📊 HRMY Key Takeaways
Is Harmony Biosciences Holdings, Inc. (HRMY) a Good Investment?
Harmony Biosciences demonstrates exceptional topline momentum (+21.5% YoY) with industry-leading gross margins (79.3%), supported by a fortress balance sheet ($589M cash, 0.17x D/E). However, flat net income growth despite strong revenue expansion and weak capital returns (3.6% ROE, 2.6% ROA) signal profit margin compression that warrants closer monitoring of operating expense efficiency.
Harmony shows strong revenue growth, industry-leading margins, and exceptional free cash flow backed by a cash-rich, low-leverage balance sheet. Profitability and returns on capital are solid, positioning the company to invest in growth and withstand shocks. Sustaining margin discipline and mitigating product/regulatory concentration risks are key to maintaining earnings momentum.
Why Buy Harmony Biosciences Holdings, Inc. Stock? HRMY Key Strengths
- Strong revenue growth of 21.5% YoY in pharmaceutical sector
- Exceptional gross margin of 79.3% indicating pricing power and operational efficiency
- Fortress balance sheet with $589.4M cash, minimal leverage (0.17x D/E), and 3.58x current ratio
- Positive free cash flow generation of $27.4M with 12.7% FCF margin
- Robust interest coverage of 11.5x providing debt service safety
- EPS growth (+8.0%) outpacing net income growth, suggesting favorable share dynamics
- High gross and operating margins indicating pricing power
- Robust free cash flow (40% FCF margin) with minimal capex needs
- Strong balance sheet with ample cash, low debt, and high interest coverage
HRMY Stock Risks: Harmony Biosciences Holdings, Inc. Investment Risks
- Net income flat YoY (0% growth) despite 21.5% revenue growth indicates rising operating expenses or margin compression
- Very low return on equity (3.6%) and return on assets (2.6%) suggest poor capital efficiency
- Operating cash flow ($27.8M) substantially lower than net income ($32.5M), raising earnings quality concerns
- Modest free cash flow relative to company scale and asset base ($1.3B)
- Limited insider trading activity (only 3 Form 4 filings in 90 days) provides minimal confidence signals
- Product concentration and patent/regulatory exposure could pressure revenue durability
- Flat net income YoY despite strong sales suggests cost pressure or one-offs
- Potential reimbursement and competitive pressures could compress margins
Key Metrics to Watch
- Operating expense growth rate relative to revenue growth to identify cost control issues
- Free cash flow sustainability and working capital trends given narrow OCF relative to net income
- Gross margin maintenance as revenue scales and product mix evolves
- Capital allocation strategy given substantial cash position ($589M) and modest earnings reinvestment
- Revenue growth YoY
- Operating margin
Harmony Biosciences Holdings, Inc. (HRMY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.58x current ratio provides a solid financial cushion.
HRMY Profit Margin, ROE & Profitability Analysis
HRMY vs Healthcare Sector: How Harmony Biosciences Holdings, Inc. Compares
How Harmony Biosciences Holdings, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Harmony Biosciences Holdings, Inc. Stock Overvalued? HRMY Valuation Analysis 2026
Based on fundamental analysis, Harmony Biosciences Holdings, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Harmony Biosciences Holdings, Inc. Balance Sheet: HRMY Debt, Cash & Liquidity
HRMY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Harmony Biosciences Holdings, Inc.'s revenue has grown significantly by 184% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.13 reflects profitable operations.
HRMY Revenue Growth, EPS Growth & YoY Performance
HRMY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $184.7M | $32.5M | $0.55 |
| Q3 2025 | $186.0M | $46.1M | $0.79 |
| Q2 2025 | $172.8M | $11.6M | $0.20 |
| Q1 2025 | $154.6M | $38.3M | $0.67 |
| Q3 2024 | $160.3M | $38.5M | $0.63 |
| Q2 2024 | $134.2M | $11.6M | $0.20 |
| Q1 2024 | $119.1M | $29.5M | $0.48 |
| Q3 2023 | $117.2M | $38.5M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Harmony Biosciences Holdings, Inc. Dividends, Buybacks & Capital Allocation
HRMY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Harmony Biosciences Holdings, Inc. (CIK: 0001802665)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 18, 2026 | 4 | xslF345X06/form4-05192026_010535.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_080544.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_080551.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_080559.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_080557.xml | View → |
❓ Frequently Asked Questions about HRMY
What is the AI rating for HRMY?
Harmony Biosciences Holdings, Inc. (HRMY) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRMY's key strengths?
Claude: Strong revenue growth of 21.5% YoY in pharmaceutical sector. Exceptional gross margin of 79.3% indicating pricing power and operational efficiency. ChatGPT: High gross and operating margins indicating pricing power. Robust free cash flow (40% FCF margin) with minimal capex needs.
What are the risks of investing in HRMY?
Claude: Net income flat YoY (0% growth) despite 21.5% revenue growth indicates rising operating expenses or margin compression. Very low return on equity (3.6%) and return on assets (2.6%) suggest poor capital efficiency. ChatGPT: Product concentration and patent/regulatory exposure could pressure revenue durability. Flat net income YoY despite strong sales suggests cost pressure or one-offs.
What is HRMY's revenue and growth?
Harmony Biosciences Holdings, Inc. reported revenue of $215.4M.
Does HRMY pay dividends?
Harmony Biosciences Holdings, Inc. does not currently pay dividends.
Where can I find HRMY SEC filings?
Official SEC filings for Harmony Biosciences Holdings, Inc. (CIK: 0001802665) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRMY's EPS?
Harmony Biosciences Holdings, Inc. has a diluted EPS of $0.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HRMY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Harmony Biosciences Holdings, Inc. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HRMY stock overvalued or undervalued?
Valuation metrics for HRMY: ROE of 3.6% (sector avg: 15%), net margin of 15.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HRMY stock in 2026?
Our dual AI analysis gives Harmony Biosciences Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HRMY's free cash flow?
Harmony Biosciences Holdings, Inc.'s operating cash flow is $27.8M, with capital expenditures of $310.0K. FCF margin is 12.7%.
How does HRMY compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 15.1% (avg: 12%), ROE 3.6% (avg: 15%), current ratio 3.58 (avg: 2).