HARROW, INC. (HROW)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $71.6M, up 45% year over year and 12% sequential; GAAP diluted EPS was $0.03 and core diluted EPS was $0.33 .
• Against S&P Global consensus, Harrow delivered a mixed print: revenue modestly missed ($73.70M consensus*) while normalized EPS exceeded ($0.26 consensus* vs $0.33 actual), so a revenue miss and an EPS beat.
• Management lowered FY2025 revenue guidance to $270–$280M from “> $280M,” citing ImprimisRx’s October inventory shortage ($4–$6M Q4 impact) and near‑term factors, while reiterating strong momentum in VEVYE and IHEEZO .
• Catalysts: VEVYE secured preferred formulary status with the largest U.S. PBM starting January 1, 2026, expected to lift ASP and units; TRIESENCE launched in ocular inflammation with price repositioning and early traction; Melt Pharmaceuticals acquisition progressing as a transformational opportunity .

What Went Well and What Went Wrong

What Went Well

• VEVYE revenue reached $22.6M, +22% QoQ, with prescriptions hitting an all‑time high in October; market share rose to 10.5%, +2.7 points QoQ, supported by VAFA and expanding specialty pharmacy partners .
  Quote: “VEVYE will be listed on multiple new formularies with a preferred product status, including the largest U.S. Pharmacy Benefit Manager” .
• IHEEZO revenue was $21.9M, +20% QoQ, with unit demand +47% YoY and an 86% reorder rate; Q4 is historically the strongest quarter with stocking activity already evident .
• TRIESENCE and specialty branded portfolio showed sequential momentum: $6.9M revenue (+33% QoQ), 67% unit growth, and 53% of ordering accounts were new; ocular inflammation launch began October 1 with validated coverage and early surgeon adoption .

What Went Wrong

• Rare & Specialty Products underperformed earlier in 2025; management installed new leadership and is rolling out Harrow Access for All to drive recovery beginning Q4 2025 into 2026 .
• VEVYE ASP was “down modestly” sequentially in Q3 (management characterized as <10%), with stabilization and improvement expected as covered‑to‑cash pay ratio flips on new payer coverage .
• ImprimisRx faces a California Board of Pharmacy licensing renewal dispute; plus an October inventory shortage is expected to reduce Q4 revenue by $4–$6M, contributing to lowered FY outlook .

Financial Results

Segment and product mix

Additional product revenue detail (Q3 2025)

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “VEVYE will be listed on multiple new formularies with a preferred product status, including the largest U.S. Pharmacy Benefit Manager…tens of millions of lives” .
• “We are updating our full‑year revenue outlook to a range of $270–$280 million…this new range is one I believe we can deliver” .
• On VEVYE ASP: “I think it’s less than 10%…we anticipate that ratio [covered vs cash‑pay] is going to begin to flip…we’ll see ASP improving” .
• On TRIESENCE pricing: “Pricing was at $944…products in [ocular inflammation] are probably 20%–25% lower…new orders are coming…we have now confirmed reimbursement” .
• Commercial execution: “We’re activating advanced key account management…expanding awareness of Harrow Access Solutions…maintaining an efficient cost base” .

Q&A Highlights

• VEVYE data disclosures: Company ceased third‑party TRx reporting for competitive reasons and is focusing on revenue disclosure .
• Coverage economics: Largest PBM commercial lives win expected to lift ASP and volume; management adding ~10 territories now and targeting ~100 by Q2 2026 .
• Bridging to coverage: High‑touch VAFA activation to keep patients on therapy through year‑end; no material VEVYE stocking impact expected in Q4 .
• Q4 setup: Expect volume to drive revenue; VEVYE ASP stabilization supported by lower copay buy‑downs late in year .
• TRIESENCE adoption: Re‑engaging surgeons; preservative‑free profile vs Kenalog; objective to reach nine‑figure annual revenue over time .

Estimates Context

Values retrieved from S&P Global.
Interpretation: Revenue was slightly below consensus, while normalized EPS exceeded consensus. Management’s GAAP diluted EPS was $0.03 (core diluted $0.33) .

Key Takeaways for Investors

• Mixed headline: modest revenue miss and normalized EPS beat; underlying margin expansion and operating leverage evident (Adj. EBITDA +157% YoY) .
• VEVYE coverage wins with the largest PBM are a 2026 ASP and unit catalyst; expect covered/cash mix to flip and ASP to improve; near‑term investments in sales capacity should be revenue‑generating .
• IHEEZO’s momentum is durable into Q4, with stocking, high reorder rates, and retina adoption underpinning growth .
• TRIESENCE’s ocular inflammation launch and price repositioning are already translating into orders, reorders, and new accounts; validated reimbursement supports scale‑up .
• FY2025 guide trimmed to $270–$280M due to ImprimisRx’s October shortage; watch Q4 execution and commentary on Q4→Q1 seasonality .
• Regulatory overhang: monitor California Board of Pharmacy renewal outcome for ImprimisRx operations .
• Medium‑term optionality: Melt‑300 could be transformative for office‑based sedation; Samsung Bioepis biosimilars and BYQLOVI broaden the retinal and surgical portfolio .