--- title: "Harrow | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 44.2 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285993197.md" datetime: "2026-05-11T20:34:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285993197.md) - [en](https://longbridge.com/en/news/285993197.md) - [zh-HK](https://longbridge.com/zh-HK/news/285993197.md) --- # Harrow | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 44.2 M Revenue: As of FY2026 Q1, the actual value is USD 44.2 M, missing the estimate of USD 52.49 M. EPS: As of FY2026 Q1, the actual value is USD -0.74. EBIT: As of FY2026 Q1, the actual value is USD -16.58 M. ### Segmented Financial Metrics #### Branded Segment - **Revenue (Product sales, net)**: For the three months ended March 31, 2026, product sales, net, were $30,631,000, an increase of $2,937,000 from $27,694,000 for the same period in 2025. Other revenues were $73,000 for the three months ended March 31, 2026, compared to $86,000 for the same period in 2025 . Total revenues for the Branded Segment were $30,704,000 for the three months ended March 31, 2026, compared to $27,780,000 for the same period in 2025 . - **Operational Metrics**: Cost of sales for the Branded Segment increased by $2,773,000 to $10,954,000 for the three months ended March 31, 2026, from $8,181,000 for the same period in 2025 . Gross profit was $19,750,000 for the three months ended March 31, 2026, compared to $19,599,000 for the same period in 2025 . The gross margin decreased to 64.3% for the three months ended March 31, 2026, from 70.6% in the prior year period . Selling, general and administrative expenses were $25,759,000 for the three months ended March 31, 2026, compared to $20,682,000 for the same period in 2025 . Research and development expenses increased to $5,621,000 for the three months ended March 31, 2026, from $1,993,000 for the same period in 2025 . Segment contribution was - $11,630,000 for the three months ended March 31, 2026, compared to - $3,076,000 for the same period in 2025 . - **Product-specific Revenues**: IHEEZO revenue was $1,851,000 for Q1 2026, down from $5,222,000 for Q1 2025 . VEVYE revenue was $20,947,000 for Q1 2026, compared to $21,516,000 for Q1 2025 . Other branded products generated $7,833,000 in revenue for Q1 2026, significantly up from $956,000 for Q1 2025 . #### Compounding Segment - **Revenue (Product sales, net)**: For the three months ended March 31, 2026, product sales, net, were $13,499,000, a decrease of $6,552,000 from $20,051,000 for the same period in 2025 . Total revenues for the Compounding Segment were $13,499,000 for the three months ended March 31, 2026, compared to $20,051,000 for the same period in 2025 . - **Operational Metrics**: Cost of sales decreased to $6,204,000 for the three months ended March 31, 2026, from $7,343,000 for the same period in 2025 . Gross profit was $7,295,000 for the three months ended March 31, 2026, compared to $12,708,000 for the same period in 2025 . The gross margin for the Compounding Segment was 54.0% for the three months ended March 31, 2026, a decrease from 63.4% for the same period in 2025 . Selling, general and administrative expenses were $6,742,000 for the three months ended March 31, 2026, compared to $7,522,000 for the same period in 2025 . Research and development expenses were $210,000 for the three months ended March 31, 2026, compared to $224,000 for the same period in 2025 . Segment contribution was $343,000 for the three months ended March 31, 2026, compared to $4,962,000 for the same period in 2025 . #### Consolidated Operational Metrics - **Total Revenues**: Total revenues decreased by $3,628,000 to $44,203,000 for the three months ended March 31, 2026, from $47,831,000 for the same period in 2025 . - **Gross Profit**: Consolidated gross profit was $27,045,000 for the three months ended March 31, 2026, compared to $32,307,000 for the same period in 2025 . - **Operating Costs**: Selling, general and administrative expenses increased by $2,717,000 to $43,230,000 for the three months ended March 31, 2026, from $40,513,000 for the same period in 2025, primarily due to higher personnel costs . Research and development expenses increased by $2,869,000 to $5,895,000 for the three months ended March 31, 2026, from $3,026,000 for the same period in 2025, mainly due to clinical trials for an acquired drug candidate . - **Loss from Operations**: Loss from operations was - $22,080,000 for the three months ended March 31, 2026, compared to - $11,232,000 for the same period in 2025 . - **Interest Expense, Net**: Net interest expense decreased by $1,051,000 to - $5,497,000 for the three months ended March 31, 2026, from - $6,548,000 for the same period in 2025 . - **Net Loss**: The net loss for the three months ended March 31, 2026, was - $27,602,000, compared to - $17,780,000 for the same period in 2025 . #### Cash Flow - **Net Cash Used in Operating Activities**: Harrow, Inc. reported net cash used in operating activities of - $8,992,000 for the three months ended March 31, 2026, a change from net cash provided of $19,668,000 for the same period in 2025 . - **Net Cash Used in Investing Activities**: Net cash used in investing activities was - $18,203,000 for the three months ended March 31, 2026, compared to - $212,000 for the same period in 2025, primarily due to investments in acquired product rights . - **Net Cash Provided by Financing Activities**: Net cash provided by financing activities was $48,912,000 for the three months ended March 31, 2026, compared to $23,000 for the same period in 2025, driven by the sale of $50,000,000 in principal amount of 2030 Notes . - **Cash and Cash Equivalents**: Cash and cash equivalents at the end of the period were $94,644,000 as of March 31, 2026, an increase from $72,927,000 at December 31, 2025 . #### Other Key Financial Information - **Accounts Receivable, net**: Accounts receivable, net, was $101,259,000 as of March 31, 2026, compared to $110,895,000 as of December 31, 2025 . - **Inventories**: Inventories were $16,496,000 as of March 31, 2026, compared to $13,523,000 as of December 31, 2025 . - **Total Current Assets**: Total current assets were $226,384,000 as of March 31, 2026, compared to $211,750,000 as of December 31, 2025 . - **Intangible Assets, net**: Intangible assets, net, were $181,054,000 as of March 31, 2026, compared to $175,174,000 as of December 31, 2025 . - **Notes Payable, net**: Notes payable, net, was $292,087,000 as of March 31, 2026, compared to $243,184,000 as of December 31, 2025 . - **Total Liabilities**: Total liabilities were $391,192,000 as of March 31, 2026, compared to $347,391,000 as of December 31, 2025 . - **Total Stockholders’ Equity**: Total stockholders’ equity was $28,351,000 as of March 31, 2026, compared to $52,091,000 as of December 31, 2025 . - **Debt**: Harrow, Inc. issued an additional $50,000,000 aggregate principal amount of 8.625% Senior Notes due 2030 in March 2026, generating net proceeds of $48,526,000 . - **Customer Concentration**: As of March 31, 2026, three customers accounted for 95% of total consolidated accounts receivable . - **Supplier Concentration**: Three main suppliers collectively accounted for 69% of manufacturing supplies purchases for the three months ended March 31, 2026 . ### Future Outlook and Strategy Harrow, Inc. anticipates its current cash and cash equivalents of $94,644,000 as of March 31, 2026, to be sufficient for planned operations and capital expenditures for at least the next 12 months . The company may seek additional financing through operations, asset sales, equity, or debt to support potential acquisitions or rapid growth . Harrow, Inc. also has an undrawn $40,000,000 revolving line of credit available for future cash needs . ### Related Stocks - [HROW.US](https://longbridge.com/en/quote/HROW.US.md) ## Related News & Research - [PowerFleet Q4 2026 Earnings Preview](https://longbridge.com/en/news/289616465.md) - [ABB Ltd: ABB share buybacks - June 4, 2026 – June 10, 2026](https://longbridge.com/en/news/289436946.md) - [Soybean Analysis: 2026 Market Volatility and Trend](https://longbridge.com/en/news/289444628.md) - [Zedge Q3 2026 Earnings Preview](https://longbridge.com/en/news/289381005.md) - [Gamehaus Holdings Inc. Announces Unaudited Financial Results for the Third Quarter of Fiscal 2026 Ended March 31, 2026 | GMHS Stock News](https://longbridge.com/en/news/289035965.md)