HLS Therapeutics (HLS) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA reached $4.9M in Q3, up 19% year-over-year, and $13.9M year-to-date, up 25% over 2024, reflecting operational improvements and cost discipline.

• Profitability and cash flow improved, with Q3 cash from operations at $2.5M (up 67%) and year-to-date at $10.6M (up 121%), driven by lower operating expenses.

• Revenue declined 4% in Q3 and 2% year-to-date, mainly due to lower Clozaril Canada sales, FX headwinds, and a significant drop in royalty revenue.

• Pasipa (Vascepa) prescriptions grew 24% year-to-date, with Q3 being its most profitable quarter since launch, though growth was below initial ambitions.

• Net loss narrowed to ($3.9M) in Q3 and ($11.1M) year-to-date, improving from ($4.8M) and ($16.6M) in 2024.

Financial highlights

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

• Adjusted EBITDA grew 19% in Q3 and 25% year-to-date; excluding royalties, Adjusted EBITDA has increased by over 85% since Q3 2023.

• Q3 operating expenses were down 22% year-over-year; year-to-date, down 20%, reflecting operational efficiency.

• Cash from operations in Q3 was CAD 2.5M, up 67% year-over-year; year-to-date, CAD 10.6M, up 121%.

• Interest expense reduced by 38% year-to-date, saving $2.6M.

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.

• Pasipa (Vascepa) 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, with inventory effects expected to impact 2025 comparisons.

• 2026 expected to see growth in both top-line and Adjusted EBITDA, with bempedoic acid launch contributing to revenue.