HQL exhibits extreme earnings volatility, with operating margins swinging from -130.5% in 2022Q4 to 135.9% in 2026Q2, reflecting the erratic nature of portfolio exit realizations.
| Metric | TTM | Sep'25 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 107.47M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 96.79M | 86.39M | 18.28M | 26.31M | 38.95M | 33.87M | 2.44M | 1.99M | 65.2M | 1.34M | -4.33M | -3.26M | -2.58M | -335.5K | -2.45M | -1.17M | -2.39M | -2.09M | -740K | -630K | -1.92M | -2.46M | -1.83M | -1.92M | -1.49M | -1.5M | -1.31M | -1.18M |
| Gross Margin % | 90.06% | 100% | 46.41% | 82.58% | 86.5% | 86.68% | 100% | 100% | 93.4% | 21.34% | -327.02% | -372.18% | -499.89% | -15.64% | -429.82% | -64.29% | -519.57% | -125.15% | -25.69% | -27.39% | -215.73% | -768.75% | -300% | -204.26% | -84.18% | -1071.43% | -409.38% | -280.95% |
| Gross Profit Growth % | - | 372.58% | -30.53% | -32.44% | 15.01% | 1287.6% | 22.9% | -96.95% | 4756.35% | 131.04% | -32.54% | -26.32% | -669.98% | 86.31% | -109.4% | 51.05% | -14.35% | -182.43% | -17.46% | 67.19% | 21.95% | -34.43% | 4.69% | -28.86% | 0.67% | -14.5% | -11.02% | - |
| Operating Expenses | -42.7M | 791.57K | 1.17M | 1.35M | 1.16M | 1.03M | 5.32M | 5.59M | 1.26M | 13.35M | 39.18M | 88.39M | 84.13M | 75.49M | 1.35M | 790K | 760K | 820K | 970K | 710K | 660K | 610K | 510K | 590K | 450K | 240K | 230K | 290K |
| OpEx % of Revenue | - | 0.92% | 2.97% | 4.25% | 2.57% | 2.64% | 217.97% | 281.64% | 1.8% | 212.18% | 2962.09% | 10081.17% | 16280.07% | 3519.95% | 236.84% | 43.41% | 165.22% | 49.1% | 33.68% | 30.87% | 74.16% | 190.63% | 83.61% | 62.77% | 25.42% | 171.43% | 71.88% | 69.05% |
| Selling, General & Admin | 1.51M | 743.17K | 903.14K | 1.08M | 844.02K | 751.32K | 5.32M | 5.59M | 991.51K | -2 | 6.04M | 4.64M | 3.69M | 3.43M | 1.15M | 630K | 590K | 680K | 720K | 550K | 510K | 530K | 450K | 470K | 340K | 230K | 190K | 0 |
| SG&A % of Revenue | - | 0.86% | 2.29% | 3.38% | 1.87% | 1.92% | 217.97% | 281.64% | 1.42% | 0% | 457.04% | 529.5% | 713.43% | 159.85% | 201.75% | 34.62% | 128.26% | 40.72% | 25% | 23.91% | 57.3% | 165.63% | 73.77% | 50% | 19.21% | 164.29% | 59.38% | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 139.49M | 85.59M | -5.24M | -104.6M | 64.53M | 123.05M | -2.88M | -3.61M | -3.88M | -3.79M | -4.72M | -3.77M | -3.17M | -1.28M | -3.8M | -1.96M | -3.15M | -2.92M | -1.71M | -1.34M | -2.59M | -3.07M | -2.34M | -2.52M | -1.94M | -1.75M | -1.53M | -1.47M |
| Operating Margin % | 129.8% | 99.08% | -13.31% | -328.3% | 143.32% | 314.94% | -117.97% | -181.64% | -5.56% | -60.25% | -357.04% | -429.5% | -613.43% | -59.85% | -666.67% | -107.69% | -684.78% | -174.85% | -59.38% | -58.26% | -291.01% | -959.38% | -383.61% | -268.09% | -109.6% | -1250% | -478.13% | -350% |
| Operating Income Growth % | - | 1732.22% | 94.99% | -262.1% | -47.56% | 4374.1% | 20.18% | 7% | -2.32% | 19.73% | -25.4% | -18.8% | -146.99% | 66.23% | -93.88% | 37.78% | -7.88% | -70.76% | -27.61% | 48.26% | 15.64% | -31.2% | 7.14% | -29.9% | -10.86% | -14.38% | -4.08% | - |
| EBITDA | 140.91M | 85.59M | 22.35M | -101.61M | 68.67M | 123.06M | 0 | 0 | -9 | 0 | 0 | 0 | 0 | 0 | 37.47M | 10.19M | -3.15M | 60.25M | 50.51M | -1.34M | 44.76M | 7.16M | 38.62M | -2.52M | -1.94M | -1.75M | 15.19M | 21.81M |
| EBITDA Margin % | 131.12% | 99.08% | 56.76% | -318.91% | 152.52% | 314.97% | - | - | 0% | - | - | - | - | - | 6573.68% | 559.89% | -684.78% | 3607.78% | 1753.82% | -58.26% | 5029.21% | 2237.5% | 6331.15% | -268.09% | -109.6% | -1250% | 4746.88% | 5192.86% |
| EBITDA Growth % | 298.51% | 282.9% | 122% | -247.97% | -44.2% | - | - | 100% | - | - | - | - | - | -100% | 267.71% | 423.49% | -105.23% | 19.28% | 3869.4% | -102.99% | 525.14% | -81.46% | 1632.54% | -29.9% | -10.86% | -111.52% | -30.35% | - |
| D&A (Non-Cash Add-back) | 1.42M | 0 | 27.6M | 2.99M | 4.14M | 0 | 2.88M | 3.61M | 3.88M | 3.79M | 4.72M | 3.77M | 3.17M | 1.28M | 41.27M | 12.15M | 0 | 63.17M | 52.22M | 0 | 47.35M | 10.23M | 40.96M | 0 | 0 | 0 | 16.72M | 23.28M |
| EBIT | 139.49M | 85.59M | 22.35M | -104.61M | 64.54M | 123.06M | -2.88M | -3.61M | -3.88M | -3.79M | -4.72M | -3.77M | -3.17M | 156.54M | -3.8M | -1.96M | -3.15M | -2.92M | -1.71M | -1.34M | -2.59M | -3.07M | -2.34M | -2.52M | -1.94M | -1.75M | -1.53M | -1.47M |
| Net Interest Income | 883.03K | 349.83K | 204.45K | 50.09K | 0 | 164.8K | 0 | 0 | 90.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 883.03K | 349.83K | 204.45K | 50.09K | 0 | 164.8K | 0 | 0 | 90.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 45.22M | 93.03M | 87.82M | 78.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 139.48M | 85.59M | 22.35M | -104.6M | 64.53M | 123.05M | -70.48M | 28.66M | 68.56M | -11.91M | 40.5M | 89.27M | 84.65M | 77.63M | 37.47M | 10.19M | -21.67M | 60.25M | 50.51M | -21.44M | 44.76M | 7.16M | 38.62M | -50.41M | -95.03M | -30.38M | 15.19M | 21.81M |
| Pretax Margin % | 129.79% | 99.08% | 56.75% | -328.3% | 143.32% | 314.94% | -2887.77% | 1443.44% | 98.2% | -189.33% | 3062.09% | 10181.17% | 16380.07% | 3619.95% | 6573.68% | 559.89% | -4710.87% | 3607.78% | 1753.82% | -932.17% | 5029.21% | 2237.5% | 6331.15% | -5362.77% | -5368.93% | -21700% | 4746.88% | 5192.86% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 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% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 139.48M | 85.59M | 22.35M | -104.6M | 64.53M | 123.05M | -70.48M | 28.66M | 68.56M | -11.91M | 40.5M | 89.27M | 84.65M | 77.63M | 37.47M | 10.19M | -21.67M | 60.25M | 50.51M | -21.44M | 44.76M | 7.16M | 38.62M | -50.41M | -95.03M | -30.38M | 15.19M | 21.81M |
| Net Margin % | 129.79% | 99.08% | 56.75% | -328.3% | 143.32% | 314.94% | -2887.77% | 1443.44% | 98.2% | -189.3% | 3062.09% | 10181.17% | 16380.07% | 3619.95% | 6573.68% | 559.89% | -4710.87% | 3607.78% | 1753.82% | -932.17% | 5029.21% | 2237.5% | 6331.15% | -5362.77% | -5368.93% | -21700% | 4746.88% | 5192.86% |
| Net Income Growth % | 468.84% | 282.93% | 121.37% | -262.1% | -47.56% | 274.6% | -345.88% | -58.19% | 675.65% | -129.41% | -54.63% | 5.46% | 9.04% | 107.18% | 267.71% | 147.02% | -135.97% | 19.28% | 335.59% | -147.9% | 525.14% | -81.46% | 176.61% | 46.95% | -212.8% | -300% | -30.35% | - |
| Net Income (Continuing) | 139.48M | 85.59M | 22.35M | -104.6M | 64.53M | 123.05M | -70.48M | 28.66M | 68.56M | -11.91M | 40.5M | 89.27M | 84.65M | 77.63M | 37.47M | 10.19M | -21.67M | 60.25M | 50.51M | -21.44M | 44.76M | 7.16M | 38.62M | -50.41M | -95.03M | -30.38M | 15.19M | 21.81M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.59 | 2.96 | 0.79 | -4.07 | 2.66 | 5.16 | -3.04 | 1.28 | 3.21 | -0.57 | 2.06 | 4.70 | 5.64 | 5.38 | 2.57 | 0.47 | -0.99 | 2.86 | 2.52 | -1.11 | 3.55 | 0.59 | 3.38 | -4.84 | -10.20 | -4.17 | 2.17 | 3.26 |
| EPS Growth % | 412% | 274.68% | 119.41% | -253.01% | -48.45% | 269.74% | -337.5% | -60.12% | 663.16% | -127.67% | -56.17% | -16.67% | 4.83% | 109.34% | 446.81% | 147.47% | -134.62% | 13.49% | 327.03% | -131.27% | 501.69% | -82.54% | 169.83% | 52.55% | -144.6% | -292.17% | -33.44% | - |
| EPS (Basic) | - | 2.96 | 0.79 | -4.07 | 2.66 | 5.16 | -3.04 | 1.28 | 3.21 | 1.00 | 2.06 | 4.70 | 5.65 | 5.38 | 2.57 | 0.47 | -0.99 | 2.86 | 2.52 | -1.11 | 3.55 | 0.59 | 3.38 | -4.84 | -10.20 | -4.17 | 2.17 | 3.26 |
| Diluted Shares Outstanding | 30.41M | 28.87M | 28.29M | 25.68M | 24.26M | 23.85M | 23.18M | 22.41M | 21.36M | 20.74M | 19.69K | 19K | 14.99K | 14.43K | 14.58K | 21.84K | 21.95K | 21.08K | 20.08K | 19.23K | 12.61K | 12.07K | 11.41K | 10.41K | 9.32K | 7.29K | 7.01K | 6.68K |
| Basic Shares Outstanding | 30.41M | 28.87M | 28.29M | 25.68M | 24.26M | 23.85M | 23.18M | 22.41M | 21.36M | 11.91M | 19.69K | 19K | 14.99K | 14.43K | 14.58K | 21.84K | 21.95K | 21.08K | 20.08K | 19.23K | 12.61K | 12.07K | 11.41K | 10.41K | 9.32K | 7.29K | 7.01K | 6.68K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 0.02% | 0.01% | 13.17% | 29.89% | 35.33% | - | 19.59% | 20.99% | - | 16.31% | 79.61% | 15.28% | - | - | - | 41.47% | - |
Portfolio Valuation Volatility
As indicated by the historical income statement data, HQL's revenue trajectory remains highly erratic, characterized by significant quarterly fluctuations that reflect portfolio exit timing rather than consistent operational growth, with recent figures showing a wide variance between $1.9M and $48.1M across the observed reporting periods.
The revenue profile is fundamentally tied to the realization of capital gains from the fund's biotech holdings, making top-line growth a function of market liquidity and M&A activity rather than recurring service fees. Investors should interpret these swings as a reflection of the fund's venture-style mandate, which necessitates periodic asset liquidations that are inherently non-linear and difficult to forecast.
Based on the provided financial statements, HQL exhibits extreme margin volatility, with operating margins swinging from -130.5% to 135.9% as the fund's net income is heavily influenced by the mark-to-market valuation of its concentrated, clinical-stage life sciences portfolio rather than traditional operating expense management.
The high gross margins are an accounting artifact of the investment vehicle structure, where revenue is derived from investment performance rather than product sales. The wide variance in operating margins suggests that the fund's profitability is highly sensitive to the underlying volatility of the biotech sector, rendering traditional margin analysis less meaningful for assessing operational efficiency.
According to the reported income statements, HQL's net income is frequently decoupled from its core investment activity, as evidenced by the $65.3M net income in 2026Q2 compared to the $47.2M loss in 2025Q2, highlighting the significant impact of non-operating items on bottom-line results.
The reliance on realized gains and the potential for return of capital distributions suggest that reported EPS may not accurately reflect the fund's long-term economic value creation. Analysts should focus on the total return on NAV to strip away the distortions caused by the timing of asset sales and the inherent volatility of the fund's small-cap holdings.
As reported in financial filings, HQL's income statement remains vulnerable to sector-wide downturns, with periods of negative net income suggesting that the fund's concentrated exposure to pre-revenue biotech entities may lead to significant capital erosion during periods of restricted access to capital markets.
Short-term performance is heavily dependent on the ability of portfolio companies to reach clinical milestones or secure acquisition, both of which are currently threatened by the Inflation Reduction Act's drug pricing provisions. Investors should monitor whether the fund's distribution policy becomes unsustainable if the current pace of M&A exits fails to provide sufficient realized gains to cover payouts.
Quick answers to the most common questions about buying HQL stock.
Tekla Life Sciences Investors (HQL) is profitable, generating $85.6M in net income for the fiscal year ending 2025 with a net profit margin of 99.1%.
Tekla Life Sciences Investors (HQL) reported an operating income of $85.6M, resulting in an operating profit margin of 99.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Tekla Life Sciences Investors (HQL) generated $86.4M 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.