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HLS Therapeutics Inc
(TSX:HLS)
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Rating:58Neutral
Price Target:
C$4.50
▲(18.73% Upside)
Action:Reiterated
Date:10/06/26
The score is driven primarily by solid financial resilience (strong operating and free cash flow, improving leverage) and a constructive earnings-call outlook with reaffirmed guidance and cardiovascular portfolio momentum. These positives are tempered by persistent net losses (negative P/E and ROE) and only moderate technical strength given the stock remains below its 200-day moving average.
Positive Factors
Strong cash generation
Consistently positive operating and free cash flow gives HLS internal funding capacity while accounting earnings remain negative. This supports debt reduction, product investment, and operating resilience, making the business less dependent on external financing over the next several quarters.
Negative Factors
Persistent accounting losses
Persistent net losses and negative return on equity show that HLS has not yet converted its healthy EBITDA and cash generation into sustainable bottom-line profitability. This limits earnings quality and could constrain capital allocation if losses continue across coming reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive operating and free cash flow gives HLS internal funding capacity while accounting earnings remain negative. This supports debt reduction, product investment, and operating resilience, making the business less dependent on external financing over the next several quarters.
Read all positive factors
HLS Therapeutics Inc (HLS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$139.52M
Dividend Yield3.42%
Average Volume (3M)75.25K
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-1.18%
EPS Growth42.93%
CountryCA
Employees85
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.27
Shares Outstanding30,935,060
10 Day Avg. Volume39,361
30 Day Avg. Volume75,246
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.80
Price to Sales (P/S)1.96
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$8.23Price Target Upside117.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.21
Revenue Forecast (FY)C$58.34M
HLS Therapeutics Inc Business Overview & Revenue Model
Company Description
HLS Therapeutics Inc. operates as a specialized pharmaceutical firm, concentrating on the acquisition and commercialization of medicinal products, primarily within the niche central nervous system (CNS) and cardiovascular (CV) sectors. Its reach e...
How the Company Makes Money
HLS primarily makes money by commercializing prescription pharmaceutical products. Revenue is generated mainly from net product sales to wholesalers, distributors, pharmacies, hospitals, and other healthcare channels, with demand driven by physici...
HLS Therapeutics Inc Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Cardiovascular Portfolio Acceleration
Q2 cardiovascular net sales grew 25% year over year (local and reporting currency), driving overall revenue momentum; company expects continued margin expansion from this portfolio in H2.
Negative Updates
Quarterly Adjusted EBITDA Decline
Adjusted EBITDA for Q2 was $4.7M, about 10% below prior-year Q2 ($5.2M), driven by incremental launch investments for Nilemdo; company expects H2 margin improvement but Q1/Q2 dip impacted near-term profitability.
Read all updates
Q2-2026 Updates
Positive
Negative
Cardiovascular Portfolio Acceleration
Q2 cardiovascular net sales grew 25% year over year (local and reporting currency), driving overall revenue momentum; company expects continued margin expansion from this portfolio in H2.
Read all positive updates
Company Guidance
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.HLS Therapeutics Inc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.89M | 56.47M | 56.62M | 63.07M | 61.47M | 60.01M |
| Gross Profit | 28.87M | 24.01M | 47.62M | 55.45M | 56.49M | 56.04M |
| EBITDA | 17.33M | 18.02M | 17.22M | 12.88M | 18.00M | 25.41M |
| Net Income | -8.53M | -12.65M | -19.66M | -27.53M | -23.60M | -13.12M |
Balance Sheet | ||||||
| Total Assets | 128.34M | 137.28M | 159.90M | 209.06M | 241.65M | 275.90M |
| Cash, Cash Equivalents and Short-Term Investments | 13.71M | 11.70M | 17.46M | 21.95M | 20.72M | 21.18M |
| Total Debt | 41.84M | 49.73M | 66.45M | 87.62M | 97.34M | 97.57M |
| Total Liabilities | 73.19M | 75.72M | 88.56M | 111.36M | 116.33M | 115.17M |
| Stockholders Equity | 55.15M | 61.56M | 71.34M | 97.70M | 125.32M | 160.74M |
Cash Flow | ||||||
| Free Cash Flow | 17.43M | 15.81M | 7.99M | 15.60M | 6.79M | 11.92M |
| Operating Cash Flow | 18.13M | 16.02M | 8.00M | 15.79M | 16.94M | 16.43M |
| Investing Cash Flow | -1.04M | -1.73M | 11.73M | -189.00K | -10.15M | -4.51M |
| Financing Cash Flow | -15.20M | -20.52M | -23.36M | -14.64M | -6.86M | -11.40M |
HLS Therapeutics Inc Technical Analysis
Positive
3.79
Price Trends
4.01
Positive
4.10
Positive
4.32
Positive
Market Momentum
0.14
Negative
66.44
Neutral
80.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLS, the sentiment is Positive. The current price of 3.79 is below the 20-day moving average (MA) of 4.24, below the 50-day MA of 4.01, and below the 200-day MA of 4.32, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 80.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HLS.
HLS Therapeutics Inc Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | C$193.27M | 19.42 | 22.92% | 1.26% | 40.91% | 19.88% | |
74 Outperform | C$331.67M | 8.19 | 22.74% | ― | 3.18% | 140.09% | |
67 Neutral | C$1.11B | 76.61 | 1.91% | ― | 42.32% | 4332.35% | |
63 Neutral | C$154.93M | -46.24 | -4.69% | ― | -3.16% | -345.50% | |
58 Neutral | C$139.52M | -12.23 | -14.43% | 3.42% | -1.18% | 42.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
38 Underperform | C$663.17K | 3.13 | -2.92% | ― | ― | ― |
* Healthcare Sector Average
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HLS Therapeutics Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
HLS Therapeutics Revamps Board to Support Next Phase of Growth
Positive
Oct 1, 2026
HLS Therapeutics has refreshed its board of directors, appointing physician-executive Linda Maxwell and biopharmaceutical strategist Mark DeLong as independent directors following the departures of Kyle Dempsey and Christine Elliott. The board now...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.