Ophthalmology biopharmaceutical company Ocular Therapeutix (NASDAQ: OCUL) missed Wall Street’s revenue expectations in Q1 CY2026, with sales flat year on year at $10.79 million. Its GAAP loss of $0.40 per share was 20.5% below analysts’ consensus estimates.

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“2026 is off to a tremendous start for Ocular, driven by the superiority demonstrated with AXPAXLI in the landmark SOL-1 Phase 3 trial in wet AMD,” said Pravin U. Dugel, MD, Executive Chairman, President and CEO of Ocular Therapeutix.

Company Overview

Pioneering a drug delivery platform that can eliminate the need for monthly eye injections, Ocular Therapeutix (NASDAQ: OCUL) develops sustained-release treatments for eye diseases using its proprietary ELUTYX bioresorbable hydrogel technology that gradually releases medication.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Ocular Therapeutix grew its sales at an impressive 19.8% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Ocular Therapeutix’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 6.7% over the last two years.

This quarter, Ocular Therapeutix’s $10.79 million of revenue was flat year on year, falling short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 14.5% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and suggests its newer products and services will catalyze better top-line performance.

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Adjusted Operating Margin

Ocular Therapeutix’s high expenses have contributed to an average adjusted operating margin of negative 277% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

Looking at the trend in its profitability, Ocular Therapeutix’s adjusted operating margin decreased significantly over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 422.6 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q1, Ocular Therapeutix generated a negative 865% adjusted operating margin.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although Ocular Therapeutix’s full-year earnings are still negative, it reduced its losses and improved its EPS by 6% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.

In Q1, Ocular Therapeutix reported EPS of negative $0.40, down from negative $0.38 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Ocular Therapeutix to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.46 will advance to negative $1.39.

Key Takeaways from Ocular Therapeutix’s Q1 Results

We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $9.69 immediately after reporting.

Ocular Therapeutix’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).