Harrow Health (HROW) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 391.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: 53.49%
• EPS Growth: 33.18%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.50
• Shares Outstanding: 36,699,554
• 10 Day Avg. Volume: 414,255
• 30 Day Avg. Volume: 391,758
• PEG Ratio: 2.30
• Price to Book (P/B): 21.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.24
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 8.98
• Enterprise Value/Ebitda: 34.08
• 1Y Price Target: $60.00
• Price Target Upside: 66.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: $37.00 ▲(2.38%Upside)

The overall score is driven primarily by strong earnings call insights and positive technical indicators. Financial performance is a concern due to high leverage and negative profitability, while valuation metrics are weak due to ongoing losses. Optimism from strategic initiatives and revenue growth provides a counterbalance to financial risks.

Positive Factors

Acquisition and Partnerships

Harrow announced an agreement with Samsung Bioepis to acquire exclusive U.S. commercial rights to Byooviz and Opuviz, biosimilars for Lucentis and Eylea, respectively.

Product Adoption and Market Expansion

The company's product Vevye has had good adoption and impressive refill rates, supporting a long and durable growth profile in the market for dry eye disease.

Revenue Growth

Management reiterated 2025 revenue target of over $280M, which would represent a growth rate of over 40% in 2025.

Negative Factors

Earnings Results

1Q25 results were somewhat disappointing, although partly based on standard seasonal effects, which may have created an attractive entry point for the stock.

Financial Performance

Net loss was $17.8M, or ($0.50) per share, missing estimated income of $1.5M.

Product Launch Delays

While approved by the FDA, Opuviz has not yet launched and is not expected to launch until the expiration of Eylea’s IP in mid-2027.

Harrow Health Business Overview & Revenue Model

Company Description

Harrow Health, Inc. (HROW) is a pharmaceutical company primarily focused on the development, production, and commercialization of innovative medications, especially in the ophthalmic sector. The company is dedicated to providing specialty pharmaceutical products and services to eyecare professionals, enhancing patient care through its proprietary compounding formulations and FDA-approved products.

How the Company Makes Money

Harrow Health generates its revenue through the sale of proprietary ophthalmic pharmaceutical products and compounded medications to healthcare providers and institutions. The company's revenue streams include direct sales of its branded products, licensing agreements, and royalties from its intellectual property portfolio. Harrow Health also benefits from strategic partnerships with other pharmaceutical companies, allowing it to expand its market reach and enhance its product offerings. The company's focus on niche markets and specialty formulations helps in maintaining competitive pricing and customer loyalty, contributing significantly to its earnings.

Harrow Health Financial Statement Overview

Summary

Harrow Health demonstrates strong revenue growth but faces significant challenges with profitability and high leverage. The negative net profit margin and high debt-to-equity ratio indicate financial risk, despite some operational efficiency improvements.

Income Statement

Harrow Health has shown strong revenue growth, increasing from $48.87M in 2020 to $212.86M in TTM (Trailing-Twelve-Months) 2025, indicating a solid growth trajectory. The gross profit margin remains healthy at 74.5% TTM, despite a negative net profit margin of -10.2% TTM, reflecting ongoing profitability challenges. EBIT margin stands at 2.1% TTM, with EBITDA margin at 8.8% TTM, suggesting some improvement in operational efficiency but still below industry norms.

Balance Sheet

The company's balance sheet shows a concerning debt-to-equity ratio of 4.07 TTM, indicating high leverage, which presents financial risk. Return on equity is negative at -38.4% TTM, due to persistent net losses. The equity ratio is low at 15.5% TTM, signaling a reliance on debt financing, which could be risky if earnings do not improve.

Cash Flow

Harrow Health's cash flow performance is mixed, with free cash flow remaining negative at -$36.61M TTM, indicating cash generation challenges. The operating cash flow to net income ratio is positive at 0.10 TTM, reflecting some cash generation from operations, but the free cash flow to net income ratio is negative, highlighting ongoing cash burn issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.61M	130.19M	88.59M	72.48M	48.87M
Gross Profit	150.37M	90.55M	63.21M	54.26M	34.41M
EBITDA	20.00M	9.95M	-3.10M	4.26M	3.49M
Net Income	-17.48M	-24.41M	-14.09M	-18.01M	-3.36M
Balance Sheet
Total Assets	388.97M	312.16M	157.02M	98.33M	57.47M
Cash, Cash Equivalents and Short-Term Investments	47.25M	82.77M	96.27M	50.67M	32.56M
Total Debt	228.83M	190.50M	104.17M	77.96M	23.53M
Total Liabilities	319.67M	241.75M	130.14M	87.40M	30.65M
Stockholders Equity	69.65T	70.77M	27.24M	11.29M	27.18M
Cash Flow
Free Cash Flow	-60.88M	-148.71M	-6.07M	-23.43M	-2.09M
Operating Cash Flow	-22.20M	3.84M	1.71M	5.08M	-1.10M
Investing Cash Flow	-33.16T	-152.55M	-1.74M	-18.69M	-981.00K
Financing Cash Flow	28.53M	126.53M	54.14M	51.47M	1.43M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 36.14 is above the 20-day moving average (MA) of 32.17, above the 50-day MA of 29.56, and above the 200-day MA of 33.89, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, 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
SIGA	80 Outperform	$484.37M	9.86	25.47%	10.13%	-23.37%	-39.03%
COLL	75 Outperform	$1.03B	26.18	19.23%	―	17.17%	-51.97%
ANIP	71 Outperform	$1.39B	―	-5.19%	―	30.26%	-173.36%
AMPH	69 Neutral	$1.00B	7.88	19.90%	―	8.05%	-8.46%
Sector *	65 Neutral	€6.37B	19.62	-1.30%	2.25%	-0.16%	-45.39%
HROW	61 Neutral	$1.26B	―	-37.23%	―	53.49%	33.18%
PCRX	60 Neutral	$1.05B	―	-12.27%	―	3.08%	-247.82%

Harrow Health Corporate Events

Harrow Health Approves Key Proposals at Annual Meeting

On June 18, 2025, Harrow Health held its Annual Meeting of Stockholders, where all matters submitted for a vote were approved. The meeting included the election of four directors, approval of the 2025 Incentive Stock and Awards Plan, ratification of Crowe LLP as auditors, and advisory votes on executive compensation and its frequency.

The most recent analyst rating on (HROW) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.