SWK Holdings Corporation Announces Financial Results for Third Quarter 2025

Corporate Highlights

Third quarter 2025 GAAP net income was $8.8 million, compared with GAAP net income of $3.5 million for the third quarter 2024.

Third quarter 2025 income before tax expense was $10.7 million, compared with net income before tax expense of $4.4 million for the third quarter 2024.

Third quarter 2025 finance receivables segment adjusted non-GAAP net income was $8.1 million, compared with adjusted non-GAAP net income of $5.0 million for the third quarter 2024.

As of September 30, 2025, net finance receivables were $245.4 million, a 4.1% decrease from September 30, 2024.

The third quarter 2025 effective yield was 16.9%, a 230 basis point increase from third quarter 2024.

DALLAS, TX / ACCESS Newswire / November 6, 2025 / SWK Holdings Corporation (Nasdaq:SWKH) ("SWK" or the "Company"), a life science-focused specialty finance company catering to small- and mid-sized commercial-stage companies, today provided a business update and announced its financial and operating results for the third quarter ended September 30, 2025.

SWK CEO Jody Staggs said "We reported strong third quarter results highlighted by $8.1 million of finance receivables segment adjusted non-GAAP net income and $8.8 million of GAAP net income. Our finance receivables portfolio totaled $245.4 million with a 16.9% effective yield, a multi-year high. During the quarter we also closed the sale of the majority of assets at MOD3 Pharma and repurchased approximately 88,000 shares for $1.3 million. Our non-GAAP tangible financing book value totaled $19.42, a 12.4% year-over-year increase after considering the $4.00 per share special dividend paid during the second quarter."

Mr. Staggs concluded, "On October 9, 2025, SWK entered into an Agreement and Plan of Merger with Runway Growth Finance Corp. The transaction is expected to close in late fourth quarter 2025 or first quarter 2026. Investors should consult SWK's SEC filings, including the presentation on SWK's website that details the transaction value, for additional information."

Third Quarter 2025 Financial Results

For the third quarter 2025, SWK reported total revenue of $10.9 million, a 4.8%increase compared to $10.4 million for the third quarter 2024. The $0.5 million increase in revenue for the three months ended September 30, 2025 consisted of a $1.1 million increase in Finance Receivables segment revenue, driven mostly by the acceleration of exit fees earned on early payoff of the loan with Elutia, Inc. offset by a $0.6 million decrease in Pharmaceutical Development segment revenue.

Income before income tax expense for the quarter was $10.7 million and $4.4 million for the three months ended September 30, 2025 and 2024, respectively. Third quarter 2025 income before income tax expense benefited from an increase in unrealized gains on warrants, primarily the Eton warrant, a gain on sale the MOD3 business, and a benefit from the change in provision for credit losses.

GAAP net income for the quarter ended September 30, 2025, increased to $8.8 million, or $0.72 per diluted share, from $3.5 million, or $0.28 per diluted share, for the third quarter 2024.

For the third quarter 2025, non-GAAP adjusted net income was $7.2 million, or $0.60 per share. Non-GAAP adjusted net income for the Finance Receivables segment was $8.1 million, an increase from $5.0 million for the third quarter 2024.

Total investment assets (defined as finance receivables, net of allowance for credit losses, marketable investments, and warrant assets) were $253.3 million as of September 30, 2025, a 2.1% decrease compared with total investment assets of $258.7 million as of September 30, 2024. The decline was primarily due to the monetization of the majority of the company's royalty assets during the first and second quarters for total proceeds of approximately $51.3 million, partially offset by loan fundings, interest capitalization, and fee accretion of $48.7 million. The allowance for credit losses at quarter's end totaled $7.7 million, a decrease of $6.6 million from the third quarter of 2024.

During the third quarter SWK repurchased 87,927 shares for a total purchase price of $1.3 million. Year-to-date through October 28, 2025 SWK repurchased 199,218 shares for a total purchase price of $3.1 million.

GAAP book value per share was $21.02 as of September 30, 2025, a9.1%decrease compared to $23.11 as of September 30, 2024 and a 8.5% increase after considering the $4.00 per share special dividend. Non-GAAP tangible financing book value per share totaled $19.42, a7.0%decrease compared to $20.89 at September 30, 2024 and a 12.4% increase after considering the $4.00 per share special dividend. Management views non-GAAP tangible financing book value per share as a relevant metric to value the Company's core finance receivable business. Non-GAAP tangible financing book value per share removes the value of the deferred tax assets.

Portfolio Status

During the third quarter, SWK funded an additional $5.0 million to performing borrower ImpediMed Limited ("ImpediMed") upon achievement of a performance milestone.

The third quarter 2025 effective yield was 16.9%, a 230 basis points increase from 14.6% in the third quarter 2024. The effective yield is the rate at which income is expected to be recognized if payments are received pursuant to the terms of the finance receivables. The third quarter 2025 realized yield of the finance receivable portfolio was 17.3%, a 350 basis point increase from 13.8% in third quarter 2024. The realized yield is inclusive of all fees, including all realized unamortized fees, amendment fees, and prepayment fees, and is calculated based on the simple average of finance receivables at the beginning and end of the period. The realized yield may differ from the effective yield due to actual cash collections being greater or lesser than modeled.

As of September 30, 2025, the Company had three finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. ("Flowonix") royalty, with a carrying value of $6.6 million; (2) the Best ABT, Inc. ("Best") royalty, with a carrying value of $2.3 million; and (3) the Ideal Implant, Inc. ("Ideal") royalty, with a carrying value of $2.5 million. SWK impaired the carrying value of the Ideal royalty by $0.3 million during the quarter. During the quarter SWK received a $0.5 million payment from the Flowonix estate, which was applied against the carrying value.

As of September 30, 2025, the Company had $2.5 million of unfunded commitments.

Total portfolio investment activity was as follows (in thousands):

2025

2024

242,819

266,663

5,000

10,290

(1,007

)

(17,517

)

(511

)

(649

)

757

455

2,760

(1,556

)

245

1,072

2,396

1,150

786

(1,264

)

253,270

258,685

Adjusted Non-GAAP Net Income

The following table provides a reconciliation of SWK's reported (GAAP) consolidated net income to SWK's adjusted consolidated net income (Non-GAAP):

2025

2024

8,780

3,468

1,916

906

(2,640

)

(47

)

246

)

(25

)

(251

)

(1,601

)

209

314

7,199

4,081

7,199

4,081

In the table above, management has deducted the impact of the following items: (i) change in the fair-market value of equities and warrants, (ii) income taxes, as the Company has substantial net operating losses to offset against future income, (iii) amortization expense associated with MOD3 intangible assets, (iv) loss on disposal of inventory, (v) intangible asset impairment, and (vi) foreign currency (gains) losses.

Finance Receivables Adjusted Non-GAAP Net Income

The following table provides a reconciliation of SWK's consolidated adjusted non-GAAP net income before provision for income tax expense, listed in the table above, to the finance receivables non-GAAP adjusted net income. The table eliminates MOD3 operating loss. The adjusted net income before income tax expense is derived in the table above and eliminates MOD3 operating income (loss), excluding MOD3 amortization expenses.

2025

2024

7,199

4,081

941

885

8,140

4,966

8,140

4,966

Non-GAAP Tangible Finance Book Value Per Share

The following table provides a reconciliation of SWK's GAAP book value per share to its non-GAAP tangible finance book value per share. The table eliminates the deferred tax assets, intangible assets, MOD3 property and equipment and acquisition-related contingent consideration (in thousands, except per share data):

Three Months Ended September 30,

2025

2024

254,206

283,431

12,096

12,264

21.02

23.11

(19,330

)

(27,052

)

(220

)

234,876

256,159

12,096

12,264

19.42

20.89

Non-GAAP Financial Measures

This release includes non-GAAP adjusted net income, non-GAAP finance receivable segment net income, and non-GAAP tangible financing book value per share, which are metrics that are not compliant with generally accepted accounting principles in the United States (GAAP).

Non-GAAP adjusted net income is adjusted for certain items including (i) change in the fair-market value of equities and warrants, (ii) income taxes, as the Company has substantial net operating losses to offset against future income, (iii) amortization expense associated with MOD3 intangible assets, (iv) loss on disposal of inventory, (v) intangible asset impairment, and (vi) foreign currency (gains) losses.

In addition to the adjustments noted above, non-GAAP finance receivable segment net income also excludes MOD3 operating gains or losses.

Non-GAAP tangible financing book value per share excludes the deferred tax asset and intangible assets associated with the Company's acquisition of MOD3 in 2019.

These non-GAAP measures may not be directly comparable to similar measures used by other companies in the Company's industry, as other companies may define such measures differently. Management believes that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to our operations and financial condition. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to better understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.

About SWK Holdings Corporation

SWK Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing medical technologies and products. SWK's unique financing structures provide flexible financing solutions at an attractive cost of capital to create long-term value for all SWK stakeholders. SWK's solutions include structured debt, traditional royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from $5.0 million to $25.0 million. Additional information on the life science finance market is available on the Company's website at www.swkhold.com.

Safe Harbor or Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect SWK's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in SWK's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

For more information, please contact:

Investor Relations and Media

Susan Xu

778-323-0959

investorrelations@swkhold.com

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

10,206

5,927

5,581

5,788

6,398

543

2,141

16,330

20,254

245,396

277,760

2,750

275

580

19,330

23,484

7,599

4,366

432

3,041

289,362

332,235

2,874

2,810

1,255

1,500

2,874

5,565

31,921

31,412

6,233

361

335

35,156

43,545

4,417,730

4,419,991

(4,163,536

)

(4,131,313

)

254,206

288,690

289,362

332,235

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

2025

2024

2025

2024

10,822

9,498

30,077

30,519

628

2,153

1,711

292

536

395

10,882

10,418

32,766

32,625

(931

)

1,385

(1,635

)

10,777

209

5,771

314

1,179

1,139

3,464

3,514

147

585

1,550

1,635

(4,900

)

234

1,169

3,286

2,993

9,406

8,597

6,676

4,082

19,418

6,062

2,640

2,563

178

444

(246

)

(314

)

(168

)

(82

)

1,601

1,729

(3,727

)

2,495

251

(113

)

775

10,696

4,374

21,075

9,786

1,916

906

4,220

2,170

8,780

3,468

16,855

7,616

0.72

0.28

1.38

0.61

0.72

0.28

1.38

0.61

12,117

12,318

12,184

12,417

12,117

12,408

12,184

12,492

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine months Ended September

2025

2024

16,855

7,616

(1,635

)

10,777

209

5,771

143

339

850

775

4,156

2,100

(2,563

)

(178

)

314

(444

)

(1,476

)

(4,900

)

3,727

(2,495

)

(639

)

(678

)

314

168

(5,961

)

(2,461

)

(1,582

)

(1,359

)

894

708

1,169

207

(1,691

)

915

219

2,750

1,274

(387

)

(1,406

)

(1,500

)

2,100

16,987

16,160

110

1,560

6,790

574

(28,500

)

(17,736

)

31,678

34,651

30,582

(512

)

(50

)

45,800

13,390

(89

)

(43

)

(6,233

)

(12,350

)

(49,078

)

(41

)

(50

)

(3,067

)

(5,165

)

(58,508

)

(17,608

)

4,279

11,942

5,927

5,236

10,206

17,178

1,073

2,259

2,403

SOURCE: SWK Holdings Corp