HLS Therapeutics (HLS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 5% product revenue growth and a 41% increase in adjusted EBITDA, with financial results in line with expectations and positive momentum from the previous year.

• Canadian product revenue grew 13% in local currency, led by a 34% increase in Vascepa net sales.

• 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.

• Initiated a share buyback program and added Christine Elliott to the Board of Directors.

Financial highlights

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

• Vascepa revenue in Canada rose 34% in local currency; Clozaril Canada up 1%, Clozaril US up 3%.

• Adjusted EBITDA increased 41% to $3.8 million, or 78% excluding royalty revenue.

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

• Royalty revenue declined 71% to $0.2 million due to the sale of Xenpozyme royalty interest.

Outlook and guidance

• 2025 guidance remains unchanged: Vascepa net sales growth of 18%-26%, flat Canadian Clozaril sales, slight decline in U.S. Clozaril.

• Consolidated adjusted EBITDA growth targeted at 17%-23% for 2025.

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

• Royalty revenue expected to decline 50–60% following asset sales.

• FX volatility remains a risk to guidance.