Harrow, Inc. Reports 30% Revenue Growth and Net Income Turnaround in Q2 2025

Harrow, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues for the three months ended June 30, 2025, reaching $63.7 million, a 30% increase from $48.9 million in the same period last year. For the six months ended June 30, 2025, revenues totaled $111.6 million, up from $83.5 million in 2024. The increase was primarily driven by higher product sales, particularly from its branded ophthalmology products, including IHEEZO and VEVYE, which saw substantial growth in units sold.

The company also reported a net income of $5.0 million for the second quarter of 2025, a notable turnaround from a net loss of $6.5 million in the same quarter of 2024. For the first half of 2025, Harrow's net loss narrowed to $12.8 million from $20.0 million in the prior year. The gross profit for the second quarter was $47.5 million, compared to $36.4 million in the previous year, reflecting a gross margin of 74.4%. This improvement in profitability was attributed to increased sales volume and operational efficiencies.

Strategically, Harrow has made significant moves, including the acquisition of exclusive U.S. commercial rights to BYQLOVI, a new ophthalmic steroid, and a commercialization agreement with Samsung Bioepis for BYOOVIZ and OPUVIZ. These agreements are expected to enhance Harrow's product portfolio and market presence. Additionally, the company has initiated Project Beagle, aimed at transitioning patients from compounded formulations to FDA-approved products, which is expected to streamline operations and improve compliance with regulatory standards.

Operationally, Harrow's customer base remains strong, with a focus on expanding its market share in the ophthalmic sector. The company reported a decrease in accounts receivable by $37.2 million, indicating improved cash flow management and collection efforts. As of June 30, 2025, Harrow had cash and cash equivalents of $53.0 million, up from $47.2 million at the end of 2024, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Harrow's management expressed confidence in its ability to refinance its existing debt obligations, including the Oaktree Loan and 2026 Notes, which total $107.5 million and $75 million, respectively. The company is actively engaged in discussions with lenders to secure favorable refinancing terms. However, management acknowledged the potential risks associated with market conditions and regulatory compliance, which could impact future performance.