Harrow (HROW): Strong Product Momentum Meets A Steep H2 Revenue Target

On August 11, Harrow Inc. (NASDAQ:HROW) shared that the latest full-year revenue forecast of $350 million to $365 million remains intact, even as the first half of 2026 fell short of expectations. The company aims to make up the difference with a strong second half, with projections of $235 million to $250 million in revenue for the remaining six months. The decline in H2 revenue is mainly due to pricing changes related to VEVYE.

In first-half results, adjusted EBITDA was negative $1.2 million, raising concerns about profitability. Harrow still has $83.9 million in cash and equivalents as of August 19. Hedge fund ownership in the company decreased slightly to 22 funds from 24 in the previous quarter, reflecting a minor reduction in institutional confidence.

Despite the challenges, Harrow's second-half momentum looks promising, driven by strong performance in IHEEZO, VEVYE, and TRIESENCE, as well as the upcoming approval of TYRVAYA. However, the growth targets management set for the second half place considerable pressure on the company's ability to double the first-half revenue growth within just two quarters.