HLS Therapeutics (HLS) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA grew 19% in Q3 and 25% year-to-date, reaching $4.9M in Q3 and $13.9M year-to-date, driven by operational improvements and cost discipline.

• Cash from operations increased 67% in Q3 and 121% year-to-date, reflecting improved profitability.

• Product sales in Canada grew 2% year-to-date, but Q3 revenues declined 4% due to headwinds, FX, and inventory effects.

• Vascepa/Pasipa prescriptions grew 24% year-to-date, with Q3 being its most profitable quarter since launch.

• U.S. Clozaril business outperformed expectations, showing stability and 1% year-to-date growth.

Financial highlights

• Q3 revenue was $13.5M, down from $14.1M last year; year-to-date revenue was $40.3M, down from $41.1M.

• Adjusted EBITDA up 19% in Q3 and 25% year-to-date; trailing twelve-month adjusted EBITDA up 87% since Q3 2023.

• Operating expenses down 22% in Q3 and 20% year-to-date, reflecting efficiency.

• Cash from operations in Q3 was $2.5M; year-to-date, $10.6M.

• Net debt at quarter end was $43.5M, down from $50M at December 31, 2024.

Outlook and guidance

• Adjusted EBITDA for the full year expected to grow 17%-23%, reaching $19.5-$20.5M.

• Consolidated revenue estimate for the year is $55-$56M.

• Vascepa/Pasipa revenue growth for the full year now expected in the mid-teens percentage, revised from 18%-26%.

• Canadian Clozaril business projected to decline 4%-5% for the full year; U.S. Clozaril revenue to decline 2%-4%.

• Bempedoic acid approval expected in Q4 2025, with Canadian launch planned for Q2 2026.