Harrow Health, Inc.

Harrow reported second-quarter revenue of $70.7 million, up 11% year over year and approximately 60% sequentially. VEVYE revenue was $29.4 million, up nearly 58% year over year; IHEEZO revenue was $15.6 million; specialty portfolio and TRIESENCE generated approximately $11 million; and the compounded portfolio generated $14.6 million. GAAP gross margin was 71%, SG&A was $53.3 million, and adjusted EBITDA was negative $1.2 million. The company ended the quarter with $83.9 million in cash and cash equivalents. For the full year, Harrow reiterated revenue guidance of $350 million to $365 million and adjusted EBITDA guidance of $80 million to $100 million, implying second-half revenue of approximately $235 million to $250 million. Management expects revenue to grow sequentially in both Q3 and Q4, with the larger step-up in Q4, and expects gross margins to trend back toward the high 70s in the second half.

Mark L. Baum framed the first half as a period of building the commercial base through pricing changes, inventory normalization, new launches, and sales-force expansion. He said the second half is about converting that setup into revenue and profitability, pointing to stronger demand across VEVYE, IHEEZO, TRIESENCE, and TYRVAYA if the acquisition closes. His tone was notably confident and upbeat, repeatedly saying the company is entering the second half in a stronger commercial position and that the team has never been better.

Andrew Boll emphasized that reported first-half results were held back by limited IHEEZO revenue during inventory normalization and only a partial-quarter benefit from VEVYE business-rule changes. He highlighted the major financial drivers behind the second-half outlook: IHEEZO returning to a normal revenue cycle, VEVYE benefiting from full-period rule changes and broader coverage, and gross margins improving toward the high 70s. He said base SG&A should stay roughly flat at second-quarter levels for the rest of the year, aside from roughly $20 million in annualized SG&A once TYRVAYA is fully integrated, and that the $30 million upfront TYRVAYA payment will be funded with cash on hand.

Analysts focused on the new top-3 PBM coverage, asking what kind of access it represented; management said it opens access to commercial lives that were previously blocked and represents many millions of lives, but declined to discuss formulary specifics. Questions on VEVYE centered on ASP and sampling, and management said ASP should improve through the year as deductibles are met and the revised business rules are fully in effect, while the sampling program is replacing an expensive $0 first-fill model. Analysts also pressed on TYRVAYA sales history, LOE timing, and 2026 contribution; management said it cannot discuss much pre-close, expects more than $30 million of 2027 revenue, and is assuming exclusivity through 2034.