Harrow Health(HROW) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenues were $89.1 million, representing a 33% year-over-year growth. For the full year, revenue was $272 million, up 36% versus 2024 [18] - Adjusted EBITDA was $24.2 million in Q4 and $61.9 million for the full year, reflecting a 54% year-over-year growth [18] - The company generated just under $44 million of cash from operations, ending the year with $72.9 million in cash and cash equivalents [19] Business Line Data and Key Metrics Changes - BYOOVIZ had Q4 revenues of $25.9 million, up 14% sequentially, with full-year revenue at $88.7 million, a 216% increase over 2024 [19] - IHEEZO generated $35.9 million in Q4 and $81.3 million for the full year, representing 64% quarter-over-quarter growth and 65% year-over-year growth [19] - TRIESENCE revenue for Q4 was $5.1 million, a 36% increase from Q3, totaling $9.9 million for the year, a 193% increase from 2024 [20] - The rare specialty and compounded portfolio generated $22.2 million in Q4 and $92.3 million for the full year [20] Market Data and Key Metrics Changes - The company expects full-year 2026 revenue between $350 million and $365 million, with first half revenue projected at $133 million to $153 million and second half revenue at $203 million to $226 million [21] - The first quarter is expected to be the lowest revenue quarter due to stocking activity and insurance resets, with a significant drawdown of inventory expected [22] Company Strategy and Development Direction - The company aims to exceed $250 million in quarterly revenue by the end of 2027, with a diversified ophthalmic franchise focused on expanding patient access and improving affordability [9] - Plans include doubling the VEVYE sales force and expanding IHEEZO into office-based settings, targeting over 2.5 million additional procedures annually [10][32] - The company is preparing to launch two important products, BYQLOVI and BYOOVIZ, further expanding its specialty portfolio [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing that all core growth drivers accelerated in Q4 2025 [34] - The management team highlighted the importance of expanding coverage and sales force to capture market opportunities, particularly for VEVYE and IHEEZO [30][31] - The company anticipates a strong second half of 2026 driven by a fully deployed sales force and contributions from new product launches [27] Other Important Information - The company is focused on converting compounded utilization into FDA-approved branded products, with compounded revenue expected to be approximately $60 million to $65 million for the full year [27] - The company is also addressing supply chain issues to ensure adequate market supply for its products [16] Q&A Session Summary Question: What have you seen so far from a commercial mix perspective in Q1? - Management noted that new prescription volumes for VEVYE are better than expected, with a focus on building volume throughout the year [42][45] Question: What % of the cataract market do you think is the sweet spot for TRIESENCE? - Management believes TRIESENCE has the potential to significantly expand its market share, aiming for a broad-based label that will increase access for cataract surgery patients [47][50] Question: Could you clarify the price improvements for IHEEZO? - Management expects pricing for IHEEZO to improve by Q3 2026 compared to 2025 and the first part of 2026 [55][56] Question: Are you able to share any market share targets for VEVYE? - Management aims for VEVYE to become the number one cyclosporine in the U.S. market, targeting over 20% market share [61][66]