HLS Therapeutics (HLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 5% product revenue growth year-over-year, with Canadian product revenue up 13% in local currency, led by a 34% increase in Vascepa net sales and 3% growth in US Clozaril sales.

• Adjusted EBITDA increased 41% to $3.8 million, or 78% excluding royalty revenue, reflecting operational efficiencies and margin improvements.

• The company executed its business development strategy by in-licensing Nexletol and Nexlizet, expanding its cardiovascular portfolio in Canada.

• Operational improvements, including sales leadership restructuring and targeted marketing, contributed to Vascepa's strong performance.

• Strengthened balance sheet with a $3 million debt payment and initiated a share buyback program.

Financial highlights

• Q1 2025 revenue was $12.6 million, up 1% year-over-year; product revenues rose 5%.

• Vascepa net sales increased 34%, Clozaril Canada net sales rose 1%, and Clozaril US net sales grew 3% (all in local currency).

• Adjusted EBITDA was $3.8 million, up 41% year-over-year; excluding royalties, adjusted EBITDA rose 78%.

• Cash from operations was $3.5 million, up from $0.8 million in Q1 2024.

• Operating expenses (excluding cost of sales) decreased 20% year-over-year, aided by lower selling and marketing costs.

Outlook and guidance

• 2025 guidance unchanged: Vascepa revenue C$26.5–28.5M (18–26% growth), Canada Clozaril C$35.5–36M (flat), US 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).

• No significant incremental spend expected for Nexletol and Nexlizet pre-launch activities; launches expected in early 2026.

• Guidance incorporates pre-launch costs for new products; FX volatility remains a risk.