HLS Therapeutics Announces Q2 2025 Financial Results

Executive Summary

• HLS Therapeutics reported Q2 and Year-to-Date (YTD) 2025 financial results, highlighting a 21% increase in Q2 Adjusted EBITDA and an 83% increase in Q2 cash from operations compared to the prior year period.
• The company announced a strategic in-license agreement with Esperion Therapeutics to commercialize NEXLETOL and NEXLIZET in Canada, aiming to expand its cardiovascular portfolio with Health Canada approval expected by year-end and a launch planned for Q2 2026.
• The company strengthened its balance sheet through significant debt repayment ($8.5 million in Q2, $11.4 million YTD) and continued share repurchases ($0.8 million in Q2, $1.0 million YTD), while maintaining unchanged 2025 financial guidance.

Key Details

• Q2 2025 Financial Highlights:
  • Revenue: $14.2 million (vs. $14.5 million in Q2 2024).
  • Adjusted EBITDA: $5.2 million (up 21% from $4.3 million in Q2 2024).
  • Cash from Operations: $4.6 million (up 83% from $2.5 million in Q2 2024).
  • Net Loss: $(2.7) million, or $(0.09) per share (vs. $(5.7) million, or $(0.18) per share in Q2 2024).
• Year-to-Date 2025 Financial Highlights:
  • Revenue: $26.8 million (essentially flat vs. $27.0 million in 2024).
  • Adjusted EBITDA: $9.0 million (up 29% from $7.0 million in 2024).
  • Cash from Operations: $8.1 million (up 147% from $3.3 million in 2024).
  • Net Loss: $(7.2) million, or $(0.23) per share (vs. $(11.8) million, or $(0.37) per share in 2024).
• Product Sales Performance:
  • Canada: Combined Vascepa and Clozaril sales were flat in Q2 2025 and up 6% YTD in local currency.
    • Clozaril (Canada): Down 5.9% in Q2, down 2.8% YTD.
    • Vascepa (Canada): Up 8.8% in Q2, up 20.1% YTD.
  • United States: Clozaril revenue was up 1% in Q2 and up 2% YTD.
  • Royalties: Royalty revenue declined 65% in Q2 and 69% YTD due to the sale of the Xenpozyme royalty interest in Q2 2024; remaining royalty interest generated $0.15 million in Q2 2025.
• Operating Expenses:
  • Excluding cost of sales, operating expenses decreased 18% in Q2 and 19% YTD, primarily due to lower selling and marketing expenses following the discontinuation of co-promotional activities in August 2024.
  • Vascepa made a positive contribution to Adjusted EBITDA for the third consecutive quarter ($0.1 million in Q2 2025).
• Strategic Updates:
  • In-licensed Canadian rights to NEXLETOL and NEXLIZET from Esperion Therapeutics.
  • Health Canada approval expected by year-end 2025; commercial launch planned for Q2 2026.
• Balance Sheet & Capital Management:
  • Principal repayments on long-term debt totaled $8.5 million in Q2 and $11.4 million YTD.
  • Total borrowings reduced to $56.0 million at June 30, 2025, from $84.9 million at June 30, 2024 (a 34% reduction).
  • Share repurchases: $0.8 million in Q2 and $1.0 million YTD (308,928 shares at an average price of C$4.56).
  • Cash position: $12.2 million at June 30, 2025.
• 2025 Financial Guidance (Unchanged):
  • Vascepa Revenue: C$26.5-28.5 million (18-26% growth).
  • Canada Clozaril Sales: C$35.5-36 million (flat YoY).
  • U.S. Clozaril Sales: $12-12.3 million (2-4% decline).
  • Royalty Revenue: $0.6-0.75 million (50-60% decline).
  • Consolidated Adjusted EBITDA: $19.5-20.5 million (17-23% growth).

Notable Quotes

• "Our year-to-date results reflect continued execution on our key strategic priorities as we position the Company to resume its growth trajectory... We remain on track to achieve full-year guidance, with strong underlying performance demonstrated by 29% year-to-date Adjusted EBITDA growth, robust cash flow generation, and continued balance sheet strengthening through significant debt repayments." — Craig Millian, CEO
• "Looking ahead, we're excited to introduce NEXLETOL and NEXLIZET in Canada... These medicines have the potential to more than double the size of our cardiovascular business and will further establish HLS as a leading Canadian-based company focused on cardiovascular risk reduction." — Craig Millian, CEO