HLS Therapeutics (HLS) investor relations material

Executive summary

• Adjusted EBITDA grew 21% in Q2 and 29% year-to-date, reflecting strong operational execution and cost management.

• Cash from operations increased over 80% in Q2 and nearly 150% year-to-date, supporting significant debt repayments and share buybacks.

• Revenue for Q2 was $14.2M, with year-to-date revenue at $26.8M, reflecting progress in operational efficiency and portfolio expansion.

• Strategic focus remains on expanding the cardiovascular portfolio, including licensing NEXLETOL and NEXLIZET, with Health Canada approval expected by year-end and commercial launch planned for 2026.

Financial highlights

• Q2 total revenue was $14.2M, down 2% year-over-year due to lower royalty revenues and FX fluctuations; year-to-date revenue was flat.

• Adjusted EBITDA reached $5.2M in Q2 and $9.0M year-to-date, up from $4.3M and $7.0M, respectively, in 2024.

• Cash from operations in Q2 was $4.6M, up 83% from Q1; year-to-date cash from operations was $8.1M, up 147% year-over-year.

• Net loss improved to ($2.7M) in Q2 from ($5.7M) last year; year-to-date net loss was ($7.2M) versus ($11.8M) last year.

• Interest expense decreased by $1M (41%) in Q2 and $1.6M year-to-date.

Outlook and guidance

• 2025 guidance unchanged: Vascepa revenue C$26.5–28.5M (18–26% growth), Canada Clozaril sales C$35.5–36M (flat), U.S. Clozaril $12–12.3M (2–4% decline), royalty revenue $0.6–0.75M (50–60% decline), Adjusted EBITDA $19.5–20.5M (17–23% growth).

• On track to achieve full-year guidance, with expectations for stronger sales in Q3 and Q4.

• Health Canada approval for new cardiovascular products expected by year-end, with commercial launch planned for 2026.

• Anticipates only a modest increase in operating expenses for new product launches, leveraging existing resources.

• FX volatility remains a risk to future results.