Harmony Biosciences (NASDAQ:HRMY) Issues Quarterly Earnings Results, Misses Expectations By $0.46 EPS

Harmony Biosciences (NASDAQ:HRMY) announced its earnings results on Tuesday. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.84 by ($0.46), Briefing.com reports. Harmony Biosciences had a net margin of 18.29% and a return on equity of 19.86%. The firm had revenue of $243.78 million during the quarter, compared to analysts’ expectations of $240.04 million. During the same period in the previous year, the firm earned $0.85 EPS. The firm’s revenue for the quarter was up 21.1% compared to the same quarter last year.

Here are the key takeaways from Harmony Biosciences’ conference call:

• WAKIX commercial momentum: Q4 net product revenue was $243.8M (FY2025 $868.5M), the franchise added ~400+ average patients for a third consecutive quarter, and management is guiding 2026 WAKIX net revenue to blockbuster range of $1.0B–$1.04B.
• IP and litigation update: Harmony has settled with 6 of 7 ANDA filers and says generic entry would be no earlier than March 2030 if pediatric exclusivity is granted, but a trial and potential appeals remain outstanding.
• Pipeline and near-term catalysts: five ongoing Phase 3 registrational programs across CNS indications, Pitolisant GR NDA expected in Q2 2026 (PDUFA target Q1 2027), Pitolisant HD top-line planned for 2027 (PDUFA 2028), plus EPX-100 and an orexin‑2 agonist advancing toward readouts.
• Rising spending and margin pressure: Q4 operating expenses rose to $136.7M (from $91.1M YoY) driven by R&D, commercialization and litigation costs, and non‑GAAP adjusted net income fell to $33.4M ($0.57/sh) versus prior quarter levels.
• Strong balance sheet and cash generation: $882.5M in cash and investments and $348.2M cash from operations in 2025, which management says funds ongoing development, business development opportunities, and a $150M buyback capacity.

Harmony Biosciences Stock Up 0.2%

Shares of NASDAQ HRMY traded up $0.05 during midday trading on Thursday, hitting $28.24. 224,397 shares of the company’s stock were exchanged, compared to its average volume of 943,244. The firm’s fifty day simple moving average is $36.36 and its 200-day simple moving average is $34.15. The company has a market cap of $1.63 billion, a PE ratio of 10.42, a P/E/G ratio of 0.26 and a beta of 0.84. Harmony Biosciences has a twelve month low of $25.52 and a twelve month high of $40.87. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.60 and a quick ratio of 3.72.

Harmony Biosciences News Summary

Here are the key news stories impacting Harmony Biosciences this week:

• Positive Sentiment: HC Wainwright reaffirmed a “buy” and kept a $55 price target (large upside from current levels), supporting longer-term upside expectations. Read More.
• Positive Sentiment: Needham & Company maintained a “buy” rating with a $44 target (still a sizable upside), signaling some analyst conviction in growth prospects. Read More.
• Positive Sentiment: Management reiterated an aggressive WAKIX 2026 revenue target of $1.0B–$1.04B and highlighted expansion of its late‑stage CNS pipeline — positive for longer‑term revenue growth if achieved. Read More.
• Neutral Sentiment: Consensus/aggregate: an average analyst rating around “Moderate Buy” was reported, reflecting mixed views across the sell side. Read More.
• Neutral Sentiment: UBS trimmed its price target from $46 to $36 and moved to “neutral” — reduces upside but not an outright sell signal. Read More.
• Neutral Sentiment: Recent earnings materials and the full earnings-call transcript are available for investors to assess management commentary and guidance in detail. Read More.
• Negative Sentiment: Truist Securities downgraded HRMY to “Hold” citing developments in a patent trial — this raises short-term legal/competitive risk and is a notable catalyst for selling pressure. Read More.
• Negative Sentiment: Bank of America cut its price target to $28 and moved to “underperform”, implying limited or negative near-term return expectations. Read More.
• Negative Sentiment: Q4 results showed a revenue beat but a large EPS miss ($0.38 vs. $0.84 expected), which typically drives near‑term downside as investors focus on profitability and one‑time items. Read More.

Analyst Ratings Changes

Several research firms recently issued reports on HRMY. Deutsche Bank Aktiengesellschaft downgraded Harmony Biosciences from a “buy” rating to a “hold” rating and set a $31.00 price objective on the stock. in a report on Monday. Mizuho set a $50.00 price target on shares of Harmony Biosciences in a research note on Thursday, February 19th. Zacks Research raised shares of Harmony Biosciences from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Harmony Biosciences in a research note on Monday, December 29th. Finally, Needham & Company LLC reduced their target price on shares of Harmony Biosciences from $46.00 to $44.00 and set a “buy” rating on the stock in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $42.67.

Insider Activity at Harmony Biosciences

In other news, CFO Sandip Kapadia sold 20,961 shares of the company’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $35.92, for a total value of $752,919.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jeffrey M. Dayno sold 25,933 shares of the stock in a transaction on Friday, December 12th. The shares were sold at an average price of $40.11, for a total transaction of $1,040,172.63. The disclosure for this sale is available in the SEC filing. Insiders sold 50,640 shares of company stock worth $1,932,256 over the last quarter. 23.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Harmony Biosciences

Several hedge funds have recently made changes to their positions in the company. Amundi acquired a new position in Harmony Biosciences in the fourth quarter valued at $239,000. Creative Planning purchased a new position in shares of Harmony Biosciences during the third quarter worth about $237,000. Captrust Financial Advisors purchased a new position in shares of Harmony Biosciences during the fourth quarter worth about $233,000. Rafferty Asset Management LLC acquired a new position in Harmony Biosciences in the 4th quarter valued at about $223,000. Finally, Sei Investments Co. purchased a new stake in Harmony Biosciences during the 2nd quarter valued at approximately $222,000. Hedge funds and other institutional investors own 86.23% of the company’s stock.

Harmony Biosciences Company Profile

Harmony Biosciences Holdings, Inc is a commercial‐stage biopharmaceutical company focused on developing and delivering therapies for people with rare neurological and endocrine diseases. Founded in 2017 and headquartered in Plymouth Meeting, Pennsylvania, Harmony Biosciences went public in 2020 and trades on the Nasdaq under the ticker HRMY. The company’s mission centers on identifying and advancing medicines that address critical unmet needs in patient populations underserved by existing treatments.

The company’s flagship product is WAKIX (pitolisant), the first and only histamine H3 receptor antagonist/inverse agonist approved by the U.S.