GET DAILY SIGNALSHarrow (HROW) Reports Record Q3 Revenue of $99.3 Million, Up +39%
Key Takeaways
- Harrow reported record third-quarter 2026 revenue of $99.3 million, up 39% year over year and 41% sequentially.
- Diluted earnings per share (EPS) of $0.25 beat the consensus estimate of $0.20, while GAAP net income reached $9.8 million.
- Branded product revenue grew to $83.5 million, about 84% of total revenue, driven by record VEVYE sales of $39.7 million and record TRIESENCE sales of $10.7 million.
- Full-year 2026 revenue guidance was maintained at $350 million to $365 million, but adjusted EBITDA guidance was lowered to "more than $40 million" from $80 million to $100 million.
- The company completed its TYRVAYA acquisition on October 1, 2026, and launched HarrowRx, its electronic medical record–integrated prescribing destination, on November 1, 2026.
Why This Quarter Matters
Harrow, Inc. is a leading North American provider of ophthalmic disease management products, spanning dry eye disease, retina conditions, glaucoma, and cataract care. This third-quarter report provides the first clear view of how its branded-product strategy is scaling after a year of heavy commercial investment, including a more than doubled VEVYE sales force. The quarter also aligns with two major strategic moves—the closing of the TYRVAYA acquisition and the launch of HarrowRx—that could shape growth into 2027. In my view, investors are watching whether record revenue and improving profitability can offset the decision to cut the full-year EBITDA outlook, which signals rising operating costs alongside rapid expansion.
Reported Results
Harrow reported third-quarter 2026 total revenue of $99.3 million, up 39% from $71.6 million a year earlier and 41% sequentially, exceeding the consensus estimate of roughly $99.1 million. Diluted EPS came in at $0.25, ahead of the $0.20 consensus, while GAAP net income reached $9.8 million, up from $1.0 million in the prior-year period. The GAAP figure included a $5.0 million litigation settlement gain. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted EBITDA, a non-GAAP profitability measure, was $21.2 million, down about 7% from $22.8 million a year ago. Branded product revenue surged 62% year over year to $83.5 million, led by record quarterly VEVYE revenue of $39.7 million and record TRIESENCE revenue of $10.7 million. BYOOVIZ contributed its first full quarter of commercialization.
Management maintained full-year 2026 revenue guidance of $350 million to $365 million but reduced adjusted EBITDA guidance to "more than $40 million" from the prior $80 million to $100 million range, citing higher operating expenses and continued commercial investment.
Market Reaction and Investor Sentiment
Investor sentiment around Harrow's third-quarter report is mixed. The record revenue and EPS beat highlight strong demand for the company's branded ophthalmic products, reinforcing its transformation from a legacy compounding business into a scaled branded portfolio. However, the decision to cut full-year adjusted EBITDA guidance by roughly half, paired with the IHEEZO QUELL Phase 4 study missing its primary non-inferiority endpoint, tempered enthusiasm. Higher selling, general, and administrative expenses and a near tripling of research and development spending weighed on profitability, even as revenue hit a quarterly record. The completion of the TYRVAYA acquisition and the HarrowRx launch provide positive catalysts, but near-term sentiment is likely to remain focused on whether the company can convert its revenue momentum into margin expansion in the fourth quarter.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should focus on whether Harrow can deliver on its fourth-quarter targets. Management guided to fourth-quarter adjusted EBITDA of at least $33 million, a sharp step-up that will depend on continued VEVYE and TRIESENCE momentum, the first revenue contribution from TYRVAYA, and BYOOVIZ growth.
Margin recovery is a central theme. The company is absorbing significant sales force and research investments, so watching the trajectory of selling, general, and administrative costs relative to revenue will be key to assessing whether the lowered EBITDA guidance is a one-year reset or a longer-term trend.
Regulatory and clinical catalysts also matter. Harrow plans to submit its new drug application (NDA) for G-MELT to the FDA before the end of 2026, and expects to launch OPUVIZ in 2027. The IHEEZO QUELL results, while not meeting the primary endpoint, offered secondary signals on patient comfort that management may highlight in future commercial messaging.
Finally, integration of TYRVAYA and the ramp of HarrowRx will be important operational milestones to track, as both initiatives aim to expand Harrow's reach across the dry eye market and simplify prescription routing for eye care professionals.
My Experience with Tickeron AI Tools
In preparing this analysis, I turned to Tickeron’s AI tools to cross-check patterns and signals around HROW and similar names in the sector. The platform’s ability to surface relevant data quickly has become a regular part of how I review earnings reports and build watchlists. It helps confirm whether the moves I see in the numbers align with broader technical or fundamental trends.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HROW in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 05, 2026
HROW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 36 cases where HROW's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HROW's RSI Indicator exited the oversold zone, 32 of 40 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Moving Average Convergence Divergence (MACD) for HROW just turned positive on October 20, 2026. Looking at past instances where HROW's MACD turned positive, the stock continued to rise in 36 of 45 cases over the following month. The odds of a continued upward trend are 80%.
Following a +5.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where HROW advanced for three days, in 236 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HROW as a result. In 67 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HROW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
The Aroon Indicator for HROW entered a downward trend on November 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 67 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HROW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 76 (best 1 - 100 worst), indicating slightly worse than average price growth. HROW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HROW's P/B Ratio (66.319) is slightly higher than the industry average of (6.379). P/E Ratio (-27.162) is within average values for comparable stocks, (0.548). Projected Growth (PEG Ratio) (0.270) is also within normal values, averaging (2.202). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (4.627) is also within normal values, averaging (183.387).
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a pharmaceutical company
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