By Elias Schisgall

Shares of Harrow plunged after the company posted a smaller-than-expected profit in the fourth quarter and said it was changing its approach to guidance, and estimated 2026 revenue below Wall Street expectations.

Shares fell 25% to $40.40 in Tuesday morning trading. The stock is up 58% over the past 12 months.

The biotechnology company late Monday posted a profit of $6.63 million, or 17 cents a share, compared with a profit of $6.78 million, or 24 cents a share, a year earlier.

Revenue rose to $89.1 million, up from $66.8 million a year prior.

Analysts surveyed by FactSet were expecting earnings of 37 cents a share and $90 million in revenue.

For the current year, the company is projecting revenue between $350 million and $365 million. It expects revenue in the first half of the year of between $133 million and $153 million, with revenue estimated at between $203 million and $226 million in the second half.

Analysts are expecting $391.4 million in revenue for the full year.

The company said it was adopting a more conservative approach to guidance in a push to build better structure and transparency for shareholders. "Instead of our guidance 'meeting and beating,' we have too often been in the 'stress and miss' camp. This has not served our stockholders or us well," Chief Executive Mark Baum said in a letter to stockholders.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

March 03, 2026 11:08 ET (16:08 GMT)

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