Harrow reported record third-quarter revenue of $99.3 million, driven by growth in its branded ophthalmic products. The company kept its 2026 revenue forecast but sharply reduced its adjusted EBITDA outlook, citing a weaker-than-planned first half and increased spending on product development and integration.
Key details
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Revenue reached $99.3 million, up 39% from a year earlier and 41% from the second quarter. Branded products generated $83.5 million, or about 84% of revenue, and grew 62% year over year.
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Net income was $9.8 million, compared with a $17.3 million loss in the second quarter and $1.0 million of net income a year earlier. The latest quarter included a $5.0 million gain from a litigation settlement.
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Adjusted EBITDA was $21.2 million, versus a loss of $1.2 million in the second quarter and $22.8 million in the third quarter of 2025.
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Harrow maintained its full-year 2026 revenue forecast of $350 million to $365 million. It now expects adjusted EBITDA of more than $40 million for the year, including more than $33 million in the fourth quarter. That replaces its prior adjusted EBITDA outlook of $80 million to $100 million.
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VEVYE posted record revenue of $39.7 million, up 75% year over year and 35% sequentially. Prescriptions increased about 83% year over year and 17% sequentially. A major national health plan covering more than 10 million commercial members is expected to provide coverage starting in January 2027.
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IHEEZO revenue was $25.3 million, up 15% year over year and 62% sequentially. Unit demand rose about 21% year over year but fell about 5% from the prior quarter. Harrow attributed the sequential decline to typical third-quarter seasonality and elevated second-quarter purchases of a discontinued single-unit presentation.
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TRIESENCE generated record quarterly revenue of $10.7 million. Harrow’s chief executive also cited 21% year-over-year growth in IHEEZO unit demand and said TYRVAYA is expected to begin contributing revenue in the fourth quarter.
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Cash and cash equivalents totaled $75.3 million at September 30.
What changes for investors
The revenue target is unchanged, but the earnings outlook has been reset substantially lower. Harrow said the revised adjusted EBITDA forecast reflects its first-half operating shortfall and additional spending to accelerate a G-MELT regulatory submission, advance development programs and integrate TYRVAYA. Management described the new EBITDA outlook as a floor and said it sees potential to exceed it, while also saying that reaching the revenue target will require strong execution.