Harrow, Inc. Reports Decline in Revenue and Increased Net Loss in Q1 2026

Harrow, Inc. reported a decline in financial performance for the first quarter of 2026, with total revenues of $44.2 million, down from $47.8 million in the same period of 2025. The decrease was primarily driven by a reduction in product sales, which fell to $44.1 million from $47.7 million year-over-year. The company also experienced a net loss of $27.6 million, compared to a loss of $17.8 million in the prior year, resulting in a basic and diluted net loss per share of $(0.74), up from $(0.50) in the first quarter of 2025.

In terms of operational metrics, Harrow's cost of sales increased to $17.2 million from $15.5 million, leading to a gross profit of $27.0 million, down from $32.3 million. The gross margin also contracted, reflecting a shift in product mix and increased deductions related to gross-to-net revenue. Selling, general, and administrative expenses rose to $43.2 million, up from $40.5 million, largely due to increased personnel costs associated with expanding the workforce to support growth initiatives. Research and development expenses also increased significantly to $5.9 million from $3.0 million, reflecting ongoing clinical trials for new drug candidates.

Harrow's balance sheet showed total assets of $419.5 million as of March 31, 2026, an increase from $399.5 million at the end of 2025. The company’s cash and cash equivalents rose to $94.6 million, up from $72.9 million, bolstered by financing activities that included the issuance of $50 million in additional senior notes due 2030. Total liabilities increased to $391.2 million, primarily due to the new debt issuance, which raised the notes payable to $292.1 million from $243.2 million.

Strategically, Harrow has made significant moves in the market, including the acquisition of product rights and the expansion of its portfolio of branded ophthalmic products. The company capitalized on a $7 million payment related to a settlement with Santen Pharmaceuticals and a $4 million upfront payment to Samsung Bioepis for a development agreement. These acquisitions are expected to enhance Harrow's product offerings and market presence. The company continues to focus on increasing its market share in the ophthalmic pharmaceutical sector, with plans to leverage its cash reserves for future growth opportunities.

Looking ahead, Harrow anticipates that its current cash position will support operations and capital expenditures for at least the next 12 months. However, the company acknowledges the potential need for additional financing to support its growth strategy, which may include acquisitions and further development of its product pipeline. The management remains cautious about market conditions and regulatory challenges that could impact future performance, emphasizing the importance of maintaining operational efficiencies and optimizing pricing strategies.