HROW Q1 2026 Earnings Call Summary

Summary of Harrow's Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

Consolidated Revenues: $44.2 million for Q1 2026.
Adjusted EBITDA: Negative $12.7 million.
Product Revenue Breakdown:
- VEVYE: $20.9 million
- IHEEZO: $1.9 million
- Specialty and TRIESENCE portfolio: $7.8 million
- Access+: $13.5 million
Revenue Reduction: An $8 million decrease in revenue attributed to VEVYE due to unexpected high deductible patient dynamics.

2. Strategic Updates and Business Highlights:

Demand Trends: Strong demand for key products (VEVYE, IHEEZO, TRIESENCE) is noted, with VEVYE surpassing XIIDRA in total prescriptions.
Sales Force Expansion: Over 90 new sales professionals hired, doubling the VEVYE sales team and tripling the TRIESENCE team.
Product Developments:
- IHEEZO is expected to gain traction with new packaging and clinical data.
- TRIESENCE shows consistent growth with a 136% year-over-year increase in unit volume.
- IOPIDINE 1% will benefit from a new J-code effective July 1, enhancing its market potential.
Access+ Business: Successfully cleared inventory constraints and is positioned for growth.

3. Forward Guidance and Outlook:

2026 Revenue Guidance: Reaffirmed at $350 million to $365 million.
Q2 Revenue Expectations: Projected between $71 million and $81 million, with anticipated sequential growth for VEVYE and initial revenues from BYOOVIZ.
Long-term Goals: Aiming for $250 million in quarterly revenue by the end of 2027.

4. Bad News, Challenges, or Points of Concern:

VEVYE Revenue Dynamics: The $8 million revenue reduction was due to a mismatch in patient mix and pricing assumptions, particularly with high deductible patients.
Q1 Performance: Traditionally a weaker quarter, compounded by unexpected dynamics affecting revenue.
Market Competition: Ongoing competitive pressures in the ophthalmic market, particularly in the dry eye category.

5. Notable Q&A Insights:

Gross to Net Adjustments: The company experienced higher-than-expected out-of-pocket costs for patients, leading to an adjustment in business rules to stabilize net pricing.
Sales Force Impact: Early indicators suggest positive trends in new prescription volumes following the sales force expansion.
IHEEZO Dynamics: Anticipated normalization of channel inventory and improved revenue expected in Q3 and Q4.
G-MELT Development: Progressing towards an NDA submission, with potential for significant future revenue.

Overall, Harrow is positioned for growth despite facing some short-term challenges, particularly with VEVYE. The company remains optimistic about demand trends and strategic initiatives that could drive future revenue.

HROW — Harrow Health, Inc.