Harrow, Inc. (HROW): A Bull Case Theory

We came across a bullish thesis on Harrow, Inc. on Penny Insight’s Substack. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.'s share was trading at $38.23 as of August 19^th. HROW’s trailing and forward P/E were 9.64 and 3.33k respectively according to Yahoo Finance.

Harrow, Inc. is a U.S.-based ophthalmology pharmaceutical company rapidly expanding its branded portfolio with products such as VEVYE, IHEEZO, TRIESENCE, and the soon-to-launch BYQLOVI, alongside biosimilars BYOOVIZ and OPUVIZ. VEVYE, launched in January 2024, has quickly gained market share in dry eye disease, surpassing CEQUA and TRYVAYA and positioning itself to challenge category leader MIEBO, with management projecting it will become Harrow’s first product to generate nine-figure annual revenues.

IHEEZO, introduced as the first branded ocular anesthetic in 14 years, has achieved strong adoption with broad reimbursement coverage, while TRIESENCE has doubled its customer base since 2025, supported by favorable Medicare reimbursement changes. BYQLOVI, an FDA-approved steroid secured in 2025, targets a large post-operative market and is slated for launch in early 2026. Harrow also retains equity and royalty rights in Melt Pharmaceuticals and Surface Ophthalmics, both advancing late-stage clinical assets that may add future optionality.

Financially, Harrow reported Q2 2025 revenues of $63.7 million, up 30% year-over-year, with GAAP net income of $5.0 million and EBITDA more than doubling, reflecting improving profitability and scale. Management projects revenues of over $280 million in 2025, with longer-term goals of achieving $250 million in quarterly revenue by 2027, implying ~$1 billion annualized by 2028.

However, risks remain material: $182 million in debt maturities in 2026 necessitate refinancing or asset sales, while stock-based compensation has already diluted shareholders by 9.1% over the past year. Reimbursement pressures and payer consolidation further weigh on execution. If Harrow delivers on its ambitious targets and mitigates financing challenges, its shift toward branded pharmaceuticals and biosimilars could drive a market capitalization above $6 billion by 2028, implying significant upside from current levels.

Previously we covered a bullish thesis on Harrow, Inc. (HROW) by Simon in September 2024, which highlighted strong revenue growth, expanding dry-eye treatment sales, and its direct-to-provider model. The stock has depreciated ~13% since then as costs pressured results. The thesis still stands given scaling opportunities. Penny Insight shares a similar view but emphasizes product traction, biosimilars, and financing risks.

Harrow, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held HROW at the end of the first quarter which was 20 in the previous quarter. While we acknowledge the potential of HROW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.