8-K: Harrow Inc. Q2 2026 Results Show Strong Sequential Growth

Harrow, Inc. reported a significant sequential revenue increase of 60% for Q2 2026, driven by strong performance in VEVYE and IHEEZO, and reiterated full-year guidance.

Summary

• Harrow, Inc. announced its financial results for the second quarter ended June 30, 2026.
• Quarterly revenue reached $70.7 million, a 60% increase sequentially and 11% year-over-year.
• The company reiterated its full-year 2026 financial guidance of $350 million to $365 million in revenue and $80 million to $100 million in Adjusted EBITDA.
• VEVYE generated $29.4 million in revenue, up 40% sequentially and 58% year-over-year, with continued prescription and prescriber growth.
• IHEEZO achieved $15.6 million in revenue and record quarterly unit demand, with unit demand up 44% sequentially and 34% year-over-year.
• TRIESENCE also saw record quarterly unit demand, increasing 39% sequentially and 162% year-over-year.
• The company announced the acquisition of TYRVAYA, expected to close in the second half of 2026, and expects it to contribute over $30 million in revenue in 2027.
• Harrow launched BYOOVIZ in July 2026, expanding its retina portfolio.
• Cash and cash equivalents were $83.9 million as of June 30, 2026.
• The company reported a net loss of $17.3 million for Q2 2026, compared to a net income of $5.0 million in Q2 2025.
• Adjusted EBITDA was a loss of $1.2 million for Q2 2026, compared to $17.0 million in Q2 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong sequential revenue growth and strategic acquisitions bolstering future prospects, despite a current net loss.

Positives

• Significant sequential revenue growth of 60% to $70.7 million in Q2 2026.
• VEVYE revenue increased 40% sequentially and 58% year-over-year, with market share expansion.
• IHEEZO achieved record quarterly unit demand, up 44% sequentially and 34% year-over-year, with improved net pricing effective July 1, 2026.
• TRIESENCE demonstrated exceptional unit demand growth, up 39% sequentially and 162% year-over-year.
• Successful launch of BYOOVIZ in July 2026, expanding the retina portfolio.
• Acquisition of TYRVAYA expected to close in H2 2026, projected to contribute over $30 million in revenue in 2027.
• Reiterated full-year 2026 guidance for revenue ($350M-$365M) and Adjusted EBITDA ($80M-$100M).
• Expanded commercial organization and strengthened product portfolio.
• Secured expanded formulary coverage for VEVYE with a top-three national commercial pharmacy benefit manager, effective August 1, 2026.
• IOPIDINE received a permanent J-code, removing a reimbursement barrier.

Negatives

• Reported a net loss of $17.3 million for Q2 2026, compared to a net income of $5.0 million in the prior year.
• Adjusted EBITDA turned negative at $(1.2) million in Q2 2026, compared to $17.0 million in Q2 2025.
• Gross margin decreased to 71% in Q2 2026 from 75% in Q2 2025, attributed to increased fixed costs and product mix.
• Selling, general and administrative (SG&A) costs increased significantly to $53.3 million in Q2 2026 from $33.2 million in Q2 2025, driven by commercial organization expansion.
• Research and development (R&D) costs more than doubled to $8.1 million in Q2 2026 from $2.9 million in Q2 2025, due to clinical trial expenses.
• ImprimisRx revenue declined to $14.6 million from $21.5 million year-over-year, due to product transitions and market exits.

Risks

• Potential risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including liquidity, ability to implement business plan, develop and commercialize products, identify and acquire products, manage pharmacy operations, service debt, obtain financing, recruit personnel, manage growth, and realize benefits of acquisitions.
• Competition from pharmaceutical companies, outsourcing facilities, and pharmacies.
• General economic and business conditions, including inflation and supply chain challenges.
• Regulatory and legal risks related to pharmacy operations and the pharmacy/pharmaceutical business, including FDA communications regarding compliance and quality plans.
• Physician interest in and market acceptance of current and future formulations and compounding pharmacies.
• The acquisition of TYRVAYA is subject to closing conditions and integration risks.
• The success of BYOOVIZ launch and OPUVIZ launch in 2027 are subject to market acceptance and regulatory factors.
• Clinical trial outcomes for G-MELT, IHEEZO (QUELL), and TRIESENCE are subject to inherent uncertainties.

Future Outlook

The company reiterated its full-year 2026 guidance of $350 million to $365 million in revenue and $80 million to $100 million in Adjusted EBITDA. Management expects the second half of 2026 to be significantly stronger, converting built demand into accelerating revenue growth and profitability. The acquisition of TYRVAYA is expected to contribute over $30 million in revenue in 2027. The company anticipates launching at least one new product annually through 2029.

Management Comments

• "We spent the first half of 2026 building demand and positioning the business to achieve our 2026 and 2027 financial objectives. The second half of 2026 is about converting that demand into accelerating revenue growth and profitability."
• "I believe Harrow has reached an important inflection point. The heavy lifting required to position the business for accelerated growth has largely been completed. The table is set. Now its about execution."
• "I recognize that our 2026 financial guidance implies second-half revenue of more than double what we delivered in the first half. We sized that ramp deliberately."
• "No product in our portfolio has exceeded my expectations the way IHEEZO has, and things seem to be getting better."
• "I believe G-MELT, if approved, will not only make a tremendous impact on patients lives, but it also has the possibility become the largest revenue driver for our company."
• "The table is set. Now we serve."

Industry Context

StockSavvy.ai notes that Harrow's performance in Q2 2026 reflects a dynamic period in the ophthalmic pharmaceutical market, characterized by strategic acquisitions, product launches, and evolving reimbursement landscapes. The company's focus on expanding its portfolio in key areas like dry eye disease and retina treatments aligns with broader industry trends of consolidation and specialization.

Comparison to Industry Standards

• VEVYE's sequential prescription growth of 21% outpaced the branded dry eye disease market's sequential growth of 14%.
• VEVYE's market share of total branded prescriptions reached 14.6%, nearly doubling from 7.8% a year ago.
• IHEEZO's unit demand growth of 44% sequentially and 34% year-over-year is strong, especially considering the loss of pass-through reimbursement.
• TRIESENCE's unit demand growth of 39% sequentially and 162% year-over-year is exceptional, indicating strong market penetration.
• The acquisition of TYRVAYA is positioned to create one of ophthalmology's most comprehensive branded dry eye disease portfolios, a competitive move against other players in the DED market.
• BYOOVIZ launch positions Harrow in the U.S. retinal anti-VEGF market, competing with established biosimilar and biologic players.

Stakeholder Impact

• Shareholders: The company reiterated its full-year guidance, and the acquisition of TYRVAYA is expected to drive future revenue growth, potentially increasing shareholder value. However, the current net loss and negative Adjusted EBITDA may be a concern.
• Employees: Expansion of the commercial organization suggests potential for new roles and opportunities, but also increased operational demands.
• Customers (Physicians/Patients): New product launches (BYOOVIZ), expanded access (VEVYE coverage win), and improved product performance (IHEEZO, TRIESENCE) are expected to benefit physicians and patients by offering more treatment options and potentially better outcomes.
• Suppliers: Increased demand for products and potential integration of acquired assets may impact supplier relationships and requirements.

Next Steps

• Close the acquisition of TYRVAYA during the second half of 2026.
• Continue to build demand and convert it into accelerating revenue growth and profitability in the second half of 2026.
• Expand the commercial organization further with experienced sales professionals from Viatris.
• Finalize regulatory strategy for G-MELT and work towards an NDA submission.
• Expect topline data from the QUELL trial for IHEEZO in Q4 2026.
• Expect topline data from the TRIESENCE Phase 3 trial in early 2027.
• Expect topline data from the NATACYN investigator-initiated study in Q4 2026.
• Provide a comprehensive update on G-MELT and YOCHIL development programs at Investor Day in March 2027.

Key Dates

Recommendation

The company shows strong sequential revenue growth and strategic progress with acquisitions and product launches, which are positive indicators. However, the shift to a net loss and negative Adjusted EBITDA, coupled with increased operating expenses, warrants a cautious 'hold' stance until sustained profitability is demonstrated and the benefits of recent investments are fully realized.

Keywords

ophthalmic disease management, VEVYE, IHEEZO, TRIESENCE, TYRVAYA acquisition, BYOOVIZ launch, dry eye disease, retina disease