Full Press Release Details
Announces First-Quarter 2025 Financial Results
2025 and Recent Selected Highlights:
| Revenues of $47.8 million, a 38% increase over $34.6 million recorded in prior-year period | ||
| VEVYE revenues increased to $21.5 million, a 35% increase from $16.0 million in the fourth quarter 2024 | ||
| Cash flow from operations reached a record high of $19.7 million | ||
| GAAP net loss of $(17.8) million | ||
| Adjusted EBITDA of $(2.0) million | ||
| Cash and cash equivalents of $66.7 million as of March 31, 2025 | ||
| VEVYE Access for All launch in mid-March is accelerating market share capture and revenue growth |
Tenn., May 8, 2025 - Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, announced results for the
first quarter ended March 31, 2025. The Company also posted its first quarter Letter to Stockholders and corporate presentation
to the "Investors" section of its website, harrow.com. The Company encourages all Harrow stockholders to review
these documents, which provide additional details concerning the historical quarterly period and future expectations for the business.
the first quarter, the Harrow team advanced key commercial initiatives to drive 2025 demand for VEVYE , IHEEZO ,
and TRIESENCE , including the mid-March launch of the VEVYE Access for All (VAFA) program,"
said Mark L. Baum, Chief Executive Officer of Harrow. "Despite typical first quarter seasonality and initiatives like VAFA, which
launched late in the first quarter, we grew revenues by 38% year-over-year. We saw a 35% quarter-over-quarter increase in VEVYE revenues
from $16.0 million in the fourth quarter of 2024 to $21.5 million in the first quarter of 2025. Notably, beginning early in the second
quarter, we've seen a meaningful acceleration in unit demand across our portfolio as year-end stocking inventories were largely
depleted, and various commercial initiatives gained traction, providing momentum we expect to continue to build throughout 2025.
VAFA program data has been very promising, with new VEVYE prescription volumes at PhilRx more than quadrupling and prescribers increasing
by over 4X, all while maintaining a strong average selling price. Our VEVYE refill rate continues to be buoyant, with the average covered
patient receiving nine refills. Given these trends, we believe VEVYE is now poised to become Harrow's first product to generate
annual nine-figure revenue. With the current order flow and potential unit demand expected from soon-to-close pipeline accounts for IHEEZO,
TRIESENCE, and other operational improvements across the rest of our business, we remain confident that we will achieve - and hopefully
exceed - our 2025 revenue target of over $280 million. We also remain committed to pursuing strategic acquisitions that add high-quality
ophthalmic pharmaceutical assets to our best-in-class U.S. commercial platform."
2025 figures of merit:
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 47,831,000 | $ | 34,587,000 | ||||
| Gross margin | 68 | % | 69 | % | ||||
| Core gross margin (1) | 75 | % | 76 | % | ||||
| Net loss | (17,780,000 | ) | (13,565,000 | ) | ||||
| Core net loss (1) | (13,554,000 | ) | (9,789,000 | ) | ||||
| Adjusted EBITDA (1) | (1,985,000 | ) | 227,000 | |||||
| Basic and diluted net loss per share | (0.50 | ) | (0.38 | ) | ||||
| Core basic and diluted net loss per share (1) | (0.38 | ) | (0.28 | ) |
Announces First Quarter 2025 Financial Results
Company's management team will host a conference call and live webcast tomorrow morning, Friday, May 9, 2025, at 8:00 a.m. Eastern
time to discuss the first-quarter 2025 results and provide a business update. Participants can access the live conference call via webcast
on the "Investors" page of Harrow's website. To participate via telephone, please register in advance using this link.
Upon registration, all telephone participants will receive a confirmation email with detailed instructions, including a unique dial-in
number and PIN, for accessing the call. A replay of the conference call webcast will be archived on the Company's website for one
Inc. (Nasdaq: HROW) is a leading eyecare pharmaceutical company engaged in the discovery, development, and commercialization of innovative
ophthalmic pharmaceutical products for the North American market. Harrow helps eyecare professionals preserve the gift of sight by making
its portfolio of pharmaceutical products accessible and affordable to millions of patients each year. For more information about Harrow,
please visit harrow.com.
press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act
of 1995. Any statements in this release that are not historical facts may be considered such "forward-looking statements."
Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may
cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties
that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations;
our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations
in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing
necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize
the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical
companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges;
regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general,
including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing
facility in New Jersey; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies
generally. These and additional risks and uncertainties are more fully described in Harrow's filings with the Securities and Exchange
Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Quarterly Reports on Form
10-Q, and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue
reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law,
Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the
date they are made, or to reflect the occurrence of unanticipated events.
Webb, Director of Communications and Investor Relations
Announces First Quarter 2025 Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 66,726,000 | $ | 47,247,000 | ||||
| All other current assets | 102,809,000 | 142,404,000 | ||||||
| Total current assets | 169,535,000 | 189,651,000 | ||||||
| All other assets | 194,629,000 | 199,320,000 | ||||||
| TOTAL ASSETS | $ | 364,164,000 | $ | 388,971,000 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | $ | 186,986,000 | $ | 91,343,000 | ||||
| Loans payable, net of unamortized debt discount and current portion | 112,501,000 | 219,539,000 | ||||||
| All other liabilities | 8,581,000 | 8,792,000 | ||||||
| TOTAL LIABILITIES | 308,068,000 | 319,674,000 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 56,096,000 | 69,297,000 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 364,164,000 | $ | 388,971,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 47,831,000 | $ | 34,587,000 | ||||
| Cost of sales | (15,524,000 | ) | (10,553,000 | ) | ||||
| Gross profit | 32,307,000 | 24,034,000 | ||||||
| Selling, general and administrative | 40,513,000 | 28,813,000 | ||||||
| Research and development | 3,026,000 | 2,149,000 | ||||||
| Total operating expenses | 43,539,000 | 30,962,000 | ||||||
| Loss from operations | (11,232,000 | ) | (6,928,000 | ) | ||||
| Total other expense, net | (6,548,000 | ) | (6,637,000 | ) | ||||
| Income tax | - | - | ||||||
| Net loss attributable to Harrow, Inc. | $ | (17,780,000 | ) | $ | (13,565,000 | ) | ||
| Basic and diluted net loss per share | $ | (0.50 | ) | $ | (0.38 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net cash provided by (used in): | ||||||||
| Operating activities | $ | 19,668,000 | $ | (4,628,000 | ) | |||
| Investing activities | (212,000 | ) | (110,000 | ) | ||||
| Financing activities | 23,000 | (809,000 | ) | |||||
| Net change in cash and cash equivalents | 19,479,000 | (5,547,000 | ) | |||||
| Cash and cash equivalents at beginning of the period | 47,247,000 | 74,085,000 | ||||||
| Cash and cash equivalents at end of the period | $ | 66,726,000 | $ | 68,538,000 |
Announces First Quarter 2025 Financial Results
addition to the Company's results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP),
which are presented and discussed above, management also utilizes Adjusted EBITDA and Core Results, unaudited financial measures that
are not calculated in accordance with GAAP, to evaluate the Company's financial results and performance and to plan and forecast
future periods. Adjusted EBITDA and Core Results are considered "non-GAAP" financial measures within the meaning of Regulation
G promulgated by the SEC. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of
the Company's operations that, when viewed with GAAP results, provide a more complete understanding of the Company's results
of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA and Core Results provide meaningful
supplemental information regarding the Company's performance because (i) they allow for greater transparency with respect to key
metrics used by management in its financial and operational decision-making; (ii) they exclude the impact of non-cash or, when specified,
non-recurring items that are not directly attributable to the Company's core operating performance and that may obscure trends
in the Company's core operating performance; and (iii) they are used by institutional investors and the analyst community to help
analyze the Company's results. However, Adjusted EBITDA, Core Results, and any other non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further,
non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the
calculations of the same non-GAAP financial measures used by other companies, including the Company's competitors.
Company defines Adjusted EBITDA as net loss, excluding the effects of stock-based compensation and expenses, interest, taxes, depreciation,
amortization, investment loss, net, and, if any and when specified, other non-recurring income or expense items. Management believes
that the most directly comparable GAAP financial measure to Adjusted EBITDA is net loss. Adjusted EBITDA has limitations and should not
be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash provided by (used in)
operating, investing, or financing activities as a measure of ability to meet cash needs.
following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net loss, for the three months
ended March 31, 2025 and for the same period in 2024:
OF NET LOSS TO ADJUSTED EBITDA
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| GAAP net loss | $ | (17,780,000 | ) | $ | (13,565,000 | ) | ||
| Stock-based compensation and expenses | 4,556,000 | 4,169,000 | ||||||
| Interest expense, net | 6,548,000 | 5,415,000 | ||||||
| Income tax | - | - | ||||||
| Depreciation | 465,000 | 432,000 | ||||||
| Amortization of intangible assets | 4,226,000 | 2,554,000 | ||||||
| Investment loss, net | - | 1,248,000 | ||||||
| Other income, net | - | (26,000 | ) | |||||
| Adjusted EBITDA | $ | (1,985,000 | ) | $ | 227,000 |
Announces First Quarter 2025 Financial Results
Core Results, including core gross margin, core net loss, and core basic and diluted loss per share exclude (1) all amortization and
impairment charges of intangible assets, excluding software development costs, (2) net gains and losses on investments and equity securities,
including equity method gains and losses and equity valued at fair value through profit and loss (FVPL), and preferred stock dividends,
and (3) gains/losses on forgiveness of debt. In certain periods, Core Results may also exclude fair value adjustments of financial assets
in the form of options to acquire a company carried at FVPL, obligations related to product recalls, certain acquisition-related items,
restructuring charges/releases and associated items, related legal items, gains/losses on early extinguishment of debt or debt modifications,
impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and
that are or are expected to accumulate within the year to be over a $100,000 threshold.
following is a reconciliation of Core Results, non-GAAP measures, to the most comparable GAAP measures for the three months ended March
| For the Three Months Ended March 31, 2025 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains (Losses) | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 32,307,000 | $ | 3,780,000 | $ | - | $ | - | $ | 36,087,000 | ||||||||||
| Gross margin | 68 | % | 75 | % | ||||||||||||||||
| Operating loss | (11,232,000 | ) | 4,226,000 | - | - | (7,006,000 | ) | |||||||||||||
| Loss before taxes | (17,780,000 | ) | 4,226,000 | - | - | (13,554,000 | ) | |||||||||||||
| Taxes | - | - | - | - | - | |||||||||||||||
| Net loss | (17,780,000 | ) | 4,226,000 | - | - | (13,554,000 | ) | |||||||||||||
| Basic and diluted loss per share ($) (1) | (0.50 | ) | (0.38 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 35,826,452 | 35,826,452 |
| For the Three Months Ended March 31, 2024 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains (Losses) | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 24,034,000 | $ | 2,140,000 | $ | - | $ | - | $ | 26,174,000 | ||||||||||
| Gross margin | 69 | % | 76 | % | ||||||||||||||||
| Operating loss | (6,928,000 | ) | 2,554,000 | - | - | (4,374,000 | ) | |||||||||||||
| Loss before taxes | (13,565,000 | ) | 2,554,000 | 1,248,000 | (26,000 | ) | (9,789,000 | ) | ||||||||||||
| Taxes | - | - | - | - | - | |||||||||||||||
| Net loss | (13,565,000 | ) | 2,554,000 | 1,248,000 | (26,000 | ) | (9,789,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.38 | ) | (0.28 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 35,469,638 | 35,469,638 |