Harmony Biosciences Holdings, I (HRMY) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGM•Healthcare•Biotechnology

ExcellentMetricSide Score: 87/100

ProfitabilityProfit19/25

GrowthGrowth18/25

Balance Sheet & Red FlagsBalance25/25

Cash & Earnings QualityCash25/25

Strongest: Balance Sheet & Red Flags (25/25); weakest: Growth (18/25).

Price & Volume

Market Cap $2.06B

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare neurological diseases in the United States. The company offers WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. It also develops Pitolisant that is in Phase 3 clinical trial for the treatment of Prader-Willi Syndrome (PWS); in Phase 2 clinical trial to treat Myotonic Dystrophy (DM1); and is in Phase 2 clinical trials for the treatment of Pitolisant Gastro-Resistant (GR) and Pitolisant High-Dose (HD). In addition, the company's products under development include BP1.15205, an orexin 2 receptor agonist for the treatment of narcolepsy and other potential indications; and HBS-102, a melanin-concentrating hormone receptor type 1 (MCHR1) antagonist. Further, it develops ZYN-002 that is in a Phase 3 registrational trial for the treatment of Fragile X Syndrome; and 22q Deletion Syndrome, a disorder caused by a small missing piece on the long arm of the 22nd chromosome. Additionally, the company is developing EPX-100 (clemizole hydrochloride), a serotonin (5HT-2) receptor agonist to treat dravet syndrome and lenox-gastaut syndrome; EPX-200 (liquid formulation of lorcaserin), a selective 5HT-2C agonist to treat developmental and epileptic encephalopathies; CBS105 for the treatment-resistant narcolepsy; and CBS104 for refractory epilepsy. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is headquartered in Plymouth Meeting, Pennsylvania.

Moat Signals

Competitive analysis based on 23 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~23.5% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 20.6% suggests a durable competitive advantage and efficient capital allocation.

Risk Signals

Data-driven red flags and warnings across 23 quarters

Low Risk

Margin Pressure

Watch

Operating margins declined 18.5% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Healthy

FCF covers net income by 2.3x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.2 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $899.11M
Q. Revenue: $215.39M
TTM EBITDA: $213.36M
TTM Op. Income: $189.51M
Q. Op. Income: $37.29M
TTM Net Income: $145.62M
Q. Net Income: $32.49M
EPS: $0.56
Shares Out.: $57.82M

$899.11M in TTM revenue grew 20.7% YoY, reaching $215.39M last quarter. TTM EBITDA of $213.36M and TTM operating income of $189.51M shows growth is flowing through. Net income of $145.62M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — a improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 79.3%
EBITDA Margin: 20.1%
Op. Margin: 17.3%
Net Margin: 15.1%

Op. margin of 17.3% is down 13.1% YoY — costs are rising relative to revenue. Net margin at 15.1% and gross margin of 79.3% — earnings take a bigger bite when COGS stays lean.. Over the past year, Operating margin is down 43% — a improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 14.1x
P/S Ratio: 2.3x
P/B Ratio: 2.3x

At 14.1x P/E, the stock trades below market averages — potentially undervalued. P/S of 2.3x and P/B of 2.3x provide additional context. Below-market P/E with growing revenue suggests a potential buying opportunity — the stock may be undervalued relative to its fundamentals. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a deteriorating trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.27B
Cash: $589.40M
Long-Term Debt: $138.81M
Book Value: $910.35M
D/E Ratio: 0.2
Debt/EBITDA: 3.2

With $1.27B in assets and $138.81M in long-term debt, the D/E of 0.2and book value of $910.35M — shows a conservative capital structure — the company has a strong financial cushion to weather downturns. Across the last 8 quarters, Debt/equity has fallen for 7 consecutive quarters — a improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $27.76M
TTM Free Cash Flow: $341.79M
FCF Margin: 38.0%
FCF / Net Income: 2.3

TTM FCF of $341.79M on $27.76M in operating cash flow. The FCF / Net Income ratio of 2.3x means earnings are well backed by actual cash — high-quality earnings. Over the past year, Free cash flow is up 54% — a deteriorating trend.