Harrow (HROW) Earnings Date & Reports

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 (earnings before interest, taxes, depreciation, and amortization) 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.
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Earnings Context and Why It Matters

Harrow, Inc. is a leading North American provider of ophthalmic disease management products, spanning dry eye disease, retina conditions, glaucoma, and cataract care. Its third-quarter report matters because it offers the first clear read on 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 coincides with two major strategic events—the closing of the TYRVAYA acquisition and the launch of HarrowRx—that could reshape its growth trajectory into 2027. Investors are watching whether record revenue and improving profitability can offset the company's decision to cut its full-year EBITDA outlook, a move that 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 (Generally Accepted Accounting Principles) 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.

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.

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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.

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