Harrow Q2 Revenue Jumps 60% Sequentially to $70.7M, But Operating Loss Widens; TYRVAYA Acquisition Announced
HROW sits 40% above its 52-week low of $28.54.
Summary
Harrow reported Q2 2026 revenue of $70.7M, up 60% sequentially, driven by VEVYE and other branded products, but posted a $17.3M net loss. The company also disclosed an agreement to acquire TYRVAYA for $30M upfront plus milestones.
Key Events · Earnings and Guidance · HROW
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Q2 Revenue Surges 60% Sequentially
Total revenue reached $70.7M, up from $44.1M in Q1 2026, driven by VEVYE ($29.4M) and other branded products. Branded revenue grew 33% year-over-year to $56.1M.
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Net Loss of $17.3M Despite Revenue Growth
Operating expenses jumped to $61.4M from $36.1M a year ago, with SG&A up 60% and R&D nearly tripling, pushing the company to a $17.3M net loss compared to a $5.0M profit in Q2 2025.
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Cash Position and Debt Load
Cash and equivalents stood at $83.9M at June 30, 2026, while net debt (8.625% Senior Notes due 2030) totaled $292.4M. The company also has an undrawn $40M revolving credit facility.
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TYRVAYA Acquisition Announced
Subsequent to quarter-end, Harrow agreed to acquire global rights to TYRVAYA (dry eye nasal spray) from Viatris for $30M cash at closing, plus up to $70M in sales-based milestones. The deal will be funded with cash on hand.
Analysis · HROW · Life Sciences
Harrow's branded portfolio is gaining traction — VEVYE revenue nearly doubled year-over-year, and total branded sales grew 33%. However, the company swung to a $17.3M net loss as SG&A and R&D costs surged to support that growth. The balance sheet shows $83.9M in cash against $292.4M in net debt, and the subsequent announcement of the TYRVAYA acquisition adds a $30M upfront cash commitment plus up to $70M in milestones. The market will weigh the strong top-line momentum against the widening losses and the capital needed to fund the TYRVAYA deal.
At the time of this filing, HROW was trading at $40.05 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $28.54 to $54.85. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.