Harrow Announces Third Quarter 2026 Financial Results

The annual adjusted EBITDA outlook fell to more than $40 million despite unchanged revenue guidance of $350 million to $365 million.

Rhea-AI Summary

Harrow (Nasdaq: HROW) reported third-quarter 2026 revenue of $99.3 million, up 39% year over year, while lowering its full-year profit outlook. Revenue rose 41% sequentially, and branded revenue reached $83.5 million. GAAP net income was $9.757 million versus $1.020 million a year earlier, including a $5.0 million litigation settlement gain. Adjusted EBITDA, a non-GAAP earnings measure, fell to $21.217 million from $22.793 million.

Harrow reaffirmed 2026 revenue guidance of $350 million to $365 million but reduced adjusted EBITDA guidance to more than $40 million from $80 million to $100 million. It expects fourth-quarter adjusted EBITDA above $33 million. The company completed its TYRVAYA acquisition on October 1, with initial revenue expected in the fourth quarter. IHEEZO's Phase 4 QUELL study missed its primary endpoint, although secondary findings favored IHEEZO on pain, ocular surface staining and adverse events.

23 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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2 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue of $99.3 million rose 41% sequentially and 39% year over year.
• Moderate pointQuarterly GAAP net income of $9.757 million compared with $1.020 million a year earlier and a $17.3 million second-quarter loss.
• Moderate pointNine-month revenue of $214.161 million increased from $183.211 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.TYRVAYA acquisition completed October 1, 2026; Harrow expects its first revenue contribution in fourth-quarter 2026.
• Minor pointBranded revenue of $83.5 million increased 62% year over year, representing approximately 84% of total revenue.

18 minor points

• Minor pointDiluted quarterly earnings per share of $0.25 increased from $0.03 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance of $350 million to $365 million was reaffirmed.
• Minor pointVEVYE revenue of $39.7 million rose 35% sequentially and 75% year over year.
• Minor pointVEVYE prescriptions increased approximately 17% sequentially and approximately 83% year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.VEVYE coverage expansion reaches 10+ million commercial lives, expected to take effect in January 2027.
• Minor pointIHEEZO revenue of $25.3 million increased 62% sequentially and 15% year over year.
• Minor pointTRIESENCE revenue of $10.7 million was its highest quarterly revenue under Harrow ownership.
• Minor pointTRIESENCE unit demand of 20,022 rose approximately 37% sequentially and approximately 110% year over year.
• Minor pointBYOOVIZ ordering accounts increased each month of its first full commercialization quarter; demand strengthened through September.
• Minor pointQUELL secondary findings favored IHEEZO: cumulative pain through 24 hours was 2.9 versus 3.7.
• Minor pointQUELL ocular surface staining showed a mean increase of 1.7 with IHEEZO versus 3.2 with the comparator.
• Minor pointQUELL adverse events occurred in 27% with IHEEZO versus 47% with the comparator; neither group had serious events.
• Minor point. Forward-looking: it has not happened yet and may not happen.G-MELT pre-NDA meeting completed; Harrow expects to submit its FDA marketing application before year-end 2026, earlier than previously anticipated.
• Minor point. Forward-looking: it has not happened yet and may not happen.New product launches are expected at least annually through decade-end, beginning with OPUVIZ's anticipated 2027 U.S. launch.
• Minor point. Forward-looking: it has not happened yet and may not happen.TRIESENCE Phase 3 enrollment continues for inflammation and pain following cataract surgery; initial data expected early 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.NATACYN investigator-initiated study continues in blepharitis, with initial data expected in fourth-quarter 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.CR-01 patients are enrolled and receiving treatment; initial data expected fourth-quarter 2026, with a fuller interim read in March 2027.
• Minor pointCash of $75.336 million at September 30, 2026 increased from $72.927 million at December 31, 2025.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance fell to more than $40 million from $80 million to $100 million.
• Major pointQUELL missed its primary endpoint of non-inferiority, the test of whether IHEEZO performed no worse than its comparator.
• Moderate pointQuarterly adjusted EBITDA of $21.217 million fell from $22.793 million year over year, despite improving from negative $1.2 million sequentially.
• Moderate pointQuarterly operating income of $11.471 million declined from $14.747 million a year earlier.
• Moderate pointQuarterly selling, general and administrative expenses of $53.145 million increased from $35.856 million a year earlier.
• Moderate pointNine-month net loss of $35.115 million widened from $11.765 million; loss per share increased to $0.94 from $0.32.
• Moderate pointNine-month adjusted EBITDA of $7.327 million decreased from $37.808 million a year earlier.
• Moderate pointNine-month operating loss of $21.616 million compared with operating income of $14.924 million a year earlier.
• Moderate pointNine-month operating cash outflow of $27.363 million compared with a $35.453 million inflow a year earlier.
• Moderate pointNotes payable, net, of $292.716 million increased from $243.184 million at December 31, 2025.
• Moderate pointStockholders' equity of $28.834 million declined from $52.091 million at December 31, 2025.

4 minor points

• Minor pointIHEEZO unit demand of 62,210 fell approximately 5% sequentially, despite increasing approximately 21% year over year.
• Minor pointQuarterly research and development expenses of $10.287 million increased from $3.323 million a year earlier.
• Minor pointNine-month gross margin of 71% declined from 73% a year earlier.
• Minor pointCurrent liabilities of $114.224 million increased from $96.302 million at December 31, 2025.

News Explained

Harrow has reported third-quarter results; at September 30, 2026, it had $75,336,000 in cash against $292,716,000 in notes payable, net, while nine-month cash flow showed $27,363,000 used in operations and $48,915,000 provided by financing.

Key Figures

Third-quarter revenue: $99.3 million Branded revenue: $83.5 million GAAP net income: $9.8 million +5 more

Third-quarter revenue

$99.3 million

Record; up 39% year over year

Branded revenue

$83.5 million

Third quarter 2026; up 62% year over year

GAAP net income

$9.8 million

Third quarter 2026; included a $5.0 million litigation settlement gain

Adjusted EBITDA

$21.2 million

Third quarter 2026; compared with $22.8 million in Q3 2025

2026 revenue guidance

$350 million to $365 million

Full-year guidance reaffirmed

2026 Adjusted EBITDA guidance

More than $40 million

Updated from prior guidance of $80 million to $100 million

QUELL primary endpoint anesthesia rates

55.2% vs. 59.7%

IHEEZO vs. proparacaine plus subconjunctival lidocaine; prespecified non-inferiority endpoint not met

QUELL adverse events

27% vs. 47%

IHEEZO vs. comparator; secondary finding

Previous Earnings Reports

2 past events · Latest: Aug 10

Same Type 2 events

1. Aug 10

   Q2 2026 earnings

   24h Move

   -3.1%

   Revenue grew, but the quarter reported a net loss and negative Adjusted EBITDA.

2. Nov 10

   Q3 2025 earnings

   24h Move

   +13.5%

   Comparable third-quarter results included revenue growth and positive GAAP net income.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, phase 4, randomized, double-masked, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA (a non-GAAP measure) of $21.2 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

phase 4 medical

"a Phase 4, randomized, double-masked study"

Phase 4 is the stage after a drug or vaccine has been approved and is sold to the public, where regulators and companies keep watching how it performs in the real world to detect rare side effects, long‑term effects, or differences in effectiveness across different groups. Think of it as ongoing quality control for a product already on shelves; results can prompt label changes, safety warnings, sales impacts or recalls, all of which matter to investors evaluating risk and future revenue.

randomized medical

"a Phase 4, randomized, double-masked study"

Randomized means participants or units in a study are assigned to different groups by chance rather than by choice, like flipping a coin to decide who gets a new treatment and who gets a comparison. For investors, randomized designs matter because they reduce bias and make results more trustworthy, so outcomes from randomized studies carry more weight when assessing regulatory approval, commercial prospects, and the risk that trial results will change a company’s valuation.

double-masked medical

"a Phase 4, randomized, double-masked study"

Double-masked describes a clinical study setup where neither the people receiving treatments nor the researchers who administer or assess them know who gets the active therapy versus a placebo or comparison. This reduces conscious or unconscious bias and makes results more reliable for regulators and doctors. For investors, double-masked trials carry more credibility—like a taste test where neither the tasters nor the servers know which sample is which—so positive outcomes and approvals are taken more seriously.

non-inferiority medical

"did not meet its prespecified primary endpoint of non-inferiority"

A non-inferiority trial is a type of clinical test designed to show a new treatment is not meaningfully worse than an existing standard by more than a pre-set, acceptable amount. Think of it like proving a new smartphone model has battery life close enough to the leading model while offering other advantages; for investors, a successful non-inferiority result can clear the way to regulatory approval and market uptake even when the new option isn’t superior in headline effectiveness.

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Third Quarter 2026 and Selected Highlights:

• Record third quarter revenue of $99.3 million, up 41% sequentially and 39% year over year
• Branded revenue of $83.5 million, up 62% year over year and approximately 84% of total revenue
• GAAP net income of $9.8 million, including a $5.0 million litigation settlement gain, compared with a net loss of $17.3 million in the second quarter of 2026 and net income of $1.0 million in the third quarter of 2025
• Adjusted EBITDA (a non-GAAP measure) of $21.2 million, compared with $(1.2) million in the second quarter of 2026 and $22.8 million in the third quarter of 2025
• Reaffirmed full-year 2026 revenue guidance of $350 million to $365 million; updated full-year 2026 Adjusted EBITDA guidance to more than $40 million, including fourth quarter Adjusted EBITDA of more than $33 million, compared with prior Adjusted EBITDA guidance of $80 million to $100 million
• Cash and cash equivalents of $75.3 million as of September 30, 2026

A Media Snippet accompanying this announcement is available by clicking on this link.

NASHVILLE, Tenn., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Harrow (Nasdaq: HROW), a leading provider of ophthalmic disease management solutions in North America, announced results for the third quarter ended September 30, 2026. The Company also posted its third-quarter Letter to Stockholders and corporate presentation in the “Investors” section of its website at harrow.com.

“The third quarter delivered the second-half acceleration we anticipated,” said Mark L. Baum, Chairman and Chief Executive Officer of Harrow. “Branded products drove record revenue, growing 62% year over year. VEVYE delivered record quarterly revenue, supported by continued prescription growth, improving economics, and increasing productivity from our expanded sales force. TRIESENCE delivered a record quarter, while IHEEZO unit demand grew 21% year over year. Looking to the fourth quarter, we expect to benefit from continued VEVYE and TRIESENCE growth, IHEEZO’s historically strongest period, and TYRVAYA’s initial revenue contribution. Achieving our full-year revenue guidance of $350 million to $365 million will require strong execution, but we continue to believe it is achievable.”

Mr. Baum continued, “We expect the fourth quarter to be Harrow’s strongest on record and that second-half revenue will exceed the high end of what we contemplated in March. That said, our updated Adjusted EBITDA outlook reflects both the first half operating shortfall against our original plan and additional spending to accelerate our G-MELT NDA submission, advance important development programs, and integrate TYRVAYA. We expect more than $33 million in fourth-quarter Adjusted EBITDA, bringing our full-year outlook to more than $40 million. To be clear: our amended Adjusted EBITDA outlook is a floor, and we believe there is opportunity to exceed it.”

Third Quarter Commercial Results and Recent Developments:

VEVYE^®:

• Record revenue of $39.7 million, up 35% sequentially and 75% year over year
• Total prescriptions increased approximately 17% sequentially and approximately 83% year over year
• Expanded coverage with a major national plan representing 10+ million commercial lives, expected to take effect in January 2027
  
  

IHEEZO^®:

• Revenue of $25.3 million, up 62% sequentially and 15% year over year
• Unit demand of 62,210, up approximately 21% year over year and down approximately 5% sequentially, reflecting typical third-quarter seasonality and elevated second-quarter practice-level purchasing of the discontinued single-unit presentation
  
  

TRIESENCE^®:

• Record revenue of $10.7 million, the highest quarterly revenue under Harrow ownership
• Record quarterly unit demand of 20,022, up approximately 37% sequentially and approximately 110% year over year
  
  

BYOOVIZ^®:

• First full quarter of commercialization; ordering accounts increased each month of the quarter, and demand strengthened through September, with momentum continuing into the fourth quarter
  
  

Business Highlights:

• TYRVAYA Acquisition: On October 1, 2026, completed the acquisition of TYRVAYA^® (varenicline solution) nasal spray 0.03 mg, adding a complementary branded dry eye treatment alongside VEVYE. Approximately 40 experienced commercial personnel joined the Ocular Surface Disease team; first revenue contribution expected in the fourth quarter of 2026.
• Commercial Realignment: Restructured its commercial organization into four focused teams—Ocular Surface Disease, Retina, Surgical and Access+, aligning products and representatives with the needs, care settings and purchasing dynamics of the eye care professionals they serve.
• HarrowRx: Launched HarrowRx on November 1, 2026, as a single destination to prescribe any Harrow product, integrated into prescribers’ existing electronic medical record workflows. HarrowRx routes each prescription or order to the appropriate pharmacy or distribution channel to simplify access and fulfillment.
  
  

Pipeline and Regulatory Highlights:

• IHEEZO QUELL Study: Announced topline results from QUELL, a Phase 4, randomized, double-masked study of 231 patients undergoing intravitreal injections. While QUELL did not meet its prespecified primary endpoint of non-inferiority, successful ocular surface anesthesia was achieved in 55.2% (63 of 115) of IHEEZO patients versus 59.7% (68 of 113) receiving proparacaine drops plus a subconjunctival lidocaine injection¹. Successful anesthesia rates were lower than anticipated in both treatment groups. However, secondary findings included lower reported cumulative pain through 24 hours with IHEEZO (2.9 versus 3.7), less ocular surface staining (mean increase of 1.7 versus 3.2), and fewer adverse events (27% versus 47%). No serious adverse events occurred in either group. These findings provide additional important information about patient comfort and tolerability. Full results are expected to be presented at the Hawaiian Eye & Retina Conference in January 2027.
• Prospective Launches: Harrow expects to launch at least one new product annually through the end of the decade, beginning with the anticipated 2027 U.S. launch of OPUVIZ.
• G-MELT: Completed a pre-NDA meeting with the FDA; the Company expects to submit its NDA before the end of this year, meaningfully earlier than previously anticipated.
• TRIESENCE: A multicenter Phase 3 study evaluating TRIESENCE for the treatment of ocular inflammation and pain following cataract surgery continues to enroll, with initial data expected in early 2027.
• NATACYN^®: An investigator-initiated study evaluating fungal involvement in blepharitis and the potential benefits of NATACYN is ongoing, with initial data expected in the fourth quarter of 2026.
• CR-01: An ex-U.S. proof-of-concept study of CR-01, a sustained-release conjunctival drug-delivery device for a type of ocular cancer. The first patients are now enrolled and receiving active treatment. Initial clinical data is expected in the fourth quarter of 2026 with a more robust interim read to be provided at our upcoming Investor's Day presentation in New York in March of 2027.
  
  

_{¹ Primary endpoint percentages are based on Cochran-Mantel-Haenszel (CMH) weights from a stratified CMH analysis (stratified by clinical site and baseline SPEED score). Results are from the full analysis set of 228 patients; 231 patients were randomized, and three discontinued after randomization.}

Third Quarter 2026 Financial Results:

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2026				2025				2026				2025
Total revenues	$	99,297,000			$	71,638,000			$	214,161,000			$	183,211,000
Gross margin		75	%			75	%			71	%			73	%
Net income (loss)		9,757,000				1,020,000				(35,115,000	)			(11,765,000	)
Adjusted EBITDA (1)		21,217,000				22,793,000				7,327,000				37,808,000
Net income (loss) per share:
Basic	$	0.26			$	0.03			$	(0.94	)		$	(0.32	)
Diluted	$	0.25			$	0.03			$	(0.94	)		$	(0.32	)

(1) Adjusted EBITDA is a non-GAAP measure. For additional information, including a reconciliation of Adjusted EBITDA to the most directly comparable measure presented in accordance with GAAP, see the explanation of non-GAAP measures and reconciliation tables at the end of this release.

Conference Call and Webcast
Harrow will host a conference call to discuss the results at 8:00 a.m. ET on Tuesday, November 10, 2026. Participants can access the live webcast of Harrow’s presentation on the “Investors” page of Harrow’s website. A replay of the webcast will be available on the Company’s website for one year.

To participate via telephone, please register in advance using this link. Upon registration, all telephone participants will receive a confirmation email with detailed instructions, including a unique dial-in number and PIN, to access the call.

About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading provider of ophthalmic disease management solutions in North America, offering a comprehensive portfolio of products that address conditions affecting both the front and back of the eye, such as dry eye disease, wet (or neovascular) age-related macular degeneration, cataracts, refractive errors, glaucoma, and a range of other ocular surface conditions and retina diseases. Harrow was founded with a commitment to deliver safe, effective, accessible, and affordable medications that enhance patient compliance and improve clinical outcomes. For more information about Harrow, please visit harrow.com and connect with us on LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations, including our ability to achieve revenue and Adjusted EBITDA guidance; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, or complete pending acquisitions on terms and in the timeframe expected, or at all, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; the integration of TYRVAYA and the outcome of discussions with the licensor of VEVYE regarding the TYRVAYA acquisition; our ability to realize revenue from ex-U.S. commercial arrangements; the results of clinical studies; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general, including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing facility in New Jersey; and physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Such documents may be read free of charge on the SEC’s website at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

Contact:
Mike Biega, VP of Investor Relations and Communications
mbiega@harrowinc.com
617-913-8890

HARROW, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30, 2026			December 31, 2025
ASSETS
Cash and cash equivalents	$	75,336,000		$	72,927,000
All other current assets		185,990,000			138,823,000
Total current assets		261,326,000			211,750,000
All other assets		181,695,000			187,732,000
TOTAL ASSETS	$	443,021,000		$	399,482,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	114,224,000		$	96,302,000
Notes payable, net		292,716,000			243,184,000
All other liabilities		7,247,000			7,905,000
TOTAL LIABILITIES		414,187,000			347,391,000
TOTAL STOCKHOLDERS' EQUITY		28,834,000			52,091,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	443,021,000		$	399,482,000

HARROW, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2026				2025				2026				2025
Total revenues	$	99,297,000			$	71,638,000			$	214,161,000			$	183,211,000
Cost of sales		24,394,000				17,712,000				61,850,000				49,466,000
Gross profit		74,903,000				53,926,000				152,311,000				133,745,000
Selling, general and administrative		53,145,000				35,856,000				149,673,000				109,604,000
Research and development		10,287,000				3,323,000				24,254,000				9,217,000
Total operating expenses		63,432,000				39,179,000				173,927,000				118,821,000
Income (loss) from operations		11,471,000				14,747,000				(21,616,000	)			14,924,000
Total other expense, net		(1,208,000	)			(13,727,000	)			(12,968,000	)			(26,689,000	)
Income tax expense		(506,000	)			—				(531,000	)			—
Net income (loss)	$	9,757,000			$	1,020,000			$	(35,115,000	)		$	(11,765,000	)
Net income (loss) per share:
Basic	$	0.26			$	0.03			$	(0.94	)		$	(0.32	)
Diluted	$	0.25			$	0.03			$	(0.94	)		$	(0.32	)

HARROW, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30,
	2026				2025
Net cash (used in) provided by:
Operating activities	$	(27,363,000	)		$	35,453,000
Investing activities		(19,143,000	)			(730,000	)
Financing activities		48,915,000				(7,680,000	)
Net change in cash and cash equivalents		2,409,000				27,043,000
Cash and cash equivalents at beginning of the period		72,927,000				47,247,000
Cash and cash equivalents at end of the period	$	75,336,000			$	74,290,000

Non-GAAP Financial Measures
In addition to the Company’s results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP), which are presented and discussed above, management also utilizes Adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the Company’s financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a “non-GAAP” financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results, provides a more complete understanding of the Company’s results of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA provides meaningful supplemental information regarding the Company’s performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company’s core operating performance and that may obscure trends in the Company’s core operating performance; and (iii) it is used by institutional investors and the analyst community to help analyze the Company’s results. However, Adjusted EBITDA, and any other non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company’s competitors.

Adjusted EBITDA
The Company defines Adjusted EBITDA as net income (loss), excluding the effects of stock-based compensation and expenses, interest, taxes, depreciation, amortization, loss on extinguishment of debt, litigation settlement gains and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net income (loss). Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net income (loss) as a measure of operating performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.

The following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net income (loss), for the three and nine months ended September 30, 2026 and for the same periods in 2025:

HARROW, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
	For the Three Months Ended September 30,							For the Nine Months Ended September 30,
	2026				2025			2026				2025
GAAP net income (loss)	$	9,757,000			$	1,020,000		$	(35,115,000	)		$	(11,765,000	)
Stock-based compensation and expenses		3,728,000				3,271,000			11,354,000				8,702,000
Interest expense, net		6,208,000				6,038,000			17,968,000				18,994,000
Income tax expense		506,000				—			531,000				—
Depreciation		446,000				490,000			1,361,000				1,451,000
Amortization of intangible assets		5,572,000				4,224,000			16,228,000				12,676,000
Loss on extinguishment of debt		—				7,750,000			—				7,750,000
Litigation settlement gain		(5,000,000	)			—			(5,000,000	)			—
Adjusted EBITDA	$	21,217,000			$	22,793,000		$	7,327,000			$	37,808,000

The Company is unable to provide a reconciliation of projected Adjusted EBITDA to expected results due to the unknown effect, timing and potential significance of expenses and the tax effect of such expenses.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Harrow's third-quarter 2026 revenue and earnings?

Harrow reported $99.3 million in revenue and $9.757 million in GAAP net income for the quarter ended September 30, 2026. Revenue increased 39% year over year and 41% sequentially. Diluted earnings per share were $0.25, compared with $0.03 a year earlier.

Why did Harrow lower its 2026 adjusted EBITDA guidance?

Harrow attributed the reduction to first-half operating performance below its original plan and additional spending to accelerate the G-MELT application, advance development programs and integrate TYRVAYA. Full-year adjusted EBITDA guidance is now more than $40 million, compared with the prior $80 million to $100 million range.

How did IHEEZO compare with the other treatment in Harrow's QUELL study?

Successful ocular surface anesthesia occurred in 55.2% of IHEEZO patients versus 59.7% receiving proparacaine drops plus a subconjunctival lidocaine injection. The primary endpoint percentages used a stratified analysis of 228 patients; 231 were randomized and three discontinued after randomization. Successful anesthesia rates were lower than anticipated in both groups.

What does Harrow expect for fourth-quarter 2026 performance?

Harrow expects more than $33 million in fourth-quarter adjusted EBITDA and its strongest quarter on record. Its outlook anticipates continued VEVYE and TRIESENCE growth, IHEEZO's historically strongest period and TYRVAYA's initial revenue contribution.