Harrow Posts Record Revenue of $99.3 Million and Cuts Annual Earnings Guidance
Key Facts
Harrow reported results on November 9 for the third quarter ended September 30, 2026, posting GAAP earnings per share of $0.25, beating analyst estimates by $0.06, and revenue of $99.3 million, ahead of expectations by $0.71 million, according to GuruFocus. The company said quarterly revenue reached a record, rising 41% from the previous quarter and 39% from the same period last year. Results were driven by rapid growth in sales of its branded products, which generated revenue of $83.5 million, up 62% year over year. Harrow, however, cut its full-year adjusted EBITDA forecast while leaving its annual revenue target range unchanged. The revision puts fourth-quarter performance in focus for investors, as the company expects the metric to exceed $33 million in the quarter.
Harrow reported GAAP net income of about $9.8 million in the third quarter, including a $5 million gain from a legal settlement. That compared with a net loss of $17.3 million in the second quarter of 2026 and net income of $1 million in the third quarter of 2025. Adjusted EBITDA was $21.2 million, compared with a loss of $1.2 million in the previous quarter. It was below the $22.8 million recorded in the same period last year. The comparison highlights a different trajectory for profitability than for revenue growth, while the settlement gain contributed to reported net income.
The chief executive attributed the acceleration in revenue to branded-product performance, saying, "Branded products led revenue to a record, with 62% year-over-year growth." He said VEVYE posted record quarterly revenue as prescriptions continued to grow, product economics improved and the expanded sales force became more productive. TRIESENCE also had a record quarter, while demand for IHEEZO units rose 21% year over year. VEVYE revenue was about $39.7 million, up 75% from the comparable period, while total prescriptions increased about 83% year over year. IHEEZO generated revenue of $25.3 million, up 15% year over year and 62% from the previous quarter, and demand reached 62,210 units.
Harrow kept its 2026 revenue forecast range at $350 million to $365 million, but revised its adjusted EBITDA forecast to more than $40 million, compared with the previous range of $80 million to $100 million. The new guidance includes more than $33 million in the fourth quarter. The chief executive said the revision reflects "operational underperformance in the first half compared with our original plan," along with additional spending to accelerate the G-MELT regulatory filing, advance other development programs and integrate TYRVAYA. The executive described the new forecast as a floor, with the potential to exceed it. In the second quarter, the company reported revenue of $70.7 million, up 11% year over year, and at the time reaffirmed its previous full-year adjusted earnings range. With the earnings forecast cut and the revenue target unchanged, execution of the fourth-quarter plan is central to meeting the annual guidance.
On expanding access to VEVYE, Harrow said expanded coverage through a major national plan represents more than 10 million commercial beneficiaries and is expected to take effect in January 2027. The company scheduled a call and webcast to discuss its third-quarter results for November 10, 2026, at 8:00 a.m. Eastern time. The event comes one day after the results announcement and gives the company a platform to detail its performance and updated guidance. Investors are expected to focus on the product growth trajectory, the reasons for cutting adjusted earnings guidance and the plan to deliver more than $33 million in the metric in the fourth quarter. The announced effective date for the new VEVYE coverage is January 2027.