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HROW · PHARMACEUTICAL PREPARATIONS · 8-K · Item 2.02 · Aug 10, 2026

Revenue nearly met estimates, but profitability sharply missed amid heavy investment

HARROW, INC. (HROW) — AllSight decodes this SEC 8-K in plain English, versus what the market expected.

Revenue was close to expectations, but below the company’s own Q2 range. Quarterly revenue reached $70.7 million, versus available published consensus of approximately $71.8 million, and below management’s prior Q2 outlook of $71 million–$81 million. The 60% sequential rebound is strong on the surface, but the absolute result did not clear the existing bar. (Financial Highlights)

MetricQ2 2026Q2 2025Expectation / comparison
Total revenue$70.7M$63.7MPublished consensus: ~$71.8M
Gross margin71%75%Down 4 percentage points
Net income (loss)$(17.3)M$5.0MPublished EPS consensus: about $(0.18)
Diluted EPS$(0.46)$0.13Materially below consensus
Adjusted EBITDA$(1.2)M$17.0MNo reliable published comparison provided
Operating cash flow$(18.7)M$18.9MSharp year-over-year deterioration

The main miss was profitability, not demand. Adjusted EBITDA swung to a $1.2 million loss from $17.0 million a year ago, while GAAP operating expenses rose to $61.4 million from $36.1 million, driven by commercial hiring and clinical development. Gross margin also fell to 71% from 75%. The filing’s growth investments may support the second half, but this quarter shows that the conversion from demand into earnings has not yet occurred. (Income Statement; Adjusted EBITDA reconciliation)

VEVYE is the clearest operating bright spot. Revenue increased to $29.4 million, up approximately 40% sequentially and 58% year over year, while prescriptions, prescribers, and branded market share continued to expand. The new coverage win effective August 1, 2026 is incremental good news, but it was not part of Q2 revenue and therefore supports the forward case rather than repairing the quarter’s shortfall. (Segment results — VEVYE; Letter to Stockholders — VEVYE)

IHEEZO’s underlying demand improved, but reported revenue still declined year over year. Unit demand rose 44% sequentially and 34% year over year, and management said the $15.6 million revenue result exceeded internal expectations. However, revenue remained below $18.3 million last year, with the company attributing the gap to lost ASC pass-through reimbursement and channel inventory drawdown. The July 1 pricing increase and normalized inventory create a better setup for Q3, but those benefits remain unproven in reported results. (Segment results — IHEEZO; Letter to Stockholders — IHEEZO)

Reiterated guidance now demands an unusually large second-half acceleration. With $114.9 million of revenue generated in the first half, the $350 million–$365 million full-year target requires approximately $235.1 million–$250.1 million in the second half, or roughly $117.6 million–$125.1 million per quarter. Adjusted EBITDA guidance of $80 million–$100 million likewise requires a dramatic turnaround from the first-half $13.9 million loss. Reaffirming rather than raising guidance leaves the burden on execution, especially since Q2 revenue was below both consensus and the company’s prior quarterly range. (Financial Highlights; Letter to Stockholders — 2026 Outlook)

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