Harrow Health (HROW) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 635.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 47.69%
• EPS Growth: 69.57%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.13
• Shares Outstanding: 37,002,136
• 10 Day Avg. Volume: 582,985
• 30 Day Avg. Volume: 635,432
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 5.99
• Enterprise Value/Gross Profit: 8.04
• Enterprise Value/Ebitda: 42.50
• 1Y Price Target: $61.25
• Price Target Upside: 34.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• Price Target: $43.00 ▼(-5.24% Downside)

Harrow Health's overall stock score is driven by strong earnings call results and positive technical indicators, indicating growth potential. However, significant financial performance challenges and valuation concerns weigh heavily on the score. Addressing cash flow issues and improving profitability are crucial for enhancing financial stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Harrow Health's products, highlighting the company's ability to expand its market presence and increase sales, which is crucial for long-term sustainability.

Strategic Alliances

Strategic alliances and acquisitions enhance Harrow Health's product offerings and market reach, supporting long-term growth and competitive positioning in the ophthalmology sector.

Product Volume Growth

Significant growth in prescription volumes for VEVYE demonstrates successful product adoption and market penetration, which can drive sustained revenue increases.

Negative Factors

High Leverage

High leverage indicates reliance on debt financing, which can increase financial risk and limit flexibility, potentially impacting long-term financial health.

Profitability Challenges

Challenges in achieving profitability suggest potential difficulties in sustaining operations and investing in growth opportunities, affecting future financial stability.

Cash Flow Issues

Negative cash flow growth and low cash generation from operations indicate potential liquidity issues, which can hinder the company's ability to fund operations and strategic initiatives.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	227.66M	199.61M	130.19M	88.59M	72.48M	48.87M
Gross Profit	169.75M	150.37M	90.55M	63.21M	54.26M	34.41M
EBITDA	32.10M	19.28M	9.72M	-3.10M	4.26M	3.49M
Net Income	-10.23M	-17.48M	-24.41M	-14.09M	-18.01M	-3.36M
Balance Sheet
Total Assets	345.03M	388.97M	312.16M	157.02M	98.33M	57.47M
Cash, Cash Equivalents and Short-Term Investments	52.96M	47.25M	82.77M	101.86M	50.67M	32.56M
Total Debt	231.25M	228.83M	190.50M	112.23M	77.96M	23.53M
Total Liabilities	295.73M	319.67M	241.75M	130.14M	87.40M	30.65M
Stockholders Equity	49.65M	69.65M	70.77M	27.59M	11.29M	27.18M
Cash Flow
Free Cash Flow	-34.38M	-60.88M	-148.71M	-6.07M	-23.43M	-2.09M
Operating Cash Flow	4.04M	-22.20M	3.84M	1.71M	5.08M	-1.10M
Investing Cash Flow	-38.66M	-33.16M	-152.55M	-1.74M	-18.69M	-981.00K
Financing Cash Flow	16.62M	28.53M	126.53M	54.14M	51.47M	1.43M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 45.38 is above the 20-day moving average (MA) of 39.46, above the 50-day MA of 36.94, and above the 200-day MA of 31.50, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 74.82 is Negative, neither overbought nor oversold. The STOCH value of 91.12 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
SIGA	82 Outperform	620.11M	7.72	27.44%	―	3.86%	-2.60%
AMPH	69 Neutral	1.25B	10.27	17.78%	―	1.37%	-18.10%
ANIP	66 Neutral	2.07B	-126.81	-2.53%	―	38.68%	-160.14%
COLL	65 Neutral	1.12B	34.91	15.62%	―	22.61%	-63.00%
PCRX	61 Neutral	1.17B	-9.57	-16.82%	―	2.25%	-301.59%
HROW	53 Neutral	$1.60B	―	-18.99%	―	47.69%	69.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Harrow Health Corporate Events

Harrow Health Completes $250M Senior Notes Sale

On September 8, 2025, Harrow, Inc. entered into a purchase agreement with BTIG, LLC for the sale of $250 million in senior notes due 2030, with a 8.625% interest rate. The company completed the sale of these notes on September 12, 2025, receiving approximately $244 million in net proceeds. Harrow intends to use these funds to prepay existing borrowings, pay exit costs, and for general corporate purposes, including potential strategic business development opportunities. Additionally, Harrow announced the redemption of its 8.625% Senior Notes due 2026, scheduled for October 13, 2025, which will result in their delisting from Nasdaq.

The most recent analyst rating on (HROW) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.

Harrow Health Announces $250 Million Notes Offering

On September 8, 2025, Harrow, Inc. announced the pricing of its $250 million offering of 8.625% senior unsecured notes due 2030. The proceeds from this offering are intended to repay existing debts, including a $107.5 million facility with Oaktree Fund Administration and outstanding senior notes, with any remaining funds to be used for general corporate purposes. This strategic financial move is expected to impact Harrow’s operations by reducing existing debt and potentially funding future business development opportunities.

The most recent analyst rating on (HROW) stock is a Buy 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 Launches $250 Million Senior Notes Offering

On September 5, 2025, Harrow, Inc. entered into a commitment letter with Fifth Third Bank for a new $40 million revolving credit facility. Subsequently, on September 8, 2025, Harrow announced the launch of a private offering to sell $250 million in senior unsecured notes due 2030, with proceeds intended to redeem existing notes, prepay loans, and fund corporate purposes. Additionally, Harrow issued a conditional notice to redeem its 2027 notes, contingent on the offering’s completion, and plans to redeem its 2026 notes. The company also expressed interest in acquiring the remaining equity of Melt Pharmaceuticals, Inc., subject to certain conditions.

The most recent analyst rating on (HROW) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.

Harrow Health Appoints New President and CFO

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.

The most recent analyst rating on (HROW) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.