The Q1 miss is largely a one-time gross-to-net adjustment, not a demand problem — VEVYE prescriptions are surging. The Q2 guidance of $71M-$81M implies a dramatic rebound, making the next quarter's actuals the key catalyst. Watch for Q2 pre-announcements or channel checks on VEVYE net pricing; if Q2 revenue comes in near the high end ($81M), the stock could re-rate sharply higher.
Price Chart
Executive Summary
Harrow reported Q1 2026 revenue of $44.2M, down 7.6% YoY from $47.8M, and a GAAP net loss per share of -$0.74, significantly wider than the -$0.50 loss a year ago. The revenue miss was driven by an $8M non-recurring gross-to-net adjustment tied to new VEVYE commercial coverage, but the company reaffirmed full-year 2026 revenue guidance of $350M-$365M and guided Q2 2026 revenue of $71M-$81M, implying a sharp sequential rebound.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $44.2M vs consensus $52.5M (miss of ~15.8%), down 7.6% YoY from $47.8M
- GAAP net loss per share -$0.74 vs consensus -$0.33 (miss of 124% vs estimate, but GAAP loss widened from -$0.50 YoY)
- Revenue included ~$8M non-recurring gross-to-net adjustment related to new VEVYE commercial coverage
- Q2 2026 revenue guidance $71M-$81M, implying strong sequential recovery
- Full-year 2026 revenue guidance reaffirmed at $350M-$365M
- VEVYE prescription growth ~170% sequentially in new PBM Tier 1 accounts; surpassed XIIDRA on monthly TRx basis with ~14% market share
- IHEEZO unit demand +18% YoY; TRIESENCE unit demand +136% YoY (sixth consecutive quarter of growth)
- Cash and equivalents $94.6M as of March 31, 2026, up from $72.9M at year-end 2025
- Operating cash flow -$9.0M in Q1 2026 vs +$19.7M in Q1 2025
- Adjusted EBITDA -$12.7M vs -$2.0M in prior-year quarter
Financial Impact
Revenue miss of ~$8.3M vs consensus due to $8M gross-to-net adjustment; GAAP EPS miss of -$0.74 vs -$0.33 consensus; guidance implies Q2 revenue of $71M-$81M, well above Q1's $44.2M
Risk Factors
- Q1 GAAP loss widened significantly (-$0.74 vs -$0.50) and operating cash flow turned negative (-$9.0M vs +$19.7M), raising near-term liquidity concerns despite $94.6M cash
- Full-year guidance of $350M-$365M implies H2 revenue must accelerate meaningfully — any miss on Q2 or Q3 could trigger a sharp selloff
- Debt of $292M (up from $243M at year-end) increases financial leverage and interest expense burden
- Gross margin compressed to 61% from 68% YoY, partly due to the gross-to-net adjustment; sustainability of margin recovery is uncertain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3292306 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | 8-K | $30.58 $30.35 | ▼ −0.75% | ▼ −1.30% | $28.75 (−5.98%) |
Oct 5, 2026 21d ago | Press Release | $30.58 $30.35 | ▼ −0.75% | ▼ −1.30% | $28.75 (−5.98%) |
Aug 10, 2026 10w ago | 8-K | $39.42 $39.36 | ▼ −0.15% | ▼ −0.40% | $28.75 (−27.07%) |
Aug 10, 2026 10w ago | Press Release | $39.42 $39.36 | ▲ +0.15% | ▲ +0.40% | $28.75 (+27.07%) |
Aug 6, 2026 11w ago | 8-K | $39.92 $40.44 | ▲ +1.30% | ▲ +0.69% | $28.75 (−27.98%) |
Jul 27, 2026 13w ago | Press Release | $37.46 | awaiting T+1 | — | $28.75 (−23.25%) |
Jul 20, 2026 14w ago | Press Release | $44.45 $43.71 | ▼ −1.66% | ▼ −2.50% | $28.75 (−35.32%) |
Jun 11, 2026 19w ago | Institutional Cluster | $37.64 $38.93 | ▲ +3.43% | ▲ +1.66% | $28.75 (−23.62%) |
Jun 11, 2026 19w ago | Institutional Cluster | $37.65 $37.64 | ▼ −0.03% | ▼ −0.57% | $28.75 (−23.64%) |
Jun 3, 2026 20w ago | 8-K | $33.32 $34.69 | ▲ +4.11% | ▲ +3.71% | $28.75 (−13.72%) |
US Market Status
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