6 HARROW® Your patients. Our purpose. Investor Presentation | November 2024 Safe Harbor This presentation contains express "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expect ...

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $49,257,000, an increase of $14,992,000 (43.7%) compared to $34,265,000 for the same period in 2023[147]. - IHEEZO generated revenues of $12,882,000 for the three months ended September 30, 2024, up $6,955,000 (117.4%) from $5,927,000 in the same period of 2023[147]. - VEVYE, launched in January 2024, generated $5,186,000 in revenues for the three months ended September 30, 2024[147]. - Branded revenue, net, increased to $28,552,000 for the three months ended September 30, 2024, compared to $14,496,000 for the same period in 2023, reflecting a growth of $14,056,000 (97%) [147]. - ImprimisRx revenue, net, was $20,705,000 for the three months ended September 30, 2024, compared to $19,769,000 for the same period in 2023, reflecting an increase of $936,000 (4.7%) [147]. Cost and Profitability - The total cost of sales for the branded segment was $5,169,000 for the three months ended September 30, 2024, an increase of $3,335,000 (182.5%) compared to the same period in 2023[149]. - Branded gross profit for the three months ended September 30, 2024, was $23,383,000, up from $11,161,000 in 2023, representing a variance of $12,222,000[152]. - Branded gross margin increased to 81.9% for the three months ended September 30, 2024, compared to 77.0% in 2023, a rise of 4.9%[152]. - ImprimisRx gross profit for the three months ended September 30, 2024, was $13,856,000, an increase of $819,000 from $13,037,000 in 2023[153]. Expenses - Research and development expenses for the nine months ended September 30, 2024, were $7,475,000, up $4,159,000 from $3,316,000 in 2023[156]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were $33,645,000, an increase of $12,612,000 from $21,033,000 in 2023[154]. - Interest expense, net for the three months ended September 30, 2024, was $5,525,000, a decrease from $5,749,000 in the same period in 2023[157]. Cash Flow and Financial Position - Net cash used in operating activities during the nine months ended September 30, 2024, was $(4,423,000), a decrease from $(4,856,000) in 2023[165]. - Cash and cash equivalents at the end of the period on September 30, 2024, were $72,601,000, compared to $74,085,000 at December 31, 2023[162]. - The company recorded a loss of $3,171,000 related to the change in fair market value of Eton's common stock during the nine months ended September 30, 2024[158]. - The company expects to use its current cash position and funds generated from operations to pursue business plans, including potential acquisitions[163]. Corporate Actions and Agreements - The company made a one-time payment of $37,000,000 to Novartis in October 2024 as part of the TRIESENCE re-launch[139]. - The company drew down a total principal loan amount of $107,500,000 under the Oaktree Loan, with no additional principal loan amount remaining available[141]. - A license and supply agreement was entered into with Apotex in February 2024, granting exclusive rights for several ophthalmic products in the Canadian market[142]. - The MUE for IHEEZO's J-Code was increased from 1 to 2, effective July 1, 2024, allowing for more flexible billing in physician offices[144]. Internal Controls and Compliance - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of September 30, 2024[173]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[174]. - The company maintains disclosure controls designed to ensure timely reporting of required information under the Securities Exchange Act[172].

Financial Performance - Revenues increased 44% year-over-year from $34.3 million in Q3 2023 to $49.3 million in Q3 2024[1] - GAAP net loss narrowed to $(4.2) million compared to $(4.4) million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was $8.8 million, down from $9.2 million in Q3 2023[3] - For Q3 2024, Harrow reported a GAAP net loss of $4,220,000, an improvement from a net loss of $4,391,000 in Q3 2023[14] - Adjusted EBITDA for Q3 2024 was $8,808,000, down from $9,209,000 in Q3 2023, reflecting a decrease of approximately 4.4%[14] - For the nine months ended September 30, 2024, the GAAP net loss was $24,258,000, compared to a net loss of $15,263,000 for the same period in 2023[14] - Basic and diluted loss per share for Q3 2024 was $(0.12), compared to $(0.13) in Q3 2023[16][18] Operational Metrics - Total prescriptions for VEVYE increased by 55% over Q2 2024[1] - Customer unit demand for IHEEZO® rose by 15% compared to Q2 2024[1] - Core gross margin improved to 80% in Q3 2024 from 78% in Q3 2023[3] - Gross profit for Q3 2024 was $37,239,000, with a gross margin of 76%, compared to a gross profit of $24,198,000 and a margin of 71% in Q3 2023[16][18] - Core results for the nine months ended September 30, 2024, showed a gross profit of $104,144,000, with a gross margin of 78%[17] Cash and Liabilities - Cash and cash equivalents stood at $72.6 million as of September 30, 2024, down from $74.1 million at the end of 2023[8] - Current liabilities increased significantly to $95.0 million from $49.3 million at the end of 2023[8] Future Outlook - The company expects meaningful overperformance in Q4 2024 revenue guidance due to positive demand trends[1] - The company is expanding access and affordability through multiple new partnerships[1] Expenses - The company incurred stock-based compensation and expenses of $4,385,000 in Q3 2024, slightly down from $4,476,000 in Q3 2023[14] - Operating income for Q3 2024 was $1,321,000, compared to an operating income of $1,744,000 in Q3 2023[16][18] Investment Loss - The company reported an investment loss of $3,171,000 for the nine months ended September 30, 2024, compared to an investment loss of $2,676,000 for the same period in 2023[14][19] Core Results - Harrow's core results exclude certain amortization and impairment charges, with core net loss reflecting adjustments for exceptional items[15]

Core Insights - Harrow (HROW) reported a quarterly loss of $0.12 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -140% [1] - The company generated revenues of $49.26 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 11.42%, but showing an increase from $34.27 million year-over-year [2] - Harrow's stock has increased by approximately 345.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.5% [3] Company Performance - Over the last four quarters, Harrow has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $81.8 million, and for the current fiscal year, it is $0.09 on revenues of $223.66 million [7] - The estimate revisions trend for Harrow is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - Drugs industry, to which Harrow belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a trend in short-term investing, highlighting that successful entry timing is crucial for capitalizing on price movements [1][2]. Group 1: Trend Analysis - The trend can reverse before exiting a trade, potentially leading to short-term capital losses for investors, necessitating confirmation of sound fundamentals and positive earnings estimates to maintain stock momentum [2]. - A unique short-term trading strategy, referred to as the "Recent Price Strength" screen, helps identify stocks with sufficient fundamental strength to sustain their recent uptrends [3]. Group 2: Stock Example - Harrow (HROW) - Harrow (HROW) has shown a solid price increase of 28.2% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - HROW has maintained a price increase of 0.5% over the past four weeks, suggesting that the upward trend is still intact [5]. - Currently, HROW is trading at 82% of its 52-week high-low range, indicating a potential breakout opportunity [6]. Group 3: Fundamental Strength - HROW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 4: Additional Opportunities - Besides HROW, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting potential investment opportunities [8]. - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles to identify winning stock picks [8].

The market expects Harrow (HROW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 13, 2024, might help the stock move higher if these key numbers are ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 6th:Harrow, Inc. (HROW) : This eyecare pharmaceutical company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 164.3% over the last 60 days.Harrow’s shares gained 108.4% over the last three months compared with the S&P 500’s advance of 11.1%. The company possesses a Momentum Score  of B.Orla Mining Ltd. (ORLA) : This mining company has a Zac ...

Investors might want to bet on Harrow (HROW) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The power of a c ...

Shares of Harrow (HROW) have gained 5% over the past four weeks to close the last trading session at $47.20, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $59.45 indicates a potential upside of 26%.The mean estimate comprises four short-term price targets with a standard deviation of $12.23. While the lowest estimate of $44.80 indicates a 5.1% decline from the current price le ...

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals that can sustain upward momentum [1]. Group 1: Stock Performance - Harrow (HROW) has shown a significant price increase of 133.3% over the past 12 weeks, indicating strong investor interest [2]. - The stock has also maintained a price increase of 27% over the last four weeks, suggesting that the upward trend is still intact [2]. - HROW is currently trading at 94.6% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - HROW carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging an annual return of +25% since 1988 [3]. - The Average Broker Recommendation for HROW is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that HROW is not the only stock that meets the criteria of the "Recent Price Strength" screen, encouraging investors to explore other stocks that fit this profile [4]. - The article also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help identify potential winning stocks [4]. - The Zacks Research Wizard tool allows investors to backtest stock-picking strategies, enhancing the likelihood of successful investments [4].