Harrow Health, Inc. Q3 FY2025 earnings call

• Harrow is a leading provider of ophthalmic disease management solutions in North America with a diverse portfolio including branded, generic, OTC, compounded and biosimilars. - VEVYE and IHEEZO are key growth engines, with VEVYE showing 22% Q - over - Q revenue growth and signing agreements with leading national payers for preferred product status starting January 2026. - TRIESENCE is gaining traction, especially in retina and with its launch into ocular inflammation, and has new leadership and strategies in place to reignite growth. - The company is preparing for 4 product launches over the next 3 years, including BYOOVIZ, OPUVIZ, BYQLOVI and MELT - 300. - There is a dispute with the California Board of Pharmacy regarding ImprimisRx's license renewal, but efforts are underway to resolve it.

Total revenue for the third quarter was $71.6 million. VEVYE generated approximately $22.6 million in revenue during the third quarter, a 22% increase from the second quarter. IHEEZO's revenue for the third quarter came in at $21.9 million, up 20% from the second quarter. TRIESENCE and broader specialty branded portfolio generated $6.9 million in revenue, a 33% sequential increase. ImprimisRx products generated approximately $20.1 million of revenue in the third quarter. VEVYE contributed a significant portion to growth, IHEEZO also showed strong performance, TRIESENCE was on the path to reignite growth, and ImprimisRx provided stable recurring revenue.

• Updated full year revenue outlook to a range of $270 million to $280 million. - VEVYE and IHEEZO are positioned for a strong finish to the year and a record quarter. - Considering near - term factors, the full year outlook is updated, but the fundamentals of the business remain strong. - Anticipate a typical seasonal decline from Q4 2025 to Q1 2026, but expect record results next year.

• If unable to resolve the dispute with the California Board of Pharmacy, may see a minor impact on ImprimisRx's fourth quarter revenue. - ImprimisRx had an inventory shortage during October, causing a one - time decrease of about $4 million to $6 million in its revenue for the fourth quarter.

Q: Congrats on the quarter. Firstly, could you talk about VEVYE prescription data and why we don't see it this quarter?

A: What we decided to do is to make sure that we have the most accurate information available. We withdrew from some of the reporting services a few quarters ago. And it's really important that we have confidence, absolute confidence that what we're putting out is accurate as possible. Also, for competitive reasons, we pulled out of these third - party aggregators, so we're not presenting the data to give up competitive positioning.

Q: Maybe for you, Andrew, could you talk about the leverage that you're achieving? You had some pretty nice leverage on the SG&A in the third quarter. But as you continue to expand your commercial teams, how should we think about leverage overall into 2026, mainly as a percent of revenues?

A: We expected to see operating leverage with the new revenue growth we expected. We spent a lot on the operational and commercial infrastructure to support the branded group. That is mostly in place and we're seeing that leverage show up in the numbers. The additional OpEx we're looking at is revenue - generating OpEx, so we should start seeing immediate return on that expense. Even though we're making investments in the commercial infrastructure, it's not a 50% increase in OpEx, it's a moderate increase and the investment should see almost an immediate impact and return on revenue