Harrow Health (HROW) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 579.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.25
• Revenue Growth: 47.83%
• EPS Growth: 84.72%
• Country: US
• Employees: 382
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.03
• Shares Outstanding: 37,037,453
• 10 Day Avg. Volume: 680,207
• 30 Day Avg. Volume: 579,183
• PEG Ratio: 1.97
• Price to Book (P/B): 17.17
• Price to Sales (P/S): 5.99
• P/FCF Ratio: -19.65
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 8.20
• Enterprise Value/Gross Profit: 11.00
• Enterprise Value/Ebitda: 53.31
• 1Y Price Target: $72.40
• Price Target Upside: 53.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.54
• Revenue Forecast (FY): $395.05M

• Rating: 57 Neutral
• Price Target: $49.00 ▲(3.84% Upside)

The score is most constrained by financial risk factors—high leverage and notably weak/free cash flow trends—despite solid revenue growth and strong gross margins. Technicals are supportive but look overextended (RSI/Stoch elevated). Earnings call commentary is constructive on growth, coverage wins, and product pipeline, but execution risks (TRIESENCE softness and ImprimisRx issues) temper the upside; valuation support is limited given the negative P/E and no dividend yield.

Positive Factors

Sustained revenue growth and product momentum

Rapid, recurring revenue growth driven by core products indicates durable demand and improving commercial execution. Strong sequential and year-over-year trends support scaling of SG&A and R&D investment, enabling deeper market penetration and funding upcoming launches over the next 2–3 years.

High gross margins

Elevated gross margins reflect pricing power and efficient cost structure in specialty ophthalmic products. Persistent margin advantage supports reinvestment, buffers operating leverage as volumes grow, and enhances long-term profitability potential if SG&A and cash conversion improve.

Strategic portfolio expansion via acquisition and pipeline

Acquiring Melt diversifies Harrow beyond ophthalmology into procedural sedation, expanding addressable markets and product mix. Adding clinical-stage assets and planned launches strengthens long-term growth optionality and reduces single-market concentration risk over multiple years.

Negative Factors

High financial leverage

Material leverage constrains financial flexibility and raises refinancing and interest-rate risk, limiting capacity to fund organic growth or M&A without diluting equity or increasing leverage. High debt burdens heighten vulnerability to operational hiccups and cyclical pressures.

Weak cash generation

Negative FCF trends and very low cash conversion signal limited internal funding for launches, debt service, and working capital needs. Persistent cash shortfalls can force external financing, slow strategic execution, and undermine the sustainability of margin improvements.

Execution and regulatory risk at ImprimisRx; product underperformance

Operational setbacks at ImprimisRx and underperformance of TRIESENCE create execution risk and revenue volatility. Regulatory disputes or quality/leadership issues can harm supply continuity, payer relations, and physician trust, threatening repeatable revenue and long-term commercialization plans.

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 through the sales of its compounded pharmaceutical products, which are primarily used in ophthalmology. The company employs a revenue model that includes direct sales to healthcare providers, pharmacies, and hospitals. Key revenue streams come from the sale of its proprietary eye medications, as well as contract manufacturing services for third-party clients. Additionally, Harrow Health may engage in partnerships with other pharmaceutical companies to expand its product offerings or enhance distribution capabilities, further contributing to its earnings. The company's focus on niche markets within specialty pharmaceuticals allows it to leverage higher margins compared to traditional pharmaceuticals, thus bolstering its financial performance.

Harrow Health Financial Statement Overview

Summary

Harrow Health demonstrates strong revenue growth and improving operational margins, but profitability remains a challenge with negative net income. The high leverage poses financial risks, and cash flow management needs improvement to support sustainable growth.

Income Statement

Harrow Health shows a strong gross profit margin of 74.56% TTM, indicating efficient cost management. However, the net profit margin is negative at -4.49% TTM, reflecting ongoing challenges in achieving profitability. Revenue growth is positive at 9.83% TTM, suggesting a healthy expansion trajectory. The EBIT and EBITDA margins have improved to 6.21% and 14.10% TTM, respectively, showing operational improvements.

Balance Sheet

The company has a high debt-to-equity ratio of 4.66 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -17.50% TTM, reflecting challenges in generating returns for shareholders. The equity ratio is relatively low, suggesting limited equity financing compared to total assets.

Cash Flow

Operating cash flow is positive at $17.67 million TTM, but free cash flow remains negative, indicating cash outflows after capital expenditures. The free cash flow growth rate is negative, and the free cash flow to net income ratio is -8.52, highlighting cash flow challenges despite operational improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.04M	199.61M	130.19M	88.59M	72.48M	48.87M
Gross Profit	186.44M	150.37M	90.55M	63.21M	54.26M	34.41M
EBITDA	38.46M	22.13M	11.95M	4.75M	5.10M	2.62M
Net Income	-4.99M	-17.48M	-24.41M	-14.09M	-18.01M	-3.36M
Balance Sheet
Total Assets	363.07M	388.97M	311.75M	157.38M	98.33M	57.47M
Cash, Cash Equivalents and Short-Term Investments	74.29M	47.25M	82.77M	101.86M	50.67M	32.75M
Total Debt	251.87M	228.83M	190.50M	112.23M	77.96M	23.53M
Total Liabilities	316.41M	319.67M	241.75M	130.14M	87.40M	30.65M
Stockholders Equity	47.02M	69.65M	70.36M	27.59M	11.29M	27.18M
Cash Flow
Free Cash Flow	-20.47M	-60.88M	-148.71M	-6.07M	-23.43M	-2.09M
Operating Cash Flow	17.67M	-22.20M	3.84M	1.71M	5.08M	-1.10M
Investing Cash Flow	-38.29M	-33.16M	-152.55M	-1.74M	-18.69M	-981.00K
Financing Cash Flow	22.30M	28.53M	126.53M	54.14M	51.47M	1.43M

Harrow Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 47.19 is below the 20-day moving average (MA) of 48.82, above the 50-day MA of 43.99, and above the 200-day MA of 36.09, indicating a neutral trend. The MACD of 1.23 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 19.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HROW.

Harrow Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	79 Outperform	$1.35B	12.82	14.84%	―	-0.03%	-27.66%
PCRX	69 Neutral	$986.48M	48.42	2.90%	―	3.14%	―
ANIP	66 Neutral	$1.90B	50.46	7.83%	―	48.87%	―
HROW	57 Neutral	$1.77B	―	-9.54%	―	47.83%	84.72%
AVDL	57 Neutral	$2.10B	-3,905.45	-0.32%	―	79.88%	99.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVO	46 Neutral	$1.34B	-7.79	-17.46%	―	-1.19%	5.06%

Harrow Health Corporate Events

Harrow Health Completes Acquisition of Melt Pharmaceuticals

On November 17, 2025, Harrow, Inc. completed its acquisition of Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company specializing in non-opioid, non-IV sedation therapies for medical procedures. This strategic acquisition expands Harrow’s portfolio and positions it to enter the multi-billion-dollar procedural sedation and anxiety market with products like MELT-300, a sublingual sedation therapy that has shown promise in clinical trials. The acquisition is expected to enhance Harrow’s market positioning by offering innovative sedation options that reduce opioid exposure and improve patient experiences across various medical specialties.

The most recent analyst rating on (HROW) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.

Harrow Health Reports Strong Q3 2025 Financial Results

Harrow Health announced its financial results for the third quarter of 2025, reporting a 45% increase in total revenues to $71.6 million compared to the same period last year. The company achieved a GAAP net income of $1.0 million and an adjusted EBITDA of $22.7 million. Significant strategic initiatives included the launch of TRIESENCE® into its largest market, the upcoming rollout of the Harrow Access for All program, and the expansion of its commercial leadership team. Harrow also entered into coverage agreements for VEVYE with several leading national payers, enhancing its market positioning. Additionally, Harrow announced the acquisition of Melt Pharmaceuticals, Inc., aiming to expand its product offerings with Melt’s innovative non-opioid, non-IV sedation therapies.

The most recent analyst rating on (HROW) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Harrow Health stock, see the HROW Stock Forecast page.