Harrow shares rose sharply on Tuesday after the US eye-care company reported record third-quarter revenue of $99.3 million and returned to profit, even as it cut its full-year earnings outlook.

The shares closed at $31.83, up 15.85% from Monday's close of $27.48, after the results were released after the market closed on Monday. The company, based in Nashville, Tennessee, supplies ophthalmic medicines and eye-care products across North America.

Record revenue and a return to profit

Revenue for the three months to 30 September rose 39% on a year earlier to $99.3 million, and 41% on the second quarter. Branded revenue reached $83.5 million, up 62% year on year and about 84% of total revenue.

GAAP net income was $9.8 million, or $0.25 per diluted share, compared with net income of $1.0 million in the third quarter of 2025 and a net loss of $17.3 million in the second quarter of 2026. The result included a $5.0 million litigation settlement gain. Adjusted EBITDA was $21.2 million, against a loss of $1.2 million in the previous quarter and $22.8 million a year earlier.

The company's leading eye drop, VEVYE, generated revenue of $39.7 million, up 75% on a year earlier. IHEEZO contributed $25.3 million, up 15%, and TRIESENCE posted record revenue of $10.7 million.

Harrow describes itself as a provider of ophthalmic disease management solutions in North America, selling prescription eye-care therapies through eye-care professionals. VEVYE, a treatment for dry eye disease, has become its largest product, while IHEEZO is used as an ocular anaesthetic and TRIESENCE is an injectable treatment for eye inflammation.

The scale of Tuesday's move also reflects how far the shares had fallen. Before the results, Harrow had traded close to its 52-week low and was down about 38% since the start of the year, even though revenue has grown strongly through 2026. The third quarter was the company's strongest sales quarter to date, with revenue up 41% on the second quarter.

Guidance split

Harrow reaffirmed its full-year 2026 revenue guidance of $350 million to $365 million. However, it cut its full-year adjusted EBITDA guidance to more than $40 million, from a previous range of $80 million to $100 million. The new guidance includes fourth-quarter adjusted EBITDA of more than $33 million.

Investors appeared to focus on the sales beat and the return to profit rather than the lower earnings guidance. Revenue topped the $98.6 million analysts had expected, and earnings of $0.25 per share beat the $0.22 estimate.

Cash and cash equivalents stood at $75.3 million at 30 September. Management discussed the results on a conference call at 8am Eastern Time on Tuesday. The shares remain about 42% below their 52-week high of $54.85, despite Tuesday's gain. This article reports market movements and is not investment advice.