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HARROW, INC. (HROW)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $63.7M (+30% YoY, +33% QoQ); GAAP diluted EPS was $0.13 and Core diluted EPS was $0.24, with Adjusted EBITDA of $17.0M, highlighting operating leverage as VEVYE and IHEEZO scale .
  • Versus S&P Global consensus, revenue modestly missed ($63.7M vs $66.0M*), while normalized EPS meaningfully beat ($0.24 Core diluted vs $0.01 Primary EPS*), and EBITDA exceeded consensus ($17.0M Adjusted vs $14.9M*); Street will likely raise EPS forecasts on ASP stabilization and improved mix .
  • FY 2025 guidance of >$280M revenue reaffirmed; management reiterated VEVYE >$100M revenue and IHEEZO ≥$50M, with ImprimisRx ≥$80M, and flagged a stronger H2 cadence (≈$169M needed) given momentum and new distribution (Apollo Care) .
  • Potential stock catalysts: VEVYE ASP stability and acceleration from Apollo Care, IHEEZO retina adoption/coverage, TRIESENCE entry into ocular inflammation, and Samsung biosimilars (BYOOVIZ/OPUVIZ) commercialization pathway .

What Went Well and What Went Wrong

What Went Well

  • VEVYE momentum: 66% sequential TRx growth to 119,526 units, ~50,000 NRxs, market share up ~2.6 pts to 7.8%; ASP stabilized with upward bias and nearly every script now profitable under VAFA .
  • IHEEZO inflection: Q2 revenue $18.3M (+251% QoQ, +62% YoY), with 48,765 units (+25% QoQ, +63% YoY), pervasive coverage (81% payers), and 19 new retina accounts; distributor shipments +170% QoQ .
  • Profitability leverage: Adjusted EBITDA $17.0M and GAAP net income $5.0M; GAAP gross margin 75% / Core gross margin 80% show scale benefits as branded mix improves .

Management quotes:

  • “We remain on track to deliver greater than $280 million in revenue for the year.”
  • “Our commercial platform is firing on all cylinders… poised to unlock additional operational leverage and deliver meaningful profitability.”

What Went Wrong

  • Revenue modestly below consensus: $63.7M vs $66.0M*, driven by VEVYE ASP normalization after VAFA business rule changes, temporarily dampening revenue despite strong volume .
  • Other branded products softness: Q2 ‘Other branded’ revenue fell to $5.2M from $11.7M in Q2 2024; management expects recovery and is staffing leadership to improve execution .
  • Operating expense pressure: SG&A rose to $33.2M (vs $31.8M LY), reflecting growth investments; interest expense remains elevated, with active debt refinancing efforts to lower cost of capital .

Financial Results

Consolidated Financials vs Prior Periods and Consensus

MetricQ2 2024Q1 2025Q2 2025 (Actual)Q2 2025 (Consensus)
Revenue ($USD Millions)$48.939 $47.831 $63.742 $66.030*
GAAP Diluted EPS ($USD)$(0.18) $(0.50) $0.13 —
Core Diluted EPS ($USD, non-GAAP)$(0.06) $(0.38) $0.24 Primary EPS $0.01*
GAAP Gross Margin (%)74% 68% 75% —
Core Gross Margin (%)79% 75% 80% —
Adjusted EBITDA ($USD Millions)$8.803 $(1.985) $17.006 $14.883*

Values retrieved from S&P Global*.

Non-GAAP definitions and reconciliations are provided by Harrow (Core Results, Adjusted EBITDA) .

Segment/Product Revenue Mix (Q2)

Segment/ProductQ2 2024 ($)Q2 2025 ($)Commentary
IHEEZO$11,295,000 $18,336,000 Retina pivot, new accounts, broad coverage
VEVYE$4,315,000 $18,641,000 VAFA-driven TRx growth, ASP stabilized
Other Branded Products$11,681,000 $5,212,000 Execution focus and leadership adds
ImprimisRx$21,580,000 $21,468,000 Sequential recovery; steady cash flow
Total Revenues$48,939,000 $63,742,000 Strong YoY and QoQ growth

KPIs and Operational Metrics

KPIQ2 2025Prior Period Context
VEVYE TRx Units119,526 (+66% QoQ) ~50,000 NRxs; ASP stabilized/upward bias
VEVYE Market Share (DED)7.8% (+~2.6 pts QoQ) Second largest cyclosporine brand
IHEEZO Units48,765 (+25% QoQ; +63% YoY) Distributor shipments +170% QoQ
IHEEZO Coverage81% payers; 3% not covered; 4% PA “IHEEZO for All” initiative
TRIESENCE Coverage84% coverage; 8% PA; ~3% uncovered ~870 YTD new accounts; +32% QoQ units
ImprimisRx Revenue$21.5M (+7% QoQ) April record month; sequential recovery
Cash & Equivalents$53.0M at 6/30/25 Net cash from ops H1: $18.9M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025“> $280M” (Q1 reaffirm) “> $280M” (reaffirmed) Maintained
VEVYE RevenueFY 2025Poised for nine-figure revenue Exceed $100M Clarified/Maintained
IHEEZO RevenueFY 2025≥ $50M (management target) ≥ $50M (on track) Maintained
ImprimisRx RevenueFY 2025≥ $80M (management target) ≥ $80M (on track) Maintained
TRIESENCEMulti-yearEventual $100M annual thesis Ocular inflammation launch 4Q; trajectory to thesis Execution update
H2 Revenue Cadence2H 2025—≈$169M needed to reach FY guidance Informational

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
VEVYE ASP & AccessVAFA launched mid-March; strong refill rates; poised for nine-figure revenue ASP normalized and stabilized; Apollo Care added to expand covered scripts; 7.8% share Stabilizing with upward bias
Supply ChainStabilizing TRIESENCE supply; 2025 focus Additional VEVYE manufacturing capacity; second site coming online next year Capacity expanding
Retina Pivot (IHEEZO)>40% QoQ growth in Q4 2024; pass-through momentum Momentum with 19 new retina accounts; +170% shipments; coverage pervasive Accelerating
TRIESENCE StrategyPass-through approved; supply stabilization Entering ocular inflammation market; lowest co-pay ~$37; 84% coverage Commercial expansion
Samsung Biosimilars—Exclusive U.S. commercialization of BYOOVIZ and OPUVIZ; transition by end-2025 Strategic pipeline
Debt Refinancing—Active discussions to lower cost of capital and relax covenants Balance sheet optimization
Legal/Regulatory—OSRX verdict update pending final ruling Watch item

Management Commentary

  • “With powerful new revenue streams on deck – including the Samsung biosimilars portfolio, BYQLOVI™, and the expansion of TRIESENCE into its largest potential market… we are poised to unlock additional operational leverage and deliver meaningful profitability.”
  • “If you straight line Q2 growth for the balance of the year with a stable ASP, this puts us ahead of where we need to be by the end of this year for the VEVYE franchise.”
  • “IHEEZO is on the path to have a record year this year, and I'm confident it will surpass our guidance of $50,000,000 or more in revenue.”
  • “We are ready to move more aggressively into the ocular inflammation market… [TRIESENCE] should eventually deliver $100 million in annual revenue.”

Q&A Highlights

  • VEVYE ASP trajectory: Business rules are largely set; Apollo Care expands covered scripts, implying ASP stability with potential sequential improvement into year-end .
  • Biosimilars contribution: BYOOVIZ relaunch targeted in 2026; Harrow expects leverage from retina relationships and commercial infrastructure; upside viewed favorably by management .
  • TRIESENCE ramp: Expect unit demand inflection in Q4 and into 2026; ocular inflammation entry with new leadership and broad coverage; near-term challenge but math viewed as achievable .
  • IHEEZO for All: Emphasis on reimbursement confidence, not free drug; pervasive coverage supports broader utilization across retina procedures .
  • Non-pharma solutions: Pipeline may include non-pharmaceutical initiatives, to be discussed at Investor & Analyst Day .

Estimates Context

  • Revenue: $63.7M actual vs $66.0M consensus*; modest miss driven by ASP normalization on VAFA transition; volume strength offsets into H2 .
  • EPS (Primary/Normalized): $0.24 actual (Core diluted) vs $0.01 consensus*; a significant beat reflecting mix shift to branded products and opex leverage .
  • EBITDA: $17.0M Adjusted EBITDA vs $14.9M consensus*; profitability outperformed expectations on margin expansion .

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • VEVYE is scaling with stabilized ASP and strong refill dynamics; Apollo Care should lift covered script mix and support ASP improvement into Q4—consensus EPS likely to rise on this mix effect .
  • IHEEZO’s retina adoption and coverage are strong; momentum suggests ≥$50M FY is achievable and potentially beatable if Q3 account starts sustain .
  • TRIESENCE entry into ocular inflammation is a late-2025 swing factor; watch leadership execution and payer coverage to gauge 2026 revenue trajectory .
  • H2 cadence: Management’s math implies ~$169M needed in H2; product momentum plus Apollo Care, distribution and coverage tailwinds support the ramp .
  • Strategic optionality: Samsung biosimilars and BYQLOVI expand therapeutic scope with minimal incremental cost, adding medium-term earnings power (2026+) .
  • Balance sheet: Active refinancing could be a catalyst to reduce interest burden and expand flexibility—monitor timing by late Q3/early Q4 .
  • Risk checks: Watch execution in Other Branded portfolio, ASP stability durability, and litigation/regulatory updates (OSRX ruling) for any narrative shifts .

Appendix: Source Documents

  • Q2 2025 8-K/Press Release and Letter to Stockholders: financials, KPIs, segment revenue, non-GAAP reconciliations .
  • Q2 2025 Earnings Call Transcript: prepared remarks and Q&A insights .
  • Q1 2025 Press Release: prior quarter revenue, margins, VEVYE revenue .
  • Q4 2024 Press Release: baseline momentum, pass-through status .
  • Samsung Bioepis Agreement Press Release (July 17, 2025): biosimilars commercialization .