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Harrow Health
(NASDAQ:HROW)
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Rating:48Neutral
Price Target:
$30.00
▼(-27.41% Downside)
Action:Reiterated
Date:10/05/26
The score is held down primarily by elevated financial risk (widening losses and a more leveraged, thin-equity balance sheet) and bearish technicals. Offsetting factors include improved cash generation and an earnings-call outlook supported by reiterated guidance and strong product demand, but execution risk remains high given the required second-half ramp and higher SG&A/integration burden.
Positive Factors
Revenue growth and product economics
Strong revenue growth combined with very high gross margins indicates attractive product economics and expanding commercial traction. If sustained, this mix can support reinvestment in sales, launches, and market access while creating a foundation for improved operating profitability over the next several quarters.
Negative Factors
Elevated leverage and thin equity cushion
Higher leverage and minimal equity reduce financial flexibility if operating performance weakens. Debt-funded asset growth increases refinancing exposure, while the limited equity cushion can constrain investment choices and heighten the potential impact of future funding needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and product economics
Strong revenue growth combined with very high gross margins indicates attractive product economics and expanding commercial traction. If sustained, this mix can support reinvestment in sales, launches, and market access while creating a foundation for improved operating profitability over the next several quarters.
Read all positive factors
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)535.36K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth21.05%
EPS Growth-244.96%
CountryUS
Employees373
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.99
Shares Outstanding37,487,850
10 Day Avg. Volume558,340
30 Day Avg. Volume535,364
Financial Highlights & Ratios
PEG Ratio4.90
Price to Book (P/B)34.35
Price to Sales (P/S)6.61
P/FCF Ratio42.12
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue6.54
Enterprise Value/Gross Profit8.93
Enterprise Value/Ebitda161.15
Forecast
1Y Price Target
$64.33Price Target Upside55.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$350.71M
Harrow Health Business Overview & Revenue Model
Company Description
Harrow Health, Inc. operates as a healthcare enterprise with a specialized focus on ophthalmic solutions. The company's portfolio includes ImprimisRx, a business dedicated to ophthalmology outsourcing and pharmaceutical compounding, as well as DEX...
How the Company Makes Money
Harrow Health primarily makes money through (1) net product revenue from the sale of its branded (and acquired) ophthalmic prescription drugs and related ophthalmic products, which are sold into the U.S. market through pharmaceutical distribution ...
Harrow Health Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum across multiple franchises (VEVYE, IHEEZO, TRIESENCE), record unit demand, successful market-access wins, pipeline progress (pre-NDA for MELT-300), and reiterated full-year guidance—supporting an optimistic outlook. Offsetting risks include a weaker-than-expected first half, negative adjusted EBITDA in the quarter, channel inventory/revenue timing effects, the need for a sizable second-half revenue ramp to meet guidance, and near-term SG&A and acquisition-related cash outflows. On balance, management presented credible operational and commercial drivers to achieve the required second-half acceleration, but execution and integration risks remain material.Positive Updates
Quarterly and Half-Year Revenue Trajectory
Q2 revenue of $70.7M, up 11% year-over-year and approximately 60% sequentially; first half revenue approximately $115M. Management reiterated full-year revenue guidance of $350M–$365M, implying second-half revenue of ~$235M–$250M.
Negative Updates
First Half Revenue Below Expectations
Management acknowledged first-half revenue (~$115M) was lighter than expected entering the year, primarily due to net revenue impacts (inventory/pass-through shifts) tied to VEVYE and IHEEZO transitions.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly and Half-Year Revenue Trajectory
Q2 revenue of $70.7M, up 11% year-over-year and approximately 60% sequentially; first half revenue approximately $115M. Management reiterated full-year revenue guidance of $350M–$365M, implying second-half revenue of ~$235M–$250M.
Read all positive updates
Company Guidance
Harrow reiterated full‑year guidance of $350–365 million in revenue and $80–100 million in adjusted EBITDA after reporting Q2 revenue of $70.7 million (up 11% year‑over‑year and ~60% sequentially) and first‑half revenue of ≈$115 million—implying second‑half revenue of roughly $235–250 million—with Q2 adjusted EBITDA of negative $1.2 million, GAAP gross margin of 71% (expected to trend to the high‑70s in H2), and cash of $83.9 million. Key product metrics backing the outlook include VEVYE Q2 revenue of $29.4 million (≈+58% YoY) with prescriptions +21% sequentially, prescriber base +15% and a 14.6% share of branded dry eye; IHEEZO Q2 revenue of $15.6 million, record unit demand of 65,477 (+44% sequential, +34% YoY), ~25% net pricing improvement effective July 1 and gross margins >90%, 224 ordering accounts (+32% YoY) and a ~85.5% trailing 12‑month reorder rate; TRIESENCE demand 14,529 units (+162% YoY) with 54% of units from ocular surgery and 805 ordering accounts. Management expects persistent sequential revenue growth in Q3 and Q4 (larger step‑up in Q4), benefits from expanded commercial coverage (top‑3 PBM effective Aug 1), an expanded salesforce (VEVYE salesforce doubled year‑over‑year and further additions from the pending TYRVAYA deal), and expects to fund TYRVAYA’s $30 million upfront consideration from cash, add ~$20 million of annualized SG&A upon integration, and see TYRVAYA contribute >$30 million in 2027 (exclusivity assumed through 2034).Harrow Health Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
24
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.59M | 272.30M | 199.61M | 130.19M | 88.59M | 72.48M |
| Gross Profit | 201.96M | 204.37M | 150.37M | 90.55M | 63.21M | 54.26M |
| EBITDA | 11.19M | 42.13M | 23.61M | 13.15M | -3.10M | 5.76M |
| Net Income | -37.23M | -5.14M | -17.48M | -24.41M | -14.09M | -18.01M |
Balance Sheet | ||||||
| Total Assets | 416.82M | 399.48M | 388.97M | 311.75M | 157.38M | 98.33M |
| Cash, Cash Equivalents and Short-Term Investments | 83.89M | 72.93M | 47.25M | 82.77M | 101.86M | 50.67M |
| Total Debt | 300.74M | 251.98M | 228.83M | 190.50M | 112.23M | 77.96M |
| Total Liabilities | 401.97M | 347.39M | 319.67M | 241.75M | 130.14M | 87.40M |
| Stockholders Equity | 15.20M | 52.45M | 69.65M | 70.36M | 27.59M | 11.29M |
Cash Flow | ||||||
| Free Cash Flow | 5.69M | 42.76M | -60.88M | -148.71M | -6.07M | -23.43M |
| Operating Cash Flow | 6.25M | 43.86M | -22.20M | 3.84M | 1.71M | 5.08M |
| Investing Cash Flow | -23.69M | -5.46M | -33.16M | -152.55M | -1.74M | -18.69M |
| Financing Cash Flow | 48.34M | -12.72M | 28.53M | 126.53M | 54.14M | 51.47M |
Harrow Health Technical Analysis
Negative
41.33
Price Trends
36.29
Negative
37.75
Negative
39.96
Negative
Market Momentum
-1.88
Positive
24.26
Positive
31.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Negative. The current price of 41.33 is above the 20-day moving average (MA) of 32.14, above the 50-day MA of 36.29, and above the 200-day MA of 39.96, indicating a bearish trend. The MACD of -1.88 indicates Positive momentum. The RSI at 24.26 is Positive, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HROW.
Harrow Health Risk Analysis
Harrow Health disclosed 58 risk factors in its most recent earnings report. Harrow Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harrow Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.58B | 118.73 | 40.13% | ― | 81.49% | ― | |
68 Neutral | $1.70B | 15.30 | 19.19% | ― | 30.90% | ― | |
58 Neutral | $6.36B | 40.02 | -326.75% | ― | 9.28% | 4917.17% | |
54 Neutral | $2.09B | -1.20 | -55.97% | 7.70% | -4.18% | -2138.82% | |
52 Neutral | $105.33M | -9.84 | -47.10% | 19.72% | -25.68% | -244.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.10B | -29.58 | -103.86% | ― | 21.05% | -244.96% |
* Healthcare Sector Average
HROW
Harrow Health
29.36
-9.41
-24.27%
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15.06
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73.89
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7.03
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169.87%
AMRX
Amneal Pharmaceuticals
19.91
10.16
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ETON
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55.21
37.13
205.37%
Harrow Health Corporate Events
Business Operations and StrategyM&A Transactions
Harrow Closes TYRVAYA Acquisition, Expanding Dry Eye Portfolio
Positive
Oct 5, 2026
On October 1, 2026, Harrow completed an amended asset purchase agreement with Viatris to acquire rights to TYRVAYA, a varenicline nasal spray for dry eye disease, in all countries except Japan, paying a fixed $30 million in cash and agreeing to up...
Business Operations and StrategyExecutive/Board Changes
Harrow Health Streamlines Senior Finance and Accounting Leadership
Neutral
Sep 4, 2026
Effective September 4, 2026, Harrow, Inc. announced that Randall E. Pollard ceased serving as Chief Accounting Officer and principal accounting officer, marking a change in the company’s senior finance leadership. Following his departure, th...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsProduct-Related Announcements
Harrow Health Sees Strong Q2 Growth, Reaffirms 2026 Outlook
Positive
Aug 10, 2026
In its second quarter ended June 30, 2026, Harrow reported $70.7 million in revenue, up 60% sequentially and 11% year over year, and reiterated its full-year 2026 guidance for revenue and adjusted EBITDA. The performance was powered by strong dema...
Business Operations and StrategyM&A Transactions
Harrow Health Acquires Global Rights to TYRVAYA Nasal Spray
Positive
Aug 6, 2026
On August 3, 2026, Harrow, Inc. entered into an asset purchase agreement with Viatris to acquire global rights to TYRVAYA, the first and only FDA-approved nasal spray for dry eye disease, for up to $100 million, including a $30 million cash paymen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.