This article first appeared on GuruFocus .
Release Date: August 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Harrow Inc ( NASDAQ:HROW ) reported Q2 2026 revenue of $70.7 million, up 11% year-over-year and approximately 60% sequentially, with first-half revenue reaching about $115 million.
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IHISO achieved record quarterly unit demand of 65,477 units, up 44% sequentially and 34% year-over-year, despite the loss of pass-through reimbursement, and saw record new account growth with a 32% increase in total ordering accounts.
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Vevi (VIVI) delivered record quarterly revenue of $29.4 million, up nearly 58% year-over-year, with prescriptions growing 21% sequentially and prescriber base expanding 15%, while improving net revenue realization through revised business rules.
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Triessence reached another quarterly demand record of 14,529 units, up 162% year-over-year, with 54% of unit demand now coming from ocular surgery, supported by a tripled surgical commercial organization.
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The company reiterated full-year 2026 guidance of $350-$365 million in revenue and $80-$100 million in adjusted EBITDA, citing multiple growth drivers and improved economics entering the second half.
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The pending Tervaya acquisition is expected to be financially accretive, with projected revenue contribution of more than $30 million in 2027, and offers operational synergies with the existing dry eye franchise.
Negative Points
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First-half 2026 revenue of approximately $115 million was lighter than expected, primarily due to the Vevi net revenue impact and IHISO channel inventory normalization.
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IHISO reported revenue of $15.6 million lagged underlying demand as distributors sold through previously purchased inventory, with the loss of pass-through reimbursement in cataract surgery impacting the surgical market.
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Adjusted EBITDA was negative $1.2 million in Q2 2026, reflecting increased SG&A expenses from commercial investments.
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The company faces a substantial second-half revenue ramp, with guidance implying $235-$250 million in revenue for the second half, which requires significant execution across multiple initiatives.
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The Tervaya transaction is expected to add approximately $20 million in annualized SG&A expenses once fully integrated, and the company expects only a modest revenue contribution from the product in 2026 due to the anticipated timing of the close.
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The company's reliance on third-party data may undercount Vevi prescriptions, and the impact of new business rules on prescription growth remains uncertain, though early results have been positive.
Q & A Highlights
Q: Can you provide more detail on the new top-three PBM coverage win for Vevi, specifically what it constitutes and how it compares to existing coverage? A: Mark Baum (CEO) confirmed it's a top-three PBM for commercial lives that were formerly blocked, now providing access to millions of new lives. He declined to specify formulary tiering but noted the win came ahead of expectations, as it wasn't anticipated until early next year. The team is "really pumped" about the expanded access.
Q: Can you discuss the drivers behind the record IHISO demand and the percentage of business now coming from in-office versus retina, and how should we think about Vevi's ASP in the second half? A: Mark Baum (CEO) noted the ASC market is effectively shut due to loss of pass-through, yet IHISO hit a record 65,477 units, driven by the in-office market (retina and other procedures), which adds 2.5 million annual procedures. He emphasized the company has less than 2% market share in the addressable market, leaving significant headroom. Andrew Boll (CFO) added that Vevi's ASP should improve sequentially in Q3 and Q4 due to full-quarter benefits of revised business rules and patients hitting deductibles.
Q: What were Tervaya's recent sales trends, and what are you modeling for loss of exclusivity? A: Andrew Boll (CFO) declined to provide specific sales figures until closing, but reiterated guidance for over $30 million in 2027 revenue. He confirmed the company assumes exclusivity through 2034. Mark Baum (CEO) added that the products are clinically complementary, with Tervaya offering a drop-free option for patients who struggle with eye drops, and operational synergies should be visible as early as Q4.
Q: Can you articulate what specifically drove the strong IHISO demand and how sustainable it is? A: Mark Baum (CEO) attributed the demand to the product's superior clinical attributespredictable onset, duration, and patient comfortwhich are spreading by word-of-mouth in the retina community and multi-specialty practices. He noted the company is picking up larger accounts and expanding into the in-office cataract surgery market. With less than 2% penetration, he expects continued acceleration in Q3 and Q4.
Q: Should we think about Tervaya's 2026 contribution as a pro-rata share of the 2027 guidance, and will it be accretive to EBITDA this year? A: Andrew Boll (CFO) confirmed that's a fair assessment, depending on closing timing. He stated the product should not pull down earnings this year, though there may be some integration costs in the first few months. Starting next year, integration costs will be cleared, and the product should have positive contribution from day one.
Q: Can you comment on the ASP impact of the new PBM coverage relative to current coverage, and how impactful is the sampling program replacing the $0 first fill? A: Mark Baum (CEO) stated the company never signs deals unless there's a net improvement to ASP or overall revenue. The new coverage should improve unit revenue for Vevi. He explained the sampling program replaces the expensive $0 first fill, reducing COGS and processing fees while achieving the same patient access. The business rule changes have not constricted prescribing; instead, NRx and TRx moved up meaningfully in Q2 and continue to grow in Q3.
Q: Will Tervaya and Vevi be sold in lockstep by the same sales force, and what's the strategy for both products? A: Mark Baum (CEO) confirmed Vevi remains the primary product, but Tervaya offers operational synergy and clinical complementarity. Pat Sullivan (Chief Commercial Officer) added that Tervaya opens up a new segment for basal tear production, often presenting similarly to inflammation patients. The combined portfolio will grow Harrow's share, bring in more writers, and expand the business.
Q: What is the strategy for BioViz to protect pricing, and how are you approaching the biosimilar market? A: Mark Baum (CEO) noted the team has received significant inbound interest and is focused on converting it to demand. He highlighted a "phenomenal market access strategy" designed to maximally preserve pricing, with unique advantages over branded Lucentis and other biosimilars. Andrew Boll (CFO) added that the company is leveraging experience from other buy-and-bill products to extend net revenue per unit durability.
Q: Is the IHISO surgical setting market gone forever, or could clinical data bring it back? A: Mark Baum (CEO) stated the company is focusing on the in-office market, which has over 10 million more annual procedures to address, with a permanent J-code and better than 95% reimbursement. He said they are leaving the surgical market alone for now, prioritizing where they are winning and have massive headroom.
Q: Can you comment on the third-party data undercounting Vevi, and what are you seeing in total dispense units? A: Andrew Boll (CFO) noted an increasing disparity between third-party aggregator data and internal data. Vevi's total branded dry eye prescriptions reached 14.6% share at the end of June, up from 14% in March and 7.8% a year ago. Mark Baum (CEO) added that his internal FillRx dashboard shows "higher highs and higher lows" in daily volume, giving confidence in the franchise's momentum.
Q: What are the key questions for the pre-NDA meeting for Gmail, and will ancillary studies be ramped up by year-end? A: Amir Sujai (Chief Scientific Officer) explained the pre-NDA meeting will focus on the submission package format, CMC discussions, and ancillary programs like PK studies. He noted the Quell study is enrolling well, with completion and results expected later this year. Mark Baum (CEO) added the study is under an IND, which could offer advantages pending outcomes.
Q: Can you discuss the contact lens wearer opportunity for Tervaya and any access programs planned for the launch? A: Mark Baum (CEO) highlighted Tervaya's unique advantage for the 45 million contact lens wearers in the U.S., as other products require lens removal. He expects to restore and
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
