SWK Holdings Corporation Announces Financial Results for Second Quarter 2025
SWK Holdings (NASDAQ:SWKH), a life science-focused specialty finance company, reported Q2 2025 financial results with GAAP net income of $3.5 million ($0.29 per diluted share), compared to $3.7 million in Q2 2024. The company's finance receivables segment achieved adjusted non-GAAP net income of $4.6 million, up from $2.6 million year-over-year.
Key developments include the sale of majority royalty portfolio for approximately book value, payment of a $4.00 per share dividend, and post-quarter sale of MOD3 subsidiary assets. Net finance receivables were $237.6 million, down 10.4% year-over-year, with a 14.1% effective yield. GAAP book value per share was $20.23, showing a 6.8% increase year-over-year when adjusted for the dividend.
SWK Holdings (NASDAQ:SWKH), societ脿 di finanziamento specializzata nelle scienze della vita, ha reso noti i risultati finanziari del 2掳 trimestre 2025 con un utile GAAP di 3,5 milioni di dollari (0,29$ per azione diluita), rispetto ai 3,7 milioni del 2掳 trimestre 2024. Il segmento dei crediti finanziari ha registrato un utile rettificato non-GAAP di 4,6 milioni di dollari, in aumento da 2,6 milioni su base annua.
Tra gli sviluppi principali figurano la cessione della maggior parte del portafoglio di royalty a valore contabile approssimativo, il pagamento di un dividendo di 4,00$ per azione e, dopo la chiusura del trimestre, la vendita di attivit脿 della controllata MOD3. I crediti finanziari netti ammontavano a 237,6 milioni di dollari, in calo del 10,4% su base annua, con un rendimento effettivo del 14,1%. Il valore contabile per azione GAAP era di 20,23$, con un incremento del 6,8% su base annua al netto del dividendo.
SWK Holdings (NASDAQ:SWKH), una compa帽铆a de financiamiento especializada en ciencias de la vida, inform贸 los resultados financieros del 2T 2025 con un beneficio GAAP de 3,5 millones de d贸lares (0,29$ por acci贸n diluida), frente a 3,7 millones en el 2T 2024. El segmento de cuentas por cobrar financieras report贸 un beneficio ajustado no GAAP de 4,6 millones de d贸lares, desde 2,6 millones interanual.
Entre los hitos clave se incluye la venta de la mayor parte de la cartera de regal铆as por aproximadamente su valor en libros, el pago de un dividendo de 4,00$ por acci贸n y, tras el cierre del trimestre, la venta de activos de la filial MOD3. Las cuentas por cobrar financieras netas fueron de 237,6 millones de d贸lares, una ca铆da del 10,4% interanual, con un rendimiento efectivo del 14,1%. El valor contable por acci贸n GAAP fue de 20,23$, reflejando un aumento del 6,8% interanual ajustado por el dividendo.
SWK Holdings (NASDAQ:SWKH), 靸濍獏瓿柬暀 攵勳暭 韸鬼檾 旮堨湹須岇偓搿滌劀 2025雲� 2攵勱赴 鞁れ爜鞚� 氚滍憸頄堨姷雼堧嫟. GAAP 靾滌澊鞚� 350毵� 雼煬(頋劃欤茧嫻 0.29雼煬)搿� 2024雲� 2攵勱赴鞚� 370毵� 雼煬鞕� 牍勱祼霅╇媹雼�. 旮堨湹毂勱秾 攵�氍胳潃 臁办爼 牍凣AAP 靾滌澊鞚� 460毵� 雼煬毳� 旮半頃� 鞝勲厔 霃欔赴 260毵� 雼煬鞐愳劀 歃濌皜頄堨姷雼堧嫟.
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SWK Holdings (NASDAQ:SWKH), soci茅t茅 de financement sp茅cialis茅e dans les sciences de la vie, a publi茅 ses r茅sultats du 2e trimestre 2025 avec un r茅sultat net GAAP de 3,5 millions de dollars (0,29 $ par action dilu茅e), contre 3,7 millions au 2e trimestre 2024. Le segment des cr茅ances financi猫res a d茅gag茅 un r茅sultat net ajust茅 non-GAAP de 4,6 millions de dollars, en hausse par rapport 脿 2,6 millions sur un an.
Parmi les faits marquants : la cession de la majeure partie du portefeuille de redevances pour une valeur proche de la valeur comptable, le versement d鈥檜n dividende de 4,00 $ par action et, apr猫s la cl么ture du trimestre, la vente d鈥檃ctifs de la filiale MOD3. Les cr茅ances financi猫res nettes s鈥櫭﹍evaient 脿 237,6 millions de dollars, en baisse de 10,4% en glissement annuel, avec un rendement effectif de 14,1%. La valeur comptable GAAP par action 茅tait de 20,23 $, soit une hausse de 6,8% en glissement annuel apr猫s ajustement pour le dividende.
SWK Holdings (NASDAQ:SWKH), ein auf Life-Sciences spezialisiertes Finanzierungsunternehmen, meldete die Finanzergebnisse f眉r das 2. Quartal 2025 mit einem GAAP-Nettogewinn von 3,5 Mio. USD (0,29 USD je verw盲sserte Aktie), gegen眉ber 3,7 Mio. USD im 2. Quartal 2024. Der Bereich Forderungen aus Finanzierungsgesch盲ften erzielte ein bereinigtes Non-GAAP-Nettoergebnis von 4,6 Mio. USD, nach 2,6 Mio. USD im Jahresvergleich.
Wesentliche Entwicklungen umfassen den Verkauf des 眉berwiegenden Royalty-Portfolios ann盲hernd zum Buchwert, die Auszahlung einer Dividende von 4,00 USD je Aktie und nach Quartalsende den Verkauf von Verm枚genswerten der Tochtergesellschaft MOD3. Die Netto-Finanzforderungen beliefen sich auf 237,6 Mio. USD, ein R眉ckgang von 10,4% gegen眉ber dem Vorjahr, bei einer effektiven Rendite von 14,1%. Der GAAP-Buchwert je Aktie lag bei 20,23 USD, was nach Dividendenanpassung einem Zuwachs von 6,8% gegen眉ber dem Vorjahr entspricht.
- Finance receivables segment adjusted non-GAAP net income increased 77% to $4.6 million from $2.6 million YoY
- Successful monetization of majority royalty portfolio at book value for $34.0 million
- Adjusted book value per share increased 6.8% YoY (excluding $4.00 dividend)
- Advanced $13.5 million to two performing borrowers in Q2
- Reduced allowance for credit losses by $4.3 million from Q2 2024
- GAAP net income decreased to $3.5 million from $3.7 million YoY
- Net finance receivables declined 10.4% YoY to $237.6 million
- Effective yield decreased 50 basis points to 14.1% from Q2 2024
- Three finance receivables in nonaccrual status totaling $12.2 million
- Total investment assets decreased 8.9% to $242.8 million YoY
Insights
SWK's Q2 showed strategic portfolio restructuring with stable earnings despite revenue decline, simplifying business to focus on core lending.
SWK Holdings posted $3.5 million in Q2 GAAP net income ($0.29 per diluted share), slightly down from $3.7 million ($0.30 per share) in Q2 2024. However, the company's finance receivables segment non-GAAP adjusted net income increased significantly to $4.6 million from $2.6 million year-over-year, demonstrating stronger core business performance.
The company has strategically restructured its portfolio, selling most of its royalty assets for approximately $34 million at book value and subsequently distributing a special dividend of $4.00 per share ($49.1 million total) to shareholders. After quarter-end, SWK also divested the majority of assets from its MOD3 subsidiary at a slight premium to book value. These moves simplify SWK's business model, allowing management to focus on its core life science loan strategy.
Revenue decreased 6.5% to $10.1 million, primarily due to the royalty portfolio sale, partially offset by increased pharmaceutical development segment revenue. The company's effective yield was 14.1%, down 50 basis points year-over-year, while realized yield decreased 110 basis points to 14.3%.
SWK's investment portfolio contracted to $242.8 million, an 8.9% decrease from $266.7 million in Q2 2024, reflecting the strategic divestitures. The allowance for credit losses decreased to $8.8 million from $13.1 million last year. The company continues to manage credit risk with three finance receivables in nonaccrual status (Flowonix, Best ABT, and Ideal Implant), with modest impairments taken during the quarter.
When adjusting for the $4.00 per share dividend, SWK's GAAP book value per share would have been $24.46, representing a 6.8% increase year-over-year, while non-GAAP tangible financing book value would have been $22.50, an 11.7% increase year-over-year. The company also repurchased 58,954 shares during Q2 for $0.9 million, continuing its shareholder return program.
SWK remains active in its core lending business, advancing $13.5 million to two performing borrowers during the quarter, with an additional $5 million funding to ImpediMed post-quarter after they achieved a performance milestone. The company's active portfolio management, including strategic divestitures at or above book value, demonstrates management's commitment to optimizing capital allocation while maintaining focus on its specialty finance niche serving small and mid-sized life science companies.
Conference Call Scheduled for Friday, August 15, 2025, at 09:00 a.m. CST
Corporate Highlights
Second quarter 2025 GAAP net income was
$3.5 million , compared with GAAP net income of$3.7 million for the second quarter 2024.Second quarter 2025 finance receivables segment adjusted non-GAAP net income was
$4.6 million , compared with adjusted non-GAAP net income of$2.6 million for the second quarter 2024.As of June 30, 2025, net finance receivables were
$237.6 million , a10.4% decrease from June 30, 2024 driven primarily by the monetization of the majority of SWK's royalty portfolio.The second quarter 2025 effective yield was
14.1% , a 50 basis point decrease from second quarter 2024.As of June 30, 2025, GAAP book value per share was
$20.23 , an11.0% decrease from$22.72 on June 30, 2024. When adjusted to exclude the$4.00 per share dividend paid during the quarter, this figure would have been$24.46 , a6.8% increase year-over-year.As of June 30, 2025, non-GAAP tangible financing book value per share was
$18.47 , an8.3% decrease from$20.14 as of June 30, 2024. When adjusted to exclude the$4.00 per share dividend paid during the quarter, this figure would have been$22.50 , an11.7% increase year-over-year.
DALLAS, TX / / August 14, 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 second quarter ended June 30, 2025.
SWK CEO Jody Staggs said "During the second quarter, we sold the majority of our royalty portfolio for approximately book value and paid a
"During the second quarter we generated
"Our GAAP book value per share totaled
Mr. Staggs concluded, "We continue to pursue financings to innovative life science companies with a focus on supporting our existing, performing borrowers. During the quarter we advanced
Second Quarter 2025 Financial Results
For the second quarter 2025, SWK reported total revenue of
Income before income tax expense for the quarter was
GAAP net income for the quarter ended June 30, 2025, decreased to
For the second quarter 2025, non-GAAP adjusted net income was
Total investment assets (defined as finance receivables, net of allowance for credit losses, marketable investments, and warrant assets) were
During the second quarter SWK repurchased 58,954 shares for a total purchase price of
GAAP book value per share was
Portfolio Status
During the second quarter, SWK sold the majority of the royalty portfolio for
During the second quarter, we funded an additional
The second quarter 2025 effective yield was
As of June 30, 2025, the Company had three finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. ("Flowonix") royalty, with a carrying value of
As of June 30, 2025, the Company had
Total portfolio investment activity was as follows (in thousands):
Three Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Beginning Portfolio | $ | 227,776 | $ | 261,895 | ||||
Investment in finance receivables | 13,500 | 7,000 | ||||||
Paydowns received on investments | (466 | ) | (1,641 | ) | ||||
Paydowns received on royalties | - | (847 | ) | |||||
Interest paid in kind | 640 | 426 | ||||||
Loan discount and fee accretion | 1,388 | 1,410 | ||||||
Warrant and equity investments, net of sales and cancellations | 83 | 360 | ||||||
Net unrealized gain on marketable investments and warrant assets | 384 | 212 | ||||||
Foreign currency gains (losses) on finance receivables | 55 | (432 | ) | |||||
Provision for credit losses | (541 | ) | (4,215 | ) | ||||
Gain on revaluation of finance receivables | - | 2,495 | ||||||
Ending Portfolio | $ | 242,819 | $ | 266,663 | ||||
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):
Three Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Net income | $ | 3,536 | $ | 3,680 | ||||
Income tax expense | 1,026 | 1,035 | ||||||
MOD3 amortization expense | - | 196 | ||||||
Unrealized net gain on warrant assets | (347 | ) | (226 | ) | ||||
Gain on exercise of warrant | - | (675 | ) | |||||
Unrealized net (gain) loss on marketable investments | (37 | ) | 19 | |||||
Foreign currency transaction (gains) losses | 451 | (437 | ) | |||||
Gain on revaluation of finance receivables | - | (2,495 | ) | |||||
Intangible asset impairment expense | - | 5,771 | ||||||
Change in fair value of acquisition-related contingent consideration | - | (4,900 | ) | |||||
Adjusted income before income tax expense | 4,629 | 1,968 | ||||||
Adjusted income tax expense | - | - | ||||||
Non-GAAP net income | $ | 4,629 | $ | 1,968 | ||||
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) gain on revaluation of finance receivable held for sale, (v) change in fair value of acquisition-related contingent consideration, (vi) intangible asset impairment, and (vii) 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.
Three Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Non-GAAP net income | $ | 4,629 | $ | 1,968 | ||||
MOD3 operating (income) loss, excluding amortization expense | (18 | ) | 670 | |||||
Adjusted Finance Receivable segment income before income tax expense | $ | 4,611 | $ | 2,638 | ||||
Adjusted income tax expense | - | - | ||||||
Finance Receivables segment adjusted non-GAAP net income | $ | 4,611 | $ | 2,638 | ||||
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 June 30, | ||||||||
2025 | 2024 | |||||||
GAAP stockholder's equity | $ | 246,469 | $ | 282,831 | ||||
Outstanding shares (1) | 12,184 | 12,447 | ||||||
GAAP book value per share | $ | 20.23 | $ | 22.72 | ||||
Less: Deferred tax assets, net | (21,219 | ) | (27,052 | ) | ||||
Less: Intangible assets, net | (209 | ) | (232 | ) | ||||
Less: Goodwill | - | - | ||||||
Less: MOD3 property and equipment, net | - | (4,921 | ) | |||||
Non-GAAP tangible finance book value | 225,041 | 250,626 | ||||||
Outstanding shares (1) | 12,184 | 12,447 | ||||||
Non-GAAP Tangible book value per share | $ | 18.47 | $ | 20.14 | ||||
(1) Outstanding shares computed as of quarter end. | ||||||||
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) changes in the fair-market value of public equity-related assets and SWK's warrant assets as mark-to-market changes are non-cash, (ii) income taxes as the Company has substantial net operating losses to offset against future income, (iii) changes in the fair-market value of contingent consideration associated with the MOD3 acquisition, and (iv) depreciation and amortization expenses, primarily associated with the 2019 acquisition of MOD3.
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, intangible assets, and contingent consideration associated with the MOD3 transaction.
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.
Conference Call Information
SWK Holdings will host a conference call on August 15, 2025, at 9:00 a.m. CST, to discuss its corporate and financial results for the second quarter 2025.
Interested participants and investors may access the call via the numbers below:
888-506-0062 (U.S.)
973-528-0011 (International)
The participant Access Code is 117203 or ask for the SWK Holdings call.
An archive of the webcast will remain available on the SWK Holdings' website for 12 months, starting later that day.
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
Safe Harbor for 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
728-323-0959
[email protected]
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, 2025 | December 31, 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 8,006 | $ | 5,927 | ||||
Interest, accounts receivable, and other receivables, net | 5,611 | 5,788 | ||||||
Assets held for sale, net | 6,488 | 6,398 | ||||||
Other current assets | 1,088 | 2,141 | ||||||
Total current assets | 21,193 | 20,254 | ||||||
Finance receivables, net of allowance for credit losses of | 237,604 | 277,760 | ||||||
Collateral on foreign currency forward contract | - | 2,750 | ||||||
Marketable investments | 603 | 580 | ||||||
Deferred tax assets, net | 21,219 | 23,484 | ||||||
Warrant assets | 4,612 | 4,366 | ||||||
Other non-current assets | 466 | 3,041 | ||||||
Total assets | $ | 285,697 | $ | 332,235 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,101 | $ | 2,810 | ||||
Liabilities held for sale | 1,278 | 1,255 | ||||||
Deferred income | 3,300 | 1,500 | ||||||
Total current liabilities | 6,679 - | 5,565 | ||||||
Unsecured senior notes, net | 31,736 | 31,412 | ||||||
Revolving credit facility | 294 | 6,233 | ||||||
Other non-current liabilities | 519 | 335 | ||||||
Total liabilities | 39,228 | 43,545 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 12 | 12 | ||||||
Additional paid-in capital | 4,418,773 | 4,419,991 | ||||||
Accumulated deficit | (4,172,316 | ) | (4,131,313 | ) | ||||
Total stockholders' equity | 246,469 | 288,690 | ||||||
Total liabilities and stockholders' equity | $ | 285,697 | $ | 332,235 | ||||
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues: | ||||||||||||||||
Finance receivable interest income, including fees | $ | 8,543 | $ | 9,986 | $ | 19,255 | $ | 21,021 | ||||||||
Pharmaceutical development | 1,190 | 804 | 2,153 | 1,083 | ||||||||||||
Other | 319 | 57 | 476 | 103 | ||||||||||||
Total revenues | 10,052 | 10,847 | 21,884 | 22,207 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Provision (benefit) for credit losses | 761 | 4,095 | (704 | ) | 9,392 | |||||||||||
Loss on impairment of intangibles assets | - | 5,771 | - | 5,771 | ||||||||||||
Interest expense | 1,155 | 1,119 | 2,285 | 2,375 | ||||||||||||
Pharmaceutical manufacturing, research and development expense | 645 | 520 | 1,403 | 1,050 | ||||||||||||
Change in fair value of acquisition-related contingent consideration | - | (4,900 | ) | - | (4,900 | ) | ||||||||||
Depreciation and amortization expense | 19 | 421 | 38 | 935 | ||||||||||||
General and administrative expense | 2,843 | 2,920 | 6,120 | 5,604 | ||||||||||||
Income from operations | 4,629 | 901 | 12,742 | 1,980 | ||||||||||||
Other income (expense), net | ||||||||||||||||
Unrealized net loss on warrants | 347 | 226 | (77 | ) | 131 | |||||||||||
Net loss on exercise and cancellation of warrants | - | 675 | - | 444 | ||||||||||||
Net loss on marketable investments | 37 | (19 | ) | (68 | ) | (162 | ) | |||||||||
Loss on sale of assets | - | - | (82 | ) | - | |||||||||||
AG真人官方ized gain on early payment of finance receivable | - | - | 1,729 | - | ||||||||||||
Gain (loss) on revaluation of finance receivables | - | 2,495 | (3,727 | ) | 2,495 | |||||||||||
AG真人官方ized and unrealized foreign currency transaction gains | (451 | ) | 437 | (138 | ) | 524 | ||||||||||
Income before income tax expense | 4,562 | 4,715 | 10,379 | 5,412 | ||||||||||||
Income tax expense | 1,026 | 1,035 | 2,304 | 1,264 | ||||||||||||
Net income | $ | 3,536 | $ | 3,680 | $ | 8,075 | $ | 4,148 | ||||||||
Net income per share | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.30 | $ | 0.66 | $ | 0.33 | ||||||||
Diluted | $ | 0.29 | $ | 0.30 | $ | 0.66 | $ | 0.33 | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 12,208 | 12,458 | 12,218 | 12,467 | ||||||||||||
Diluted | 12,208 | 12,470 | 12,218 | 12,484 | ||||||||||||
SWK HOLDINGS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 8,075 | $ | 4,148 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision (benefit) for credit losses | (704 | ) | 9,392 | |||||
Debt issuance costs | (41 | ) | - | |||||
Loss on impairment of intangible assets | - | 5,771 | ||||||
Right-of-use amortization and cease use costs | 112 | 261 | ||||||
Amortization of debt issuance costs | 548 | 491 | ||||||
Deferred income taxes, net | 2,266 | 1,239 | ||||||
Unrealized net (gain) loss on warrants | 77 | (131 | ) | |||||
Net gain on exercise and cancellation of warrants | - | (444 | ) | |||||
Loss from sale of assets | 82 | - | ||||||
Change in fair value of acquisition-related contingent consideration | - | (4,900 | ) | |||||
(Gain) loss on revaluation of finance receivable | 3,727 | (2,495 | ) | |||||
Foreign currency transaction (gain) loss | (614 | ) | (1,587 | ) | ||||
Loss on marketable investments | 68 | 162 | ||||||
Loan discount amortization and fee accretion | (2,956 | ) | (2,214 | ) | ||||
Interest paid-in-kind | (826 | ) | (904 | ) | ||||
Stock-based compensation | 608 | 360 | ||||||
Depreciation and amortization expense | 38 | 935 | ||||||
Changes in operating assets and liabilities: | ||||||||
Interest, accounts receivable and other receivables, net | 177 | (2,655 | ) | |||||
Foreign currency forward contract | 915 | 1,260 | ||||||
Collateral returned for derivative instruments | 2,750 | - | ||||||
Other assets | 850 | (150 | ) | |||||
Accounts payable, accrued expenses, and other non-current liabilities | (871 | ) | (903 | ) | ||||
Deferred income | 1,800 | 2,207 | ||||||
Net cash provided by operating activities | 16,081 | 9,843 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of property and equipment | 110 | - | ||||||
Settlement of foreign currency forward contract | 1,560 | - | ||||||
Sale of marketable investments | - | 574 | ||||||
Investment in finance receivables | (23,500 | ) | (7,446 | ) | ||||
Proceeds from sale of investments | 31,678 | - | ||||||
Repayment of finance receivables | 33,141 | 11,693 | ||||||
Corporate debt securities principal payments | 15 | 13 | ||||||
Purchases of property and equipment | (163 | ) | (21 | ) | ||||
Net cash provided by investing activities | 42,841 | 4,813 | ||||||
Cash flows from financing activities: | ||||||||
Net settlement for employee taxes on stock options | (89 | ) | (43 | ) | ||||
Net payments on credit facility | (5,939 | ) | (12,350 | ) | ||||
Cash dividends | (49,078 | ) | - | |||||
Repurchases of common stock, including fees and expenses | (1,737 | ) | (1,950 | ) | ||||
Net cash used in financing activities | (56,843 | ) | (14,343 | ) | ||||
Net increase in cash, cash equivalents, and restricted cash | 2,079 | 313 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 5,927 | 5,236 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 8,006 | $ | 5,549 | ||||
Supplemental non-cash investing and financing activities: | ||||||||
Cash paid for interest | $ | 1,517 | $ | 875 | ||||
SOURCE: SWK Holdings Corp
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