Harrow, Inc. reported a total revenue of $70.7 million for the three months ended June 30, 2026, marking a 14.9% increase from $63.7 million in the same period of 2025. For the first half of 2026, revenues reached $114.9 million, a slight increase from $111.6 million in the prior year. The company's product sales, which constitute the majority of its revenue, increased to $70.6 million in Q2 2026 from $63.7 million in Q2 2025. However, the company experienced a net loss of $17.3 million for the quarter, compared to a net income of $5 million in the previous year, reflecting a significant shift in profitability.
The financial performance of Harrow was impacted by a substantial rise in operating expenses, which totaled $61.4 million for the second quarter of 2026, up from $36.1 million in the same quarter of 2025. This increase was primarily driven by higher selling, general, and administrative expenses, which rose to $53.3 million from $33.2 million, largely due to increased personnel costs and stock-based compensation. Research and development expenses also surged to $8.1 million from $2.9 million, reflecting ongoing investments in clinical trials and product development.
In terms of strategic developments, Harrow announced the acquisition of global rights to TYRVAYA®, a nasal spray indicated for dry eye disease, from Viatris Inc. The deal, valued at $30 million upfront with potential additional milestone payments of up to $70 million, is expected to enhance Harrow's product portfolio. Additionally, the company issued $50 million in senior notes due 2030, which provided significant liquidity to support its operations and strategic initiatives.
Operationally, Harrow's cash and cash equivalents increased to $83.9 million as of June 30, 2026, compared to $72.9 million at the end of 2025. The company reported a net cash used in operating activities of $18.7 million for the first half of 2026, a stark contrast to the $18.9 million generated in the same period of 2025. The decline in cash flow was attributed to a higher net loss and unfavorable changes in accounts receivable. The company also noted a decrease in compounding revenue, which fell to $14.6 million in Q2 2026 from $21.5 million in Q2 2025, primarily due to reduced volume and the discontinuation of certain products.
Looking ahead, Harrow remains focused on expanding its portfolio and enhancing operational efficiencies. The company anticipates that its current cash position will be sufficient to sustain operations and support planned capital expenditures for at least the next 12 months. However, it acknowledges the potential need for additional financing to support growth initiatives and acquisitions, particularly as it continues to navigate the competitive landscape of the eyecare pharmaceutical market.
About HARROW, INC.
Harrow, Inc. is a pharmaceutical company specializing in ophthalmic products, including FDA-approved branded drugs and compounded medications. It serves U.S. eye care professionals with a broad portfolio of prescription and non-prescription treatments for conditions like dry eye, infections, inflammation, and surgical needs. The company owns ImprimisRx, a leading ophthalmology-focused compounding business, and leverages proprietary formulations, patents, and strategic licensing to provide accessible, affordable eye care solutions.
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