Harrow (HROW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $44.2M, impacted by an $8M non-recurring gross-to-net adjustment for VEVYE, but underlying demand for key products remains strong, with VEVYE achieving record prescription growth and surpassing XIIDRA with a 14% market share.

• IHEEZO unit demand rose 18% YoY, with strong adoption in retina accounts and a 49% increase in ordering accounts.

• TRIESENCE unit demand increased 136% YoY, marking the sixth consecutive quarter of growth and 195 new accounts added in Q1.

• Cash and cash equivalents stood at $94.6M as of March 31, 2026, up from $72.9M at year-end 2025, mainly due to a $50M senior notes issuance.

• Maintains the largest U.S. portfolio of prescription ophthalmic products, with commercial infrastructure supporting rapid integration of new products and broad patient access.

Financial highlights

• Q1 2026 consolidated revenue was $44.2M, down from $47.8M in Q1 2025, with branded revenue up $2.9M and compounding revenue down $6.6M YoY.

• Gross profit was $27.0M, with gross margin at 61%, down from 68% in Q1 2025.

• Adjusted EBITDA was a loss of $12.7M, compared to a loss of $2.0M in Q1 2025.

• Net loss widened to $27.6M from $17.8M YoY, with net loss per share at $(0.74).

• Cash and equivalents were $94.6M at quarter-end, with a five-year revenue CAGR of 41% and adjusted EBITDA CAGR of 62%.

Outlook and guidance

• Q2 2026 revenue is expected between $71M and $81M, with full-year 2026 guidance reaffirmed at $350M–$365M and a stronger second half anticipated.

• VEVYE is expected to exceed $100M in 2026 revenue, with sequential growth and ASP projected to increase by roughly 30% following business rule changes.

• Expects to launch at least one new product annually through 2029, including BYOOVIZ (July 2026) and OPUVIZ (2027), with BYOOVIZ and IOPIDINE J-Codes expected to contribute meaningfully in H2.

• IHEEZO net pricing is expected to improve by 20–25% in H2, with multi-unit packaging launching in Q3.

• Management expects current cash reserves to sustain operations for at least the next 12 months.