HLS Therapeutics (HLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered growth in both product sales and adjusted EBITDA, with financial results in line with expectations and positive momentum from the previous year.

• Achieved 13% growth in Canadian product sales and 3% growth in US Clozaril sales year-over-year in Q1 2025.

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

• In-licensed Nexletol and Nexlizet to expand the cardiovascular portfolio, with Health Canada approval expected by late 2025 and commercial launch in early 2026.

• Reduced operating expenses by 20% and improved adjusted EBITDA by 41% compared to Q1 2024.

Financial highlights

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

• Canadian product revenue grew 13% in local currency, driven by a 34% increase in Vascepa and 1% in Clozaril sales.

• U.S. Clozaril revenue was $2.7 million, up 3% year-over-year.

• Adjusted EBITDA was $3.8 million, up 41% year-over-year; excluding royalty revenue, adjusted EBITDA increased 78%.

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

Outlook and guidance

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

• Guidance incorporates pre-launch costs for Nexletol and Nexlizet; no significant incremental spend expected.

• FX volatility remains a risk to outlook.