Harrow Health, Inc. Q4 FY2025 earnings call

• Over the past five years, HARO has undergone a fundamental transformation, owning one of the largest portfolios of prescription ophthalmic products in the U.S. market and completing multiple acquisitions. • In 2025, the company achieved strong top line growth and demonstrated operating leverage. • Vivi is positioned for revenue acceleration, with an expanding salesforce. • IHESO had a record quarter, broadening its addressable market and expecting price improvements and retina-related data. • TriEssence had its strongest quarter since relaunch, with plans to double its salesforce. • The rare specialty and compounded products have potential positive surprises in their pipeline. • In 2026, HARO is set to launch two important products by Clovey and BioViz, and its pipeline is advancing.

For the fourth quarter of 2025, consolidated revenues were $89.1 million, showing a 33% year-over-year increase. The full year 2025 revenue reached $272 million, up by 36% compared to 2024. Adjusted EBITDA was $24.2 million in the fourth quarter and $61.9 million for the entire year, with a 54% year-over-year growth. For Vivi, the fourth quarter revenues were $25.9 million, marking a 14% sequential increase, and the full year revenue stood at $88.7 million, a 216% rise from 2024. IHESO generated $35.9 million in the fourth quarter and $81.3 million for the full year, with a 64% quarter-over-quarter growth and 65% year-over-year growth. TriEssence had Q4 revenues of $5.1 million, a 36% increase from the third quarter, and the full year revenue was $9.9 million, a 193% jump from 2024. The rare specialty and compounded portfolio recorded $22.2 million in Q4 and $92.3 million for the full year. For 2026, the expected full year revenue is between $350 million and $365 million, with adjusted EBITDA projected to be between $80 million and $100 million, and the second half of the year is anticipated to be stronger.

• HARO expects the full year 2026 revenue to be in the range of $350 million to $365 million. • The first half of 2026 revenue is expected to be between $133 million and $153 million, and the second half between $203 million and $226 million. • The adjusted EBITDA for the full year 2026 is projected to be between $80 million and $100 million, with the majority generated in the second half. • The first quarter is typically the lowest revenue quarter due to factors like stocking activity and insurance resets. • Vivi's coverage has been expanded, but the first quarter faces pressure from high deductible plans. • IHESO is expected to have pricing improvements in the third quarter, with the launch of Biclovin in Q2, and the third quarter expecting BioViz revenue contribution and the impact of an expanded salesforce. • Compounded revenues are expected to be between $60 million and $65 million for the full year, with Q1 being the softest quarter as the inventory shortage resolves.

• There are risks related to HARO's ability to make its FDA-approved products and compounded formulations and technologies commercially available, as well as the uncertainty of FDA approval of certain drug candidates in a timely manner or at all. • Market dynamics, including competition, reimbursement, and seasonality, pose uncertainties that can affect the company's financial performance.

Q: Regarding Vivi's commercial mix in Q1 and ASP assumptions for 2026.

A: Mark discussed the buoyancy of Vivi's ASP and the better-than-expected new prescription volumes in the first quarter, stating that more reps lead to more prescriptions.

Q: About IHESO price improvements and the triessence cataract trial.

A: Andrew clarified that IHESO pricing improvement will occur in the third quarter of 2026, and Amir discussed the protocol of the triessence cataract trial.

Q: Concerning Vivi's market share targets and IHESO data contribution.

A: Mark talked about Vivi's goals to be the number one cyclosporine and anti-inflammatory, and Pat added on the focus on new-to-brand, while Mark discussed the impact of IHESO data.

Q: Regarding OpEx expansion and R&D.

A: Andrew discussed the SG&A and R&D spend, including the acquisition-related R&D charge and the trial-dependent nature of R&D costs.

Q: About IHESO dynamics and Vivi Salesforce.

A: Mark and Pat discussed how IHESO's in-office expansion can offset the loss from the ASC, and Mark talked about Vivi's Salesforce expansion and its comparison to competitors.

Q: On the Melt franchise and triessence.

A: Mark discussed the need for two products in the Melt franchise and triessence's focus on the ophthalmic market.

Q: Regarding Vivi Salesforce expansion and biosimilar marketing.

A: Pat and Mark discussed Vivi's Salesforce expansion and the biosimilar marketing strategy leveraging existing relationships and comprehensive offerings.

Q: On margins, tariffs, and BioViz launch.

A: Andrew discussed no tariff impact on margins, and Pat and Andrew talked about the preparations for the BioViz launch.