Analysts Cut Harrow Forecasts as FY25 Revenue Up 36% Misses Guidance
Harrow posted mixed fourth-quarter results with FY25 revenue up 36% to $272.3 million but missed guidance and benefited from non-recurring customer stocking. Analysts cut forecasts and one downgraded the stock to Sell over persistent low margins, rising interest expenses and high debt ahead of management’s March 10 presentation.
1. Q4 Results and Revenue
Harrow reported FY25 revenue of $272.3 million, marking a 36% year-on-year increase, but fell short of its internal guidance partly due to non-recurring customer stocking. The company’s gross margins remained under pressure as elevated sales and marketing expenses were deployed to support growth initiatives.
2. Analyst Revisions and Downgrade
In the wake of the earnings announcement, multiple analysts reduced their revenue and earnings forecasts, citing concerns over persistent low margins and a high debt load. One firm downgraded Harrow to Sell, highlighting rising interest expenses and the costly nature of back-loaded growth strategies driven by acquisitions and increased promotional spend.
3. Upcoming Conference Presentation
Management will present at the Global Healthcare Conference on March 10 at 8:40 AM ET in Miami, offering a platform to discuss strategic priorities, pipeline developments and financial outlook. The live webcast will be hosted on the company website, with a replay available for approximately 90 days.