MeritValue

HARROW, INC.

HROWdata completeness 100%27 fiscal years on file
The thesis, from the filings

HARROW, INC. earns about -5% on invested capital, but has diluted owners by 37% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$72.5M1$88.6M2$130.2M3$199.6M3$272.3M3
Net income−$18M4−$14.1M5−$24.4M6−$17.5M6−$5.14M6
Operating cash flow$5.08M7$1.71M8$3.84M9−$22.2M9$43.9M9
Capital expenditure$1.79M10$2.6M11$1.46M12$1.6M12$887,00012
Free cash flow (derived)$3.3M7−$892,0008$2.38M9−$23.8M9$43M9
Total debt$103M13$151.8M14$246.7M15$262.7M16$250M17
Cash & equivalents$42.2M18$96.3M19$74.1M20$47.2M21$72.9M21
Diluted shares26.8M27.5M32.6M35.7M36.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$14.27
your share of equity
Profit it earned you last year
−$1.4
Free cash flow it threw off
$11.69
Debt you’d be carrying
$68.01

10 shares is a claim on $14.27 of net worth that earned you −$1.4 and generated $11.69 of cash last year, against $68.01 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 5y
FY21 -14%FY22 -6%FY23 -1%FY24 -5%FY25 -0%

It earned an average -5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+37% shares · 5y

Share count is up 37% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 143% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$2.38M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$2.38M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-008718 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-010518 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001493152-26-008562 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001493152-23-008718 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001493152-24-010518 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001493152-26-008562 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001493152-23-008718 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001493152-24-010518 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001493152-26-008562 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001493152-23-008718 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001493152-24-010518 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001493152-26-008562 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001493152-22-006525 (LongTermDebt)
  14. 10-K · period ending 2022-12-31 · accession 0001493152-23-008718 (LongTermDebt)
  15. 10-K · period ending 2023-12-31 · accession 0001493152-24-010518 (LongTermDebt)
  16. 10-K · period ending 2024-12-31 · accession 0001641172-25-000925 (LongTermDebt)
  17. 10-K · period ending 2025-12-31 · accession 0001493152-26-008562 (LongTermDebt)
  18. 10-K · period ending 2021-12-31 · accession 0001493152-22-006525 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001493152-24-010518 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001641172-25-000925 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001493152-26-008562 (CashAndCashEquivalentsAtCarryingValue)