HLS Therapeutics Inc (74D) Q2 2026 Earnings Report

The call conveyed an overall constructive outlook: the company demonstrated clear progress deleveraging the balance sheet, improving cash generation, and achieving strong early momentum in its cardiovascular franchise (notably Vascepa and Nilemdo) with meaningful payer wins and upcoming regulatory catalysts (NEXLIZET). Near-term profitability was pressured by launch investments (Nilemdo) and higher cost of sales and operating expenses, and U.S. Clozaril showed declines, but management reaffirmed 2026 guidance and expects margin improvement in the second half as revenue ramps. Net balance favors positive developments driven by durable CV growth and a stronger balance sheet, despite some short-term operational and margin headwinds.

HLS reaffirmed 2026 guidance of revenue $56.0–$60.0 million and adjusted EBITDA $18.5–$21.0 million, noting year‑over‑year adjusted EBITDA comparisons should improve in H2 as the cardiovascular portfolio ramps; Q2 revenue was $14.7M (+3.5% YoY) with the cardiovascular portfolio up ~25% (Vascepa net sales +18% in Q2, units +16%; Vascepa YTD net sales +14%, units +17%), Nilemdo generated >$300k in its first full quarter (≈1.2k NBRx by quarter end and ~80% private payer coverage), Clozaril Canada net sales were down ~1% while U.S. Clozaril was $3.0M (vs $3.5M prior year), Q2 adjusted EBITDA was $4.7M (≈10% below prior year), the cardiovascular direct brand contribution was breakeven for the year so far, YTD cash from operations was $9.3M (+14%), cash at quarter‑end was $13.7M, term loan principal was $42.2M (down 16% from end‑2025), net debt $28.5M (down 26% from end‑2025), and the company repurchased ~340k shares (C$1.4M) under an NCIB of up to 1.5M shares.