HLS Therapeutics Announces Fiscal 2025 Financial Results

Executive Summary

• HLS Therapeutics reported FY 2025 Adjusted EBITDA of $19.6 M (up 18% YoY) and cash from operations of $17.1 M (up 114% YoY).
• Revenue declined modestly to $55.5 M (‑2% YoY); net loss narrowed to $(12.4) M from $(19.7) M a year earlier.
• The company secured a new credit facility with lower rates, repaid $17.8 M of debt, and reduced annual interest expense by 43%.

Key Details

• Financial Highlights (FY 2025 vs. FY 2024)
• Revenue: $55.5 M vs. $56.6 M (-2%).
• Adjusted EBITDA: $19.6 M vs. $16.6 M (+18%).
• Cash from operations: $17.1 M vs. $8.0 M (+114%).

• Net loss: $(12.4) M ($0.39 per share) vs. $(19.7) M ($0.62 per share).

• Q4 2025 Highlights (vs. Q4 2024)

• Revenue: $15.2 M vs. $15.5 M (-2%).
• Adjusted EBITDA: $5.7 M vs. $5.6 M (+3%).

• Cash from operations: $6.5 M vs. $3.2 M (+103%).

• Product Performance

• Clozaril (Canada): $9.6 M FY sales, down 0.8% YoY; U.S. sales down 1.6% YoY (improved from a historic ‑6% trend).
• Vascepa: FY sales up 9% YoY; contribution to Adjusted EBITDA improved to $1 M (+$4.6 M vs. prior year).

• Canadian product sales grew 1.5% in local currency FY 2025; Q4 2025 fell 0.5%.

• Royalty Revenue

• FY 2025 royalty revenue: $15.2 K vs. $187 K FY 2024 (‑50%), reflecting the sale of the Xenpozyme royalty interest in 2024.

• Operating Expenses

• Total operating expenses fell 17% YoY to $35.9 M from $40.0 M, driven by cost‑optimization and discontinuation of co‑promotional activities.

• Debt & Liquidity

• Principal repayments: $17.8 M FY 2025 (including $5.0 M in Q4).
• New credit agreement: lower rates, increased flexibility, reduced FX risk; interest expense down 43% YoY.
• Total borrowings at year‑end: $50.0 M vs. $67.4 M prior year.
• Net debt: $38.3 M vs. $50.0 M.

• Cash balance end‑FY 2025: $11.7 M (down from $17.5 M due to repayments and share buyback).

• Share Repurchases

• Normal Course Issuer Bid: 519,366 shares repurchased for $1.8 M during FY 2025.

• Licensing & Product Launches

• Acquired Canadian rights to NILEMDO™ and NEXLIZET® from Esperion Therapeutics; Health Canada approved NILEMDO in Q4 2025, now commercially available (launch slated for early April 2026).

• Guidance for FY 2026

• Revenue: $56‑60 M (mid‑single‑digit growth).

• Adjusted EBITDA: $18.5‑21 M (flat to modestly up, reflecting NILEMDO launch costs).

• Conference Call – March 12 2026, 8:30 a.m. ET (details provided in release).

Notable Quotes

“In 2025, HLS made considerable progress against our objectives to drive profitable growth… We achieved 18% Adjusted EBITDA growth for the full year while generating $17.1 M in cash from operations…” – Craig Millian, CEO

“NILEMDO and NEXLIZET represent a significant opportunity… we believe this franchise will more than double the size of our cardiovascular business.” – Craig Millian, CEO