Harrow Health (HROW)
NASDAQ:HROW
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Harrow Health
(NASDAQ:HROW)
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Rating:50Neutral
Price Target:
$35.00
▼(-15.66% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak financial health (persistent losses and very high leverage) and bearish technicals (price below major moving averages with negative MACD). Offsetting these are a more constructive earnings call with reiterated 2026 guidance and demand momentum/catalysts, while valuation provides limited support due to losses and no dividend.
Positive Factors
High gross margins & improving cash flow
Sustained ~74–75% gross margins indicate durable product-level economics across Harrow’s ophthalmic portfolio, while a return to positive operating and free cash flow in 2025/TTM supports reinvestment in commercialization and product launches. This improves long-term funding flexibility versus earlier years, even though cash flow remains somewhat volatile.
Negative Factors
Very high leverage
A debt-to-equity ratio near ~10.5 reflects a highly leveraged capital structure that materially raises refinancing, covenant and interest‑coverage risk. Heavy fixed obligations constrain strategic flexibility, increase sensitivity to cash flow swings from product launches, and heighten dilution or refinancing needs if operating improvements stall.
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Positive Factors
Negative Factors
High gross margins & improving cash flow
Sustained ~74–75% gross margins indicate durable product-level economics across Harrow’s ophthalmic portfolio, while a return to positive operating and free cash flow in 2025/TTM supports reinvestment in commercialization and product launches. This improves long-term funding flexibility versus earlier years, even though cash flow remains somewhat volatile.
Read all positive factors
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend YieldN/A
Average Volume (3M)889.07K
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth26.22%
EPS Growth34.06%
CountryUS
Employees382
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.39
Shares Outstanding37,275,110
10 Day Avg. Volume853,342
30 Day Avg. Volume889,066
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 Cap1.16
Enterprise Value/Revenue5.65
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda38.03
Forecast
1Y Price Target
$67.17Price Target Upside61.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.3
Revenue Forecast (FY)$348.47M
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized consistently strong and accelerating demand across Harrow's core commercial products (VEVYE, IHEEZO, TRIESENCE), successful commercial investments (significant salesforce expansion), operational recoveries (Access+), multiple upcoming catalysts (multiunit packaging, clinical data, BYOOVIZ/BYQLOVI launches, IOPIDINE J-code) and reaffirmed full-year guidance. The principal near-term negative was a discrete $8M VEVYE gross-to-net revenue reduction driven by an unexpected high-deductible patient mix and reporting lags, plus a negative adjusted EBITDA in Q1 and some channel inventory timing for IHEEZO. Management identified and implemented corrective actions and expects sequential improvement beginning in Q2 and stronger performance in H2 2026. Overall, positives around demand, market share gains, commercial scale and pipeline progress substantially outweigh the discrete operational and timing headwinds.Positive Updates
Reaffirmed Full-Year Guidance and Q2 Outlook
Company reaffirmed 2026 revenue guidance of $350M to $365M and expects Q2 revenue of $71M to $81M, with the second half of 2026 seen as stronger than the first.
Negative Updates
VEVYE Gross-to-Net Revenue Reduction
A discrete gross-to-net modeling dynamic tied to VEVYE coverage rollout caused an ~$8M reduction in Q1 reported revenue due to a higher-than-anticipated mix of high-deductible patients and increased co-pay buydowns (CVS-covered patients had ~40% higher average buydowns vs other covered patients). Company implemented business-rule caps in mid-April to protect net pricing.
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Q1-2026 Updates
Positive
Negative
Reaffirmed Full-Year Guidance and Q2 Outlook
Company reaffirmed 2026 revenue guidance of $350M to $365M and expects Q2 revenue of $71M to $81M, with the second half of 2026 seen as stronger than the first.
Read all positive updates
Company Guidance
Harrow reiterated full‑year 2026 revenue guidance of $350–365M, reported Q1 consolidated revenue of $44.2M and adjusted EBITDA of −$12.7M, and guided Q2 revenue to $71–81M; Q1 product splits were VEVYE ~$20.9M (with an ~$8M discrete gross‑to‑net reduction), IHEEZO $1.9M, specialty/TRIESENCE $7.8M and Access+ $13.5M. Management said VEVYE NRx grew ~25% sequentially, TRx ~11%, prescriber base +12% q/q, exited March at ~14% branded share (surpassing XIIDRA) and remains on track to exceed $100M for 2026 with net pricing seen improving roughly ~30% after business‑rule changes (CVS patient buydowns had been ~40% higher than other covered patients); IHEEZO unit demand +18% YoY, new ordering accounts +21% q/q, total accounts ~+50% YoY with an expected ~20–25% net pricing lift and multi‑unit packaging in Q3; TRIESENCE unit volume +136% YoY (March +113%), ~250% unit growth over six quarters and new account growth ~28% q/q. Additional catalysts include BYOOVIZ distributor stocking and BYQLOVI trade launch in Q3, a permanent IOPIDINE J‑code effective July 1 at ASP+6% (laser TAM >1.5M annual cases), key G‑MELT PK/toxicology readouts toward Q4 2026 and a targeted NDA timeline in Q1 2027, and a long‑term corporate goal of $250M quarterly revenue by end of 2027.Harrow Health Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.68M | 272.30M | 199.61M | 130.19M | 88.59M | 72.48M |
| Gross Profit | 199.11M | 204.37M | 150.37M | 90.55M | 63.21M | 54.26M |
| EBITDA | 39.93M | 57.52M | 22.13M | 11.95M | 4.75M | 5.10M |
| Net Income | -14.96M | -5.14M | -17.48M | -24.41M | -14.09M | -18.01M |
Balance Sheet | ||||||
| Total Assets | 419.54M | 399.48M | 388.97M | 311.75M | 157.38M | 98.33M |
| Cash, Cash Equivalents and Short-Term Investments | 94.64M | 72.93M | 47.25M | 82.77M | 101.86M | 50.67M |
| Total Debt | 300.67M | 251.98M | 228.83M | 190.50M | 112.23M | 77.96M |
| Total Liabilities | 391.19M | 347.39M | 319.67M | 241.75M | 130.14M | 87.40M |
| Stockholders Equity | 28.71M | 52.45M | 69.65M | 70.36M | 27.59M | 11.29M |
Cash Flow | ||||||
| Free Cash Flow | 14.29M | 42.98M | -60.88M | -148.71M | -6.07M | -23.43M |
| Operating Cash Flow | 15.20M | 43.86M | -22.20M | 3.84M | 1.71M | 5.08M |
| Investing Cash Flow | -23.45M | -5.46M | -33.16M | -152.55M | -1.74M | -18.69M |
| Financing Cash Flow | 36.16M | -12.72M | 28.53M | 126.53M | 54.14M | 51.47M |
Harrow Health Technical Analysis
Neutral
41.50
Price Trends
36.28
Negative
40.80
Negative
41.34
Negative
Market Momentum
-1.07
Negative
50.10
Neutral
89.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HROW, the sentiment is Neutral. The current price of 41.5 is above the 20-day moving average (MA) of 34.79, above the 50-day MA of 36.28, and above the 200-day MA of 41.34, indicating a neutral trend. The MACD of -1.07 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.79B | 18.31 | 17.32% | ― | 37.03% | ― | |
69 Neutral | $913.36M | 182.85 | 0.73% | ― | 4.57% | ― | |
64 Neutral | $831.15M | 10.78 | 10.23% | ― | -1.39% | -41.70% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.31B | -87.62 | -33.65% | ― | 26.22% | 34.06% | |
49 Neutral | $1.09B | -4.84 | -24.55% | ― | 2.13% | -1.13% |
* Healthcare Sector Average
HROW
Harrow Health
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5.23
17.44%
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Harrow Health Corporate Events
Business Operations and StrategyFinancial Disclosures
Harrow Highlights Strong VEVYE Demand in Q1 2026
Positive
May 11, 2026
Harrow reported first-quarter 2026 results on May 11, 2026, highlighting strong demand across its ophthalmic portfolio despite lower reported revenue of $44.2 million, down from $47.8 million a year earlier, and a wider net loss of $27.6 million. ...
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...
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.