HLS Therapeutics Inc.

Q2 revenue was $14.7 million, up 3.5% year over year and up 2.8% year to date. Adjusted EBITDA was $4.7 million versus $5.2 million in Q2 last year, with lower margins tied to Nilemdo launch spending. Cardiovascular net sales grew 25% year over year; Vascepa net sales grew 18%, Nilemdo generated over $300 thousand in its first full quarter, and Clozaril Canada net sales were down just 1%, while U.S. Clozaril sales were $3 million versus $3.5 million a year ago. Management reaffirmed full-year 2026 guidance for revenue of $56 million to $60 million and adjusted EBITDA of $18.5 million to $21 million, and said it expects second-half margin improvement as Nilemdo revenue ramps and comparisons ease.

Craig Stuart Millian framed the quarter as evidence that HLS’s cardiovascular growth engine is accelerating, while Clozaril in Canada is stabilizing and the balance sheet is now strong enough to support both buybacks and business development. His tone was constructive and confident, emphasizing that the company has largely completed its deleveraging work and now has room to invest in growth while returning capital. He also highlighted upcoming catalysts: expanding Nilemdo reimbursement, public reimbursement negotiations, and a Health Canada decision for NEXLIZET by year end.

John Hanna emphasized the financial improvement from lower debt and stronger cash generation. He said cash from operations was $9.3 million year to date, up 14%, interest expense was $1.3 million year to date versus $3.1 million last year, cash was $13.7 million at quarter end, principal debt was $42.2 million, and net debt was $28.5 million, down 26% from the end of 2025. He also noted the NCIB activity, with about 340 thousand shares repurchased through July 31 for $1.4 million Canadian, and said the company made a $1.1 million principal repayment in Q2.

Analysts focused on whether Vascepa’s return to growth was helped by the Nilemdo launch, whether second-half EBITDA would accelerate, and how much of Nilemdo’s early sales were channel stocking versus true demand. Management said the cardiovascular franchise is benefiting from more time with customers and that the same customer base creates synergy between Vascepa and Nilemdo; they also said Nilemdo’s early sales were demand-driven, with no heavy initial stocking. On expenses, management indicated Q2 was likely the peak quarter for Nilemdo selling and marketing spend, though they will remain dynamic on budgeting.