Harrow, Inc. (HROW) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlighted strong product development and market strategy, with plans to launch new products and expand market reach. Despite a slight revenue guidance downgrade, optimistic future projections for products like VEVYE and TRIESENCE, and positive Q&A insights, bolster sentiment. The company's focus on expanding its sales force and improving product pricing further supports a positive outlook. The lack of specific guidance for some products was noted, but overall, the strategic initiatives and optimistic projections suggest a positive stock movement.
Key Financial Performance
Consolidated Revenues (Q4 2025) $89.1 million, representing 33% year-over-year growth. Growth reflected continued strength across our brand portfolio and expanding commercial execution, particularly in the second half of the year.
Consolidated Revenues (Full Year 2025) $272 million, up 36% versus 2024. Growth reflected continued strength across our brand portfolio and expanding commercial execution, particularly in the second half of the year.
Adjusted EBITDA (Q4 2025) $24.2 million, reflecting 54% year-over-year growth. This margin expansion demonstrates the operating leverage in our model as revenue scales faster than costs even as we continue investing in commercialization and R&D.
Adjusted EBITDA (Full Year 2025) $61.9 million, reflecting 54% year-over-year growth. This margin expansion demonstrates the operating leverage in our model as revenue scales faster than costs even as we continue investing in commercialization and R&D.
Cash from Operations (2025) Just under $44 million, which helped end the year with $72.9 million in cash and cash equivalents.
VEVYE Revenue (Q4 2025) $25.9 million, up 14% sequentially. Growth reflects expanding demand.
VEVYE Revenue (Full Year 2025) $88.7 million, a 216% increase over 2024. Growth reflects expanding demand.
IHEEZO Revenue (Q4 2025) $35.9 million, representing 64% quarter-over-quarter growth. Performance was driven by increasing penetration across new and existing accounts, particularly in retina.
IHEEZO Revenue (Full Year 2025) $81.3 million, representing 65% year-over-year growth. Performance was driven by increasing penetration across new and existing accounts, particularly in retina.
TRIESENCE Revenue (Q4 2025) $5.1 million, a 36% increase from the third quarter. Growth was primarily driven by accelerating adoption of TRIESENCE in ocular inflammation.
TRIESENCE Revenue (Full Year 2025) $9.9 million, a 193% increase from 2024. Growth was primarily driven by accelerating adoption of TRIESENCE in ocular inflammation.
Rare Specialty and Compounding Portfolio Revenue (Q4 2025) $22.2 million. The temporary compounding inventory constraint discussed last quarter is expected to be resolved in the coming weeks.
Rare Specialty and Compounding Portfolio Revenue (Full Year 2025) $92.3 million. The temporary compounding inventory constraint discussed last quarter is expected to be resolved in the coming weeks.
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Operating Highlights
VEVYE: Positioned for revenue acceleration with expanded payer coverage and doubling of sales force. Expected to become a 9-figure revenue product in 2026.
IHEEZO: Delivered record quarter with growth in retina specialists' offices. Expansion into in-office procedures and new packaging format expected to drive further growth.
TRIESENCE: Strongest quarter since relaunch, with accelerating adoption in ocular inflammation market. Sales force to be doubled to deepen market penetration.
G-MELT and YOCHIL: Acquired from Melt Pharmaceuticals, expected to be approved for marketing and become major revenue drivers. Targeting large market for alternatives to IV and opioid-based medications.
U.S. ophthalmic market: Harrow owns one of the largest portfolios of prescription ophthalmic products in the U.S., reaching every populated county and covering nearly every key ophthalmic disease segment.
Retina and specialty footprint: Expansion with launches of BYQLOVI and BYOOVIZ in 2026, leveraging commercial platform.
Revenue growth: Achieved $89.1 million in Q4 2025, a 33% year-over-year growth. Full-year revenue reached $272 million, up 36% from 2024.
Adjusted EBITDA: $24.2 million in Q4 2025 and $61.9 million for the full year, reflecting 54% year-over-year growth.
Cash flow: Generated $44 million in cash from operations in 2025, ending the year with $72.9 million in cash and equivalents.
Sales force expansion: Doubling sales force for VEVYE and TRIESENCE to drive growth.
Pipeline development: Focused on advancing G-MELT and IHEEZO studies to expand market opportunities and reinforce product positioning.
Compounded products transition: Shifting compounded product utilization to FDA-approved branded alternatives to strengthen revenue profile.
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Risk or Challenges
Regulatory hurdles: The company faces risks related to obtaining FDA approval for certain drug candidates, such as G-MELT and YOCHIL, in a timely manner or at all. Additionally, there are uncertainties around CMS coding decisions for products, which could impact market access and revenue potential.
Supply chain disruptions: The company has experienced temporary compounding inventory constraints, which are expected to normalize but pose a risk to consistent product availability and revenue generation.
Economic uncertainties: High deductible insurance plans and seasonal insurance resets create near-term financial pressures, particularly in the first quarter, impacting product demand and revenue.
Strategic execution risks: The company is heavily investing in expanding its sales force and launching new products like BYQLOVI and BYOOVIZ. Failure to achieve expected returns on these investments could adversely impact financial performance. Additionally, the transition of compounded products to FDA-approved alternatives involves execution risks.
Market conditions: The loss of pass-through status for IHEEZO in the ASC market could negatively impact revenue. The company is attempting to offset this by expanding into the office-based setting, but success is uncertain.
Competitive pressures: The company operates in a competitive ophthalmic market, and its ability to maintain and grow market share for products like VEVYE, IHEEZO, and TRIESENCE depends on successful differentiation and adoption.
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Guidance & Outlook
Revenue Expectations: Harrow expects to exceed $250 million in quarterly revenue by the end of 2027. For 2026, full-year revenue is projected between $350 million and $365 million, with the first half revenue estimated at $133 million to $153 million and the second half revenue at $203 million to $226 million.
Product Growth Projections: VEVYE is expected to become a 9-figure revenue product in 2026, with expanded payer coverage and a doubled sales force driving prescription growth. IHEEZO is projected to benefit from price improvements in the second half of 2026 and expanded utilization in retina and office-based settings. TRIESENCE is anticipated to see substantial growth with a doubled sales force and increasing adoption in ocular inflammation and surgery markets.
Pipeline Developments: The company plans to launch two new products, BYQLOVI and BYOOVIZ, in 2026, further expanding its retina and specialty footprint. G-MELT, an opioid-free sedation candidate, is on track for an NDA submission in early 2027 and is expected to become a major revenue driver.
Market Trends and Strategic Focus: Harrow is focusing on expanding patient access, improving affordability, and delivering strong clinical outcomes. The company is transitioning compounded volume to FDA-approved branded alternatives and expects compounded revenue to be approximately $60 million to $65 million in 2026.
Operational and Financial Outlook: SG&A expenses are expected to increase to $185 million to $205 million in 2026 to support sales force expansion and product launches. Adjusted EBITDA for 2026 is projected between $80 million and $100 million, with the majority generated in the second half of the year.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What have you seen so far from a commercial mix perspective in Q1 for VEVYE, and what are your ASP assumptions for VEVYE in the 2026 guide?
A:Mark Baum stated that ASP and net pricing for VEVYE have shown buoyancy and a slight uptick, which was forecasted earlier. He mentioned that CVS sent letters to eye care professionals about VEVYE's preferred positioning, which helped build momentum. Despite Q1 typically being weaker, new prescription volumes were better than expected. The company is focused on building volume for VEVYE through an expanded sales force.
Q:What percentage of the cataract market is the sweet spot for TRIESENCE, and how does the TAM expansion from the label expansion look?
A:Mark Baum explained that TRIESENCE is aimed at providing an IV-free, opioid-free, and eye drop-free procedure for cataract surgery. The label expansion will allow all cataract surgery patients access to this therapy. The U.S. market opportunity is about 5 million procedures annually, and TRIESENCE is expected to be a meaningful value driver in the next few years.
Q:Could you clarify the price improvements for IHEEZO in the second half of 2026?
A:Andrew Boll clarified that by Q3 2026, pricing for IHEEZO will be better than in 2025 and the first part of 2026.
Q:What is the trial design for the TRIESENCE cataract trial?
A:Amir Shojaei explained that the trial will have a control arm without TRIESENCE, but rescue criteria are built in, allowing the use of eye drops per protocol.
Q:Are there any market share targets for VEVYE, and how is the company planning to achieve them?
A:Mark Baum stated that the goals for VEVYE are to become the #1 cyclosporine, the #1 anti-inflammatory, and eventually the #1 prescribed dry eye product. The company is doubling its sales force to increase market share, aiming for over 20% to achieve the #1 cyclosporine position.
Q:What is the expected contribution of IHEEZO to the guidance, and how does the company view its growth potential?
A:Mark Baum did not provide specific revenue guidance for IHEEZO but highlighted its growing demand in the retina market. He mentioned upcoming data at the ASRS conference, which could significantly boost demand. The company is also introducing a new packaging format and improved pricing.
Q:What is the outlook for OpEx expansion in 2026?
A:Andrew Boll explained that SG&A costs are increasing due to sales force expansion and marketing preparations. R&D costs will rise in Q2 and Q3 due to ongoing trials but are expected to decrease in Q4.
Q:How is the company addressing the loss of ASC units for IHEEZO in 2026?
A:Mark Baum stated that the company is targeting in-office procedures to offset the loss of ASC units. The strategy involves converting existing ASC customers to use IHEEZO in their clinics, which is expected to fully offset the lost units by the end of the year.
Q:What is the strategy for VEVYE's new coverage and new-to-brand patients?
A:Mark Baum and Patrick Sullivan emphasized focusing on converting patients who were previously denied access or paying cash to now utilize the new coverage. The company is also targeting new-to-brand patients through an expanded sales force.
Q:How does the VEVYE sales force expansion compare to competitors, and what is the focus of the Melt franchise?
A:Mark Baum mentioned that the VEVYE sales force will have around 100 territories, which is smaller than some competitors but highly effective. The Melt franchise is focused on developing FDA-approved, reimbursable products to replace compounded formulations, with significant market opportunities in ophthalmology and beyond.
Q:What is the marketing strategy for the BYOOVIZ biosimilar?
A:Mark Baum stated that the company aims to achieve a modest market share of a few percentage points. The strategy leverages the existing retina team and focuses on providing a comprehensive package of products to support practices and enhance the patient experience.
Q:Review of Unclear Management Responses
A:Management avoided providing specific market share percentages for VEVYE beyond stating a goal of over 20% to become the #1 cyclosporine. They also did not provide specific revenue guidance for IHEEZO or detailed OpEx figures for 2026, using general terms like 'modest expectations' and 'incremental costs.'
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ASC
Americans
BYOOVIZ BYQLOVI
IHEEZO office
MELT
PharmaPack
President Investor
Relations Communications
TRIESENCE sale
VEVYE TRIESENCE
Vice President
acceleration prescription
adoption
channel inventory
contribution
core driver
force product
improvement
inflammation
inning
inventory channel
leverage
momentum
office expansion
penetration market
persistence
platform
product portfolio
profitability
retina
return
sale force
setting
specialty portfolio
specialty product
study
utilization
HROW Transcript
Harrow, Inc. (HROW) Q1 2026 Earnings Call Transcript
Positive5-12
The earnings call highlights strong growth in TRIESENCE and IHEEZO, with substantial unit demand increases. While revenue challenges exist due to inventory and pricing adjustments, optimistic guidance for future quarters and strategic product launches (BYQLOVI, BYOOVIZ) indicate potential growth. The Q&A section reveals analysts' positive sentiment towards sales force expansion and product demand. Despite some uncertainties, such as VEVYE's pricing issue, the overall outlook is positive due to strong product performance, strategic expansion, and expected revenue normalization, supporting a positive stock price movement prediction.
Harrow, Inc. (HROW) Q4 2025 Earnings Call Transcript
Positive3-3
The earnings call highlighted strong product development and market strategy, with plans to launch new products and expand market reach. Despite a slight revenue guidance downgrade, optimistic future projections for products like VEVYE and TRIESENCE, and positive Q&A insights, bolster sentiment. The company's focus on expanding its sales force and improving product pricing further supports a positive outlook. The lack of specific guidance for some products was noted, but overall, the strategic initiatives and optimistic projections suggest a positive stock movement.
Harrow, Inc. (HROW) Q3 2025 Earnings Call Transcript
Positive11-11
The earnings call summary and Q&A highlight strong product development and market strategy, especially with VEVYE's market penetration and new PBM coverage. Although there are concerns regarding ASP decline and inventory shortages, the overall sentiment is positive due to expected revenue growth, strategic expansions, and leverage on SG&A. The positive guidance and strategic market moves outweigh the potential risks, leading to a likely positive stock price movement.
Harrow, Inc. (HROW) Q2 2025 Earnings Call Transcript
Positive8-12
The earnings call summary indicates strong growth in key revenue segments like IHEEZO and TRIESENCE, with positive guidance for the future. Despite a decline in VEVYE revenue, prescription volumes are up, and ASPs are expected to rise. The Q&A section reveals management's confidence in growth strategies and upcoming launches, although some uncertainty remains around biosimilar timing. Overall, the positive growth outlook and strategic initiatives suggest a likely positive stock price movement.
HROW Slides
HROW Report
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