We came across a bullish thesis on Harrow, Inc. on MVC Investing’s Substack by M. V. Cunha. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.’s share was trading at $47.69 as of February 16th. HROW’s trailing and forward P/E were 9.64 and 44.25 respectively according to Yahoo Finance.
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Harrow, Inc., an eyecare pharmaceutical company, engages in the discovery, development, and commercialization of ophthalmic pharmaceutical products. HROW delivered a strong Q3, reporting record revenue of $71.6M, up 45% YoY and 12% QoQ, with adjusted EBITDA of $22.7M (+158% YoY) and a 31.7% margin. Non-GAAP EPS of $0.35 exceeded expectations, reflecting stable operating expenses and increasing operating leverage. Gross margins remained robust at 75% GAAP and 81% non-GAAP.
While 2025 revenue guidance was slightly lowered to $270–280M due to a one-time $4–6M decline in ImprimisRx revenue, management emphasized that the issue is resolved and underlying growth trends remain intact. Harrow’s balance sheet is strong, with $74M cash, $50M in additional liquidity, and refinancing that reduces interest costs and extends maturities, supporting a conservative leverage target of gross <3x and net <2x EBITDA.
VEVYE continues to drive growth, with Q3 revenue up 21.5% QoQ to $22.6M and U.S. market share doubling to 10.5%, benefiting from expanded physician adoption, VAFA patient-access programs, and upcoming preferred PBM coverage in 2026. IHEEZO also showed strong momentum, growing 20% QoQ and nearly 70% YoY, supported by high reorder rates, broad GPO coverage, and a supportive reimbursement environment.
TRIESENCE is regaining traction following its relaunch, with Q3 revenue up 33% QoQ and the product now entering the ocular inflammation market with validated reimbursement. RSP remains a smaller, underperforming segment, while ImprimisRx provides steady cash flow and operational stability.
Harrow’s pipeline is robust, with BYQLOVI launching in Q1 2026, anti-VEGF biosimilars BYOOVIZ and OPUVIZ in mid-2026/2027, and MELT-300 targeting sublingual sedation in 2027–2028. Each initiative enhances the core portfolio, complements existing products, and expands addressable markets.
With strong execution, high-margin branded products, and a multi-year growth runway, HROW is positioned for record 2025–2026 results and substantial long-term upside, offering investors a compelling risk/reward opportunity with both near-term revenue catalysts and long-dated optionality.
Previously, we covered a bullish thesis on Harrow, Inc. (HROW) by Simon in October 2024, which highlighted the company’s rapid revenue growth across ophthalmic drugs, strong adoption of VEVYE and IHEEZO, and long-term profitability potential through operational scaling. HROW’s stock price has appreciated by approximately 8.21% since our coverage. M. V. Cunha shares a similar view but emphasizes record Q3 results, expanding market share, and a robust pipeline supporting multi-year growth.
Harrow, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held HROW at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the risk and potential of HROW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HROW and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
