Harrow Health Inc (HROW)
NASDAQ:HROW
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Harrow Health
(NASDAQ:HROW)
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Rating:47Neutral
Price Target:
$37.00
▲(2.98% Upside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by leveraged financials and weak/volatile cash flow conversion, plus bearish technical trends. These negatives are partly offset by a positive earnings-call outlook with strong 2026 growth and EBITDA guidance, while recent debt financing improves liquidity but increases leverage risk.
Positive Factors
Sustained revenue growth with high gross margins
Multi-year top-line expansion and persistently high gross margins create scalable economics. Growing revenue (2020→2025) plus improving adjusted EBITDA provides durable operating leverage, enabling the company to invest in commercialization while supporting margin expansion as scale increases.
Negative Factors
High financial leverage
A high debt load relative to equity materially constrains financial flexibility and raises interest and covenant risk. Sustained leverage increases the company’s sensitivity to revenue or cash‑flow setbacks and makes growth funding more dependent on external capital markets over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth with high gross margins
Multi-year top-line expansion and persistently high gross margins create scalable economics. Growing revenue (2020→2025) plus improving adjusted EBITDA provides durable operating leverage, enabling the company to invest in commercialization while supporting margin expansion as scale increases.
Read all positive factors
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)882.59K
Price to Earnings (P/E)―
Beta (1Y)2.32
Revenue Growth47.83%
EPS Growth84.72%
CountryUS
Employees382
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.17
Shares Outstanding37,229,706
10 Day Avg. Volume400,109
30 Day Avg. Volume882,594
Financial Highlights & Ratios
PEG Ratio4.91
Price to Book (P/B)34.35
Price to Sales (P/S)6.61
P/FCF Ratio41.91
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit7.42
Enterprise Value/Ebitda39.82
Forecast
1Y Price Target
$67.14Price Target Upside86.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.72
Revenue Forecast (FY)$365.26M
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 a...
How the Company Makes Money
Harrow Health generates revenue primarily from (1) product sales of ophthalmic pharmaceuticals and (2) fees and sales associated with ophthalmic compounding and related pharmacy services. On the pharmaceutical side, Harrow earns money by commercia...
Harrow Health Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: strong 2025 financial performance with double‑digit revenue growth, significant adjusted EBITDA expansion, healthy cash generation, multiple product-specific accelerations (BYOOVIZ, IHEEZO, TRIESENCE, VEVYE), concrete 2026 guidance with clear second‑half weighting, and promising pipeline milestones (G-MELT NDA target, IHEEZO data flow). Near‑term headwinds — Q1 seasonality/channel drawdown, ASC pass‑through loss for IHEEZO, compounding inventory issues, and planned SG&A/R&D investments — are acknowledged and largely presented as manageable or temporary in nature. Given the weight and scale of the positive operating and financial indicators relative to the near-term, addressable challenges, the overall tone is constructive and growth‑oriented.Positive Updates
Strong Revenue Growth
Consolidated Q4 2025 revenue of $89.1M (+33% YoY) and full-year 2025 revenue of $272M (+36% vs 2024), demonstrating robust top-line expansion across the branded portfolio.
Negative Updates
Near-Term Channel and Seasonality Headwinds (Q1 Softness)
Company expects a softer first half of 2026 driven by channel inventory drawdown (IHEEZO demand in Q4 created ~1.5 quarters of incremental channel inventory), insurance resets, and a higher mix of high-deductible plans leading to muted Q1 revenue and limited IHEEZO recognition in Q1 despite demand.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Consolidated Q4 2025 revenue of $89.1M (+33% YoY) and full-year 2025 revenue of $272M (+36% vs 2024), demonstrating robust top-line expansion across the branded portfolio.
Read all positive updates
Company Guidance
Harrow guided to full‑year 2026 revenue of $350–$365 million (H1 $133–$153M; H2 $203–$226M) and adjusted EBITDA of $80–$100 million (majority weighted to H2), with SG&A rising to ~$185–$205M and R&D ~$30–$35M as the company adds roughly 100 sales roles in H1 and doubles the VEVYE and TRIESENCE sales forces (VEVYE ramp by Memorial Day); management expects Q1 to be the weakest quarter due to channel inventory drawdown, insurance resets and high‑deductible mix, expects compounded revenue of ~$60–$65M in 2026, and signaled key timing: IHEEZO pass‑through loss April 1 (~30% of 2025 units in ASCs) with price improvement and new retina packaging in H2 and ASRS data in July (Harrow’s 240‑patient Phase 4 readout by YE‑2026), G‑MELT NDA targeted in early 2027; 2025 results to benchmark the guide included Q4 revenue $89.1M (+33% YoY), FY revenue $272M (+36% YoY), Q4 adjusted EBITDA $24.2M and FY adjusted EBITDA $61.9M (+54% YoY), ~$44M cash from operations and $72.9M cash on hand, and notable product metrics (BYOOVIZ Q4 $25.9M / FY $88.7M; IHEEZO Q4 $35.9M / FY $81.3M; TRIESENCE Q4 $5.1M / FY $9.9M; rare & compounded Q4 $22.2M / FY $92.3M), plus an $8.5M Q4 acquired/processed R&D charge related to the Melt acquisition.Harrow Health Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
38
Negative
Cash Flow
24
Negative
| 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
Negative
35.93
Price Trends
41.44
Negative
43.68
Negative
40.77
Negative
Market Momentum
-1.32
Negative
44.92
Neutral
76.06
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 35.93 is above the 20-day moving average (MA) of 35.05, below the 50-day MA of 41.44, and below the 200-day MA of 40.77, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.06 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $963.25M | 163.97 | 0.95% | ― | 3.14% | ― | |
67 Neutral | $1.76B | 14.40 | 15.55% | ― | 48.87% | ― | |
61 Neutral | $924.19M | 12.76 | 12.76% | ― | -0.03% | -27.66% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $1.34B | -350.51 | -10.00% | ― | 47.83% | 84.72% | |
45 Neutral | $940.36M | -9.36 | -18.11% | ― | -1.19% | 5.06% |
* Healthcare Sector Average
HROW
Harrow Health
35.93
11.53
47.25%
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23.79
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78.36
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Amphastar Pharmaceuticals
20.37
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EVO
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Harrow Health Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Harrow Health Expands Senior Notes Offering for Growth
Positive
Mar 27, 2026
On March 24, 2026, Harrow, Inc. entered into a purchase agreement with BTIG, LLC and other initial purchasers to offer an additional $50 million of 8.625% Senior Notes due 2030, expanding an existing $250 million note series first issued in Septem...
Business Operations and StrategyPrivate Placements and Financing
Harrow Health Prices $50 Million Senior Notes Offering
Positive
Mar 24, 2026
On March 24, 2026, Harrow announced it had priced a $50 million private offering of 8.625% senior unsecured notes due 2030, to be issued as additional notes under the same indenture as its existing $250 million 2030 notes sold in September 2025. T...
Business Operations and StrategyPrivate Placements and Financing
Harrow Health Announces $50 Million Senior Notes Offering
Positive
Mar 24, 2026
On March 24, 2026, Harrow, Inc. launched a private add-on offering of $50 million in 8.625% senior unsecured notes due 2030, targeting qualified institutional buyers in the U.S. under Rule 144A and non-U.S. investors under Regulation S. The new no...
Business Operations and StrategyRegulatory Filings and Compliance
Harrow Health Updates Investor Presentation via Regulation FD Filing
Neutral
Mar 10, 2026
Harrow Health said it has furnished a new corporate presentation for use by management at investor conferences and in meetings with investors. The materials were provided as part of a Form 8-K filing but are classified as furnished rather than fil...
Business Operations and StrategyFinancial Disclosures
Harrow Health Posts Record 2025 Results, Sets 2026 Outlook
Positive
Mar 2, 2026
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 m...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Harrow Health Reaffirms 2025 Outlook, Expands Ophthalmic Platform
Positive
Feb 2, 2026
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...
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.