Harrow Health’s Earnings Call: Strong Growth Amid Challenges

Harrow Health ((HROW)) has held its Q1 earnings call. Read on for the main highlights of the call.

Harrow Health’s recent earnings call painted a picture of robust growth tempered by some seasonal challenges and one-time expenses. The company showcased strong revenue growth and cash flow, driven by strategic initiatives in product launches and market access. Despite some seasonal revenue weakness, Harrow remains optimistic about its growth prospects for the rest of the year.

Significant Revenue Growth

Harrow Health reported an impressive 38% year-over-year revenue growth in the first quarter of 2025. This significant increase underscores the company’s successful execution of its growth strategies and its ability to capture market opportunities effectively.

Record Cash Flow

The company achieved a record $19.7 million in cash flow from operations, highlighting its strong operational efficiency and financial health. This record cash flow provides Harrow with the flexibility to invest in further growth and strategic initiatives.

VEVYE Revenue Increase

VEVYE, one of Harrow’s key products, saw a 35% sequential revenue increase, rising from $16 million in Q4 2024 to $21.5 million in Q1 2025. This growth reflects the product’s increasing market acceptance and the effectiveness of Harrow’s marketing strategies.

Successful Launch of VEVYE Access for All Program

The launch of the VEVYE Access for All program has been a success, with both new prescriptions and weekly prescribers at PhilRx quadrupling. This initiative is expected to further drive VEVYE’s market penetration and revenue growth.

Infrastructure Expansion

Harrow has expanded its VEVYE team to over 80 sales and marketing professionals, with additional growth in other teams. This expansion is aimed at supporting the company’s growth objectives and enhancing its market presence.

Positive Market Response for TRIESENCE

Market access initiatives for TRIESENCE are expected to unlock about 40% of the overall market, indicating significant sales momentum. This positive market response is a testament to Harrow’s strategic market access efforts.

Strong ImprimisRx Performance

April appears to be a record month for ImprimisRx, suggesting consistent performance and contributing to Harrow’s overall growth trajectory.

Seasonal Revenue Weakness

The first quarter revenues for some segments were softer than expected due to seasonality. This seasonal weakness is a common challenge but is not expected to impact Harrow’s long-term growth plans.

One-time Expenses Impact

Harrow faced challenges from one-time expenses totaling $3.7 million in the first quarter. These expenses impacted the quarter’s financial results but are not indicative of ongoing operational issues.

IHEEZO Sales Impact

IHEEZO’s first quarter sales were affected by elevated stocking activity at the end of 2024. This impact is expected to be temporary as the market adjusts to normal stocking levels.

Specialty Branded Products Volatility

Volatility in gross to net estimates for specialty branded products led to a reduction in recognizable revenue for the period. Harrow is addressing this volatility to stabilize future revenue recognition.

Forward-looking Guidance

Harrow Health’s guidance for the remainder of 2025 is optimistic, with a revenue target of over $280 million. The company expects VEVYE to generate at least $100 million, IHEEZO over $50 million, and specialty branded products, including TRIESENCE, to contribute at least $50 million. The ImprimisRx compounding business is on track to deliver more than $80 million. These projections reflect Harrow’s confidence in its strategic initiatives and market positioning.

In conclusion, Harrow Health’s earnings call highlighted a strong start to 2025, with significant revenue growth and strategic successes in product launches and market access. Despite some seasonal and one-time challenges, the company’s outlook remains positive, with ambitious revenue targets and continued investment in growth initiatives. Investors and market watchers will be keen to see how Harrow navigates the remainder of the year, building on its solid foundation.