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Harrow Health
(NASDAQ:HROW)
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Rating:49Neutral
Price Target:
$40.00
▲(4.03% Upside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by elevated balance-sheet leverage and ongoing losses despite strong revenue growth and high gross margins. Improved operating/free cash flow and a generally constructive earnings-call outlook (reiterated guidance and strong product demand indicators) provide support, while technicals are neutral and valuation is constrained by negative earnings and no dividend.
Positive Factors
High gross margins & revenue growth
Sustained top-line growth with very high gross margins (low-70% TTM) indicates strong product economics and pricing power in ophthalmics. Durable margins provide room to invest in sales/marketing and R&D while enabling operating leverage as commercial scale and reimbursement recovery persist.
Negative Factors
Elevated leverage
Debt-funded growth and a materially reduced equity cushion leave the balance sheet vulnerable to revenue or margin setbacks. Higher leverage increases refinancing, interest, and covenant risks, limiting flexibility for opportunistic investments or cushioning against commercial execution delays over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & revenue growth
Sustained top-line growth with very high gross margins (low-70% TTM) indicates strong product economics and pricing power in ophthalmics. Durable margins provide room to invest in sales/marketing and R&D while enabling operating leverage as commercial scale and reimbursement recovery persist.
Read all positive factors
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend YieldN/A
Average Volume (3M)705.12K
Price to Earnings (P/E)―
Beta (1Y)2.19
Revenue Growth21.05%
EPS Growth-244.96%
CountryUS
Employees373
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.99
Shares Outstanding37,487,850
10 Day Avg. Volume609,551
30 Day Avg. Volume705,119
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$66.67Price Target Upside73.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$350.70M
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 generates revenue primarily from (1) sales of branded prescription ophthalmic pharmaceuticals and (2) revenue derived from ophthalmic compounding activities conducted through affiliated/partner pharmacy arrangements. Branded-pharma r...
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 | 4.48M | 41.36M | 22.13M | 11.95M | -3.94M | 5.10M |
| 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
Positive
38.45
Price Trends
40.59
Negative
38.42
Positive
41.12
Negative
Market Momentum
-0.43
Positive
49.01
Neutral
34.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Positive. The current price of 38.45 is below the 20-day moving average (MA) of 40.08, below the 50-day MA of 40.59, and below the 200-day MA of 41.12, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.76B | 15.85 | 19.19% | ― | 30.90% | ― | |
69 Neutral | $916.82M | 65.32 | 2.13% | ― | 5.71% | ― | |
67 Neutral | $889.47M | 12.02 | 10.23% | ― | 1.02% | -38.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $1.50B | -40.33 | -103.86% | ― | 21.05% | -244.96% | |
46 Neutral | $709.18M | -3.17 | -24.55% | ― | -0.86% | -35.64% |
* General Sector Average
HROW
Harrow Health
40.03
1.71
4.46%
PCRX
Pacira Pharmaceuticals
23.00
-1.89
-7.59%
ANIP
ANI Pharmaceuticals
76.54
-13.17
-14.68%
AMPH
Amphastar Pharmaceuticals
20.91
-8.85
-29.74%
EVO
Evotec AG
1.96
-1.72
-46.74%
Harrow Health Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Harrow Health Stockholders Approve Directors and Executive Pay
Positive
Jun 22, 2026
At its 2026 Annual Meeting of Stockholders held on June 18, 2026, Harrow, Inc. reported that 29,830,973 of 37,273,420 eligible common shares were present or represented by proxy. Stockholders elected four directors—Mark L. Baum, Adrienne L. ...
Business Operations and StrategyRegulatory Filings and Compliance
Harrow Health Releases June 2026 Investor Presentation Update
Neutral
Jun 3, 2026
Harrow, Inc. has prepared a new corporate presentation dated June 2026 for use by management at investor conferences and in meetings with investors, analysts and other interested parties. The deck, furnished as part of a Form 8-K, is intended to s...
Business Operations and StrategyFinancial Disclosures
Harrow Highlights Strong VEVYE Demand in Q1 2026
Positive
May 11, 2026
Harrow reported first-quarter 2026 results on May 11, 2026, highlighting strong demand across its ophthalmic portfolio despite lower reported revenue of $44.2 million, down from $47.8 million a year earlier, and a wider net loss of $27.6 million. ...
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.