Harrow Health(HROW) - 2025 Q1 - Quarterly Results

Revenue Growth - First-quarter 2025 revenues reached $47.8 million, a 38% increase from $34.6 million in the same quarter last year[1] - VEVYE revenues grew 35% quarter-over-quarter, from $16.0 million in Q4 2024 to $21.5 million in Q1 2025[1] - The company expects to achieve over $280 million in revenue for 2025, with accelerating revenues anticipated in the second half of the year[2] - VEVYE is projected to become the largest revenue-generating product, with expectations of reaching 9-figure annual revenue[7] - TRIESENCE is expected to be among the top three revenue-generating products in 2025, supported by recent market access wins[13] - The number of accounts ordering TRIESENCE has more than doubled since the beginning of the year, indicating strong market adoption[23] - The VAFA program has led to a more than 4X increase in NRx volumes for VEVYE and a 4X increase in weekly prescribers[11] - Harrow's specialty branded product portfolio is expected to contribute steadily to overall revenue as the year progresses[26] Financial Performance - Revenues for Q1 2025 were $47.8 million, a 38% increase from $34.6 million in Q1 2024[50] - GAAP net loss for Q1 2025 was $(17.8) million compared to $(13.6) million in Q1 2024, with core net loss at $(13.6) million versus $(9.8) million[52] - Cash flow from operations totaled $19.7 million in Q1 2025, driven by the collection of accounts receivable[44] - GAAP gross margins were 68% in Q1 2025, down from 69% in Q1 2024, while core gross margins decreased to 75% from 76%[53] - Selling, general and administrative costs rose to $40.5 million in Q1 2025 from $28.8 million in Q1 2024, primarily due to seasonal expenses and new hires[51] - Adjusted EBITDA for Q1 2025 was a loss of $(2.0) million compared to a gain of $227,000 in Q1 2024[52] - The impact of tariffs on gross margins is projected to be minimal, estimated at approximately 0.52% for 2024[42] Profitability and Losses - Operating loss increased to $(11,232,000) in Q1 2025 from $(6,928,000) in Q1 2024, reflecting a 62.5% increase in losses[75] - Loss before taxes for Q1 2025 was $(17,780,000), up from $(13,565,000) in Q1 2024, marking a 30.5% increase[75] - Net loss for Q1 2025 was $(17,780,000), compared to $(13,565,000) in Q1 2024, which is a 30.5% increase[75] - Basic and diluted loss per share for Q1 2025 was $(0.50), compared to $(0.38) in Q1 2024, indicating a decline of 31.6%[75] - Core results showed a gross profit of $36,087,000 for Q1 2025, compared to $26,174,000 for Q1 2024, reflecting a 37.9% increase[75] - Core basic and diluted loss per share improved to $(0.38) in Q1 2025 from $(0.28) in Q1 2024[75] Operational Efficiency - The company expects continued growth across its branded portfolio and aims to enhance profitability through operational efficiencies[54] - The company continues to focus on improving operational efficiency and reducing losses in future quarters[75] - As of March 31, 2025, cash and cash equivalents totaled $66.7 million, with accounts receivable at $77.1 million[53] - The company is expanding its specialty distribution network, including agreements with major private equity-owned retina groups[19] - Ongoing discussions are in place to refinance or repay a portion of the $222.75 million in outstanding debt[37]