SWK | 10-Q: FY2025 Q3 Revenue: USD 10.88 M

Revenue: As of FY2025 Q3, the actual value is USD 10.88 M.

EPS: As of FY2025 Q3, the actual value is USD 0.72.

EBIT: As of FY2025 Q3, the actual value is USD -2.967 M.

Finance Receivables Segment

• Revenue: $10.8 million for the three months ended September 30, 2025, compared to $9.5 million for the same period in 2024. Year-to-date revenue was $30.1 million in 2025, compared to $30.5 million in 2024.
• Net Income: $13.9 million for the three months ended September 30, 2025, compared to $8.4 million for the same period in 2024. Year-to-date net income was $31.3 million in 2025, compared to $23.2 million in 2024.
• Allowance for Credit Losses: $7.7 million as of September 30, 2025, down from $11.2 million as of December 31, 2024.
• Nonaccrual Finance Receivables: $11.5 million as of September 30, 2025, compared to $14.8 million as of December 31, 2024.

Pharmaceutical Development Segment

• Revenue: No revenue for the three months ended September 30, 2025, compared to $0.6 million for the same period in 2024. Year-to-date revenue was $2.2 million in 2025, compared to $1.7 million in 2024.
• Net Income (Loss): $0.7 million for the three months ended September 30, 2025, compared to a loss of $0.9 million for the same period in 2024. Year-to-date net income was $0.1 million in 2025, compared to a loss of $4.1 million in 2024.

Cash Flow

• Operating Cash Flow: $17.0 million for the nine months ended September 30, 2025, compared to $16.2 million for the same period in 2024.
• Free Cash Flow: Not explicitly stated, but net increase in cash and cash equivalents was $4.3 million for the nine months ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company plans to focus on its specialty finance business following the sale of its Pharmaceutical Development segment assets. The Finance Receivables segment will be the only remaining operating segment as of September 30, 2025.
• Non-Core Business: The company completed the sale of its Pharmaceutical Development segment assets to Aptar for approximately $6.9 million, which included cash previously paid by Aptar in accordance with an Option Agreement.

Strategic Transactions

• Merger Agreement: On October 9, 2025, SWK Holdings Corporation entered into a Merger Agreement with Runway Growth Finance Corp. and its subsidiaries, which involves a series of mergers resulting in SWK becoming a wholly owned subsidiary of Runway Growth Finance Corp.