HLS Therapeutics (HLS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $14.2 million and year-to-date revenue reached $26.8 million, with product revenues up in local currencies but impacted by FX headwinds and lower royalty revenue.

• Adjusted EBITDA grew 21% in Q2 and 29% year-to-date, reaching $5.2 million in Q2 and $9 million year-to-date, driven by operational efficiency and improved product performance.

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

• The company is preparing for the Canadian launch of Nexletol and Nexlizet, with Health Canada approval expected by year-end 2025 and commercial launch planned for Q2 2026.

• Strategic focus remains on profitable growth, balance sheet strengthening, and portfolio expansion through licensing agreements.

Financial highlights

• Q2 total revenue was $14.2 million, slightly down year-over-year but up sequentially from Q1; year-to-date revenue from marketed products was $26.4 million.

• Adjusted EBITDA was $5.2 million in Q2 and $9 million year-to-date, up 21% and 29% respectively; cash from operations in Q2 was $4.6 million, up 83% from Q1.

• Interest expense declined by $1 million (41%) in Q2 and $1.6 million year-to-date; principal term loan balance reduced to $56 million, down 34% from a year ago.

• Net loss improved to ($2.7M) in Q2 2025 from ($5.7M) in Q2 2024; year-to-date net loss was ($7.2M) versus ($11.8M) last year.

• Shares outstanding decreased from 31,793,000 to 31,484,000 due to buybacks.

Outlook and guidance

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

• Health Canada approval for Nexletol and Nexlizet anticipated by year-end 2025, with commercial launch planned for Q2 2026.

• Minimal incremental operating expenses expected for new product launches, leveraging existing salesforce and cardiovascular infrastructure.

• 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).

• FX volatility remains a risk to future results.