Harrow Health (HROW) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: N/A
• Average Volume (3M): 520.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.31
• Revenue Growth: 47.83%
• EPS Growth: 84.72%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.03
• Shares Outstanding: 37,037,453
• 10 Day Avg. Volume: 573,031
• 30 Day Avg. Volume: 520,505
• PEG Ratio: 1.97
• Price to Book (P/B): 17.17
• Price to Sales (P/S): 5.99
• P/FCF Ratio: -19.65
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 10.33
• Enterprise Value/Ebitda: 50.07
• 1Y Price Target: $72.40
• Price Target Upside: 53.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $46.00 ▼(-2.54% Downside)

The score is held back primarily by weaker financial quality (high leverage and poor/declining cash flow despite strong gross margins and revenue growth). Earnings-call commentary is a key offset, pointing to strong recent growth, operating leverage, and reiterated revenue guidance, while technicals are mixed and valuation is challenged by a negative P/E and no dividend support.

Positive Factors

High Gross Margins

Sustained ~75% gross margins indicate durable product-level pricing power and an efficient cost structure in Harrow’s specialty ophthalmic formulations. High gross margins provide room to invest in commercialization and absorb marketing costs as new products scale without eroding unit economics.

Strong Product Momentum and Payer Wins

Rapid, repeatable prescription growth for core brands and newly secured national payer formulary placements materially expand durable access and pricing stability. Payer coverage reduces friction to adoption and supports long-term volume growth across U.S. channels.

Strategic M&A and Commercial Consolidation

The Melt acquisition and pipeline (MELT-300, MELT-210) diversify Harrow beyond ophthalmology into procedural sedation, increasing addressable markets and product mix. OneHarrow commercial unification and salesforce expansion improve execution capacity and revenue scalability over the medium term.

Negative Factors

Elevated Financial Leverage

Significant leverage constrains financial flexibility and increases refinancing and interest risk, particularly if cash flow softens. High debt relative to equity makes the company more vulnerable to cyclical pressures and could limit capital available for launches or inorganic investments.

Weak Cash Generation

Markedly negative free cash flow growth and very low cash conversion from earnings signal limited internal funding for R&D, launches, and debt service. Persistent cash generation weakness raises reliance on external financing, which is riskier with elevated leverage.

Ongoing Lack of Net Profitability

Despite revenue growth, the company remains unprofitable at the net level and shows negative ROE, implying returns haven’t matched capital deployed. Until operating leverage and higher-margin launches translate to consistent net income, equity value creation and retained capital remain uncertain.

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

Revenue growth and strong gross margin (TTM gross margin 74.56%) are positives, but profitability remains challenged (TTM net margin -4.49%). Leverage is elevated (TTM debt-to-equity 4.66) and cash generation is weak with declining free cash flow (TTM FCF growth -40.66%) and very low operating cash flow to net income (0.016).

Income Statement

Harrow Health shows a positive revenue growth trend with a TTM increase of 9.83%. The gross profit margin remains strong at 74.56%, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -4.49% in the TTM. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency, but the company still faces challenges in achieving net profitability.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 4.66 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, at -17.50%, reflecting ongoing losses. Despite these challenges, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Harrow Health's cash flow situation is concerning, with a negative free cash flow growth rate of -40.66% in the TTM. The operating cash flow to net income ratio is low at 0.016, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is also negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.04M	199.61M	130.19M	88.59M	72.48M	48.87M
Gross Profit	186.44M	150.37M	90.55M	63.21M	54.26M	34.41M
EBITDA	38.46M	22.13M	11.95M	4.75M	5.10M	2.62M
Net Income	-4.99M	-17.48M	-24.41M	-14.09M	-18.01M	-3.36M
Balance Sheet
Total Assets	363.07M	388.97M	311.75M	157.38M	98.33M	57.47M
Cash, Cash Equivalents and Short-Term Investments	74.29M	47.25M	82.77M	101.86M	50.67M	32.75M
Total Debt	251.87M	228.83M	190.50M	112.23M	77.96M	23.53M
Total Liabilities	316.41M	319.67M	241.75M	130.14M	87.40M	30.65M
Stockholders Equity	47.02M	69.65M	70.36M	27.59M	11.29M	27.18M
Cash Flow
Free Cash Flow	-20.47M	-60.88M	-148.71M	-6.07M	-23.43M	-2.09M
Operating Cash Flow	17.67M	-22.20M	3.84M	1.71M	5.08M	-1.10M
Investing Cash Flow	-38.29M	-33.16M	-152.55M	-1.74M	-18.69M	-981.00K
Financing Cash Flow	22.30M	28.53M	126.53M	54.14M	51.47M	1.43M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 47.2 is above the 20-day moving average (MA) of 46.23, above the 50-day MA of 46.41, and above the 200-day MA of 37.67, indicating a bullish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HROW.

Harrow Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	79 Outperform	$1.31B	12.69	14.84%	―	-0.03%	-27.66%
ANIP	66 Neutral	$1.83B	49.84	7.83%	―	48.87%	―
PCRX	64 Neutral	$889.68M	46.36	2.90%	―	3.14%	―
AVDL	57 Neutral	$2.11B	-3,921.82	-0.32%	―	79.88%	99.60%
HROW	53 Neutral	$1.75B	-310.12	-9.54%	―	47.83%	84.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVO	46 Neutral	$1.33B	-7.49	-17.46%	―	-1.19%	5.06%

Harrow Health Corporate Events

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.

Harrow Health Completes Acquisition of Melt Pharmaceuticals

On November 17, 2025, Harrow, Inc. completed its acquisition of Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company specializing in non-opioid, non-IV sedation therapies for medical procedures. This strategic acquisition expands Harrow’s portfolio and positions it to enter the multi-billion-dollar procedural sedation and anxiety market with products like MELT-300, a sublingual sedation therapy that has shown promise in clinical trials. The acquisition is expected to enhance Harrow’s market positioning by offering innovative sedation options that reduce opioid exposure and improve patient experiences across various medical specialties.

The most recent analyst rating on (HROW) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.

Harrow Health Reports Strong Q3 2025 Financial Results

Harrow Health announced its financial results for the third quarter of 2025, reporting a 45% increase in total revenues to $71.6 million compared to the same period last year. The company achieved a GAAP net income of $1.0 million and an adjusted EBITDA of $22.7 million. Significant strategic initiatives included the launch of TRIESENCE® into its largest market, the upcoming rollout of the Harrow Access for All program, and the expansion of its commercial leadership team. Harrow also entered into coverage agreements for VEVYE with several leading national payers, enhancing its market positioning. Additionally, Harrow announced the acquisition of Melt Pharmaceuticals, Inc., aiming to expand its product offerings with Melt’s innovative non-opioid, non-IV sedation therapies.

The most recent analyst rating on (HROW) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.