Harrow, Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Harrow reported second quarter 2026 revenue of $70.7 million, up 11% year over year and approximately 60% sequentially, bringing first half revenue to approximately $115 million.
- GAAP gross margin was 71% in the second quarter, with expectations to trend back towards the high 70s in the second half.
- Adjusted EBITDA was -$1.2 million for the quarter.
- The company expanded its commercial organization, improved product economics, strengthened its portfolio, launched Byooviz, and built physician demand across key growth drivers in the first half of 2026.
- ISO generated the highest quarterly unit demand in its history despite loss of pass through reimbursement, with record new account growth and normalized channel inventory.
- VVI prescriptions increased 21% sequentially, with a 15% growth in prescriber base and record quarterly revenue, benefiting from revised business rules and expanded commercial coverage.
- Triesence reached another quarterly demand record, with over half of unit demand from ocular surgery, and the surgical commercial organization tripled in size.
- Byooviz was launched on July 1st with encouraging early reception.
- The specialty portfolio showed growth with Kazia relaunch and Iopidine benefiting from a permanent J code.
- Harrow is acquiring global rights to Tyrvaya, a dry eye product approved in the US and China and under review in five other countries, expected to modestly contribute revenue in 2026.
- The company ended the quarter with $83.9 million in cash and expects to fund the $30 million upfront consideration for the Tyrvaya transaction with cash on hand.
- The company reiterated full year 2026 guidance of $350 million to $365 million in revenue and $80 million to $100 million in adjusted EBITDA.
- Harrow expects sequential revenue growth in both third and fourth quarters, with the largest step up in the fourth quarter.
- The adjusted EBITDA is expected to improve due to higher revenue, increased gross margins, and a stable operating expense base.
- Post-closing of the Tyrvaya transaction, Harrow expects to expand its dry eye sales force, increasing SG&A expenses by approximately $20 million annually, with Tyrvaya expected to contribute more than $30 million in revenue in 2027 and be financially accretive.
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Transcript
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Good morning, and welcome to Harrow's second quarter 2026 earnings conference call. My name is Michelle, and I will be the operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. As a reminder, this conference is being recorded. I would now like to turn the conference over to Mike Biega, Vice President of Investor Relations and Communications for Harrow. Please go ahead. Thank you, operator.
Good morning, and welcome to Harrow's second quarter 2026 earnings conference call. My name is Mike Biega, Vice President of Investor Relations and Communications, and I am excited to be introducing today's call. The company's remarks may include forward-looking statements within the meaning of federal securities laws. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond Harrow's control, including risks and uncertainties described from time to time in its SEC filings, such as the risks and uncertainties related to the company's ability to make commercially available its FDA-approved products and compounded formulations and technologies, and FDA approval of certain drug candidates in a timely manner or at all.
For a list and description of those risks and uncertainties, please see the Risk Factors section of the company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Harrow's results may differ materially from those projected. Harrow disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of today. Additionally, Harrow will refer to non-GAAP financial metrics, specifically adjusted EBITDA. A reconciliation of any non-GAAP measures with the most directly comparable GAAP measures is included in the company's earnings release and letter to stockholders, both of which are available on the website. Joining me on today's call are Mark L.
Baum, Chief Executive Officer, Andrew Boll, President and Chief Financial Officer, Patrick Sullivan, Chief Commercial Officer, and Amir H. Shojaei, Chief Scientific Officer. With that, I would like to turn the call over to Mark.
Mark? Thank you, Mike, and good morning, everyone.
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