Is HROW a good stock to buy? 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 $40.50 as of April 20th. HROW’s trailing and forward P/E were 9.64 and 74.07 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 in the United States. HROW delivered a record Q4 and FY2025, with revenue of $89.1M in Q4 (+33% YoY) and $272.3M for the year (+36% YoY), alongside strong EBITDA growth and a meaningful swing to positive operating cash flow, signaling clear scaling of earnings power. While EBITDA and EPS missed expectations, this was largely due to a one-time $8.5M R&D charge and increased SG&A tied to commercial expansion, masking otherwise in-line performance.
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The stock’s 20%+ decline was driven by conservative 2026 guidance, with revenue of $350–365M and EBITDA of $80–100M, well below consensus, but management explicitly reset expectations after prior overpromising, adopting a more cautious framework while ramping investments in sales and R&D to support long-term growth.
Operationally, the core business remains strong across segments. VEVYE continues to be the primary growth driver, with accelerating adoption, expanding payer coverage, and a doubling of the sales force positioning it for $100M+ revenue in 2026. IHEEZO posted exceptional growth but faces near-term headwinds from inventory destocking and reimbursement changes, which management expects to offset through pricing, new packaging, and expansion into in-office procedures. TRIESENCE is emerging as a high-potential asset, benefiting from strong reimbursement, growing adoption in ocular inflammation, and a pivotal study that could significantly expand its addressable market.
The broader portfolio and pipeline further reinforce the long-term thesis, with near-term launches like BYOOVIZ and BYQLOVI, and longer-term opportunities such as G-MELT and YOCHIL, which could materially expand the company’s market beyond ophthalmology. Despite near-term noise, Harrow’s growth algorithm, expanding commercial engine, and layered catalysts remain intact, with current valuation failing to reflect its sustained 30%+ growth potential and significant operating leverage ahead.
Previously, we covered a bullish thesis on Harrow, Inc. (HROW) by Simon in October 2024, which highlighted the company’s strong revenue growth driven by Vevye, its direct-to-provider model, and expectations of improving operating efficiency leading to profitability. HROW’s stock price has depreciated by approximately 8.10% since our coverage due to near term noise around a Q4 earnings miss and back-half-weighted 2026 guidance. M. V. Cunha shares a similar view but emphasizes on recent earnings performance and conservative guidance.
Harrow, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held HROW at the end of the fourth quarter which was 24 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.
Disclosure: None.
