Harrow Health (HROW) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 891.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: 47.83%
• EPS Growth: 84.72%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.17
• Shares Outstanding: 37,229,706
• 10 Day Avg. Volume: 1,628,191
• 30 Day Avg. Volume: 891,923
• PEG Ratio: 4.91
• Price to Book (P/B): 34.35
• Price to Sales (P/S): 6.61
• P/FCF Ratio: 41.91
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 5.43
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 38.82
• 1Y Price Target: $70.00
• Price Target Upside: 100.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): $391.40M

• Rating: 47 Neutral
• Price Target: $36.00 ▲(3.12% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by leveraged financials, ongoing net losses, and historically weak/volatile cash conversion, alongside a bearish technical trend (below major moving averages with negative MACD). These are partially offset by a positive earnings outlook with specific 2026 revenue/adjusted EBITDA guidance and continued product-driven growth expectations.

Positive Factors

Sustained Revenue Growth & High Margins

Multi-year top-line expansion combined with very high gross margins provides a durable foundation for scalable unit economics. Persistent revenue growth broadens the commercial base, enabling operating leverage and reinvestment capacity that support sustainable margin improvement over the medium term.

Diversified, Expanding Product Portfolio

Multiple growing franchises reduce reliance on any single product and increase addressable market exposure. Combined with planned salesforce expansion and OneHarrow commercialization, the portfolio breadth supports durable prescription demand, cross-selling opportunities, and higher lifetime patient revenue.

Clear Guidance & Improving Adjusted EBITDA

Management-provided multi-horizon targets show a concrete path toward materially higher EBITDA and reflect operating leverage from scale. Explicit H1/H2 phasing and investment plans enhance predictability, enabling disciplined capex/SG&A planning while signaling improved earnings quality if execution holds.

Negative Factors

High Leverage

A large debt load relative to equity constrains financial flexibility and raises refinancing and interest-rate sensitivity. High leverage limits the company's ability to fund unexpected setbacks, pursue opportunistic investments, or sustain prolonged marketing and R&D ramps without adding incremental financing risk.

Weak, Volatile Cash Generation

Inconsistent operating cash flow and repeated negative free cash flow undermine the firm's internal funding capacity. Even with stronger 2025 cash from operations, historical volatility reduces confidence in self-funding long-term expansion, increasing reliance on external capital that could be costly or dilutive.

Execution & Reimbursement Risks

Loss of pass-through reimbursement materially alters economics for a significant channel and may depress near-term revenue recognition and uptake. Coupled with planned SG&A increases and regulatory/launch timing for Melt assets, reimbursement and execution timing risk could delay realization of projected revenue and margin gains.

Harrow Health Business Overview & Revenue Model

Company Description

Harrow Health, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business; and DEXYCU for the treatment of post-operative inflammation. The company also holds equity interests in Surface Ophthalmics, Inc., a clinical-stage pharmaceutical company that focuses on development and commercialization of therapeutics for ocular surface diseases; Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company that focused on the development and commercialization of proprietary non-intravenous, sedation, and anesthesia therapeutics for human medical procedures in hospital, outpatient, and in-office settings; and Eton Pharmaceuticals, Inc., a commercial-stage pharmaceutical company that engages in developing and commercializing drug products. Harrow Health, Inc. owns royalty rights in four clinical stage drug candidates being developed by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

How the Company Makes Money

Harrow Health generates revenue through the sales of its compounded pharmaceutical products, which are primarily used in ophthalmology. The company employs a revenue model that includes direct sales to healthcare providers, pharmacies, and hospitals. Key revenue streams come from the sale of its proprietary eye medications, as well as contract manufacturing services for third-party clients. Additionally, Harrow Health may engage in partnerships with other pharmaceutical companies to expand its product offerings or enhance distribution capabilities, further contributing to its earnings. The company's focus on niche markets within specialty pharmaceuticals allows it to leverage higher margins compared to traditional pharmaceuticals, thus bolstering its financial performance.

Harrow Health Financial Statement Overview

Summary

Strong multi-year revenue growth and high, stable gross margins with improving EBITDA margin, but the company remains net-loss-making, carries high leverage (debt-to-equity ~4.8x in 2025), and cash flow has been weak/volatile (including large negative free cash flow in 2023–2024 and unclear 2025 cash-flow visibility in the provided statements).

Income Statement

Revenue growth has been strong over the cycle (from $49M in 2020 to $272M in 2025), with a sharp step-up in 2025 (+8.9%). Profitability is mixed: gross margin remains very high and stable (~70–75%), and EBITDA margin improved versus earlier years (~11% in 2024–2025). However, the company is still not consistently profitable at the bottom line (net losses persist, though 2025 improved materially to a small loss vs. larger losses in 2021–2024), which limits the score.

Balance Sheet

Leverage is the main concern. Total debt rose meaningfully (to ~$252M in 2025), while equity is relatively small (~$52M), leaving a high debt load relative to equity (debt-to-equity ~4.8x in 2025, up from ~3.3x in 2024). Total assets increased, but returns to shareholders remain negative given ongoing net losses (negative return on equity across all years shown). The balance sheet is improving in scale, but financial flexibility appears constrained by leverage.

Cash Flow

Cash generation is weak and volatile. Operating cash flow has swung between positive and negative (negative in 2024 and 2020), and free cash flow has been consistently negative in most years with very large outflows in 2023 and 2024. In 2025, both operating cash flow and free cash flow are reported as 0, which signals limited visibility/quality of cash conversion in the latest period and prevents showing a clear improvement despite better earnings. Overall, cash flow does not yet support the income statement trajectory.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	272.30M	199.61M	130.19M	88.59M	72.48M
Gross Profit	204.37M	150.37M	90.55M	63.21M	54.26M
EBITDA	56.08M	22.13M	11.95M	4.75M	5.10M
Net Income	-5.14M	-17.48M	-24.41M	-14.09M	-18.01M
Balance Sheet
Total Assets	399.48M	388.97M	311.75M	157.38M	98.33M
Cash, Cash Equivalents and Short-Term Investments	72.93M	47.25M	82.77M	101.86M	50.67M
Total Debt	251.98M	228.83M	190.50M	112.23M	77.96M
Total Liabilities	347.39M	319.67M	241.75M	130.14M	87.40M
Stockholders Equity	52.45M	69.65M	70.36M	27.59M	11.29M
Cash Flow
Free Cash Flow	42.98M	-60.88M	-148.71M	-6.07M	-23.43M
Operating Cash Flow	43.86M	-22.20M	3.84M	1.71M	5.08M
Investing Cash Flow	-5.46M	-33.16M	-152.55M	-1.74M	-18.69M
Financing Cash Flow	-12.72M	28.53M	126.53M	54.14M	51.47M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 34.91 is below the 20-day moving average (MA) of 44.29, below the 50-day MA of 46.01, and below the 200-day MA of 40.33, indicating a bearish trend. The MACD of -3.64 indicates Positive momentum. The RSI at 31.15 is Neutral, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HROW.

Harrow Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCRX	67 Neutral	$918.72M	163.97	0.95%	―	3.14%	―
ANIP	67 Neutral	$1.62B	14.40	15.55%	―	48.87%	―
AMPH	61 Neutral	$880.64M	12.76	12.76%	―	-0.03%	-27.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HROW	47 Neutral	$1.30B	-350.51	-10.00%	―	47.83%	84.72%
EVO	46 Neutral	$870.42M	-6.38	-18.11%	―	-1.19%	5.06%

Harrow Health Corporate Events

Harrow Health Posts Record 2025 Results, Sets 2026 Outlook

Harrow reported that 2025 was a “defining year,” with record fourth-quarter revenue of $89.1 million, up 33% year on year, and full-year revenue rising 36% to $272.3 million as of December 31, 2025. Despite posting a net loss of $5.1 million for 2025, the company generated $43.9 million in operating cash flow versus a cash outflow in 2024, maintained gross margins at 75%, and ended the year with $72.9 million in cash and equivalents.

Management highlighted strengthening demand for key ophthalmic products VEVYE, IHEEZO and TRIESENCE, and said 2025 operating leverage and cash generation support Harrow’s evolution toward a larger-scale commercial player. For 2026, the company issued revenue guidance of $350 million to $365 million and Adjusted EBITDA of $80 million to $100 million, while pledging more transparent, conservative guidance and outlining plans to scale sales teams, expand IHEEZO’s use, integrate the Melt Pharmaceuticals acquisition and prepare late-stage assets for launches beyond 2027.

The most recent analyst rating on (HROW) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.

Harrow Health Reaffirms 2025 Outlook, Expands Ophthalmic Platform

On February 2, 2026, Harrow reaffirmed its 2025 full-year revenue guidance of $270–$280 million, citing another year of strong growth in 2025 and outlining an aggressive commercial expansion centred on its key ophthalmic brands VEVYE, IHEEZO and TRIESENCE. The company is doubling the VEVYE sales force to about 100 U.S. territories following favourable pharmacy benefit coverage that began on January 1, 2026, broadening IHEEZO’s reach into an estimated 2.5 million-procedure office-based market, and doubling the surgical sales force behind TRIESENCE on the back of robust clinical feedback and rising demand. Harrow has launched its OneHarrow initiative to consolidate all products, including compounded formulations, under a single Harrow-branded commercial organization to improve alignment, efficiency and market impact, while promoting Patrick W. Sullivan—who joined in August 2025—to Chief Commercial Officer to strengthen the commercial foundation and drive progress toward its 2027 financial goals. On the development front, Harrow reported that integration of Melt Pharmaceuticals is complete and that required ancillary studies for MELT-300 are underway, keeping the New Drug Application filing timeline on track for the first half of 2027, while MELT-210 also advances toward filing. The company’s ImprimisRx division settled all pending regulatory matters with the California Board of Pharmacy, agreed to an administrative fine of about $157,000 and voluntarily exited the California compounding market effective February 1, 2026, a move Harrow described as not financially material and driven by the state’s increasingly costly and unpredictable regulatory environment; Harrow will continue to serve California with its branded products while focusing ImprimisRx on the other 49 states.

The most recent analyst rating on (HROW) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.