The fund exhibits extreme earnings volatility, with net income swinging from a $115.0 million loss in 2022Q2 to a $99.7 million gain in 2024Q2, while recurring revenue remains constrained between $3.2 million and $5.6 million per quarter.
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 10.77M | 10.29M | 8.27M | 6.48M | 8.93M | 7.6M | 6.78M | 5.62M | 4.8M | 4.33M | 2.14M |
| Gross Margin % | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | 4.64% | 24.44% | 27.63% | -27.46% | 17.53% | 12.05% | 20.73% | 17.03% | 10.85% | 102.03% | - |
| Operating Expenses | 10.99M | 11.48M | 11.94M | 12.71M | 10.9M | 10.47M | 10.9M | 10.78M | 11.08M | 12.18M | 9.3M |
| OpEx % of Revenue | 102.05% | 111.52% | 144.38% | 196.14% | 122.07% | 137.78% | 160.74% | 191.91% | 230.86% | 281.25% | 433.81% |
| Selling, General & Admin | 10.99M | 11.48M | 11.94M | 12.71M | 10.9M | 10.47M | 10.9M | 10.78M | 11.08M | 12.18M | 9.3M |
| SG&A % of Revenue | 102.05% | 111.52% | 144.38% | 196.14% | 122.07% | 137.78% | 160.74% | 191.91% | 230.86% | 281.25% | 433.81% |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -220.27K | -1.19M | -3.67M | -6.23M | -1.97M | -2.87M | -4.12M | -5.16M | -6.28M | -7.85M | -7.16M |
| Operating Margin % | -2.05% | -11.52% | -44.38% | -96.14% | -22.07% | -37.78% | -60.74% | -91.91% | -130.86% | -181.25% | -333.81% |
| Operating Income Growth % | 81.42% | 67.7% | 41.09% | -215.99% | 31.34% | 30.31% | 20.21% | 17.8% | 19.97% | -9.69% | - |
| EBITDA | 0 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA Margin % | - | - | 0% | - | - | - | - | - | - | - | - |
| EBITDA Growth % | - | 100% | - | - | - | - | - | - | - | - | - |
| D&A (Non-Cash Add-back) | 220.27K | 1.19M | 3.67M | 6.23M | 1.97M | 2.87M | 4.12M | 5.16M | 6.28M | 7.85M | 7.16M |
| EBIT | -220.27K | -1.19M | -3.67M | -6.23M | -1.97M | -2.87M | -4.12M | -5.16M | -6.28M | -7.85M | -7.16M |
| Net Interest Income | 2.02M | 620.01K | 112.31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.02M | 620.01K | 112.31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 184.95M | 56.33M | -194.23M | 155.18M | 241.2M | -145.29M | 69.2M | 121.28M | -56.02M | 96.17M | 222.02M |
| Pretax Margin % | 1717.36% | 547.37% | -2348.38% | 2394.57% | 2700.1% | -1911.53% | 1020.13% | 2158.43% | -1166.73% | 2220.11% | 10354.95% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 184.95M | 56.33M | -194.23M | 155.18M | 241.2M | -145.29M | 69.2M | 121.28M | -56.02M | 96.17M | 222.02M |
| Net Margin % | 1717.36% | 547.37% | -2348.38% | 2394.57% | 2700.1% | -1911.53% | 1020.13% | 2158.43% | -1166.73% | 2220.11% | 10354.95% |
| Net Income Growth % | 228.3% | 129% | -225.17% | -35.67% | 266.01% | -309.95% | -42.94% | 316.5% | -158.25% | -56.69% | - |
| Net Income (Continuing) | 184.95M | 56.33M | -194.23M | 155.18M | 241.2M | -145.29M | 69.2M | 121.28M | -56.02M | 96.17M | 222.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.55 | 1.14 | -4.10 | 3.49 | 5.50 | -3.39 | 1.64 | 2.98 | -1.44 | 2.58 | 6.20 |
| EPS Growth % | 211.4% | 127.8% | -217.48% | -36.55% | 262.24% | -306.71% | -44.97% | 306.94% | -155.81% | -58.39% | - |
| EPS (Basic) | 3.55 | 1.14 | -4.10 | 3.49 | 5.50 | -3.39 | 1.64 | 2.98 | -1.44 | 2.58 | 6.20 |
| Diluted Shares Outstanding | 52.13M | 49.44M | 47.34M | 45.43M | 43.87M | 42.83M | 42.22M | 40.65M | 39M | 37.3M | 35.82M |
| Basic Shares Outstanding | 52.13M | 49.44M | 47.34M | 45.43M | 43.87M | 42.83M | 42.22M | 40.65M | 39M | 37.3M | 35.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 14.06% |
Biotech Innovation Cycle Volatility
As reported in financial statements, HQH's recurring investment income remains modest, fluctuating between $3.2 million and $5.6 million quarterly, which highlights the fund's heavy reliance on capital appreciation from its underlying biotechnology portfolio rather than consistent, predictable cash-based revenue streams for its shareholders.
The revenue trajectory appears tethered to the success of clinical trials and M&A activity within the small-cap biotech sector rather than organic growth. Investors should monitor whether the fund's transition to the abrdn platform influences the selection of assets and the subsequent realization of gains.
Based on reported figures, HQH consistently records negative operating income, with SG&A expenses frequently exceeding the fund's recurring investment revenue, suggesting that the management fee structure creates a persistent drag on the fund's ability to cover its own operational costs through dividends and interest.
The persistent negative operating margin, which reached -21.9% in 2023Q4, indicates that the fund's internal cost structure is not optimized for its current scale. This structural inefficiency warrants further investigation into whether the fee agreement provides sufficient alignment with the net asset value performance.
According to recent SEC filings, HQH's net income exhibits extreme volatility, swinging from a $115.0 million loss in 2022Q2 to a $99.7 million gain in 2024Q2, which underscores the significant impact of mark-to-market adjustments on the fund's reported bottom-line profitability.
The reported net income is largely an artifact of unrealized portfolio valuation changes rather than sustainable operational performance. Analysts should discount these headline figures when assessing the fund's ability to maintain its managed distribution policy over the long term.
As noted in historical performance data, the persistent discount to Net Asset Value suggests that the market remains skeptical of the fund's ability to realize the full value of its illiquid, private-stage healthcare holdings in the current high-interest-rate environment.
Short-term market participants may focus on the potential for further NAV erosion if the fund is forced to liquidate positions to meet distribution requirements. The reliance on internal valuations for Level 3 assets introduces a layer of opacity that may exacerbate the discount during periods of sector-wide stress.
Quick answers to the most common questions about buying HQH stock.
Abrdn Healthcare Investors (HQH) is profitable, generating $184.9M in net income for the fiscal year ending 2024 with a net profit margin of 1717.4%.
Abrdn Healthcare Investors (HQH) reported an operating income of $-0.2M, resulting in an operating profit margin of -2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Abrdn Healthcare Investors (HQH) generated $10.8M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.