Harrow Provides Fourth Quarter and Year-End 2024 Unaudited Preliminary Financial Results and 2025 Revenue Guidance
Harrow (HROW) has announced a delay in releasing its audited financial results for Q4 and full-year 2024, as their new independent auditor requires additional time to complete the audit process. The company emphasizes this delay is not due to any disagreements on accounting principles, practices, financial statement disclosure, or auditing procedures.
CEO Mark L. Baum confirmed that Harrow has successfully met the annual leverage ratio term under their senior secured loan agreement, avoiding the issuance of warrants to lenders. The company has provided revenue guidance for 2025 of over $280 million, with growth expected to be primarily driven by their higher-margin branded business.
Harrow (HROW) ha annunciato un ritardo nella pubblicazione dei risultati finanziari auditati per il quarto trimestre e per l'intero anno 2024, poiché il nuovo revisore indipendente richiede ulteriore tempo per completare il processo di revisione. L'azienda sottolinea che questo ritardo non è dovuto a disaccordi sui principi contabili, sulle pratiche, sulla divulgazione dei bilanci o sulle procedure di revisione.
Il CEO Mark L. Baum ha confermato che Harrow ha rispettato con successo il termine del rapporto di indebitamento annuale previsto dal loro contratto di prestito senior garantito, evitando l'emissione di warrant per i finanziatori. L'azienda ha fornito una previsione di fatturato per il 2025 di oltre 280 milioni di dollari, con una crescita che si prevede sarà principalmente guidata dalla loro attività a marchio ad alto margine.
Harrow (HROW) ha anunciado un retraso en la publicación de sus resultados financieros auditados para el cuarto trimestre y el año completo 2024, ya que su nuevo auditor independiente requiere más tiempo para completar el proceso de auditoría. La empresa enfatiza que este retraso no se debe a desacuerdos sobre principios contables, prácticas, divulgación de estados financieros o procedimientos de auditoría.
El CEO Mark L. Baum confirmó que Harrow ha cumplido con éxito el término del ratio de apalancamiento anual bajo su acuerdo de préstamo garantizado senior, evitando la emisión de warrants a los prestamistas. La empresa ha proporcionado una guía de ingresos para 2025 de más de 280 millones de dólares, con un crecimiento que se espera que sea impulsado principalmente por su negocio de marca de mayor margen.
Harrow (HROW)는 2024년 4분기 및 연간 감사 재무 결과 발표가 지연된다고 발표했습니다. 새로운 독립 감사인이 감사 프로세스를 완료하는 데 추가 시간이 필요하기 때문입니다. 회사는 이 지연이 회계 원칙, 관행, 재무제표 공시 또는 감사 절차에 대한 어떤 이견 때문이 아님을 강조합니다.
CEO Mark L. Baum은 Harrow가 선순위 담보 대출 계약에 따른 연간 레버리지 비율 조건을 성공적으로 충족하여 대출자에게 워런트를 발행하지 않게 되었다고 확인했습니다. 회사는 2025년 매출 가이던스를 2억 8천만 달러 이상으로 제공했으며, 성장은 주로 고마진 브랜드 사업에 의해 주도될 것으로 예상됩니다.
Harrow (HROW) a annoncé un retard dans la publication de ses résultats financiers audités pour le quatrième trimestre et l'année complète 2024, car leur nouvel auditeur indépendant nécessite davantage de temps pour terminer le processus d'audit. L'entreprise souligne que ce retard n'est pas dû à des désaccords sur les principes comptables, les pratiques, la divulgation des états financiers ou les procédures d'audit.
Le PDG Mark L. Baum a confirmé que Harrow a réussi à respecter le ratio de levier annuel prévu par leur contrat de prêt senior garanti, évitant ainsi l'émission de bons de souscription aux prêteurs. L'entreprise a fourni une prévision de revenus pour 2025 de plus de 280 millions de dollars, avec une croissance qui devrait être principalement tirée par leur activité de marque à forte marge.
Harrow (HROW) hat eine Verzögerung bei der Veröffentlichung seiner geprüften Finanzberichte für das vierte Quartal und das Gesamtjahr 2024 angekündigt, da der neue unabhängige Prüfer zusätzliche Zeit benötigt, um den Prüfungsprozess abzuschließen. Das Unternehmen betont, dass diese Verzögerung nicht auf Meinungsverschiedenheiten über Rechnungslegungsgrundsätze, -praktiken, die Offenlegung von Finanzberichten oder Prüfungsverfahren zurückzuführen ist.
CEO Mark L. Baum bestätigte, dass Harrow die jährliche Verschuldungsquote gemäß ihrem Senior-Secured-Darlehensvertrag erfolgreich erfüllt hat, wodurch die Ausgabe von Warrants an die Kreditgeber vermieden wurde. Das Unternehmen hat eine Umsatzprognose für 2025 von über 280 Millionen US-Dollar bereitgestellt, wobei das Wachstum voraussichtlich hauptsächlich durch ihr margenstarkes Markenbusiness vorangetrieben wird.
- Revenue guidance of over $280 million for 2025
- Successfully met annual leverage ratio requirements, avoiding warrant dilution
- Higher-margin branded business expected to drive growth in 2025
- Delay in releasing audited financial results and Form 10-K filing
Insights
Harrow's preliminary Q4 and full-year 2024 announcement presents a mixed yet predominantly positive picture. The delay in their audited financial results creates short-term uncertainty, though management clearly attributes this to their new auditor requiring additional time rather than any accounting disagreements - an important distinction that reduces concern severity.
The most concrete positive signal is Harrow's 2025 revenue guidance of "over $280 million", which demonstrates management's confidence in continued growth. Notably, their strategic emphasis that higher-margin branded products will drive this growth suggests potential for improved profitability beyond mere revenue expansion - a critical factor for pharmaceutical companies seeking to enhance shareholder value.
Perhaps most significant from a balance sheet perspective is their successful compliance with their annual leverage ratio covenant under their senior secured loan agreement. This achievement prevented the issuance of potentially dilutive warrants to lenders - a direct benefit to shareholders that indicates disciplined financial management.
While management characterizes 2024 as delivering "record financial performance," the absence of specific metrics creates an information gap that investors should monitor closely. The preliminary nature of this announcement, combined with the audit delay, creates temporary information asymmetry until the complete audited results are filed.
This announcement demonstrates Harrow's strategic evolution toward higher-margin products while maintaining financial covenant compliance, though investors should await the complete audited results for comprehensive evaluation.
Company Expects to Provide Revised Dates for Release of Audited Financial Results, Conference Call, and Letter to Stockholders
In conjunction with today’s announcement, Harrow is providing the following unaudited preliminary financial results for the fourth quarter and year ended December 31, 2024:
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For the Three Months Ended
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|
For the Year Ended
|
Revenues |
|
|
|
Net Income (Loss) |
|
|
|
Adjusted EBITDA (a non-GAAP measure) |
|
|
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Adjusted EBITDA
The Company defines Adjusted EBITDA as net income (loss), excluding the effects of stock‑based compensation and expenses, impairment of intangible assets, interest, taxes, depreciation, amortization, investment loss, net, and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net income (loss). Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.
The following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net income (loss), for the three months and year ended December 31, 2024:
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For the Three Months Ended
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For the Year Ended
|
|||
GAAP net income (loss) range |
|
|
|
|
) |
|
Stock-based compensation and expenses |
4,794,000 |
|
|
17,619,000 |
|
|
Impairment of intangible assets |
253,000 |
|
|
253,000 |
|
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Interest expense, net |
6,375,000 |
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|
22,786,000 |
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Income tax (benefit) expense |
(514,000 |
) |
|
161,000 |
|
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Depreciation |
468,000 |
|
|
1,850,000 |
|
|
Amortization of intangible assets |
4,075,000 |
|
|
11,783,000 |
|
|
Investment loss, net |
- |
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|
3,171,000 |
|
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Other expense, net |
261,000 |
|
|
185,000 |
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Adjusted EBITDA range |
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These preliminary results remain subject to the completion of the financial closing procedures and the final review by Harrow’s independent auditors. Accordingly, actual results may differ from these preliminary results.
Commenting on the announcement, Mark L. Baum, Chairman and Chief Executive Officer of Harrow, stated, “We were certainly looking forward to reporting our record financial performance for the fourth quarter and full year and to sharing details on the quarter with our stockholders, including that, as promised, we successfully met the annual leverage ratio term under our senior secured loan agreement, thereby avoiding the issuance of warrants to our lenders. However, we respect our auditors’ request for additional time to complete the audit process, as we remain fully committed to comprehensive, accurate, and transparent financial reporting.
“In addition, and in line with Harrow’s historical approach to providing directional financial guidance, I want to provide 2025 revenue guidance of ‘over
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading eyecare pharmaceutical company engaged in the discovery, development, and commercialization of innovative ophthalmic pharmaceutical products for the North American market. Harrow helps eyecare professionals preserve the gift of sight by making its portfolio of pharmaceutical products accessible and affordable to millions of patients each year. For more information about Harrow, please visit harrow.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250317778273/en/
Jamie Webb
Director of Communications and Investor Relations
jwebb@harrowinc.com
615-733-4737
Source: Harrow, Inc.
FAQ
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