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what it is
Harrow sells prescription eye drugs and compounded ophthalmology medicines across North America.
how it gets paid
Last year Harrow made $272M in revenue. compounded ophthalmology medicines was the main engine at $92M, or 34% of sales.
why it's growing
Revenue grew 36.4% last year. 73.0% gross margin mattered most because gross margin → money left after making the product → it tells you Harrow has room to absorb selling.
what just happened
Revenue hit $183M, but the cleaner signal was EPS improving to a positive $0.19 in Q4 after three straight quarterly losses in fiscal 2024.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
415.5x trailing p/e — you're paying up for this one
-$0.49 fy2024 eps est
$200M fy2024 rev est
xvary composite: 54/100 — below average
What they do
Harrow sells prescription eye drugs and compounded ophthalmology medicines across North America.
Harrow stays focused on one body part: the eye. That sounds narrow until you remember it turned that focus into $272.3 million of annual revenue in 2025, up 36.4% vs. prior year, with 75% gross margin (gross margin → money left after making the product → room to fund growth). If you are an eye doctor, a specialized portfolio is easier to keep ordering from than juggling scattered vendors.
How they make money
$272M
annual revenue · their business grew +36.4% last year
compounded ophthalmology medicines
$92M
retina disease therapies
$60M
dry eye and ocular surface
$48M
cataract and refractive care
$40M
glaucoma therapies
$32M
The products that matter
compounded eye medications
ImprimisRx
$~82M · roughly 30% of revenue
it is the smaller of the two revenue engines at about $82M, but it gives harrow direct relationships with ophthalmologists and keeps the commercial channel warm.
channel access
branded ophthalmic drugs
Branded Pharmaceuticals
$~190M · roughly 70% of revenue
this portfolio contributes about $190M and grew 40% last year. that is the business management needs to scale if the 2026 target is going to look reasonable.
growth engine
new launch pipeline
BYOOVIZ / BYQLOVI
2026 target linked
these launches matter because management tied the story to a $350M–$365M 2026 revenue goal. you do not need every product to hit. you do need enough of them to keep the branded portfolio compounding.
execution test
Key numbers
415.5x
trailing p/e
Trailing P/E → how expensive the stock is versus past earnings → you are paying a luxury multiple for a business that was still losing money in fiscal 2024.
$272.3M
annual revenue
Revenue → total sales → Harrow is no longer tiny, and 36.4% growth shows demand is real.
73.0%
gross margin
Gross margin → sales left after product costs → this is high enough to support a specialized pharma model if execution holds.
$251M
long-term debt
Long-term debt → money the company owes beyond a year → growth helps, but debt makes mistakes more expensive.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 5 / 100
- long-term debt $251M (17% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HROW right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $183M, but the cleaner signal was EPS improving to a positive $0.19 in Q4 after three straight quarterly losses in fiscal 2024.
The quarter showed the split personality of Harrow. EDGAR shows $183 million of latest-quarter revenue with 73.0% gross margin, while Value Line's fiscal 2024 quarterly history ended with $0.19 EPS after losses of -$0.38, -$0.18, and -$0.12.
$183M
revenue
$0.19
eps
73.0%
gross margin
the number that mattered
73.0% gross margin mattered most because gross margin → money left after making the product → it tells you Harrow has room to absorb selling costs and debt while it chases growth.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is commercial execution against the $350M–$365M 2026 revenue target. harrow already told the market what success looks like. now every quarter gets measured against that line.
med
2026 guidance becomes a ceiling instead of a destination
The stock fell 28% after management introduced the $350M–$365M target. That means the market was looking for more, or wanted more certainty around how Harrow gets there.
If revenue starts drifting away from that path, the multiple can compress long before the income statement does.
med
Sales force expansion does not convert into branded drug scale
Branded Pharmaceuticals contribute about $190M, or roughly 70% of revenue. That is the segment management needs to keep pushing if the roll-up story is going to become an earnings story.
If selling expense rises faster than branded growth, 73.0% gross margin will not save the bottom line.
med
The Pomerantz investigation keeps pressure on sentiment
Pomerantz LLP announced an investigation on July 17, 2025. Even when these cases do not reshape the business, they can weigh on a small-cap stock that already moves hard on headlines.
This risk does not hit 100% of revenue directly, but it can keep valuation fragile while management asks investors for patience.
A miss on the $350M–$365M target would leave investors paying 415.5x trailing earnings for a business the market already punished by 28% on guidance.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next checkpoint
the first 2026 quarter after guidance
Management just set a $350M–$365M annual target. your next useful data point is whether quarterly revenue stays near the $89.1M level that made the target feel plausible in the first place.
margin
gross margin holding around 73%
A gross margin in the low 70s is the economic logic behind the story. if that slips while sales costs rise, operating leverage gets postponed again.
mix shift
branded pharma staying ahead of compounding
Branded products are about $190M of revenue versus roughly $82M for compounded medications. you want the higher-value side of the portfolio to keep widening the gap.
overhang
any update tied to the July 17, 2025 investigation
This is not the operating thesis, but it matters for sentiment. with price stability at 5 / 100, you do not need a huge legal headline for the stock to react like one.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not see this as a clean, steady earnings story yet. expect revisions and a few sharp reactions along the way.
risk rank
2
This provider score says the business is safer than 80% of stocks on balance-sheet and operating measures. that is about solvency, not day-to-day share-price behavior.
price stability
5 / 100
The stock swings. a lot. That's why you can have a decent risk rank and a very unstable chart at the same time.
source: institutional data
Institutional activity
institutional ownership data for HROW is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$46
current price
n/a
target midpoint · n/a from current
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