📊 HROW Key Takeaways
Is Harrow, Inc.. (HROW) a Good Investment?
Harrow demonstrates strong pharmaceutical fundamentals with 36.4% revenue growth, excellent 75.1% gross margins, and positive free cash flow of $43.0M. However, the company remains unprofitable on a net income basis and carries a concerning debt burden with 4.77x debt-to-equity leverage, limiting financial flexibility despite improving YoY earnings trends.
Harrow is scaling rapidly with 36% YoY revenue growth, strong 75% gross margin, and positive operating income, translating into solid free cash flow (~16% margin) despite a small GAAP loss. Liquidity is healthy and interest is well covered, suggesting the business can fund growth and deleverage over time. The main overhang is elevated leverage and negative ROE, but improving cash generation and operating leverage support continued fundamental improvement.
Why Buy Harrow, Inc.. Stock? HROW Key Strengths
- Strong revenue growth of 36.4% YoY demonstrates market traction in pharmaceutical sector
- Excellent gross margin of 75.1% indicates pricing power and favorable product mix
- Positive operating cash flow of $43.9M and strong FCF margin of 15.8% despite net losses, suggesting sustainable underlying business model
- Net income and EPS both improved significantly YoY (71.4%), indicating improving profitability trajectory
- Rapid revenue growth with high gross margin
- Positive operating income and strong free cash flow generation with low capex
- Solid liquidity and adequate interest coverage
HROW Stock Risks: Harrow, Inc.. Investment Risks
- Company remains unprofitable with net loss of $5.1M and negative net margin of -1.9%
- Dangerously high leverage with debt-to-equity ratio of 4.77x and $250.0M long-term debt relative to $52.4M equity base
- Negative ROE (-9.8%) and ROA (-1.3%) indicate value destruction, raising sustainability concerns
- Significant gap between operating cash flow and operating income suggests heavy non-cash charges (depreciation/amortization) that may reflect acquisition-driven growth quality
- Elevated leverage and refinancing risk (Debt/Equity ~4.8x)
- GAAP net losses and negative ROE reflecting interest and non-cash burdens
- Potential margin pressure from competitive/regulatory dynamics
Key Metrics to Watch
- Path to GAAP profitability and net income trends
- Debt reduction progress and leverage ratio trajectory toward industry norms
- Operating margin expansion as company scales revenue
- Free cash flow consistency and conversion relative to revenue growth
- Operating margin progression
- Net leverage and interest coverage
Harrow, Inc.. (HROW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.20x current ratio provides a solid financial cushion.
HROW Profit Margin, ROE & Profitability Analysis
HROW vs Healthcare Sector: How Harrow, Inc.. Compares
How Harrow, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Harrow, Inc.. Stock Overvalued? HROW Valuation Analysis 2026
Based on fundamental analysis, Harrow, Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Harrow, Inc.. Balance Sheet: HROW Debt, Cash & Liquidity
HROW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Harrow, Inc..'s revenue has grown significantly by 276% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.75 indicates the company is currently unprofitable.
HROW Revenue Growth, EPS Growth & YoY Performance
HROW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $49.3M | $1.0M | $0.03 |
| Q2 2025 | $48.9M | $5.0M | $0.13 |
| Q1 2025 | $34.6M | -$13.6M | $-0.38 |
| Q3 2024 | $34.3M | -$4.2M | $-0.12 |
| Q2 2024 | $33.5M | -$4.2M | $-0.14 |
| Q1 2024 | $26.1M | -$6.6M | $-0.22 |
| Q3 2023 | $22.8M | -$4.4M | $-0.13 |
| Q2 2023 | $23.3M | -$4.2M | $-0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Harrow, Inc.. Dividends, Buybacks & Capital Allocation
HROW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Harrow, Inc.. (CIK: 0001360214)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HROW
What is the AI rating for HROW?
Harrow, Inc.. (HROW) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HROW's key strengths?
Claude: Strong revenue growth of 36.4% YoY demonstrates market traction in pharmaceutical sector. Excellent gross margin of 75.1% indicates pricing power and favorable product mix. ChatGPT: Rapid revenue growth with high gross margin. Positive operating income and strong free cash flow generation with low capex.
What are the risks of investing in HROW?
Claude: Company remains unprofitable with net loss of $5.1M and negative net margin of -1.9%. Dangerously high leverage with debt-to-equity ratio of 4.77x and $250.0M long-term debt relative to $52.4M equity base. ChatGPT: Elevated leverage and refinancing risk (Debt/Equity ~4.8x). GAAP net losses and negative ROE reflecting interest and non-cash burdens.
What is HROW's revenue and growth?
Harrow, Inc.. reported revenue of $272.3M.
Does HROW pay dividends?
Harrow, Inc.. does not currently pay dividends.
Where can I find HROW SEC filings?
Official SEC filings for Harrow, Inc.. (CIK: 0001360214) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HROW's EPS?
Harrow, Inc.. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HROW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Harrow, Inc.. has a BUY rating with 69% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HROW stock overvalued or undervalued?
Valuation metrics for HROW: ROE of -9.8% (sector avg: 15%), net margin of -1.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HROW stock in 2026?
Our dual AI analysis gives Harrow, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HROW's free cash flow?
Harrow, Inc..'s operating cash flow is $43.9M, with capital expenditures of $887.0K. FCF margin is 15.8%.
How does HROW compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -1.9% (avg: 12%), ROE -9.8% (avg: 15%), current ratio 2.20 (avg: 2).
Is Harrow, Inc.. carrying too much debt?
HROW has a debt-to-equity ratio of 4.77x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 2.20 suggests adequate short-term liquidity.