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Harrow Health (HROW)
:HROW
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Harrow Health
(NASDAQ:HROW)
Rating:64Neutral
Price Target:
$29.00
▼(-1.99%Downside)
Positive Factors
Financial Performance
Preliminary revenues of $65M-$67M beat our estimate of $58.6M and consensus of $58.4M.
Market Adoption
The launch of VEVYE Access for All program was successful, and new VEVYE prescription volumes at PhilRx more than quadrupled with prescribers increasing by over four times.
Revenue Growth
Topline grew 53% in 2024, with over 40% growth expected.
Negative Factors
Delayed Filing
A delayed 10-K filing is often a cause for concern; in this case, management’s reasoning is taken at face value as the incoming auditor requires additional time.
Net Loss
Net loss was $17.8M, or ($0.50) per share, missing estimated income of $1.5M.
Regulatory and Market Risks
Risks include lower-than-projected market uptake of products and inability to develop and secure regulatory approval of pipeline products.
Harrow Health (HROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)469.64K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth53.49%
EPS Growth33.18%
CountryUS
Employees382
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.50
Shares Outstanding36,699,554
10 Day Avg. Volume440,464
30 Day Avg. Volume469,638
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)12.54
Price to Sales (P/S)0.00
P/FCF Ratio-14.72
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit7.16
Enterprise Value/Ebitda39.21
Forecast
1Y Price Target
$58.50Price Target Upside97.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Harrow Health Business Overview & Revenue Model
Company DescriptionHarrow Health, Inc. (HROW) is a publicly traded healthcare company primarily focused on the development, production, and distribution of innovative ophthalmic pharmaceuticals. The company operates within the pharmaceutical sector, providing a range of products aimed at addressing various eye conditions. Harrow Health is committed to improving patient access to medications through its diverse portfolio, which includes proprietary and non-proprietary ophthalmic solutions.
How the Company Makes MoneyHarrow Health generates revenue through the sale of its ophthalmic pharmaceutical products. The company manufactures and distributes a variety of eye care medications, which are sold to healthcare providers, clinics, and other medical institutions. In addition to direct sales, Harrow Health benefits from strategic partnerships and licensing agreements that expand its market reach and product offerings. The company also engages in research and development to continuously enhance its product line, aiming to meet the evolving needs of patients and healthcare professionals.
Harrow Health Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 25.43%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Harrow demonstrated strong revenue growth and cash flow, along with successful strategic initiatives in product launches and market access. However, the quarter was marred by seasonal revenue weakness and significant one-time expenses. The company's outlook remains positive with expectations for growth in the remainder of the year.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Harrow reported a 38% year-over-year revenue growth in the first quarter of 2025.
Record Cash Flow
The company delivered a record $19.7 million in cash flow from operations.
VEVYE Revenue Increase
VEVYE revenue rose 35% sequentially, from $16 million in Q4 2024 to $21.5 million in Q1 2025.
Successful Launch of VEVYE Access for All Program
Post-launch, both new prescriptions and weekly VEVYE prescribers at PhilRx quadrupled.
Infrastructure Expansion
The VEVYE team has grown to over 80 sales and marketing professionals, with additional expansion in other teams.
Positive Market Response for TRIESENCE
Market access initiatives for TRIESENCE are expected to unlock about 40% of the overall market, showing significant sales momentum.
Strong ImprimisRx Performance
April appears to be a record month for ImprimisRx, indicating consistent performance.
Negative Updates
Seasonal Revenue Weakness
First quarter revenues for some segments were softer than expected due to seasonality.
One-time Expenses Impact
The first quarter faced challenges from one-time expenses totaling $3.7 million.
IHEEZO Sales Impact
IHEEZO's first quarter sales were impacted by elevated stocking activity at the end of 2024.
Specialty Branded Products Volatility
Volatility in gross to net estimates for specialty branded products caused a reduction in recognizable revenue for the period.
Company Guidance
During Harrow's First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a strong outlook for the remainder of the year. They aim to achieve their 2025 revenue target of over $280 million, requiring approximately $232 million in revenue across the next three quarters. In Q1 2025, Harrow's revenue grew by 38% year-over-year, with standout performance from VEVYE, which saw a 35% sequential revenue increase to $21.5 million. Harrow anticipates VEVYE will generate at least $100 million in revenue by year-end. IHEEZO is expected to deliver over $50 million, and the specialty branded products, including TRIESENCE, are projected to contribute at least $50 million. The ImprimisRx compounding business is on track to deliver more than $80 million. Harrow also reported a record $19.7 million in cash flow from operations in Q1 and discussed strategic initiatives such as the VEVYE Access for All program, which has quadrupled new prescriptions and prescribers within seven weeks of launch.Harrow Health Financial Statement Overview
Summary
Harrow Health demonstrates revenue growth, yet struggles with profitability and cash flow management. The company is highly leveraged, which could be risky if not managed carefully. While growth in revenue is a positive sign, the consistent losses and negative cash flows present significant challenges. Strategic improvements in cost management and debt reduction could help improve the financial health of the company.Income Statement
Harrow Health has shown revenue growth over the years, with a notable increase in 2024. However, despite the increased revenue, the company struggles with profitability, indicated by negative net income consistently over the years. The gross profit margin is relatively healthy at 75.35% in 2024, but the net profit margin remains negative, highlighting ongoing challenges in converting sales into actual profit.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The equity ratio is moderate, suggesting a balanced but cautious stance on asset financing. Return on equity is negative due to the consistent losses, which is a concern for shareholders. The company's assets have grown, but liabilities have too, emphasizing the need for better capital management.50
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow, which is concerning as it suggests that the company is not generating enough cash to cover its capital expenditures. Operating cash flow is negative in 2024, highlighting operational challenges. The free cash flow to net income ratio is unfavorable, as the company struggles to turn profit into cash flow.40
Negative
| 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 | EBIT |
| 8.82M | 431.00K | -1.75M | -284.00K | -1.63M | EBITDA |
| 19.28M | 9.72M | -3.20M | -10.14M | 3.49M | Net Income Common Stockholders |
| -17.48M | -24.41M | -14.09M | -18.01M | -3.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 47.25M | 82.77M | 96.27M | 50.67M | 32.56M | Total Assets |
| 388.97M | 312.16M | 157.02M | 98.33M | 57.47M | Total Debt |
| 228.83M | 190.50M | 104.17M | 77.96M | 23.53M | Net Debt |
| 181.58M | 116.42M | 7.90M | 35.79M | 19.43M | 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
Positive
29.59
Price Trends
25.67
Positive
27.41
Positive
35.24
Negative
Market Momentum
1.13
Negative
63.40
Neutral
75.87
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 29.59 is above the 20-day moving average (MA) of 27.58, above the 50-day MA of 25.67, and below the 200-day MA of 35.24, indicating a neutral trend. The MACD of 1.13 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.87 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $430.79M | 8.88 | 25.47% | 10.13% | -23.37% | -39.03% | |
79 Outperform | $1.23B | 9.43 | 19.90% | ― | 8.05% | -8.46% | |
76 Outperform | $970.69M | 24.89 | 19.23% | ― | 17.17% | -51.97% | |
64 Neutral | $1.09B | ― | -37.23% | ― | 53.49% | 33.18% | |
64 Neutral | $1.34B | ― | -5.19% | ― | 30.26% | -173.36% | |
63 Neutral | $1.20B | ― | -12.27% | ― | 3.08% | -247.82% | |
54 Neutral | $5.31B | 3.28 | -45.10% | 2.80% | 16.76% | 0.02% |
* Healthcare Sector Average
Performance Comparison
HROW
Harrow Health
30.15
12.06
66.67%
PCRX
Pacira Pharmaceuticals
25.42
-3.55
-12.25%
SIGA
SIGA Technologies
6.03
-1.09
-15.31%
ANIP
ANI Pharmaceuticals
61.96
-2.97
-4.57%
AMPH
Amphastar Pharmaceuticals
26.62
-14.52
-35.29%
COLL
Collegium Pharmaceutical
30.44
-2.13
-6.54%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.