HLS Therapeutics (HLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 2% year-over-year to $12.9 million, driven by a 15% increase in Vascepa net sales and the successful commercial launch of NILEMDO, which exceeded initial expectations and received major private insurer coverage.

• Cash from operations increased 80% year-over-year to $6.4 million, with net debt reduced by 32% to $31.9 million over the past year and by 52% over two years.

• Operational improvements and deleveraging have strengthened the financial position, with adjusted EBITDA and cash flow growth.

• The cardiovascular portfolio is expanding, with NILEMDO launched in April and NEXLETOL/NEXLIZET expected in the first half of 2027, positioning for significant future growth.

• Clozaril patient volumes in Ontario returned to growth in March and April, indicating business stabilization.

Financial highlights

• Q1 2026 revenue was $12.9 million, up from $12.6 million in Q1 2025.

• Vascepa net sales rose 15% year-over-year to $4.8 million, with 18% unit growth; Clozaril net sales (Canada and U.S.) were $7.8 million, down from $8.2 million.

• Adjusted EBITDA was $3.5 million, down from $3.8 million in Q1 2025, reflecting launch investments for NILEMDO.

• Cash from operations reached $6.4 million, up 80% year-over-year.

• Net debt at quarter-end was $31.9 million, down 32% year-over-year and 17% from year-end 2025.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $56–$60 million, with mid-single-digit growth expected.

• Adjusted EBITDA guidance for 2026 is $18.5–$21 million, with margin expansion anticipated in the second half as NILEMDO revenue ramps and launch expenses normalize.

• NEXLETOL/NEXLIZET launch expected in the first half of 2027, providing another growth catalyst.

• Expect continued quarterly seasonality and potential impact from exchange rate volatility.