Free cash flow generation remains highly unstable, swinging from a $19.5M inflow in 2025Q1 to a $9.2M burn in 2026Q1, complicating the assessment of core operational cash conversion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 15.2M | 43.86M | -22.2M | 3.84M | 1.71M | 5.08M | -1.1M | 950K | 687K | -8.8M | -11.21M | -11.14M | -7.06M | -4.44M | -1.9M | -291.16K | -2.3M | -3.57M | -2.53M | -1.76M | -40.06K |
| Operating CF Margin % | - | 16.11% | -11.12% | 2.95% | 1.92% | 7.01% | -2.25% | 1.86% | 1.66% | -32.88% | -56.24% | -114.69% | -425.03% | -44389.44% | -1900.84% | - | - | - | - | - | - |
| Operating CF Growth % | 534.46% | 297.57% | -678.18% | 125.22% | -66.45% | 562% | -215.79% | 38.28% | 107.8% | 21.51% | -0.65% | -57.94% | -58.94% | -133.53% | -552.85% | 87.33% | 35.64% | -40.94% | -43.65% | -4302.89% | - |
| Net Income | -14.96M | -5.14M | -17.48M | -24.41M | -14.09M | -18.01M | -3.42M | -125K | 14.63M | -11.98M | -19.09M | -15.9M | -10.12M | -7.64M | -5.38M | -953.94K | -2.53M | -4.55M | -3.3M | -4.28M | -46.21K |
| Depreciation & Amortization | 21.64M | 19.68M | 14.54M | 12.34M | 3.67M | 2.4M | 2.74M | 2.66M | 1.84M | 1.76M | 1.41M | 610K | 85.35K | 5.66K | 2.94K | 338 | 1.06K | 1.06K | 704 | 201.25K | 0 |
| Stock-Based Compensation | 11.78M | 12.5M | 17.62M | 15.7M | 7.97M | 5.75M | 2.77M | 2.02M | 2.64M | 2.94M | 3.67M | 3.44M | 2.61M | 3.13M | 2.16M | 192.15K | 680.2K | 509.5K | 562.44K | 184.52K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.4M | -22.47M | -935K | -111K | 0 | -2.61M | -293.14K | 1.2M | -60.29K | 209.3K | -509.5K | -562.44K | -184.52K | 0 |
| Other Non-Cash Items | 1.44M | 16.64M | 7.75M | 7.35M | 9.72M | 15.2M | 3.07M | 512K | 613K | -1.29M | 3.59M | 380K | 2.61M | 293.14K | 24.66K | 329.14K | 55.48K | 538.55K | 904.15K | 1.83M | 1.2K |
| Working Capital Changes | -4.7M | 185K | -44.63M | -7.13M | -5.57M | -253K | -6.27M | -1.72M | 3.44M | 700K | -683K | 325K | 362.71K | 63.55K | 103.07K | 201.44K | -713.11K | 443.27K | -133.95K | 486.56K | 4.95K |
| Change in Receivables | -24.36M | 5.01M | -80.23M | -30.34M | -1.86M | -1.83M | -866K | -95K | -384K | 1.39M | -2.08M | -360K | -22.9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -5.78M | -2.82M | 165K | -4.33M | -2.32M | -255K | -661K | -2.27M | 415K | -821K | -429K | -314K | -159.54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 22.78M | -4.61M | 37.5M | 31.8M | 933K | 1.73M | -4.66M | 1.34M | 2.37M | 346K | 1.51M | 1.03M | 345.36K | -239.8K | 231.44K | 144.98K | -607.38K | 124.62K | 2K | 612.56K | 0 |
| Cash from Investing | -23.45M | -5.46M | -33.16M | -152.55M | -1.74M | -18.69M | -981K | -1.83M | -2.2M | -961K | -7.29M | -5.13M | -910.53K | -70K | -15.49K | 0 | 0 | 0 | -3.15K | 0 | 0 |
| Capital Expenditures | -1.1M | -1.1M | -1.59M | -1.46M | -2.6M | -1.79M | -862K | -1.84M | -2.2M | -1.07M | -7.14M | -1.18M | -173.99K | -20K | -15.49K | 0 | 0 | 0 | -3.15K | 0 | 0 |
| CapEx % of Revenue | 0.41% | 0.4% | 0.8% | 1.12% | 2.93% | 2.46% | 1.76% | 3.59% | 5.32% | 4.01% | 35.8% | 12.14% | 10.48% | 200.03% | 15.49% | - | - | - | - | - | - |
| Acquisitions | -4.36M | -4.36M | 0 | 0 | 0 | 9.83M | 0 | 4K | 0 | 113K | -100K | -3.43M | -636.37K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 7K | 0 | -37.08M | -151.09M | 854K | -36.55M | -119K | 0 | 4K | 113K | -100K | -524K | -845.71K | -50K | -15.49K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 36.16M | -12.72M | 28.53M | 126.53M | 54.14M | 51.47M | 1.43M | -1.01M | 4.13M | 4.93M | 24.67M | 10.75M | 598.14K | 10.05M | 11.81M | 145.86K | 1M | 49.5K | 3.94M | 5.47M | 0 |
| Debt Issued (Net) | 60.73M | 11.84M | 29.78M | 74.64M | 31.72M | 71.07M | 2.96M | -1.49M | -691K | 893K | -267K | 9.24M | -10K | 0 | 450K | 300K | 1M | 0 | 0 | 1.5M | 0 |
| Equity Issued (Net) | -12.4M | 467K | 0 | 64.52M | 22.66M | -345K | 0 | 769K | 642K | 4.06M | 20.52M | 404K | 609K | 10.05M | 11.51M | 100K | 0 | 49.5K | 3.94M | 3.86M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -127K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -12.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13K | -191 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -12.16M | -25.04M | -1.25M | -12.63M | -234K | -19.12M | -1.53M | -282K | 4.18M | -27K | 4.42M | 1.1M | -862 | 0 | 50K | -254.14K | 0 | 0 | 0 | 105.91K | 0 |
| Net Change in Cash | 27.92M | 25.68M | -26.84M | -22.18M | 54.1M | 37.87M | -648K | -1.89M | 2.62M | -4.83M | 6.17M | -5.53M | -7.37M | 5.54M | 9.89M | -145.3K | -1.3M | -3.52M | 1.4M | 3.71M | -6.8M |
| Free Cash Flow | 14.29M | 42.98M | -60.88M | -148.71M | -6.07M | -23.43M | -2.09M | -887K | -1.52M | -9.88M | -18.35M | -12.32M | -7.23M | -4.46M | -1.92M | -291.16K | -2.3M | -3.57M | -2.54M | -1.76M | -40.06K |
| FCF Margin % | 5.32% | 15.78% | -30.5% | -114.22% | -6.85% | -32.33% | -4.28% | -1.73% | -3.66% | -36.89% | -92.04% | -126.83% | -435.51% | -44589.47% | -1916.33% | - | - | - | - | - | - |
| FCF Growth % | 139.02% | 170.6% | 59.06% | -2350.77% | 74.1% | -1018.91% | -136.08% | 41.49% | 84.65% | 46.19% | -48.94% | -70.46% | -62.13% | -132.68% | -558.17% | 87.33% | 35.64% | -40.77% | -43.83% | -4302.89% | - |
| FCF per Share | 0.38 | 1.17 | -1.71 | -4.56 | -0.22 | -0.88 | -0.08 | -0.03 | -0.06 | -0.49 | -1.44 | -1.29 | -0.79 | -0.52 | -0.43 | -0.73 | -5.82 | -9.15 | -6.85 | -7.97 | -0.22 |
| FCF Conversion (FCF/Net Income) | -0.96x | -8.54x | 1.27x | -0.16x | -0.12x | -0.28x | 0.33x | 5.65x | 0.05x | 0.73x | 0.59x | 0.70x | 0.70x | 0.58x | 0.35x | 0.31x | 0.91x | 0.78x | 0.77x | 0.41x | 0.87x |
| Interest Paid | 5.79M | 0 | 20.59M | 18.89M | 6.48M | 4.82M | 1.79M | 1.97M | 2.1M | 1.54M | 1.37M | 637K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 374K | 0 | 75K | 11K | 4K | 17K | 4K | 9K | 9K | 1K | 1K | 1.6K | 1.6K | 2.4K | 0 | 0 | 0 | 0 | 0 |
High leverage and execution
According to recent SEC filings, Harrow's operating cash flow to net income ratio has fluctuated wildly, reaching a negative 0.33 in 2026Q1, which suggests that reported accounting profits are frequently decoupled from the actual cash-generating capacity of the company's core ophthalmic pharmaceutical operations.
The persistent divergence between net income and operating cash flow indicates that non-cash items and working capital swings are significantly distorting the firm's true economic performance. Investors should monitor whether this lack of conversion is a temporary byproduct of aggressive commercialization or a structural issue inherent in the company's revenue recognition model.
As reported in financial statements, Harrow's free cash flow trajectory has been erratic, swinging from a positive $19.5M in 2025Q1 to a negative $9.2M in 2026Q1, highlighting the difficulty in maintaining consistent cash generation while scaling a high-fixed-cost branded pharmaceutical portfolio.
The inability to sustain positive free cash flow suggests that the company's current business model is highly sensitive to operational disruptions and the timing of product launches. This volatility warrants further investigation into whether the firm can achieve self-sustaining cash flow before its existing liquidity buffers are exhausted.
Based on Harrow's reported figures, working capital changes have been a major source of cash flow volatility, including a significant $8.7M inflow in 2026Q1 that masked underlying operational weakness, suggesting that management is relying on balance sheet management to offset core cash burn.
The frequent and large shifts in working capital indicate potential inefficiencies in inventory management or accounts receivable collections as the company transitions to a branded model. Such fluctuations make it difficult to discern the underlying health of the business without adjusting for these non-recurring timing differences.
Data from recent filings indicates that Harrow has utilized capital for both strategic acquisitions and share repurchases, such as the $12.8M buyback in 2025Q2, despite the company's ongoing struggle to generate consistent positive free cash flow from its core pharmaceutical operations.
This deployment strategy appears to prioritize growth and shareholder signaling over the preservation of liquidity, which may be risky given the company's high debt-to-equity ratio. Investors should monitor whether these capital outflows are sustainable in the absence of a clear path to consistent bottom-line profitability.
Quick answers to the most common questions about buying HROW stock.
Harrow Health, Inc. (HROW) generated $43.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Harrow Health, Inc. (HROW) generated $43.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Harrow Health, Inc. (HROW) spent $1.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.