SWK Holdings Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, SWK Holdings generated revenues of $10.4 million, an increase from $9.0 million in the same period of 2023. This growth was primarily driven by a $0.9 million rise in the Finance Receivables segment and a $0.3 million increase in the Pharmaceutical Development segment. The Finance Receivables segment saw a $2.1 million increase in interest and fees, although this was partially offset by a $1.2 million decrease from paid-off finance receivables. The net provision for credit losses surged to $1.4 million from $0.2 million in the prior year, reflecting significant impairments on loans to Trio Healthcare and Exeevo.

Net income for the third quarter of 2024 was $3.5 million, down from $4.5 million in 2023. The decrease in net income was attributed to higher interest expenses, which rose to $1.1 million from $0.2 million due to the issuance of approximately $32.9 million in Notes in October 2023. Additionally, the company recognized an income tax expense of $0.9 million, compared to a tax benefit of $0.4 million in the previous year.

For the nine months ended September 30, 2024, total revenues increased to $32.6 million from $27.9 million in 2023. The Finance Receivables segment contributed $30.5 million, while the Pharmaceutical Development segment added $1.7 million. However, net income for the nine-month period fell to $7.6 million from $13.0 million in the prior year, largely due to the aforementioned credit losses and increased interest expenses.

Strategically, SWK Holdings has been active in managing its financial position. As of September 30, 2024, cash and cash equivalents rose to $17.2 million from $4.5 million at the end of 2023, bolstered by $57.0 million in payments from finance receivables. The company also entered a $45.0 million revolving credit facility in June 2023, which was later increased to $60.0 million. Notably, the company sold its investment interest in Exeevo for $4.6 million in November 2024 and provided $1.4 million in Debtor-in-Possession Financing to BIOLASE, which filed for Chapter 11 bankruptcy.

Overall, while SWK Holdings experienced revenue growth, profitability was impacted by increased credit losses and interest expenses, reflecting ongoing challenges in its finance receivables portfolio.