Harrow Health ((HROW)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Harrow Health highlighted a period of robust growth and strategic advancements, although it was not without its challenges. The company reported significant revenue increases and strategic alliances, but faced hurdles with the decline in VEVYE revenue and underperformance in its specialty branded portfolio.
Strong Revenue Growth
Harrow Health reported a total revenue of $63.7 million for the second quarter of 2025, marking a 30% increase over the same period in 2024 and a sequential rise of 33% from the first quarter of 2025. This impressive growth underscores the company’s successful execution of its business strategies.
VEVYE Prescription Growth
Despite a decline in revenue, VEVYE saw a remarkable 66% growth in prescription volumes quarter-over-quarter. This surge was largely driven by the VEVYE Access for All initiative, demonstrating the product’s growing acceptance in the market.
Strategic Alliances and Acquisitions
Harrow Health announced a strategic alliance with Apollo Care and secured U.S. rights to BYQLOVI and Samsung’s ophthalmic biosimilars portfolio. These strategic moves are expected to bolster the company’s market position and expand its product offerings.
IHEEZO and TRIESENCE Growth
The company reported a 251% increase in IHEEZO’s revenue from Q1 2025, while TRIESENCE achieved a 32% quarter-over-quarter growth. These figures highlight the strong performance of these products within Harrow’s portfolio.
Adjusted EBITDA
Harrow Health’s adjusted EBITDA for Q2 2025 was $17 million, with a net income of $5 million. This reflects the company’s effective cost management and operating leverage.
VEVYE Revenue Decline
VEVYE generated $18.6 million in revenue, a 13% decrease from Q1 2025. This decline was attributed to a normalization in the average selling price, which the company aims to address moving forward.
Challenges in Specialty Branded Portfolio
The specialty branded products, excluding TRIESENCE, did not meet expectations, indicating a need for revenue growth by year-end. Harrow Health is focusing on strategies to enhance performance in this segment.
Forward-Looking Guidance
Looking ahead, Harrow Health aims to achieve a $250 million revenue quarter by the end of 2027, leveraging its expansive portfolio of over 59 ophthalmic products. To meet its 2025 guidance of over $280 million, the company needs to generate approximately $169 million in revenue in the latter half of the year. Strategic acquisitions and market expansion are key components of Harrow’s growth strategy.
In conclusion, Harrow Health’s earnings call presented a mixed bag of strong growth and strategic progress alongside certain challenges. The company’s ambitious forward-looking guidance and strategic initiatives indicate a promising future, provided it can address the current hurdles effectively.