Harrow Inc. Shares Drop 25% Amid Disappointing Revenue Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2025
0mins
Should l Buy HROW?
Source: Investing.com
Harrow Inc. shares fell by 25.36% as the stock crossed below its 5-day SMA, reflecting investor concerns following a disappointing revenue forecast for 2026.
The company's projected revenue for 2026 is now estimated to be between $350 million and $365 million, significantly below the consensus estimate of $386.26 million. This cautious outlook, combined with a fourth-quarter earnings miss where Harrow reported earnings of $0.17 per share against an expected $0.38, has raised concerns about the company's profitability and future growth potential.
Despite the revenue growth of 33% year-over-year in Q4, the decline in net income and the increased R&D expenses related to the acquisition of Melt Pharmaceuticals have contributed to a negative sentiment around the stock, leading to its significant drop today.
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Analyst Views on HROW
Wall Street analysts forecast HROW stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 35.260
Low
63.00
Averages
72.40
High
94.00
Current: 35.260
Low
63.00
Averages
72.40
High
94.00
About HROW
Harrow, Inc. is a provider of ophthalmic disease management solutions. It offers a portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet age-related macular degeneration, cataracts, refractive errors, glaucoma and a range of other ocular surface conditions and retina diseases. It owns commercial rights to portfolios of branded ophthalmic pharmaceutical products in North America, all of which are marketed under the Harrow name. It owns and operates ImprimisRx, an ophthalmology-focused pharmaceutical-compounding business. It owns United States commercial rights to various products: IHEEZO, VEVYE, TRIESENCE, VIGAMOX, ILEVRO, FLAREX, NATACYN, ZERVIATE, BYQLOVI and others. Its product candidates include MELT-210, MELT-300 and MELT-400. VIGAMOX (moxifloxacin hydrochloride ophthalmic solution) 0.5%, a fluoroquinolone antibiotic eye drops for the treatment of bacterial conjunctivitis caused by susceptible strains of organisms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Harrow Prices $50 Million Private Offering of Senior Unsecured Notes
- Bond Offering Size: Harrow announced a private offering of $50 million in senior unsecured notes with an interest rate of 8.625% per annum, maturing in 2030, which will strengthen the company's capital structure and provide funding for future growth.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be allocated for general corporate purposes, including new product launches, development activities, and strategic business opportunities, indicating the company's proactive approach to future expansion.
- Connection to Previous Issuance: The new notes will be issued under the same indenture as the previously issued $250 million of 2030 notes in September 2025, enhancing investor confidence in Harrow's debt profile.
- Issuance Timeline: The offering is expected to close on March 27, 2026, reflecting the company's active engagement in the capital markets and its focus on future financial flexibility.
See More
Harrow Plans to Issue $50M in Senior Unsecured Notes
- Bond Issuance Plan: Harrow announced its intention to offer $50 million in 8.625% senior unsecured notes due 2030, which will form a single series with the $250 million notes issued in September 2025, sharing identical terms except for issuance date and price.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be allocated for general corporate purposes, including growth initiatives, product development, and potential strategic investments, indicating the company's proactive approach to future development.
- Positive Market Reaction: Following the announcement, Harrow's shares rose by 2.16%, reflecting investor confidence in the company's financing strategy and its future growth potential.
- Revenue Target Set: Harrow has set a revenue goal of $350 million to $365 million for 2026, anticipating performance growth driven by sales force expansion and pipeline advancements, further solidifying its dominant position in the U.S. ophthalmic market.
See More
Opaleye Management Inc. Indirectly Sells Harrow Shares Worth $7.8 Million
- Transaction Overview: Opaleye Management Inc. reported the indirect sale of 198,572 shares of Harrow common stock on March 3 and 4, 2026, totaling approximately $7.8 million, demonstrating its strategic maneuvering in a volatile market.
- Post-Transaction Holdings: Following the sale, Opaleye L.P. retains 3,622,000 shares and the managed account holds 59,428 shares, resulting in a combined indirect position of about 3.68 million shares, indicating that it remains a significant shareholder with nearly 10% ownership in Harrow.
- Market Reaction Analysis: While the nearly $8 million stock sale might suggest a lack of confidence, the context reveals that it occurred after Harrow's Q4 2025 earnings report, where the stock dropped sharply, making the sale appear more like opportunistic profit-taking rather than a fundamental outlook change.
- Investor Perspective: The shares sold represent roughly 5% of Opaleye's total pre-sale position, suggesting that the fund still has a strong belief in Harrow's long-term prospects, with this adjustment likely being tactical rather than a strategic retreat, reflecting confidence in Harrow's future growth potential.
See More
Opaleye Management Sells 198,572 Shares of Harrow Stock
- Sale Overview: Opaleye Management Inc. indirectly sold 198,572 shares of Harrow stock on March 3 and 4, 2026, for approximately $7.8 million, based on weighted average prices of $39.15 and $39.67, indicating opportunistic profit-taking following the company's earnings report.
- Holding Analysis: Despite the sale suggesting a potential lack of confidence in Harrow, Opaleye retains about 3.68 million shares, representing nearly 10% of Harrow's total shares, highlighting its continued role as a significant institutional backer.
- Financial Performance and Market Reaction: Harrow reported full-year 2025 revenue of $272.3 million, a 36% increase year-over-year, and guided for 2026 revenue between $350 million and $365 million; however, the stock price fell sharply after missing EPS estimates, yet the long-term outlook remains positive.
- Strategic Adjustment Context: The 198,572 shares sold represent roughly 5% of Opaleye's total pre-sale position, indicating a meaningful trim that is likely a tactical adjustment for portfolio rebalancing or profit-locking rather than a strategic exit.
See More
Harrow Inc. Reports Mixed Q4 Results with Earnings Miss
- Earnings Performance: Harrow Inc. reported Q4 earnings of $0.17 per share, missing the consensus estimate of $0.38, indicating a shortfall in profitability that may affect investor confidence.
- Sales Growth: Despite the earnings miss, Harrow's sales surged from $66.81 million to $89.09 million, exceeding the consensus of $88.45 million, reflecting strong market demand and operational performance.
- R&D Expenses: The company recorded $8.5 million in acquired in-process R&D expenses related to its acquisition of Melt Pharmaceuticals during Q4, which may drive future product development and market expansion.
- Future Outlook: Harrow expects fiscal 2026 sales between $350 million and $365 million, below the consensus estimate of $386.26 million, potentially raising concerns among investors regarding the company's growth trajectory.
See More
Harrow, Inc. Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: In Q4 2025, Harrow reported consolidated revenues of $89.1 million, reflecting a 33% year-over-year increase, with full-year revenues reaching $272 million, up 36% from 2024, indicating strong performance in the ophthalmic pharmaceuticals market.
- Strong EBITDA Performance: The adjusted EBITDA for Q4 was $24.2 million, with a full-year total of $61.9 million, representing a 54% year-over-year growth, showcasing the company's ongoing improvements in profitability and operational efficiency.
- Market Expansion Plans: Harrow plans to double the sales forces for VEVYE and TRIESENCE in 2026 and launch new products BYOOVIZ and BYQLOVI to further drive market penetration and revenue growth.
- Optimistic Future Outlook: Management expects full-year 2026 revenues to be between $350 million and $365 million, with adjusted EBITDA projected between $80 million and $100 million, reflecting confidence in future growth and strategic positioning.
See More
Harrow Prices $50 Million Private Offering of Senior Unsecured Notes
- Bond Offering Size: Harrow announced a private offering of $50 million in senior unsecured notes with an interest rate of 8.625% per annum, maturing in 2030, which will strengthen the company's capital structure and provide funding for future growth.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be allocated for general corporate purposes, including new product launches, development activities, and strategic business opportunities, indicating the company's proactive approach to future expansion.
- Connection to Previous Issuance: The new notes will be issued under the same indenture as the previously issued $250 million of 2030 notes in September 2025, enhancing investor confidence in Harrow's debt profile.
- Issuance Timeline: The offering is expected to close on March 27, 2026, reflecting the company's active engagement in the capital markets and its focus on future financial flexibility.
See More
Harrow Plans to Issue $50M in Senior Unsecured Notes
- Bond Issuance Plan: Harrow announced its intention to offer $50 million in 8.625% senior unsecured notes due 2030, which will form a single series with the $250 million notes issued in September 2025, sharing identical terms except for issuance date and price.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be allocated for general corporate purposes, including growth initiatives, product development, and potential strategic investments, indicating the company's proactive approach to future development.
- Positive Market Reaction: Following the announcement, Harrow's shares rose by 2.16%, reflecting investor confidence in the company's financing strategy and its future growth potential.
- Revenue Target Set: Harrow has set a revenue goal of $350 million to $365 million for 2026, anticipating performance growth driven by sales force expansion and pipeline advancements, further solidifying its dominant position in the U.S. ophthalmic market.
See More
Opaleye Management Inc. Indirectly Sells Harrow Shares Worth $7.8 Million
- Transaction Overview: Opaleye Management Inc. reported the indirect sale of 198,572 shares of Harrow common stock on March 3 and 4, 2026, totaling approximately $7.8 million, demonstrating its strategic maneuvering in a volatile market.
- Post-Transaction Holdings: Following the sale, Opaleye L.P. retains 3,622,000 shares and the managed account holds 59,428 shares, resulting in a combined indirect position of about 3.68 million shares, indicating that it remains a significant shareholder with nearly 10% ownership in Harrow.
- Market Reaction Analysis: While the nearly $8 million stock sale might suggest a lack of confidence, the context reveals that it occurred after Harrow's Q4 2025 earnings report, where the stock dropped sharply, making the sale appear more like opportunistic profit-taking rather than a fundamental outlook change.
- Investor Perspective: The shares sold represent roughly 5% of Opaleye's total pre-sale position, suggesting that the fund still has a strong belief in Harrow's long-term prospects, with this adjustment likely being tactical rather than a strategic retreat, reflecting confidence in Harrow's future growth potential.
See More
Opaleye Management Sells 198,572 Shares of Harrow Stock
- Sale Overview: Opaleye Management Inc. indirectly sold 198,572 shares of Harrow stock on March 3 and 4, 2026, for approximately $7.8 million, based on weighted average prices of $39.15 and $39.67, indicating opportunistic profit-taking following the company's earnings report.
- Holding Analysis: Despite the sale suggesting a potential lack of confidence in Harrow, Opaleye retains about 3.68 million shares, representing nearly 10% of Harrow's total shares, highlighting its continued role as a significant institutional backer.
- Financial Performance and Market Reaction: Harrow reported full-year 2025 revenue of $272.3 million, a 36% increase year-over-year, and guided for 2026 revenue between $350 million and $365 million; however, the stock price fell sharply after missing EPS estimates, yet the long-term outlook remains positive.
- Strategic Adjustment Context: The 198,572 shares sold represent roughly 5% of Opaleye's total pre-sale position, indicating a meaningful trim that is likely a tactical adjustment for portfolio rebalancing or profit-locking rather than a strategic exit.
See More
Harrow Inc. Reports Mixed Q4 Results with Earnings Miss
- Earnings Performance: Harrow Inc. reported Q4 earnings of $0.17 per share, missing the consensus estimate of $0.38, indicating a shortfall in profitability that may affect investor confidence.
- Sales Growth: Despite the earnings miss, Harrow's sales surged from $66.81 million to $89.09 million, exceeding the consensus of $88.45 million, reflecting strong market demand and operational performance.
- R&D Expenses: The company recorded $8.5 million in acquired in-process R&D expenses related to its acquisition of Melt Pharmaceuticals during Q4, which may drive future product development and market expansion.
- Future Outlook: Harrow expects fiscal 2026 sales between $350 million and $365 million, below the consensus estimate of $386.26 million, potentially raising concerns among investors regarding the company's growth trajectory.
See More
Harrow, Inc. Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: In Q4 2025, Harrow reported consolidated revenues of $89.1 million, reflecting a 33% year-over-year increase, with full-year revenues reaching $272 million, up 36% from 2024, indicating strong performance in the ophthalmic pharmaceuticals market.
- Strong EBITDA Performance: The adjusted EBITDA for Q4 was $24.2 million, with a full-year total of $61.9 million, representing a 54% year-over-year growth, showcasing the company's ongoing improvements in profitability and operational efficiency.
- Market Expansion Plans: Harrow plans to double the sales forces for VEVYE and TRIESENCE in 2026 and launch new products BYOOVIZ and BYQLOVI to further drive market penetration and revenue growth.
- Optimistic Future Outlook: Management expects full-year 2026 revenues to be between $350 million and $365 million, with adjusted EBITDA projected between $80 million and $100 million, reflecting confidence in future growth and strategic positioning.
See More
