Harrow (HROW) investor relations material

Executive summary

• Q1 2026 revenue was $44.2M, impacted by an $8M non-recurring gross-to-net adjustment for VEVYE, but demand for VEVYE, IHEEZO, and TRIESENCE remained strong, with VEVYE achieving 14% market share and surpassing XIIDRA.

• Maintains the largest U.S. portfolio of prescription ophthalmic products, with commercial infrastructure supporting rapid integration of new products and acquisitions.

• Cash and cash equivalents stood at $94.6M as of March 31, 2026, up from $72.9M at year-end 2025, mainly due to a $50M senior notes issuance.

• Net loss widened to $27.6M from $17.8M year-over-year, reflecting higher operating and R&D expenses.

• Commercial investments, including doubling the sales force and expanding teams, are complete and expected to drive sustained revenue growth.

Financial highlights

• Q1 2026 consolidated revenue was $44.2M, down from $47.8M in Q1 2025; Adjusted EBITDA was -$12.7M.

• Gross margin was 61% in Q1 2026, compared to 68% in Q1 2025.

• VEVYE revenue was $20.9M, IHEEZO $1.9M, TRIESENCE $7.8M, and Access+ $13.5M.

• Operating expenses rose to $49.1M from $43.5M, driven by increased personnel and R&D costs.

• Cash and equivalents stood at $94.6M as of March 31, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $350M–$365M, with Q2 revenue expected between $71M and $81M.

• Second half of 2026 expected to be stronger, driven by expanded sales force, improved net pricing, and new product launches (BYOOVIZ, BYQLOVI, OPUVIZ).

• VEVYE expected to exceed $100M in revenue for 2026.

• Management expects current cash reserves to sustain operations for at least the next 12 months.

• Plans include pursuing acquisitions, product development, and potential asset sales to support growth.