Revenue growth has turned volatile with a 7.6% contraction in 2026Q1, while gross margins compressed to 61.2% from a 79.3% peak in 2025Q4.
| 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 |
|---|
| Sales/Revenue | 268.68M | 272.3M | 199.61M | 130.19M | 88.59M | 72.48M | 48.87M | 51.16M | 41.37M | 26.77M | 19.94M | 9.72M | 1.66M | 10K | 100K | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 26.22% | 36.41% | 53.32% | 46.95% | 22.24% | 48.3% | -4.48% | 23.67% | 54.52% | 34.26% | 105.25% | 485.3% | 16500% | -90% | - | - | - | - | - | - | - |
| Cost of Goods Sold | 69.57M | 67.93M | 49.24M | 39.64M | 25.38M | 18.21M | 14.46M | 16.75M | 16.52M | 13.51M | 9.83M | 5.21M | 1.09M | 0 | 0 | 0 | 0 | 1.06K | 0 | 0 | 0 |
| COGS % of Revenue | - | 24.95% | 24.67% | 30.45% | 28.65% | 25.13% | 29.59% | 32.74% | 39.93% | 50.44% | 49.3% | 53.58% | 65.84% | - | - | - | - | - | - | - | - |
| Gross Profit | 199.11M | 204.37M | 150.37M | 90.55M | 63.21M | 54.26M | 34.41M | 34.42M | 24.85M | 13.27M | 10.11M | 4.51M | 567.41K | 10K | 100K | 0 | 0 | 0 | 0 | 0 | 0 |
| Gross Margin % | 74.11% | 75.05% | 75.33% | 69.55% | 71.35% | 74.87% | 70.41% | 67.26% | 60.07% | 49.56% | 50.7% | 46.42% | 34.18% | 100% | 100% | - | - | - | - | - | - |
| Gross Profit Growth % | - | 35.91% | 66.06% | 43.25% | 16.49% | 57.7% | -0.02% | 38.49% | 87.29% | 31.23% | 124.19% | 694.84% | 5574.07% | -90% | - | - | - | - | - | - | - |
| Operating Expenses | 170.99M | 165.76M | 141.55M | 90.12M | 61.29M | 52.65M | 34.02M | 39.21M | 30.07M | 25.43M | 25.69M | 19.33M | 10.71M | 7.7M | 4.28M | 939.23K | 2.5M | 4.56M | 3.75M | 2.86M | 46.21K |
| OpEx % of Revenue | - | 60.87% | 70.91% | 69.22% | 69.18% | 72.64% | 69.62% | 76.64% | 72.68% | 94.99% | 128.82% | 198.97% | 645.42% | 76968.79% | 4279% | - | - | - | - | - | - |
| Selling, General & Admin | 86.54M | 152.91M | 0 | 0 | 0 | 39.81M | 0 | 33.1M | 29.24M | 25.02M | 24.95M | 19M | 10.48M | 6.08M | 2.98M | 827.67K | 2.31M | 1.6M | 1.76M | 2.86M | 6.21K |
| SG&A % of Revenue | - | 56.16% | - | - | - | 54.94% | - | 64.68% | 70.68% | 93.45% | 125.12% | 195.55% | 631.14% | 60807.97% | 2980% | - | - | - | - | - | - |
| Research & Development | 15.36M | 12.85M | 12.23M | 6.65M | 3.05M | 11.08M | 2.41M | 2.08M | 825K | 413K | 739K | 332K | 236.66K | 1.62M | 1.3M | 111.55K | 194.59K | 2.97M | 1.99M | 1.83M | 150K |
| R&D % of Revenue | - | 4.72% | 6.13% | 5.11% | 3.44% | 15.29% | 4.94% | 4.07% | 1.99% | 1.54% | 3.71% | 3.42% | 14.26% | 16160.82% | 1299% | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 129.32M | 83.47M | 58.24M | 1.75M | 31.61M | 4.03M | 103K | 0 | 0 | 31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -110K |
| Operating Income | 28.12M | 38.61M | 8.82M | 431K | 1.92M | 1.61M | 385K | -4.79M | -5.22M | -12.16M | -15.88M | -14.82M | -10.15M | -7.69M | -4.18M | -939K | -2.5M | -4.56M | -3.75M | -2.86M | -46.21K |
| Operating Margin % | 10.47% | 14.18% | 4.42% | 0.33% | 2.17% | 2.23% | 0.79% | -9.37% | -12.61% | -45.43% | -79.64% | -152.55% | -611.27% | -76868.79% | -4179% | - | - | - | - | - | - |
| Operating Income Growth % | - | 337.64% | 1946.87% | -77.54% | 18.9% | 319.22% | 108.03% | 8.09% | 57.11% | 23.42% | -7.15% | -46.07% | -32% | -83.94% | -345.05% | 62.48% | 45.16% | -21.84% | -31.02% | -6087.51% | - |
| EBITDA | 47.62M | 57.52M | 21.87M | 11.57M | 4.75M | 3.35M | 2.25M | -2.13M | -3.37M | -10.4M | -14.48M | -14.21M | -10.06M | -7.68M | -4.18M | -938.66K | -2.5M | -4.56M | -3.75M | -2.75M | -46.21K |
| EBITDA Margin % | 17.72% | 21.12% | 10.96% | 8.89% | 5.36% | 4.63% | 4.61% | -4.17% | -8.16% | -38.84% | -72.59% | -146.27% | -606.12% | -76812.2% | -4176.06% | - | - | - | - | - | - |
| EBITDA Growth % | 147.27% | 162.94% | 89.09% | 143.54% | 41.58% | 48.85% | 205.72% | 36.81% | 67.55% | 28.17% | -1.86% | -41.25% | -30.99% | -83.93% | -344.89% | 62.48% | 45.17% | -21.83% | -36.29% | -5847.28% | - |
| D&A (Non-Cash Add-back) | 19.5M | 18.91M | 13.05M | 11.14M | 2.83M | 1.74M | 1.87M | 2.66M | 1.84M | 1.76M | 1.41M | 610K | 85.35K | 5.66K | 2.94K | 338 | 1.06K | 1.06K | 704 | 0 | 0 |
| EBIT | 20.43M | 38.61M | 9.07M | 811K | 1.92M | 3.36M | 748K | -706K | -5.22M | -12.16M | -15.46M | -14.82M | -10.15M | -7.64M | -5.36M | -879K | -2.48M | -4.55M | -3.3M | -2.72M | -575K |
| Net Interest Income | -23.13M | -24.18M | -22.79M | -21.32M | -7.24M | -5.44M | -2.24M | -2.5M | -2.73M | -3.03M | -2.77M | -1.11M | 28.65K | 43.76K | -9.25K | 0 | -54.97K | 0 | 0 | -1.51M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10K | 13K | 32.45K | 43.76K | 15.41K | 0 | 512 | 10.44K | 67.01K | 48.44K | 0 |
| Interest Expense | 23.13M | 24.18M | 22.79M | 21.32M | 7.24M | 5.44M | 2.24M | 2.5M | 2.73M | 3.03M | 2.78M | 1.12M | 3.8K | 0 | 24.66K | 75K | 55.48K | 0 | 0 | 1.56M | -10K |
| Other Income/Expense | -39.28M | -40.33M | -26.14M | -24.14M | -15.93M | -19.49M | -3.8M | 0 | 19.84M | -757K | -3.32M | -1.08M | 28.65K | 43.76K | -1.21M | -14.71K | -28.67K | 10.44K | 375K | -1.43M | -534K |
| Pretax Income | -11.16M | -1.72M | -17.32M | -23.71M | -14.01M | -17.87M | -3.42M | -117K | 14.63M | -12.92M | -19.2M | -15.9M | -10.12M | -7.64M | -5.38M | -954K | -2.53M | -4.55M | -3.37M | -4.29M | -580K |
| Pretax Margin % | -4.16% | -0.63% | -8.68% | -18.21% | -15.81% | -24.66% | -6.99% | -0.23% | 35.35% | -48.26% | -96.27% | -163.64% | -609.52% | -76431.24% | -5384% | - | - | - | - | - | - |
| Income Tax | 3.8M | 3.42M | 161K | 701K | 75K | 133K | 4K | 8K | 0 | -935K | -111K | 0 | -28.65K | -43.76K | 0 | 0 | 0 | -10.44K | -817K | 0 | 10K |
| Effective Tax Rate % | -34% | -198.09% | -0.93% | -2.96% | -0.54% | -0.74% | -0.12% | -6.84% | 0% | 7.24% | 0.58% | 0% | 0.28% | 0.57% | 0% | 0% | 0% | 0.23% | 24.24% | 0% | -1.72% |
| Net Income | -14.96M | -5.14M | -17.48M | -24.41M | -14.09M | -18.01M | -3.36M | 168K | 14.63M | -11.98M | -19.09M | -15.9M | -10.12M | -7.64M | -5.38M | -954K | -2.53M | -4.55M | -3.3M | -4.29M | -46.21K |
| Net Margin % | -5.57% | -1.89% | -8.76% | -18.75% | -15.9% | -24.85% | -6.87% | 0.33% | 35.35% | -44.76% | -95.71% | -163.64% | -609.52% | -76431.24% | -5384% | - | - | - | - | - | - |
| Net Income Growth % | 31.04% | 70.6% | 28.39% | -73.3% | 21.77% | -436.4% | -2098.21% | -98.85% | 222.03% | 37.21% | -20.05% | -57.14% | -32.38% | -41.96% | -464.36% | 62.31% | 44.42% | -37.83% | 22.89% | -9173.69% | - |
| Net Income (Continuing) | -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 | -954K | -2.53M | -4.55M | -3.3M | -4.29M | -584K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -355K | -355K | -355K | -355K | -355K | -355K | -355K | -293K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.40 | -0.14 | -0.49 | -0.75 | -0.51 | -0.69 | -0.13 | 0.01 | 0.61 | -0.60 | -1.50 | -1.66 | -1.11 | -0.88 | -1.24 | -2.40 | -6.41 | -11.67 | -8.92 | -19.37 | -0.25 |
| EPS Growth % | 33.8% | 71.43% | 34.67% | -47.06% | 26.09% | -430.77% | -1400% | -98.36% | 201.67% | 60% | 9.64% | -49.55% | -26.14% | 29.03% | 48.33% | 62.56% | 45.07% | -30.83% | 53.95% | -7648% | - |
| EPS (Basic) | - | -0.14 | -0.49 | -0.75 | -0.51 | -0.69 | -0.13 | 0.01 | 0.67 | -0.60 | -1.50 | -1.66 | -1.11 | -0.88 | -1.24 | -2.40 | -6.41 | -11.67 | -8.92 | -19.37 | -0.25 |
| Diluted Shares Outstanding | 37.23M | 36.76M | 35.65M | 32.62M | 27.46M | 26.76M | 25.89M | 26.47M | 23.81M | 20.03M | 12.74M | 9.58M | 9.13M | 8.66M | 4.49M | 397.8K | 394.63K | 390.32K | 370.55K | 221.17K | 185.01K |
| Basic Shares Outstanding | 37.23M | 36.76M | 35.65M | 32.62M | 27.46M | 26.76M | 25.89M | 25.32M | 21.92M | 19.98M | 12.74M | 9.58M | 9.13M | 8.66M | 4.49M | 397.8K | 394.63K | 390.32K | 370.55K | 221.17K | 185.01K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High leverage and execution
According to the most recent quarterly filings, Harrow Health experienced a revenue contraction of 7.6% in 2026Q1, marking a sharp reversal from the 33.3% growth observed in 2025Q4 and highlighting the inherent instability in the company's current transactional revenue model for its ophthalmic portfolio.
The sudden shift from double-digit growth to contraction suggests that the company's reliance on elective procedure volumes may be more sensitive to market conditions than previously anticipated. Investors should monitor whether this decline represents a temporary seasonal anomaly or a fundamental saturation of the prescriber base for its branded assets.
As reported in financial statements, Harrow's gross margin deteriorated significantly to 61.2% in 2026Q1, a substantial decline from the 79.3% peak achieved in 2025Q4, which suggests that the company's pricing power or product mix may be under considerable pressure in the current competitive environment.
The erosion of gross margins indicates that the cost of goods sold is rising relative to revenue, potentially due to shifts in product mix toward lower-margin offerings or increased manufacturing costs. This trend warrants further investigation into whether the company can maintain its premium positioning as it attempts to scale its branded pharmaceutical portfolio.
Based on the provided income statement data, Harrow's operating margin plummeted to -50.0% in 2026Q1, driven by a surge in SG&A expenses to $43.2M, which indicates that the company is currently failing to achieve the necessary operating leverage to support its aggressive commercialization strategy.
The massive spike in SG&A expenses relative to revenue suggests that the company is heavily front-loading costs to drive adoption of its branded drugs. Without a corresponding and sustained increase in top-line growth, this cost structure appears unsustainable and may continue to weigh heavily on the company's bottom-line performance.
As indicated by the company's historical filings, net income has swung wildly from a $6.6M profit in 2025Q4 to a $27.6M loss in 2026Q1, reflecting significant non-operating volatility that complicates the assessment of the firm's core operational profitability and long-term earnings potential.
The inconsistency in net income appears to be exacerbated by the company's equity-method investments and potential non-cash charges, which obscure the underlying cash-generating capability of the business. Analysts should be cautious in relying on headline EPS figures, as they may not accurately reflect the true economic health of the ophthalmic operations.
Data from recent financial reports suggests that Harrow's aggressive acquisition-led growth strategy has resulted in a precarious financial position, characterized by a high debt-to-equity ratio of 4.84 that leaves the company with limited flexibility to navigate potential downturns in the elective ophthalmic surgery market.
Short-sellers would likely focus on the company's inability to generate consistent positive net income despite significant revenue expansion. The reliance on debt to fund acquisitions, coupled with the recent spike in operating losses, suggests that the company's current trajectory may be unsustainable without a rapid and successful turnaround in branded drug adoption.
Quick answers to the most common questions about buying HROW stock.
For fiscal year 2025, Harrow Health, Inc. (HROW) reported total revenue of $272.3M.
Harrow Health, Inc. (HROW) reported a net loss of $5.1M for the fiscal year ending 2025.
Harrow Health, Inc. (HROW) reported an operating income of $38.6M, resulting in an operating profit margin of 14.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Harrow Health, Inc. (HROW) generated $204.4M in gross profit for the year, representing a gross profit margin of 75.1%. This demonstrates the company's core pricing power and production efficiency.