Harrow (HROW) investor relations material

Executive summary

• Q2 2026 revenue reached $70.7 million, up 60% sequentially and 10.9–11% year-over-year, driven by branded product growth, especially VEVYE, and supported by major commercial and operational initiatives.

• Net loss for Q2 2026 was $17.3 million, compared to net income of $5.0 million in Q2 2025, reflecting higher operating expenses and R&D investments.

• Multiple growth drivers—including VEVYE, IHEEZO, TRIESENCE, BYOOVIZ, and specialty portfolio—are positioned for meaningful contributions in the second half and beyond.

• Acquisition of TYRVAYA for $30 million upfront and up to $70 million in milestones is expected to expand the dry eye franchise and enhance market leadership.

• Major product launches and pipeline advancements, including BYOOVIZ and G-MELT, are expected to drive durable growth through 2029.

Financial highlights

• Q2 2026 revenue was $70.7 million, up 11% year-over-year and 60% sequentially; first half revenue totaled $115 million.

• Gross margin for Q2 2026 was 71–71.3%, down from 74.5% in Q2 2025, due to product mix and higher amortization.

• Adjusted EBITDA for Q2 2026 was $(1.2) million, compared to $17.0 million in Q2 2025; net loss per share was $(0.46).

• Cash and cash equivalents stood at $83.9 million as of June 30, 2026.

• Debt at June 30, 2026 was $292.4 million in 8.625% Senior Notes due 2030.

Outlook and guidance

• Full-year 2026 guidance reiterated: $350–$365 million in revenue and $80–$100 million in adjusted EBITDA.

• Second half revenue implied at $235–$250 million, with sequential growth expected in both Q3 and Q4, and a larger step-up in Q4.

• TYRVAYA expected to contribute modest revenue in 2026 and over $30 million in 2027, with integration costs front-loaded but accretive thereafter.

• At least one new product launch per year anticipated through 2029.

• Management expects current cash to fund operations and planned acquisitions for at least 12 months.