Harrow (HROW) Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue:: $71.6 million, a 45% increase year-over-year and a 12% sequential increase from Q2 2025.

Year-to-Date Revenue:: $183.2 million for the first nine months of 2025.

Adjusted EBITDA:: $22.7 million.

GAAP Net Income:: $1 million.

Updated Full-Year Revenue Guidance:: Revised to a range of $270 million to $280 million, reflecting a more conservative approach while still aiming for over $280 million.

2Strategic Updates and Business Highlights

Product Performance::

VEVYE:: Generated $22.6 million in Q3, a 22% increase from Q2. Expected to finish the year strong with new formulary coverage starting January 2026, including a major pharmacy benefit manager (PBM) covering tens of millions of lives.

IHEEZO:: Revenue of $21.9 million, up 20% from Q2, with strong demand expected to continue into Q4.

TRIESENCE:: Revenue of $6.9 million, showing a 33% sequential increase. New leadership and strategies are in place to drive growth, particularly with its recent launch into the ocular inflammation market.

ImprimisRx:: Generated $20.1 million in revenue, but facing potential impacts from a dispute with the California Board of Pharmacy and inventory shortages.

Strategic Initiatives::

Acquisition of Melt Pharmaceuticals is underway, focusing on a non-opioid procedural sedation candidate, MELT-300.

Expansion of the Harrow Access for All program to improve patient access across the ophthalmic portfolio.

Plans for four new product launches over the next three years.

3Forward Guidance and Outlook

Q4 Expectations:: Anticipated revenue of approximately $80 million, driven by strong performance from VEVYE and IHEEZO, with TRIESENCE expected to contribute positively.

Long-Term Growth:: Confidence in achieving sustained growth with a focus on expanding market share and improving coverage for VEVYE and IHEEZO.

Seasonality Considerations:: Anticipated typical seasonal decline from Q4 2025 to Q1 2026.

4Bad News, Challenges, or Points of Concern

ImprimisRx License Renewal:: Ongoing discussions with the California Board of Pharmacy regarding license renewal, with uncertainty about the outcome.

Inventory Shortages:: Notable inventory shortages in October for ImprimisRx, potentially impacting Q4 revenue by $4 million to $6 million.

Underperformance of TRIESENCE:: Despite recent improvements, TRIESENCE has lagged earlier in the year, but new strategies are expected to drive future growth.

5Notable Q&A Insights

VEVYE Prescription Data:: The company has shifted its reporting strategy to focus on revenue rather than third-party data, citing competitive reasons.

ASP Dynamics:: A modest decline in average selling price (ASP) for VEVYE was noted, with expectations for stabilization and potential increases due to improved coverage.

Patient Transition Plans:: The company is actively working on strategies to transition cash pay patients to covered prescriptions as new formulary changes take effect.

Commercial Expansion:: Plans to add 10 new sales territories for VEVYE, with a goal of reaching approximately 100 territories by mid-2026. Overall, Harrow is positioned for continued growth with a strong product pipeline and strategic initiatives, despite facing some challenges in licensing and inventory management.