Harrow (HROW): Strong Product Momentum Meets A Steep H2 Revenue Target

Harrow (HROW): Strong Product Momentum Meets A Steep H2 Revenue Target

Thu, August 20, 2026 at 3:24 PM GMT+3 4 min read

• HROW +5.36%

On August 10, Harrow Inc. (NASDAQ:HROW) walked investors through a first half that fell short and a back half that now has to make up the difference. Revenue for the first six months of 2026 came in around $115 million, lighter than management had expected, largely because of pricing changes tied to VEVYE. Yet the company reiterated its full-year guidance of $350 million to $365 million, which means the back half alone needs to bring in roughly $235 million to $250 million.

Bull Case: Momentum Building Across The Portfolio

IHEEZO lost pass-through reimbursement for cataract surgery on April 1, yet it still delivered a record 65,477 units of quarterly demand, up 44% sequentially and 34% year over year. Ordering accounts reached 224, up 32% year over year, with 62 of those placing a first-ever order, the strongest new-account quarter since launch. Net pricing on the product improved roughly 25% starting July 1, and gross margins now exceed 90%.

VEVYE grew prescriptions 21% sequentially, ahead of the 14% growth in the broader branded dry eye market, while its prescriber base expanded 15%. Quarterly revenue hit $29.4 million, up nearly 58% year over year, even as management pulled back on copay card usage to drive a higher average selling price. Growing faster while improving unit economics at the same time is not something companies pull off often. VEVYE's share of the branded dry eye market rose to 14.6%, up from 14% in March and 7.8% a year earlier.

TRIESENCE posted record demand of 14,529 units, up 162% year over year, with 54% of that volume now coming from ocular surgery rather than its traditional retina base. Harrow tripled its surgical sales team during the quarter. The company also has a pending deal for TYRVAYA, a nasal spray dry eye treatment approved in the US and China and under review in five more countries, which management expects to add more than $30 million in revenue in 2027.

Bear Case: A Steep Climb To Guidance

The math behind that guidance is the central risk here. Harrow needs $235 million to $250 million in second-half revenue after generating just $115 million in the first half, and CFO Andrew Boll acknowledged that "we recognize the magnitude of the second-half ramp." That leaves little room for any of the moving pieces, IHEEZO's pricing gains, VEVYE's new business rules, or TRIESENCE's surgical buildout, to come in soft.

Profitability hasn't shown up yet either. Adjusted EBITDA was negative $1.2 million for the quarter, and the pending TYRVAYA acquisition adds roughly $20 million in annualized SG&A once Harrow integrates the sales reps it's picking up from Viatris, ahead of any meaningful revenue contribution this year. The $30 million upfront payment for TYRVAYA is being funded with cash on hand, leaving Harrow with $83.9 million in cash and equivalents heading into a bigger commercial buildout.

Wall Street Still Skeptical

Hedge fund ownership in Harrow slipped to 22 funds in the most recent quarter from 24 the quarter before, a modest pullback in institutional conviction. Short interest sits at 20.14% of the float, a level that points to heavy organized skepticism. As of August 19, Yahoo Finance reports that the company's shares trade at a forward P/E of 263.16, a multiple that already prices in years of growth management is promising for the second half.

The Second Half Test

Harrow enters the second half with real momentum in IHEEZO, VEVYE, and TRIESENCE, plus a new dry eye asset in TYRVAYA. But the guidance management reiterated on August 11 requires that momentum to more than double the pace of revenue set in the first half within two quarters. For the growth case to hold, IHEEZO's pricing gains and VEVYE's prescription trends need to keep compounding without a stumble.

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