Revenue growth of 10.9% year-over-year in Q2 2026 to $70.7M masks a sharp sequential decline from Q4 2025's $89.1M, while gross margin improved to 71.3% but operating margin fell to -15.6% as SG&A consumed 75% of revenue.
Harrow Health, Inc. (HROW) annual income statement — 20-year revenue, gross profit & net income history
| 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 | 275.59M | 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 % | 21.05% | 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 | 73.64M | 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 | 201.96M | 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 % | 73.28% | 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 | 196.26M | 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 | 139.84M | 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 | 20.56M | 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 | 1000K | 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 | 5.7M | 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 % | 2.07% | 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 | 20.63M | 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 % | 7.49% | 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 % | -33.15% | 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) | 14.93M | 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 | -10.45M | 22.46M | 9.07M | 811K | -6.77M | 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 | -22.98M | -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 | 22.98M | 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 | -39.13M | -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 | -33.43M | -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 % | -12.13% | -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 % | -11.36% | -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 | -37.23M | -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 % | -13.51% | -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 % | -263.96% | 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) | -37.23M | -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) | -1.00 | -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 % | -231.27% | 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 | 37.35M | 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 | 37.35M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
High leverage and execution risk
Metrics are mathematically derived from official filings.
Revenue Growth Volatile but Underlying Momentum
Harrow's revenue grew 10.9% year-over-year in Q2 2026 to $70.7M, but this masks a sharp sequential decline from Q4 2025's $89.1M, suggesting lumpy demand and potential seasonality.
The 10.9% growth in Q2 2026 is a deceleration from the 30-45% growth rates seen in 2025, indicating that the branded portfolio's contribution may be plateauing. The sequential drop from Q4 2025's $89.1M to Q2 2026's $70.7M suggests that the fourth quarter benefited from one-time factors, possibly related to insurance deductible resets, and that the underlying run-rate is closer to $70M. This volatility complicates the narrative of steady branded adoption and warrants monitoring of prescriber growth for VEVYE and IHEEZO.
Gross Margin Expansion Offset by SG&A Surge
Gross margin improved to 71.3% in Q2 2026 from 61.2% in Q1, but operating margin fell to -15.6% as SG&A reached $53.3M, nearly matching revenue, indicating heavy commercialization costs.
The gross margin recovery to 71.3% in Q2 2026 from 61.2% in Q1 suggests that product mix is shifting toward higher-margin branded drugs, but the absolute level remains below the 75-79% range seen in late 2025. The SG&A expense of $53.3M in Q2 2026 is a record high, reflecting the direct sales force expansion, and it is consuming nearly all gross profit. This indicates that the company is in a heavy investment phase, and margin expansion will only materialize if revenue grows faster than SG&A, which has not yet occurred.
Operating Leverage Absent as Costs Outpace Revenue
Operating income swung from a $24.0M profit in Q4 2025 to a -$11.0M loss in Q2 2026, as SG&A grew 23% sequentially while revenue fell 21%, demonstrating negative operating leverage.
The sequential deterioration in operating income from +$24.0M to -$11.0M highlights that the cost structure is not scaling with revenue. SG&A increased from $43.3M in Q4 2025 to $53.3M in Q2 2026, while revenue declined from $89.1M to $70.7M, indicating that the company is spending ahead of revenue conversion. This negative operating leverage suggests that the direct sales force investment has not yet generated sufficient incremental revenue to cover its costs, and investors should monitor whether the second-half acceleration promised by management materializes.
Net Losses Driven by Operating and Non-Operating Items
Q2 2026 net loss of -$17.3M includes -$3.8M in stock-based compensation, but the gap between operating loss of -$11.0M and net loss suggests additional non-operating charges, possibly from equity method investments.
The net loss of -$17.3M is larger than the operating loss of -$11.0M, indicating that non-operating items, such as interest expense or losses from equity method investments, are weighing on the bottom line. Stock-based compensation of $3.8M is a recurring non-cash charge that adds to the loss but does not affect cash flow. The quality of earnings is further complicated by the company's stakes in non-consolidated entities like Melt Pharmaceuticals, which can create non-cash gains or losses that obscure core operational performance. Analysts should adjust for these items to assess the true cash-generating potential of the ophthalmic business.
SG&A Dominates Cost Structure, R&D Minimal
SG&A of $53.3M in Q2 2026 represents 75% of revenue, while R&D is only $8.1M, indicating a commercial-first strategy that prioritizes sales force expansion over research investment.
The cost structure is heavily skewed toward SG&A, which has grown from $43.3M in Q4 2025 to $53.3M in Q2 2026, reflecting the direct sales force build-out. R&D remains a minor expense at $8.1M, suggesting that the company is not investing heavily in new drug development but rather in commercializing acquired assets. This strategy may be appropriate for a consolidator model, but it leaves the company vulnerable to margin compression if the sales force does not generate sufficient revenue. The lack of R&D investment also raises questions about the long-term pipeline and reliance on acquisitions for growth.
Q4 2025 Peak Marks Turning Point
Q4 2025 was the inflection point, with revenue of $89.1M, operating income of $24.0M, and net income of $6.6M, the only profitable quarter in the last five, driven by a surge in branded sales.
Q4 2025 stands out as the peak of profitability, with gross margin at 79.3% and operating margin at 27.0%, likely benefiting from a one-time boost in branded product sales and possibly favorable seasonality. However, the subsequent quarters show a sharp reversal, with Q1 2026 revenue falling to $44.2M and Q2 2026 recovering to $70.7M but still below the Q4 peak. This suggests that Q4 2025 may have included non-recurring items or that the company's growth is not linear. The lasting impact is that the company has set a high bar for profitability that it has not yet matched, and the path to consistent profitability remains uncertain.
High Leverage and Cost Overrun Risks
With a debt-to-equity ratio of 4.84 and SG&A consuming 75% of revenue, Harrow's aggressive expansion could lead to sustained losses if revenue growth stalls, making the stock vulnerable to interest rate hikes.
The company's high leverage amplifies the risk of its cost overruns. If the second-half acceleration does not materialize, the company may face liquidity constraints, as interest expense on its debt could consume a growing share of cash flow. The Q2 2026 EPS miss of -$0.46 versus -$0.24 consensus suggests that the market's expectations for cost control were too optimistic. Short-sellers would likely focus on the unsustainable gap between SG&A growth and revenue growth, arguing that the company is burning cash to buy growth that may not be durable. The reliance on equity method investments for potential gains also adds volatility to reported earnings, which could mask underlying operational deterioration.