HLS Therapeutics (HLS) Q2 2025 earnings summary

Executive summary

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

• Adjusted EBITDA grew 21% in Q2 and 29% 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.

Financial highlights

• Q2 total revenue was $14.2 million, slightly down from $14.5 million last year, but up sequentially from $12.6 million in Q1.

• Adjusted EBITDA reached $5.2 million in Q2 and $9.0 million year-to-date, up from $4.3 million and $7.0 million, respectively, in 2024.

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

• Cash at June 30, 2025, was $12.2 million, down from $17.5 million at year-end, reflecting debt repayments and share buybacks.

• Total borrowings reduced to $56.0 million at June 30, 2025, from $84.9 million a year earlier.

Outlook and guidance

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

• 2025 guidance unchanged: Vascepa revenue C$26.5–28.5 million (18–26% growth), Canada Clozaril sales C$35.5–36 million (flat), U.S. Clozaril $12–12.3 million (2–4% decline), royalty revenue $0.6–0.75 million (50–60% decline), Adjusted EBITDA $19.5–20.5 million (17–23% growth).

• 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.

• FX volatility remains a risk to future results.