Harrow Q3 revenue slightly beats estimates on branded product growth; cuts EBITDA outlook

Overview

• U.S. ophthalmic solutions provider's Q3 revenue rose 39% yr/yr, slightly beating analyst expectations

• Q3 adjusted EBITDA declined yr/yr

• Company reaffirmed revenue guidance but lowered full-year Adjusted EBITDA outlook

Outlook

• Company reaffirms 2026 revenue guidance of $350 mln to $365 mln

• Company lowers 2026 Adjusted EBITDA outlook to more than $40 mln from $80 mln-$100 mln prior

• Company expects Q4 to benefit from VEVYE, TRIESENCE growth and TYRVAYA’s initial revenue contribution

Result Drivers

• BRANDED PRODUCTS - Branded revenue rose 62% yr/yr to $83.5 mln, led by record VEVYE and TRIESENCE revenue and higher IHEEZO sales

• VEVYE GROWTH - VEVYE achieved record revenue, attributed to higher prescriptions, better economics, and expanded sales force productivity

• TRIESENCE AND IHEEZO - TRIESENCE posted its highest revenue under Harrow ownership and IHEEZO unit demand increased 21% yr/yr

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Harrow, Inc. is $60.00, about 123.1% above its November 6 closing price of $26.89

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 27 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)