Private Equity-Style Fund Buys $15.7 Million in Harrow Stock as Revenue Jumps 45%

3 days ago 9

Jonathan Ponciano, The Motley Fool

Thu, November 27, 2025 astatine 10:39 AM CST 5 min read

Philadelphia-based Penn Capital Management added 325,478 shares of Harrow for an estimated $15.7 cardinal successful the 3rd quarter.
The determination created a caller presumption for Penn, which did not study holding immoderate shares of Harrow successful the erstwhile quarter.
The caller holding places Harrow extracurricular Penn Capital’s apical 5 positions by money value.
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Philadelphia-based Penn Capital Management Company disclosed a caller presumption successful Harrow (NASDAQ:HROW) connected Monday, acquiring 325,478 shares valued astatine astir $15.7 cardinal during the 3rd quarter.

Penn Capital Management Company reported a caller equity involvement successful Harrow (NASDAQ:HROW), acquiring 325,478 shares with an estimated worth of $15.7 cardinal arsenic of September 30, according to an SEC filing released connected Monday. This caller presumption accounted for 1.2% of the firm’s $1.3 cardinal successful reportable U.S. equity holdings for the quarter.

Top holdings aft the filing:

NYSE:DY: $25.2 cardinal (1.9% of AUM)
NYSE:AMTM: $23.1 cardinal (1.8% of AUM)
NASDAQ:ATEC: $22.8 cardinal (1.8% of AUM)
NASDAQ:MIRM: $22.6 cardinal (1.7% of AUM)
NASDAQ:WFRD: $22.3 cardinal (1.7% of AUM)

As of Wednesday's marketplace close, Harrow shares were priced astatine $41.30, down 2% implicit the past twelvemonth and acold underperforming the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Wednesday)	$41.30
Market capitalization	$1.5 billion
Revenue (TTM)	$250 million
Net income (TTM)	($5 million)

Harrow operates arsenic a specialty pharmaceutical institution focused connected the ophthalmic sector, leveraging a diversified portfolio of branded and compounded products. More specifically, the institution provides ophthalmic pharmaceuticals and compounding services, including branded and generic products for oculus care, arsenic good arsenic royalty interests successful clinical-stage cause candidates.

The company’s strategy combines nonstop merchandise commercialization with strategical equity and royalty interests successful innovative cause improvement ventures. This attack enables Harrow to code a wide scope of ocular conditions, portion maintaining vulnerability to emerging therapeutic opportunities successful the specialty pharmaceutical market. The steadfast targets ophthalmologists, outpatient surgical centers, and specialty healthcare providers successful the United States.

For semipermanent investors, a caller presumption initiated by a concentrated, fundamentals-driven steadfast similar Penn Capital is meaningful due to the fact that it often signals wherever the money sees asymmetric worth successful small-cap names undergoing operational oregon balance-sheet transitions. Penn’s strategy—shaped by a private-equity lens—tends to favour companies with improving fiscal profiles, recoverable margins, and catalysts tied to structural change. Against that backdrop, adding Harrow fits their signifier of targeting niche healthcare operators with accelerating gross momentum and expanding end-market opportunities.

Harrow’s third-quarter results underscore that thesis. Revenue grew 45% to $71.6 million, GAAP nett income came successful astatine $1 million, and adjusted EBITDA reached $22.7 million—nearly triple the prior-year period. The steadfast besides ended the 4th with $74.3 cardinal successful cash, reinforcing liquidity during a signifier of portfolio expansion. Strategic wins—including important formulary listings for VEVYE, the enlargement of its entree program, and the acquisition of Melt Pharmaceuticals (announced successful September)—position the institution for continued top-line maturation and optionality heading into 2026.

For investors, Penn’s introduction doesn’t warrant outperformance—but successful operation with Harrow’s accelerating fundamentals, beardown currency travel from operations, and a broadened merchandise footprint, it adds value to the presumption that Harrow whitethorn beryllium transitioning into a much durable specialty pharma platform.