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Harrow Health Inc (HROW)
NASDAQ:HROW
US Market
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Harrow Health (HROW) AI Stock Analysis

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HROW

Harrow Health

(NASDAQ:HROW)

Rating:52Neutral
Price Target:
$39.00
▲(0.54% Upside)
Harrow Health's overall stock score is driven by strong technical indicators and positive earnings call highlights, including strategic alliances and revenue growth. However, significant financial performance challenges, particularly in profitability and cash flow, weigh heavily on the score. The negative P/E ratio further impacts the valuation, limiting the stock's attractiveness.
Positive Factors
Commercial Strategy
Harrow has acquired exclusive U.S. commercial rights to two ophthalmology biosimilars, strengthening its commercial portfolio of ophthalmic drugs.
Financial Performance
Harrow Health's net income exceeded expectations with $5.0M, showcasing better-than-expected financial performance.
Market Expansion
The expansion of Harrow's pharmacy network to a full nationwide retail network is expected to stabilize and potentially increase the average selling price of VEVYE.
Negative Factors
Litigation Risks
The U.S. launch date of OPUVIZ is yet to be determined due to ongoing litigation involving biosimilar manufacturers.
Market Risks
Risks include lower-than-projected market uptake of products and the inability to develop and secure regulatory approval of pipeline products.
Product Performance
Vevye's $18.6 million came in below the estimate of $19.6 million and consensus of $23.1 million.

Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)

Harrow Health Business Overview & Revenue Model

Company DescriptionHarrow 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 MoneyHarrow Health generates revenue primarily through the sale of its compounded pharmaceuticals, which are sold directly to healthcare providers, hospitals, and pharmacies. The company's revenue model is anchored in the demand for specialty medications that are tailored to individual patient needs, which allows it to command higher margins compared to standard pharmaceuticals. Additionally, Harrow Health benefits from strategic partnerships and collaborations with healthcare institutions and other pharmaceutical companies, which can enhance its product offerings and expand its market reach. The company also engages in licensing agreements and may receive royalties from its proprietary formulations, contributing further to its revenue streams.

Harrow Health Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call conveyed strong growth and strategic developments with significant revenue increases and strategic alliances. However, there were challenges with the VEVYE revenue decline and underperformance in the specialty branded portfolio.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue for Q2 2025 was $63.7 million, a 30% increase over Q2 2024 and a sequential increase of 33% from Q1 2025.
VEVYE Prescription Growth
VEVYE saw a 66% growth in prescription volumes quarter-over-quarter, driven by the VEVYE Access for All initiative.
Strategic Alliances and Acquisitions
Announced a strategic alliance with Apollo Care and secured U.S. rights to BYQLOVI and Samsung's ophthalmic biosimilars portfolio.
IHEEZO and TRIESENCE Growth
IHEEZO's revenue increased by 251% from Q1 2025 and TRIESENCE achieved 32% quarter-over-quarter growth.
Adjusted EBITDA
Adjusted EBITDA for Q2 2025 was $17 million with $5 million of net income, highlighting operating leverage.
Negative Updates
VEVYE Revenue Decline
VEVYE generated $18.6 million in revenue, a 13% decrease from Q1 2025 due to normalization in average selling price.
Challenges in Specialty Branded Portfolio
The specialty branded products, excluding TRIESENCE, underperformed expectations with a need for a revenue increase by year-end.
Company Guidance
During Harrow's second quarter 2025 earnings call, the company provided guidance on various financial metrics and strategic goals. Harrow aims to achieve a $250 million revenue quarter by the end of 2027, leveraging its expansive portfolio of over 59 ophthalmic products. The company reported a total revenue of $63.7 million for the second quarter, marking a 30% increase over the same period in 2024 and a 33% rise from the first quarter of 2025. To meet its 2025 guidance of over $280 million, Harrow needs to generate approximately $169 million in revenue in the latter half of the year. The company also highlighted the growth of specific products, with VEVYE seeing a 66% rise in prescription volumes and IHEEZO experiencing a 25% increase in unit volume. Harrow anticipates VEVYE to generate over $100 million in annual revenue, while IHEEZO is projected to surpass $50 million. Adjusted EBITDA for the second quarter was reported at $17 million, with net income at $5 million. Harrow's strategy includes expanding its commercial infrastructure and entering new markets, supported by strategic acquisitions such as the U.S. rights to BYQLOVI and Samsung's ophthalmic biosimilars portfolio.

Harrow Health Financial Statement Overview

Summary
Harrow Health shows revenue growth but faces significant profitability and cash flow challenges. High leverage and negative returns on equity indicate financial risk, while strong gross margins suggest operational efficiency. The company needs to address its cash flow issues and improve profitability to enhance financial stability.
Income Statement
45
Neutral
Harrow Health shows a positive revenue growth trend with a 6.95% increase in the TTM period. However, the company struggles with profitability, as indicated by a negative net profit margin of -4.49% and a low EBIT margin of 1.20%. The gross profit margin remains strong at 74.56%, suggesting efficient cost management at the production level.
Balance Sheet
30
Negative
The balance sheet reveals high leverage with a debt-to-equity ratio of 4.66, indicating significant reliance on debt financing. The return on equity is negative at -17.50%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 14.39%, suggesting limited equity financing relative to total assets.
Cash Flow
25
Negative
Cash flow analysis highlights negative free cash flow growth and a concerning free cash flow to net income ratio of -8.52, indicating cash flow challenges. The operating cash flow to net income ratio is low at 1.62%, suggesting limited cash generation from operations relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue227.66M199.61M130.19M88.59M72.48M48.87M
Gross Profit169.75M150.37M90.55M63.21M54.26M34.41M
EBITDA32.10M19.28M9.72M-3.10M4.26M3.49M
Net Income-10.23M-17.48M-24.41M-14.09M-18.01M-3.36M
Balance Sheet
Total Assets345.03M388.97M312.16M157.02M98.33M57.47M
Cash, Cash Equivalents and Short-Term Investments52.96M47.25M82.77M101.86M50.67M32.56M
Total Debt231.25M228.83M190.50M112.23M77.96M23.53M
Total Liabilities295.73M319.67M241.75M130.14M87.40M30.65M
Stockholders Equity49.65M69.65M70.77M27.59M11.29M27.18M
Cash Flow
Free Cash Flow-34.38M-60.88M-148.71M-6.07M-23.43M-2.09M
Operating Cash Flow4.04M-22.20M3.84M1.71M5.08M-1.10M
Investing Cash Flow-38.66M-33.16M-152.55M-1.74M-18.69M-981.00K
Financing Cash Flow16.62M28.53M126.53M54.14M51.47M1.43M

Harrow Health Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.79
Price Trends
50DMA
34.33
Positive
100DMA
30.28
Positive
200DMA
31.87
Positive
Market Momentum
MACD
1.37
Negative
RSI
60.95
Neutral
STOCH
49.60
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 38.79 is above the 20-day moving average (MA) of 36.06, above the 50-day MA of 34.33, and above the 200-day MA of 31.87, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$607.93M7.1843.61%10.13%3.86%-2.60%
73
Outperform
$1.22B37.4516.16%22.61%-63.00%
68
Neutral
$1.41B11.3618.32%1.37%-18.10%
66
Neutral
$1.99B-2.82%38.68%-160.14%
61
Neutral
$1.17B-15.57%2.25%-301.59%
52
Neutral
$1.43B-18.99%47.69%69.57%
51
Neutral
$7.83B-0.18-40.10%2.29%21.46%-2.03%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HROW
Harrow Health
38.99
-0.27
-0.69%
PCRX
Pacira Pharmaceuticals
26.85
11.49
74.80%
SIGA
SIGA Technologies
8.25
-0.06
-0.72%
ANIP
ANI Pharmaceuticals
91.88
29.43
47.13%
AMPH
Amphastar Pharmaceuticals
30.49
-18.37
-37.60%
COLL
Collegium Pharmaceutical
38.79
0.18
0.47%

Harrow Health Corporate Events

Executive/Board Changes
Harrow Health Appoints New President and CFO
Neutral
Aug 25, 2025

On August 21, 2025, Harrow, Inc. announced the appointment of Andrew R. Boll as President, who will continue his roles as Chief Financial Officer and Secretary. Randall E. Pollard was appointed as Chief Accounting Officer, effective September 1, 2025, bringing over 20 years of experience in financial reporting and corporate accounting leadership. The Board also approved amended bylaws, designating the CEO as the principal executive officer and updating officer roles to align with current governance practices.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Harrow Health Reports Strong Q2 2025 Financial Results
Positive
Aug 11, 2025

Harrow announced its second-quarter 2025 financial results, reporting a 30% increase in total revenues to $63.7 million compared to the previous year. The company highlighted significant growth in its VEVYE® and IHEEZO® products, with VEVYE® gaining nearly 3% in market share and 66% sequential prescription growth. Harrow also secured exclusive U.S. commercial rights to Samsung Bioepis’s ophthalmology biosimilar portfolio and acquired rights for BYQLOVI™, a new ophthalmic steroid. The strategic alliance with Apollo Care is expected to enhance patient access and insurance coverage, further driving growth. These developments position Harrow to exceed $280 million in revenue for 2025 and strengthen its market presence.

Executive/Board ChangesShareholder Meetings
Harrow Health Approves Key Proposals at Annual Meeting
Neutral
Jun 20, 2025

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.

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.Date of analysis: Aug 19, 2025