Harrow (HROW) Kicks Off 2026 With Mixed Top Line and a Return to Losses

Harrow (HROW) opened 2026 with Q1 revenue of US$44.2 million and a basic EPS loss of US$0.74, while trailing twelve month revenue stood at US$268.7 million and trailing EPS was a loss of US$0.40. The company has seen quarterly revenue move from US$47.8 million in Q1 2025 to US$89.1 million in Q4 2025 before landing at US$44.2 million in Q1 2026. Over the same period, EPS swung from a loss of US$0.50 in Q1 2025 to a profit of US$0.19 in Q4 2025 before reverting to a loss of US$0.74 this quarter. This sets up a results season in which investors are likely to focus on how quickly margins can stabilise.

See our full analysis for Harrow.

With the headline numbers on the table, the next step is to see how these results line up with the most widely held narratives about Harrow's growth potential and risk profile, and where the latest quarter starts to push back on those stories.

TTM Losses of US$15 Million Keep Profitability Story on Hold

• On a trailing twelve month basis, Harrow reported total revenue of US$268.7 million and a net loss of US$15.0 million, while quarterly net income shifted from a profit of US$6.6 million in Q4 2025 to a loss of US$27.6 million in Q1 2026.
• Bulls argue that this is a temporary step back before stronger profitability, yet the recent widening of losses creates tension with that view.
  • Supporters point to forecast earnings growth of about 50.63% per year and expectations that Harrow could become profitable within three years, which leans on the idea that recent losses are investment heavy rather than structural.
  • At the same time, the last five years show losses increasing at roughly 10.6% per year, so the Q1 2026 swing from a US$6.6 million profit to a US$27.6 million loss challenges the more confident parts of the bullish narrative.

Over time, bulls suggest that higher margin products and operating leverage could outweigh the recent loss trend. However, the latest figures keep the profitability debate very active for now 🐂 Harrow Bull Case

Share Price at US$29.03 vs DCF Fair Value of US$328.90

• Harrow's current share price of US$29.03 sits far below the stated DCF fair value of US$328.90 and the single allowed analyst price target of US$68.13, while the P/S ratio of 4.0 is slightly below peer and industry averages of 4.4 and 4.8.
• Bears highlight that this big valuation gap is only meaningful if the company can move away from its loss making history.
  • Critics point to the five year pattern of widening losses at about 10.6% per year and the current trailing loss of US$15.0 million as reasons to be cautious about relying on a DCF fair value that is very far above the market price.
  • Even with forecasts for 26.8% annual revenue growth and strong projected earnings growth, the Q1 2026 loss of US$27.6 million after several profitable quarters gives the bearish narrative substantial backing that execution risk and earnings quality still matter more than model based upside.

For cautious investors, the combination of a low P/S multiple and a very high DCF fair value leaves plenty of room to question whether the current US$29.03 price is reflecting five years of loss growth more than the optimistic forecasts 🐻 Harrow Bear Case

Forecast 26.8% Revenue Growth vs Choppy Quarterly Sales

• Analysts are forecasting revenue growth of 26.8% per year, yet the last five reported quarters show total revenue moving from US$47.8 million in Q1 2025 to US$89.1 million in Q4 2025 and then back to US$44.2 million in Q1 2026.
• The consensus style narrative sees this as part of a bigger growth story, but the quarterly pattern reminds you to separate long term expectations from near term swings.
  • On the one hand, the trailing twelve month revenue figure of US$268.7 million is higher than the US$199.6 million level reported in Q4 2024, which lines up with the idea of a growing business behind the forecasts.
  • On the other hand, the sharp move in quarterly revenue between Q4 2025 and Q1 2026 shows that individual periods can be lumpy, so investors leaning on the 26.8% forecast growth may want to watch how consistently sales track that path over the next few reports.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Harrow on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment clearly split between the recent losses and upbeat forecasts, it makes sense to look at the numbers and form your own view quickly. To see the balance of concerns and potential upsides in one place, review the 3 key rewards and 1 important warning sign

See What Else Is Out There

Harrow's widening losses, choppy quarterly revenue, and reliance on optimistic forecasts keep its profitability and valuation stories on uncertain footing for now.

If that mix of volatile earnings and execution risk feels uncomfortable, you may want to balance your watchlist with companies screened as 69 resilient stocks with low risk scores to focus on more resilient profiles right away.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.