for the three and six months ended June 30, 2026.

OBBBA within the provision for income taxes and the deferred tax balances as of September 30, 2026. The OBBBA did not materially impact the Company's effective tax rate for the three and nine months ended September 30, 2026 .

Note 11: Commitments and Contingencies 3 changes

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The Company has a letter of credit that is related to its corporate headquarters in Aliso Facility. Viejo, California. The letter of credit is secured with an amount of cash held in a restricted account of approximately approximate ly $ 3.1 2.9 million and $ 3.8 million 3.6 millio n as of June September 30, 2026 and December 31, 2025 , respectively. Beginning in May 2022, and on each twelve-month anniversary thereafter, the letter of credit will be reduced by 20 % until the letter of credit amount has been reduced to $ 2.0 million.

Executive Deferred Compensation Plan

Pursuant to the Company s Deferred Compensation Plan, eligible senior level employees are permitted to make elective deferrals of compensation to which he or she will become entitled in the future. The Company has also established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The investments of the rabbi trust consist of COLIs. The fair value of the Deferred Compensation Plan liability, included in other liabilities on the condensed consolidated balance sheets, was approximately appro ximately $ 22.3 22.5 million and $ 18.5 million as a s of June September 30, 2026 and December 31, 2025, , respectively, and the cash surrender value of the COLIs, included in deposits and other assets on the condensed consolidated balance sheets, which reflects the underlying assets at fair value, was approximately $ 23.4 24.0 million and $ 19.5 million milli on as of June September 30, 2026 and December 31, 2025 , respectively.

Note 12: Business Segment Information 7 changes

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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Other (expense) income, net

Other income (expense), net

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Nine Months September 30,

Nine Months September 30,

MD&A 76 changes

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We are an ophthalmic pharmaceutical and medical technology company focused on developing novel dropless platform therapies and commercializing associated products for the treatment of glaucoma, corneal disorders, and retinal disease. We first developed Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the traditional glaucoma treatment paradigm, launching our first MIGS device commercially in 2012. Since that time, we have launched additional MIGS products. In 2024, we commenced commercialization activities for iDose TR , a sustained-release pharmaceutical product used in the treatment of glaucoma. We also recently commenced advanced our controlled initial commercial launch plans of Epioxa , a proprietary bio-activated and incision-free pharmaceutical therapy for the treatment of a rare corneal disorder, keratoconus, that was approved by the United States (U.S.) Food and Drug Administration (FDA) in 2025. Our first-generation corneal cross-linking therapy, known as Photrexa , which requires removal of the corneal epithelium, received U.S. FDA approval in 2016. All of these products are part of a portfolio of platforms we are developing to support ongoing pharmaceutical and medical device innovations. Products or product candidates for each of these platforms are designed to advance the standard of care through better treatment options across the areas of glaucoma; corneal disorders such as keratoconus, dry eye and refractive vision correction; and retinal diseases such as neovascular age-related macular degeneration, diabetic macular edema and retinal vein occlusion.

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We incurred realized net losses income for the three and six months ended June September 30, 2026 of $18.4 $2.0 million and $38.2 incurred a net loss for the nine months ended September 30, 2026 of $36.1 million. respectively and We incurred net losses for the three and six nine months ended June September 30, 2025 of $19.7 $16.2 million and $37.8 $54.0 million, respectively. As of June September 30, 2026, we had an accumulated deficit of $971.3 $969.3 million.

On October 21, 2026, we entered into agreement to acquire certain real property consisting of an approximately 40,000 square foot, two-story building, located in Aliso Viejo, California (the Aliso Building) and adjacent to our existing Aliso Viejo, California corporate headquarters. The transaction is not expected to close until mid- to late-2027 and remains subject to certain closing conditions. The Aliso Building provides us with future expansion opportunities and potentially reduces future capital expenditures associated with construction of an additional building as part of our corporate headquarters. The purchase price for the Aliso Building will be $15.2 million.

On October 8, 2026, we announced that we entered into an exclusive license agreement with RevOpsis Therapeutics, Inc. (RevOpsis) for the rights to research, develop, manufacture and commercialize a multi-specific biologic molecule, as well as up to four additional retinal products, utilizing RevOpsis proprietary platform. Under the agreement, we paid a non-refundable upfront license fee of $10.0 million. We may also be required to make development and regulatory milestone payments of up to $165.0 million for the licensed biologic molecule, and license fee and milestone payments of up to $175.0 million for each of the four additional licensed products, for a total of $875.0 million in potential milestone payments in the event the Company licenses, develops and commercializes all five products. RevOpsis is also eligible to receive tiered royalties ranging from 3% to 8% on annual net sales of licensed products, and the Company has the right to designate one Company representative to serve on the RevOpsis board of directors.

On October 2, 2026, we entered into a development agreement and related lease agreement for a new research and development (R&D) and manufacturing facility in Huntsville, Alabama (Huntsville Facility). The Huntsville Facility is expected to contain approximately 259,000 square feet situated on approximately 25 acres of land, and will include office, cleanroom, laboratory, warehouse and manufacturing space, which is anticipated to result approximately $42.0 million in project costs over the multi-year project. We expect construction to begin in the fourth quarter of 2026.

On September 29, 2026, the Company entered into a resolution agreement (the Resolution Agreement) with the Regents of the University of California (the Regents) to resolve the final payment relating to certain U.S. patents under the December 2014 UC-Glaukos Agreement. Pursuant to the Resolution Agreement, we agreed to pay the Regents $14.1 million, a portion of which will be directed to the Gavin Herbert Eye Institute and other recipients to develop innovative technologies to diagnose and treat ophthalmic and other diseases and disorders (the resolution amount), in exchange for a release of all claims relating to the December 2014 agreement and the specified patents, including claims for past or future payments under the December 2014 agreement.

On April 15, 2026, the U.S. Centers for Medicare and & Medicaid Service (CMS) assigned a unique, permanent Healthcare Common Procedure Coding System (HCPCS) J-code for Epioxa, J2789 The new J-code for Epioxa was which became effective on July 1, 2026. J-codes are used by U.S. government and commercial payers, to streamline the billing and reimbursement process for procedural pharmaceuticals administered by a healthcare professional, such as Epioxa. Epioxa represents an advancement in keratoconus care, offering an incision-free alternative to traditional corneal cross-linking procedures. In the quarter ended September 30, 2026, we began a controlled also advanced our initial commercial launch plans of Epioxa, in the first quarter of 2026 and as part of the launch, we are transitioning completed transition of commercial efforts and manufacturing from Photrexa to Epioxa , with completion of the transition projected to occur by the end of during the third quarter of 2026.

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Changes to U.S. trade policy, in particular with regard to tariffs, have caused substantial market uncertainty and in certain cases, retaliatory measures by trading partners. Such changes include the imposition of tariffs under the authority of the International Emergency Economic Powers Act, which the U.S. Supreme Court found unlawful in February 2026, the creation of a refund process for such tariff duties, and the imposition of new tariffs under various statutory authorities, including on certain patented pharmaceuticals and active pharmaceutical ingredients. Despite these federal actions and the related uncertainty, we believe our exposure to these tariffs and the potential escalation of trade disputes is limited as we primarily source our raw materials and product components from the U.S. Nevertheless, these tariffs, or the introduction of new or higher tariffs in other countries, could pose a risk to our business, or the businesses of our customers, that could affect our net sales and cost of sourcing materials. We will continue to evaluate the impacts of tariffs on our business and results of operations.

As a result of the ongoing international events and ongoing macroeconomic conditions, global and regional economies continue to experience varying levels of inflation, supply shortages or delays, volatility in in supply and demand conditions, foreign exchange rate fluctuations, uncertainty around global trade, and other conditions that have led to disruptions in commerce and pricing stability. These conditions may be exacerbated by heightened geopolitical tensions in the Middle East, including the ongoing conflict between the U.S. and Iran and the related blockage of the Straight Strait of Hormuz, which has increased oil prices and may cause downstream effects on our logistics, manufacturing, and raw material costs.

The effects of foreign currency fluctuations were most notably experienced in our international glaucoma business. Our year over year growth rate of net sales of our international glaucoma franchise was positively negatively affected by approximately 85 125 basis points and positively affected by approximately 420 245 basis points for the three and six nine months ended June September 30, 2026 respectively, in both cases primarily related to the Euro, Australian dollar and the Brazilian Real for the three months ended September 30, 2026, and those two currencies plus the Euro for the nine months ended September 30, 2026, partially offset in both periods by the Japanese Yen. For the three and six nine months ended June September 30, 2025, net sales of our international glaucoma business were positively affected by approximately 410 330 and 25 120 basis points, respectively, primarily related to the Euro and Japanese yen. British Pound.

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In the U.S., healthcare providers use separate billing codes to report the provision of medical procedures and use of supplies to third-party payers, such as government programs or private insurance, and seek reimbursement for all or a portion of those costs. Physician fee payment rates for procedures covered by temporary Current Procedural Terminology (CPT) codes in the Medicare Fee for Service setting, such as a standalone trabecular micro-bypass procedure utilizing the iStent infinite , or the implanting of iDose TR products, are set by the multi-state, regional contractors, or Medicare Administrative Contractors (MACs), of which there are currently seven, that are responsible for administering Medicare claims. As of June September 30, 2026, the professional fees associated with an iDose TR procedure have been formally published by five of the seven MACs. MACs have in the past, and may in the future, change coverage terms, and there can be no assurance that coverage and adequate reimbursement will be obtained from, or maintained by, the MACs.

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We estimate that approximately 80% of procedures utilizing our iDose TR and iStent family of products in the U.S. have been performed in the ASC ambulatory surgery center setting and the remaining estimated 20% of procedures have been performed in the hospital.

Now that Epioxa , our new corneal collagen cross-linking (CXL) procedure, has been approved by the U.S. FDA, reimbursement is expected to primarily involve updates to third-party commercial insurance policies as the vast majority of patients who are diagnosed with, and then treated for, keratoconus are below the Medicare age, with a lesser proportion of patients expected to be treated through Medicaid programs. As an in-office procedure, the procedural component of Epioxa will be covered by a temporary Category III CPT code, 0402T, which is the same code used currently for Photrexa . The professional fees associated with the CXL procedure will be determined by each payer. Reimbursement for physician-administered drugs is typically accomplished administratively through the use of a HCPCS J-code. A unique, permanent HCPCS J-code for Epioxa, J2789, has been established and became effective on July 1, 2026. Coverage and reimbursement can differ significantly from payer to payer, and payers can change or deny coverage for new or existing products without notice. We continue to make progress with payers to secure access pathways or policy coverage for Epioxa , with access pathways now established with the five largest payers.

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We anticipate some potential disruption within our U.S. Corneal Health franchise during 2026 as the market transitions from Photrexa to Epioxa following Epioxa's approval and our ongoing commercialization efforts. During this transition, market access pathways for Epioxa continue to be established, while commercial availability of Photrexa is expected to conclude by the end of the third quarter of 2026.

During the three months ended June 30, second quarter of 2026, five of the seven Medicare Administrative Contractors MACs issued proposed Local Coverage Determinations (LCDs) outlining proposed Medicare coverage criteria for iDose TR . The proposed LCDs were subject to a public comment process, which concluded on July 4, 2026. and have not been finalized. We continue to participate in the review process and monitor developments while awaiting a possible issuance of final LCDs. Should final LCDs be issued, there will be a 45-day waiting period from the date of issuance before they would become effective. While we believe the clinical evidence supporting iDose TR , together with real-world outcomes and feedback provided by physicians, medical societies, and other stakeholders during the public comment process, supports appropriate Medicare coverage that preserves physician decision-making and patient access, the timing, content, and potential impact of any final LCDs remain uncertain.

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Our net sales are generated primarily from sales of iDose TR , our iStent family of products, Photrexa, Epioxa and other associated drug formulations, and our proprietary bioactivation systems. Customers are primarily comprised of ambulatory surgery centers, hospitals, a specialty pharmacy and physician private practices, with independent distributors being used in certain international locations where we currently do not have a direct commercial presence. We currently operate in one operating and reportable segment and our primary business activity is the development and commercialization of therapies across several end markets within ophthalmology.

We sell the majority of our products through a direct sales organization in the United States. Internationally, we sell our products primarily through direct sales subsidiaries and through independent distributors in certain countries in which we do not have a direct presence or only maintain a modest commercial presence. The primary end user customers for our products are surgery centers, hospitals and physician private practices.

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Cost of sales also includes amortization of the developed technology intangible assets recorded as a result of our acquisitions of Avedro, Inc. (Avedro) and Mobius Therapeutics, LLC (Mobius), respectively, and our sales agreement with Celanese Canada ULC (Celanese Agreement). For each of the three months ended June September 30, 2026 and June 30, 2025, amortization expense was $5.8 million and $6.1 million, respectively. For the six nine months ended June September 30, 2026 and June 30, 2025, amortization expense was $14.9 $20.4 million and $11.4 $17.5 million, respectively.

We manufacture our iStent family of products and iDose TR at our facilities in San Clemente, California and our proprietary bioactivation systems at our manufacturing facility in Burlington, Massachusetts. We contract with third-party manufacturers in the U.S. and Germany to produce our Photrexa, Epioxa and other associated drug formulations. We currently intend to maintain our manufacturing facilities at our San Clemente and Burlington locations for the foreseeable future.

Due to the relatively low Based on our current production volumes of our iStent family of products, iDose TR and our proprietary CXL bioactivation systems compared to our potential capacity for those products, a significant considerable portion of our per unit costs is comprised of manufacturing overhead expenses. These expenses include quality assurance, material procurement, inventory control, facilities, equipment and operations supervision and management.

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Non-Operating (Expense) Income, Net

Non-operating (expense) income, net primarily consists of interest income derived from our short-term investments, interest expense associated with our finance lease for our corporate headquarters in Aliso Viejo, California, and unrealized gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the U.S. dollar, primarily related to intercompany loans.

Our tax provision is primarily comprised of state and foreign income taxes offset by release of uncertain tax positions for which the statute of limitations has expired. Our net deferred tax liability of $0.4 million at June September 30, 2026 and December 31, 2025 primarily represents the excess of our indefinite-lived deferred tax liabilities over our indefinite-lived deferred tax assets. We continue to provide a full valuation allowance against our other net deferred tax assets.

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Comparison of Three Months Ended June September 30, 2026 and June 30, 2025 (in thousands):

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Acquired in-process research and development

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Income (loss) from operations

Total non-operating (expense) income, net

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* NM Not meaningful.

Net sales for the three months ended June September 30, 2026 and June 30, 2025 were $185.6 $211.0 million and $124.1 $133.5 million, respectively, increasing by approximately 50% 58% primarily related to the factors listed below.

Net sales of glaucoma products in the United States were $118.5 $118.6 million and $72.3 $80.8 million for the three months ended June September 30, 2026 and June 30, 2025, respectively, increasing by 64%. 47%. This increase is primarily due to higher sales volume of iDose TR , which has a higher net sales price than our other products, combined with modest growth in the net sales of our non- iDose products.

International sales of glaucoma products for the three months ended June September 30, 2026 and June 30, 2025 were $36.6 $33.4 million and $31.3 $29.4 million, respectively, increasing by 17%. 13%. The increase in international sales reflects continued broad-based volume growth in many key international markets for glaucoma procedures, primarily France, the United Kingdom, France and Australia, partially offset by reimbursement challenges in Germany. Additionally, the dollar-based results of our international sales were affected by favorable foreign exchange rates, primarily related to the Euro, Australian dollar and Brazilian Real, partially offset by the Japanese Yen and the Euro, during the three months ended June September 30, 2026, as compared to the three months ended June September 30, 2025.

Net sales of corneal health products were $30.4 $59.0 million and $20.6 $23.3 million for the three months ended June September 30, 2026 and June 30, 2025, respectively, increasing by 48%. 154%. The $9.8 $35.8 million increase in net sales generated by our corneal health products were primarily related to U.S. net sales of Epioxa using direct sales operations, partially offset by a modest decrease in U.S. sales of Photrexa using direct sales operations, as customers transition transitioned from Photrexa to Epioxa . Our net sales of iLink devices in the U.S. also increased because of new account placements for the three months ended June September 30, 2026 as compared to the three months ended June September 30, 2025.

Cost of sales for the three months ended June September 30, 2026 and June 30, 2025 were $34.0 $31.2 million and $26.9 $28.8 million, respectively, reflecting an increase of approximately $7.1 $2.3 million, which is generally proportionate to the increase in net sales for the corresponding period, as well as taking into account the increased gross margin contributions from increased iDose TR production and net sales of iDose TR and Epioxa . Our gross margin was 82% 85% for three months ended June September 30, 2026 and 78% for the three months ended June September 30, 2025.

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SG&A expenses for the three months ended June September 30, 2026 and June 30, 2025 were $116.1 $130.9 million and $83.4 $83.0 million, respectively, reflecting an increase of $32.7 $47.9 million or 39%. 58%.

Of the total $32.7 $47.9 million increase in SG&A expenses for the three months ended June September 30, 2026 as compared to the three months ended June September 30, 2025, $17.5 $11.4 million related to increased compensation and related employee costs, with $9.4 $2.1 million of the incremental amount related to an increase in stock-based compensation expense, the majority of which was associated with performance equity awards that were achieved during the quarter. The residual increase of $9.3 million primarily relates to enhancements of various customer and patient support functions, our business intelligence function, and growth in our commercial infrastructure in glaucoma and corneal health, along with increased travel, meetings and accompanying costs as business activities have expanded.

The remaining increase of $14.8 $36.5 million primarily relates includes a $14.1 million accrual for our Resolution Agreement payment, with the remaining $22.4 increase attributable to discretionary expenses supporting the above personnel growth, marketing and market access expenses, as well as our ongoing administrative operations, inclusive of information technology, facilities, and allocated expenses. marketing and market access expenses, as well as reserves for accounts receivable, which are calculated based on our accounts receivable reserve methodology.

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R&D expenses for the three months ended June September 30, 2026 and June 30, 2025 were $51.3 $48.1 million and $36.5 $38.1 million, respectively, reflecting an increase of $14.8 $10.0 million or 40%. 26%. Of the total $14.8 $10.0 million increase, $7.1 $4.1 million and $7.7 $5.9 million related to core R&D and clinical expenses, respectively.

Compensation and related employee expenses increased $4.6 $4.3 million, $1.1 $0.6 million of which was related to increased stock-based compensation. The remaining increase in R&D expenses of $10.2 million $5.7million was spent on continued research and development, clinical studies, regulatory activities, quality assurance, clinical inventory and supplies for surgical glaucoma product candidates and pharmaceutical projects, such as next generation iDose and Epioxa products; and our earlier stage programs for glaucoma, corneal, retinal and other therapeutic investments.

Non-Operating (Expense) Income, Net

We had non-operating expense, net of $0.5 million For the three months ended June September 30, 2026 and 2025, we had non-operating income, net of $3.3 $1.5 million for the three months ended June 30, 2025, and $0.4 million, respectively. This primarily relates to a change in unrealized foreign currency amounts recognized due to intercompany loan balances denominated in, and impacted by, changes in foreign currency exchange rates, as compared to the three months ended June September 30, 2025.

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Our effective tax rate for the second third quarter of 2026 and 2025 was (3.70)% 13.06% and (1.28)%, (1.46)%, respectively. For the three months ended June September 30, 2026 and June 30, 2025, we recorded a provision for income taxes of $0.7 $0.3 million and $0.2 million, respectively, which was primarily comprised of state and foreign income tax expense, offset by release of uncertain tax positions for which the statute of limitations has expired.

Comparison of Six Nine Months Ended June September 30, 2026 and June 30, 2025 (in thousands):

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Net sales for the six nine months ended June September 30, 2026 and June 30, 2025 were $336.2 $547.2 million and $230.8 $364.3 million, respectively, increasing by approximately 46% 50% primarily related to the factors listed below.

Net sales of glaucoma products in the United States were $212.0 $330.6 million and $131.4 $212.2 million for the six nine months ended June September 30, 2026 and June 30, 2025, respectively, increasing by 61%. 56%. This increase is primarily due to higher sales volume of iDose TR , which has a higher net sales price than our other products, combined with modest growth in the net sales of our non- iDose products.

International sales of glaucoma products for the six nine months ended June September 30, 2026 and June 30, 2025 were $72.4 $105.8 million and $60.3 $89.7 million, respectively, increasing by 20%. 18%. The increase in international sales reflects continued broad-based volume growth in many key international markets for glaucoma procedures, primarily France, the United Kingdom, and Australia and Canada, partially offset by reimbursement challenges in Germany. Additionally, the dollar-based results of our international sales were affected by favorable foreign exchange rates, primarily related to the Euro, Australian dollar and Brazilian Real, partially offset by the Japanese Yen, during the six nine months ended June September 30, 2026, as compared to the six nine months ended June September 30, 2025.

Net sales of corneal health products were $51.7 $110.8 million and $39.1 $62.4 million for the six nine months ended June September 30, 2026 and June 30, 2025, respectively, increasing by 32%. 78%. The $12.6 $48.4 million increase in net sales generated by our corneal health products is primarily related to U.S. net sales of Epioxa using direct sales operations, as customers transition transitioned from Photrexa to Epioxa . Our net sales of iLink devices in the U.S. also increased due to new account placements for the six nine months ended June September 30, 2026 as compared to the six nine months ended June September 30, 2025.

Cost of sales for the six nine months ended June September 30, 2026 and June 30, 2025 were $67.4 $98.5 million and $51.2 $80.0 million, respectively, reflecting an increase of approximately $16.1 $18.5 million, which is generally proportionate to the increase in net sales for the corresponding period, as well as taking into account the increased gross margin contributions from increased iDose TR production and net sales of iDose TR and Epioxa net sales. . Our gross margin was 80% 82% for the six nine months ended June September 30, 2026 and 78% for the six nine months ended June September 30, 2025.

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SG&A expenses for the six nine months ended June September 30, 2026 and June 30, 2025 were $209.0 $339.9 million and $154.0 $237.0 million, respectively, reflecting an increase of $55.0 $102.9 million or 36%. 43%.

Of the total $55.0 $102.9 million increase in SG&A expenses for the six nine months ended June September 30, 2026 as compared to the six nine months ended June September 30, 2025, $31.1 $42.5 million related to increased compensation and related employee costs, with $15.2 $16.3 million of the incremental amount related to an increase in stock-based compensation expense, the majority of which was associated with performance equity awards that were achieved. during The quarter. The residual increase of $26.2 million primarily relates to enhancements of various customer and patient support functions, our business intelligence function, and growth in our commercial infrastructure in glaucoma and corneal health, along with increased travel, meetings and accompanying costs as business activities have expanded.

The remaining increase of $23.4 $60.4 million primarily relates includes a $14.1 million accrual for our Resolution Agreement payment, with the remaining $46.3 million increase attributable to discretionary expenses supporting the above personnel growth, marketing and market access expenses, as well as and our ongoing administrative operations, inclusive of information technology, facilities, and allocated expenses. marketing and market access expenses, as well as reserves for accounts receivable, which are calculated based on our accounts receivable reserve methodology.

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R&D expenses for the six nine months ended June September 30, 2026 and June 30, 2025 were $95.4 $143.5 million and $68.9 $107.0 million, respectively, reflecting an increase of $26.6 $36.6 million or 39%. 34%. Of the total $26.6 $36.6 million increase, $13.1 $17.2 million and $13.4 $19.3 million related to core R&D and clinical expenses, respectively.

Compensation and related employee expenses increased $8.0 $12.3 million, $1.4 $2.8 million of which was related to increased stock-based compensation. The remaining increase in R&D expenses of $18.6 $24.3 million was spent on continued research and development, clinical studies, regulatory activities, quality assurance, clinical inventory and supplies for surgical glaucoma product candidates and pharmaceutical projects, such as next generation iDose and Epioxa products; and our earlier stage programs for glaucoma, corneal, retinal and other therapeutic investments.

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We had non-operating income, net of $0.1 $1.6 million and $6.1 $6.5 million for the six nine months ended June September 30, 2026 and June 30, 2025, respectively. This primarily relates to a change in unrealized foreign currency amounts recognized due to intercompany loan balances denominated in, and impacted by, changes in foreign currency exchange rates, as compared to the six nine months ended June September 30, 2025.

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Our effective tax rate for the six nine months ended June September 30, 2026 and June 30, 2025 was (3.08)% (4.16)% and (1.54)%, (1.52)%, respectively. For the six nine months ended June September 30, 2026 and June 30, 2025, we recorded a provision for income taxes of $1.1 $1.4 million and $0.6 $0.8 million, respectively, which was primarily comprised of state and foreign income tax expense, offset by release of uncertain tax positions for which the statute of limitations has expired.

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Our principal sources of liquidity are our existing cash, cash equivalents and short-term investments, and generally cash generated from operating, financing and investing activities. Our primary uses of cash have been for commercial activities, clinical and research and development programs, general and administrative expenses, acquired in-process research and development, and capital expenditures.

The following table summarizes our cash and cash equivalents, short-term investments and selected working capital data as of June September 30, 2026 and December 31, 2025 (in thousands):

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Cash Flow provided by (used in) Operations

For the six months ended June 30, 2026, our operating activities provided $2.3 million in net cash and for the six months ended June 30, 2025 our operating activities used $11.5 million.

As of June September 30, 2026, our cash, cash equivalents and short-term investments totaled approximately $286.2 $336.7 million and our restricted cash totaled approximately $3.1 million.

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Our short-term liquidity requirements primarily consist of regular operating costs, including information technology related costs and support, R&D project funding, capital expenditures as we continue the development of our manufacturing facilities and office spaces, operating and financing lease obligations, government rebate obligations, and other firm purchase commitments. As of June September 30, 2026, we had net working capital of $413.4 $452.9 million, which indicates that our current assets are sufficient to cover our short-term liabilities.

We expect levels of our capital expenditures to be higher in 2026 than in 2025 as we upgrade certain manufacturing facilities and technologies and continue investing in R&D equipment needed to advance our pipeline. We anticipate approximately $6.7 million in project costs related to the Huntsville Facility during the remainder of 2026.

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Our long-term liquidity requirements primarily consist of capital expenditures for the continued development of our manufacturing facilities and office spaces, potential future payments related to our licensing agreements and acquisitions, and firm purchase commitments. As demand grows for our products, we will continue to expand global operations to meet demand through investments in our manufacturing capabilities. To that end, We entered into agreements with the city of Huntsville, Alabama that provide an opportunity to develop a new 200,000 square foot R&D and manufacturing facility, which is anticipated to result in more than $80.0 currently anticipate approximately $35.3 million in capital expenditures over the multi-year project We expect construction to begin costs in 2026. 2027 related to the Huntsville Facility project.

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Net increase (decrease) in cash, cash equivalents and restricted cash (69,712 (72,279

At June September 30, 2026, our cash and cash equivalents were held for working capital purposes. We do not enter into investments for trading or speculative purposes. Our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity.

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In the six nine months ended June September 30, 2026 and June 30, 2025, our operating activities provided $2.3 $40.9 million and used $11.5 $21.6 million of net cash, respectively.

For the six nine months ended June September 30, 2026, our net cash provided by operating activities reflected our net loss of $38.2 $36.1 million, adjusted for non-cash items of $75.5 $119.2 million, primarily consisting of stock based compensation expense of $48.0 million, depreciation of $5.9 $65.8 million, amortization of intangible assets of $14.8 $20.7 million, a resolution agreement accrual of $14.1 million, depreciation of $9.0 million and noncash lease expense of $2.4 $3.4 million. Additionally, changes in operating assets and liabilities resulted in a net use of cash of $35.0 $42.2 million, which resulted primarily from an increase in accounts receivable of $31.9 $41.9 million primarily due to increased iDose TR and Epioxa sales during the six nine months ended June September 30, 2026 given iDose TR and Epioxa sales have extended terms a decrease in accounts payable and accrued liabilities of $2.2 million, and an increase in prepaid expenses and other current assets of $7.4 $10.7 million, partially offset by an increase in accounts payable and accrued liabilities of $11.7 million, and a decrease in inventory of $2.4 $0.5 million.

For the six nine months ended June September 30, 2025, our net cash used in operating activities reflected our net loss of $37.8 $54.0 million, adjusted for non-cash items of $56.5 $78.3 million, primarily consisting of stock based compensation expense of $31.0 $45.9 million, depreciation of $5.4 $8.2 million, amortization of intangible assets of $11.4 $17.8 million, noncash lease expense of $2.1 $3.2 million, other liabilities of $1.1 million, allowance for doubtful accounts of $4.1 million, $7.1million, and amortization of premium on short-term investments of $2.2 $2.7 million. Additionally, changes in operating assets and liabilities resulted in a net use of cash of $30.2 $45.9 million, which resulted primarily from an increase in inventory of $4.4 million, and an increase in accounts receivable of $24.0 $42.8 million, primarily due to increased iDose TR sales during the six nine months ended June September 30, 2025 given iDose TR sales have extended terms, an increase in inventory of $3.7 million, an increase in other assets of $1.3 million, and an increase in prepaid expenses and other current assets of $5.8 million, partially offset by an increase in accounts payable and accrued liabilities of $7.7 million.

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In the six nine months ended June September 30, 2026 and June 30, 2025, our investing activities provided $5.2 used $0.3 million and used $57.7 $61.7 million of net cash, respectively.

For the six nine months ended June September 30, 2026, we received cash of approximately $82.6 $132.3 million from sales and maturities of short-term investments, we used cash of approximately $66.8 $119.4 million for purchases of short-term investments, approximately $6.7 $8.8 million for purchases of property and equipment, primarily related to our facilities in Aliso Viejo, California; and San Clemente, California; and we used approximately $3.9 $4.5 million related to investments in company-owned life insurance.

For the six nine months ended June September 30, 2025, we used cash of approximately $116.8 $192.1 million for purchases of short-term investments, approximately $16.6 million related to the purchase of certain real property consisting of land, a building and certain assumed leases, approximately $12.4 million related to our May 2025 acquisition of all the outstanding equity interests in Mobius, Therapeutics, LLC, the Mobius Merger, approximately $3.1 $4.8 million for purchases of property and equipment, primarily related to our facilities in Aliso Viejo, California; and San Clemente, California; approximately $2.5 $4.0 million related to investments in company-owned life insurance, and $0.8 million in other investing activities and we received cash of approximately $94.4 $169.0 million from sales and maturities of short-term investments.

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In the six nine months ended June September 30, 2026 and June 30, 2025, our financing activities provided $16.8 $31.4 million and $4.2 $9.5 million, respectively.

For the six nine months ended June September 30, 2026, we received $25.8 $41.4 million from the exercises of stock options and purchases of our common stock by employees pursuant to our Employee Stock Purchase Plan and used $8.4 million for payment of employee taxes related to restricted stock unit vesting and paid $1.0 million in principal on our finance lease.

For the six nine months ended June September 30, 2025, we received $12.0 $18.2 million from the exercises of stock options and purchases of our common stock by employees pursuant to our Employee Stock Purchase Plan, and used $7.3 $7.9 million for payment of employee taxes related to restricted stock unit vesting and paid $0.8 million in principal on our finance lease.

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There have been no significant changes to our material cash requirements, including commitments for capital expenditures and known contractual and other obligations, as of June September 30, 2026 from those disclosed in our Annual Report, except for the following:

We expect construction of our Huntsville Facility to begin in the fourth quarter of 2026, which is anticipated to result in approximately $42.0 million in project costs over the multi-year project. Additionally, we expect capital expenditures of approximately $10.0 million related to our facilities in Aliso Viejo, California and San Clemente, California.

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Our critical accounting policies and significant estimates that involve a higher degree of judgment and complexity are described under Management s Discussion and Analysis of Financial Condition and Results of Operations Critical Accounting Policies and Significant Estimates included in Part II, Item 7 of our Annual Report. There have been no material changes to our critical accounting policies and estimates as disclosed therein, during the three and six nine months ended June September 30, 2026, as compared with those disclosed in our Annual Report.

Controls and procedures 2 changes

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The term disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act), refers to controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our management, with the participation of our chief executive officer and our chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures were effective, at a reasonable assurance level, as of June September 30, 2026.

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There have been no changes in our internal control over financial reporting identified by management s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during our second third fiscal quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Legal proceedings 1 change

On September 17, 2025, the Company filed a complaint against SpyGlass Pharma, Inc. (SpyGlass) and its Vice President of Clinical Research, Long Doan, in the United States District Court for the Central District of California and its Vice President of Clinical Research, Long Doan (Case No. 8:25-cv-02105), Specifically, the complaint alleges alleging that former Glaukos senior clinical leader Long Mr. Doan and competitor SpyGlass engaged in the mass theft misappropriation and continuing exploitation unauthorized use of more than 11,000 the Company s confidential information and trade secret files part of over 13,000 Company documents secrets that Mr. Doan surreptitiously uploaded to his personal Google Drive after accepting SpyGlass s SpyGlass's offer to shortcut SpyGlass s clinical, regulatory, and operational efforts and inflict irreparable competitive harm on the Company. of employment. On December 11, 2025, after finding that the Company was likely to prevail on the merits of the case and is at risk of irreparable harm, the Court entered an injunction against both SpyGlass and Mr. Doan and in favor of the Company. In March 2026, the Company filed its First Amended Complaint (FAC), alleging violations of the United States Defend Trade Secrets Act asserting claims against both Doan and SpyGlass alleging breach of contract, fraud, breach of duty of loyalty, and violation of the California Computer Fraud and Abuse Act (CFAA) against Mr. Doan, and inducement of breach of contract against SpyGlass. Both Defendants moved to dismiss all including claims in the FAC on April 9, 2026. under the Court denied both motions in their entirety on July 14, 2026. Defend Trade Secrets Act. SpyGlass filed its Answer and Counterclaims on May 22, 2026, and an Amended Answer and Counterclaims on July 6, 2026. In its Mr. Doan have asserted various counterclaims SpyGlass alleges (1) intentional interference with contractual relations; (2) intentional interference with prospective economic advantage; and (3) unfair competition under Bus. & Prof. Code 17200. against the Company moved to dismiss all of SpyGlass s counterclaims on July 20, 2026, arising from the hearing for parties dispute, which is scheduled on September 28, 2026. Doan filed his Answer and Counterclaims on July 17, 2026. Doan asserts: (1) unfair competition under Bus. & Prof. Code 17200, 16600.1, and 16600.5; (2) breach of contract; and (3) breach of the implied covenant of good faith and fair dealing. The Company disputes. Trial date is now set currently scheduled for January 26, 2027.

Risk factors 17 changes

Other than the update of certain risk factors below relating to our capped call transaction, the U.S. government's actions regarding the imposition of international tariffs, the FDA's Quality Management System Regulation, continuing developments regarding state and federal AI regulation, and our transition from our Photrexa therapies to our Epioxa therapies, we do nto believe any of the changes constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

The risks and uncertainties discussed below update, supersede and replace the risks and uncertainties previously disclosed in Part I, Item 1A of our Annual Quarterly Report on Form 10-K 10-Q for the year quarter ended December 31, 2025, June 30, 2026, which was filed with the United States (U.S.) Securities and Exchange Commission (SEC) on February 23, July 29, 2026 (Annual (Quarterly Report). These risks and uncertainties are not the only ones facing our business but do represent those risks that we believe are material to us. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also harm our business. See "Note Regarding Forward-Looking Statements" preceding Part I, Item 1 in this Quarterly Report on Form 10-Q.

We do not believe there are any material changes from the risk factors previously disclosed in the Quarterly Report.

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Our iDose TR travoprost intracameral implant was approved for sale in the U.S. by the FDA in December 2023 and we began commercializing the product in a controlled manner in February 2024. In October 2025, the FDA approved Epioxa , an innovation in keratoconus care, offering an incision-free alternative to traditional corneal cross-linking procedure, which the Company we began commercializing in a controlled manner in early 2026. The ultimate, long-term commercial success of these products will depend upon a number of factors, including physician training on and adoption of their use, establishment of consistent reimbursement, the availability and maintenance of commercial payor coverage, satisfactory patient outcomes, particularly as we continue our commercial launch, product pricing, duration of efficacy, our ability to manufacture product in volumes sufficient to meet customer demand, and marketing in compliance with label restrictions. Our failure to successfully commercialize iDose TR or Epioxa based upon these or other factors could materially adversely impact our net sales, our business, our stock price or our financial condition.

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Additionally, U.S. government shutdowns, including the shutdown that occurred in the fourth quarter of 2025, have impacted and could in the future impact certain regulatory agencies relevant to us, such as the U.S. FDA. Significant changes to operations at or the funding of such regulatory agencies could cause decreases in staff or changes in policy and enforcement priorities. Hospitals, ambulatory surgery centers, specialty pharmacies and other health care providers may not purchase our products if reductions in agency staffing results in inadequate reimbursement from third-party payers for procedures using our products. If a government shutdown continues for a prolonged period of time, or if a widespread freeze on federal funding occurs, it could significantly impact the ability of the FDA to timely review and process our regulatory submissions or negatively affect sales of our products.

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Widespread staffing shortages and turnover, including in ambulatory surgery centers or specialty pharmacies, and mandatory and voluntary quarantining, which may impact elective procedures;

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Since the Company s inception in 1998, we have incurred significant operating losses. Although we have been profitable for certain periods in our operating history, including for the three months ended September 30, 2026, there can be no assurance that we will be profitable or generate cash from operations in the future. As of June September 30, 2026, we had an accumulated deficit of approximately $971.3 $969.3 million, principally comprised of costs incurred in our clinical trials, R&D programs, our selling, general and administrative expenses, and from amortization expense related to our acquired developed technology intangible assets included in cost of sales. We have funded our operations to date from the sale of equity securities, including our June 2015 initial public offering, the issuance of notes payable, cash exercises of stock options and warrants to purchase equity securities, cash generated from commercial operations and the issuance of the Company s 2.75% convertible notes due in 2027, (Convertible Notes), which were fully exchanged, converted or redeemed in 2024. Our operations to date have been, and our future growth and success will be, impacted by our ability to expand our business, including the success of our marketing and sales efforts, our timely satisfaction of regulatory requirements, and our overall ability to maintain a competitive position. To implement our global business strategies we have made, and expect to continue to make, significant investments in R&D activities, clinical studies, expanding our manufacturing capabilities, growing our sales and marketing organization, engaging in market access activities, enforcing and defending our intellectual property rights, acquiring companies or in-license products and intellectual property, building our general and administrative infrastructure, and obtaining regulatory clearance or approval to commercialize our pipeline product products globally and expand our existing products into international markets or products. We expect our expenses will continue to increase as we pursue these objectives. While we believe we have sufficient cash to fund our operations for at least the next 12 months from the date our condensed consolidated financial statements for the three and six nine months ended June September 30, 2026 are made publicly available, our ability to reach sustained profitability and generate positive cash flow in the future is highly uncertain.

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Our primary sales-generating commercial products have been the iStent , the iStent inject and its successor, the iStent inject W , our iDose TR product, as well as our Epioxa therapies, which we began commercializing in a controlled manner in February 2024, as well as our Photrexa therapies. early 2026. While we expect to continue to derive a significant portion of our net sales from the iStent, the iStent inject models, the iStent infinite and the Epioxa therapies, which were approved by the FDA in October 2025 and which we began commercializing in a controlled manner in early 2026, these products, it is important that we continue to build a more complete product offering. Developing additional products is expensive and time-consuming. Our research programs may fail to yield product candidates for clinical development despite showing initial promise. If we are unable to successfully commercialize additional products, our business prospects would be materially affected. Even if we are successful in developing our additional pipeline products, the success of our new product offerings is inherently uncertain and our products, or the expansion of labeling of our products, may not receive regulatory approval, may receive approval that requires restrictive labeling, may not be profitable, or may be subject to transition-related sales disruptions when we introduce new products that are intended to replace or supersede our existing commercial products. Any current or new products could also quickly be rendered obsolete by changing customer preferences, third party payer reimbursement levels, or the introduction of competing products that (i) embody superior technologies, features, safety, quality or efficacy, (ii) reflect a broader label indication, or (iii) are available at lower prices. Our competitors include large publicly traded companies or divisions thereof and have more resources, greater name recognition, longer operating histories, more established relationships with healthcare professionals, customers and third-party payers, broader products lines, more established sales and marketing programs and distribution networks, and greater experience in obtaining regulatory clearance or approval. Additionally, the period of orphan drug exclusivity with respect to our Photrexa pharmaceutical therapy expired in 2023, which has enabled third parties to develop potentially-competitive products.

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We have and may continue to enter into acquisitions, collaborations, in-licensing agreements, joint ventures and partnerships in order to retain our competitive position within the marketplace, develop new products or expand into new markets. Examples include our acquisitions of Mobius Therapeutics, LLC, DOSE Medical, and Avedro, as well as our licensing of Santen s PRESERFLO Microshunt (Preserflo MicroShunt), and the Attillaps, iVeena, Ripple, and Stuart and RevOpsis pharmaceutical compounds. However, we cannot assure you that we will be able to successfully complete any future acquisition we may pursue, or that we will be able to successfully integrate any acquired business, product or technology in a cost-effective and non-disruptive manner. Our future successes will depend, in part, on our ability to manage an expanded business, which may pose substantial challenges for our management, such as increased costs and complexity. There can be no assurances that we will be successful in managing such expanded business or that we will realize the expected economies of scale, synergies and other benefits currently anticipated from recent or future acquisitions or strategic transactions. Additionally, these collaborations, joint ventures, and partnerships may fail to result in any commercialized product, including due to delays in or failures to obtain regulatory approvals, such as the failure to receive approval of the Preserflo MicroShunt in the U.S., and could require us to invest a substantial amount of resources only to ultimately change regulatory strategies or to fail. In addition, these arrangements may be terminated before we are able to realize net sales to sufficiently cover the costs associated therewith, or result in disputes between the parties that ultimately results in litigation, which could materially impact our business. We cannot assure you that any such transaction would result in the benefits expected from the transaction, including revenue growth, increased profitability or an enhancement in our business prospects. Further, pursuing acquisitions, collaborations, in-licensing agreements, joint ventures, alliances or partnerships with third parties, whether or not completed, is costly and time-consuming and could distract Company management from the operation of the business, which could negatively impact our operating results.

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Several laws have been enacted at the U.S. state level that regulate the development and deployment of AI platforms and systems. Federal agencies in the U.S. are applying existing laws to address AI-related risks. An Executive Order issued in December 2025 seeks to establish uniform federal standards and challenge state laws that regulate AI, although various state and federal regulators are continuing to issue guidance and focus enforcement efforts on the use of AI in regulated sectors. The FDA, for example, issued draft guidance on the use of AI in regulatory decision-making for drug and biological products that centers on establishing and evaluating AI model outputs intended to support regulatory decision-making. As with data privacy laws, these state laws and possible federal regulation could have significant effects on us and require us to change our AI practices and incur substantial costs and expenses in order to comply. Additionally, many countries and regions, including the EU, have proposed or passed new and evolving regulations related to the use of AI and machine learning technologies. The regulations may impose onerous obligations and may require us to unexpectedly rework or reevaluate improvements to be compliant. In particular, the EU Artificial Intelligence Act, which was adopted on June 13, 2024, with additional provisions becoming that became effective on August 2, 2026, may affect our use of AI technologies, may require additional compliance measures and changes to our operations and processes, and expose us to increased risk of regulatory enforcement and litigation. Furthermore, some of the AI features involve the processing of personal data and may be subject to laws, policies, legal obligations, and codes of conduct related to privacy and data protection, and could subject us to competitive harm, regulatory enforcement, increased cyber risks, reputational harm, and legal liability.

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Additionally, ongoing changes to U.S. trade policies, including concerning tariffs on imports, and trade agreements, have resulted in a dynamic and uncertain trade environment. Through Though we cannot predict with certainty the future trade policy of the U.S. or other countries or the impact of such developments, we believe our exposure to changing tariff rates is generally limited as we primarily source products and product components from the U.S. Nevertheless, uncertainty and changes to tariff policy may cause (i) increases in manufacturing costs, (ii) disruptions or delays to our supply chain, (iii) limitations on our ability to sell our products domestically or abroad, and (iv) reductions in sales volumes and gross margins for our products, any of which could negatively affect our business, results of operations and financial condition.

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ISO 13485:2016. Any disclosure of our proprietary or trade secret information in connection with our compliance with the QMSR could have a material adverse effect on our business and financial condition and results.

If our facilities, or those of our third-party manufacturers or suppliers, fail to meet the FDA s Quality System Regulation or cGMP regulations, as applicable, or other standards required by the FDA, we could experience a delay in obtaining the necessary regulatory clearances or approvals to commercialize our pipeline products, which could have a material adverse effect on our business and financial condition and results. On February 2, 2026, the FDA s final rule implementing the Quality Management System Regulation (QMSR) became effective. The QMSR, which replaced the FDA s former Quality System Regulation, sets for forth the FDA s cGMP requirements for medical devices and incorporates by reference the medical device quality management system requirements of ISO 13485:2016. Any disclosure of our proprietary or trade secret information in connection with our compliance with the QMSR could have a material adverse effect on our business and financial condition and results.

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From time to time, we increase the prices of our products, as we have previously done with our iStent products and Photrexa therapies, or set pricing for new products. Drug pricing by pharmaceutical manufacturers is subject to federal and state reporting requirements and is currently, and is expected to continue to be, under close scrutiny, including with respect to manufacturers that increase the price of products after acquiring those products from other companies. In some cases, such scrutiny has resulted in congressional inquiries and federal and state legislation designed to, among other things, bring more transparency to product pricing, review the relationship between pricing and manufacturers patient support programs, and reform government program reimbursement methodologies for products. Although our pricing is in part based upon third party studies of the projected economic value of our products to the healthcare system, it may still become subject to such scrutiny.

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The theft, unauthorized use, transfer, or publication of our intellectual property, our confidential business, financial, and/or technical information, or the personal data of our employees and customers by third parties or by our employees could harm our competitive position, reduce the value of our investment in research and development and other strategic initiatives, or otherwise adversely affect our business, such as the harm described in our lawsuit against SpyGlass Pharma, Inc. as described in Part II, Item 1, Legal Proceedings of this Quarterly Report. Despite our efforts, we cannot guarantee that we will be able to adequately protect our proprietary rights, which could substantially impair our ability to compete. Our patents may be challenged and held invalid or we may be unable to extend the protection on products with expiring patents. Moreover, our competitors may independently develop equivalent knowledge, methods and know-how. Competitors could purchase our products and attempt to replicate some or all of the competitive advantages we derive from our development efforts, infringe our intellectual property rights, design around our protected technology or develop their own competitive technologies that fall outside of our intellectual property rights. Further, although it is our policy to require each of our employees, consultants and any other parties who may be involved in the development of intellectual property on our behalf to execute proprietary information and inventions agreements, we may be unsuccessful in doing so with each party who in fact develops intellectual property that we regard as our own. The relevant assignment provisions may not be self-executing or may be breached, resulting in ownership disputes and/or litigation.

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We may not be able to accurately estimate or control our future operating expenses in relation to obtaining, enforcing and/or defending intellectual property, including against theft, which could lead to cash shortfalls. Our operating expenses may fluctuate significantly in the future as a result of the costs of preparing, filing, prosecuting, defending and enforcing patent claims and other patent related costs, including litigation costs and the results of such litigation or costs associated with administrative proceedings and the results of such proceedings.

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Intellectual property rights are essential to our business. We have asserted and may in the future need to assert claims of infringement or trade secret theft against third parties to protect our rights, such as our lawsuit against Spyglass Pharma, Inc., or to invalidate or challenge the intellectual property rights of a third party, including those rights owned by our competitors. Additionally, third parties could assert infringement or misappropriation claims against us with respect to our current or future commercial products and seek to invalidate one or more of our patents or trademarks. Such claims could arise in situations where certain employees, consultants or contractors were previously, or are currently, employed by other medical device, biotechnology or pharmaceutical companies, including our competitors or potential competitors; we may be subject to claims that we or these individuals have, inadvertently or otherwise, misappropriated the intellectual property or disclosed the alleged trade secrets or other proprietary information, of these other employers.

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Other information 3 changes

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On June 12, August 13, 2026 , Tomas Navratil Joe Gilliam , the Company s President and Chief Development Operating Officer , adopted a 10b5-1 trading plan (the Navratil Gilliam Trading Plan). The Navratil Gilliam Trading Plan is intended to satisfy the affirmative defense of Rule R ule 10b5-1(c) under the Exchange Act. The Navratil Gilliam Trading Plan provides for the potential sale of 15,657 59,890 shares of the Company s common stock commencing September 16, November 12, 2026. The Navratil Gilliam Trading Plan terminates on the earlier of December 31, 2026 April 30, 2027 or the date all shares under the plan are sold.

On June 9, August 18, 2026 , Alex Thurman , the Company s Senior Vice President and Chief Financial Officer , adopted a 10b5-1 trading plan (the Thurman Trading Plan). The Thurman Trading Plan is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Thurman Trading Plan provides for the potential sale of 20,000 17,752 shares of the Company s common stock commencing September 8, November 18, 2026. The Thurman Trading Plan terminates on the earlier of December 14, 2026 March 25, 2027 or the date all shares under the plan are sold.

On August 20, 2026 , Thomas Burn s, the Company s Chairman and Chief Executive Officer , adopted a 10b5-1 trading plan (the Burns Trading Plan). The Burns Trading Plan is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Burns Trading Plan provides for the potential sale of 280,000 shares of the Company s common stock commencing November 18, 2026. The Burns Trading Plan terminates on the earlier of June 30, 2027 or the date all shares under the plan are sold.