Revenue trajectory remains in contraction, with quarterly figures falling to $8.0 million in 2025Q4, despite the company maintaining gross margins consistently above 93%.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 38.84M | 42.78M | 34.32M | 34.53M | 48.81M | 32.44M | 29.57M | -160K | 37.49M | 22.38M | 23.45M | 17.4M | 6.45M | 637K | 0 | 0 | 28.72M | 44.53M | 43.55M | 41.13M | 31.39M | 36.96M | 48.18M | 46.44M | 36.26M | 59.02M | 8.7M | 2M |
| Gross Margin % | 95.3% | 95.1% | 90.9% | 83.24% | 86.92% | 88.37% | 96.18% | - | 100% | 100% | 99.96% | 100% | 100% | 100% | - | - | 63.45% | 68.28% | 71.64% | 76.13% | 72.78% | 75.59% | 78.97% | 58.72% | 40.02% | 52.22% | 61.7% | 86.96% |
| Gross Profit Growth % | -9.21% | 24.65% | -0.6% | -29.25% | 50.44% | 9.72% | 18581.88% | -100.43% | 67.5% | -4.56% | 34.77% | 169.89% | 912.09% | - | - | -100% | -35.51% | 2.25% | 5.88% | 31.04% | -15.08% | -23.28% | 3.75% | 28.07% | -38.56% | 578.36% | 335% | - |
| Operating Expenses | 14.82M | 31.2M | 19.67M | 24.56M | 17.77M | 22.64M | 14.59M | -6.4M | 4.1M | 4.49M | 14.23M | 3.27M | 1.75M | 2.24M | 1.54M | 1.76M | 37.13M | 47.77M | 50.67M | 41.4M | 49.25M | 58.55M | 68.73M | 147.74M | 975.88M | 3.14B | 121.1M | 14.9M |
| OpEx % of Revenue | 36.36% | 69.35% | 52.1% | 59.21% | 31.64% | 61.66% | 47.46% | - | 10.94% | 20.05% | 60.64% | 18.82% | 27.1% | 351.65% | - | - | 82.05% | 73.25% | 83.34% | 76.63% | 114.19% | 119.72% | 112.65% | 186.8% | 1077.19% | 2774.71% | 858.87% | 647.83% |
| Selling, General & Admin | 14.76M | 11.49M | 11.23M | 12.96M | 13.62M | 10.55M | 7.43M | 4.87M | 4.1M | 2.83M | 3.38M | 3.27M | 1.75M | 2.24M | 1.54M | 1.76M | 21.46M | 32.87M | 37.16M | 29.8M | 29.09M | 34.47M | 44.13M | 50.48M | 90.85M | 107.13M | 26.2M | 7.3M |
| SG&A % of Revenue | 36.22% | 25.53% | 29.75% | 31.25% | 24.25% | 28.73% | 24.16% | - | 10.94% | 12.64% | 14.4% | 18.82% | 27.1% | 351.65% | - | - | 47.41% | 50.4% | 61.13% | 55.16% | 67.45% | 70.48% | 72.34% | 63.82% | 100.28% | 94.79% | 185.82% | 317.39% |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 24.02M | 11.59M | 14.65M | 9.97M | 31.04M | 9.81M | 14.98M | 6.24M | 33.38M | 17.89M | 2.6M | 14.13M | 4.7M | -1.6M | -1.54M | -1.76M | -8.42M | -3.24M | -7.12M | -271K | -17.86M | -21.58M | -20.55M | -101.31M | -939.62M | -3.08B | -112.4M | -12.9M |
| Operating Margin % | 58.94% | 25.75% | 38.8% | 24.03% | 55.28% | 26.71% | 48.71% | - | 89.06% | 79.95% | 11.07% | 81.18% | 72.9% | -251.65% | - | - | -18.6% | -4.97% | -11.7% | -0.5% | -41.41% | -44.14% | -33.68% | -128.09% | -1037.17% | -2722.49% | -797.16% | -560.87% |
| Operating Income Growth % | 107.35% | -20.91% | 46.97% | -67.89% | 216.51% | -34.52% | 140.15% | -81.32% | 86.59% | 589.21% | -81.62% | 200.53% | 393.2% | -3.75% | 12.17% | 79.1% | -159.83% | 54.48% | -2525.46% | 98.48% | 17.26% | -5.04% | 79.72% | 89.22% | 69.46% | -2637.44% | -771.32% | - |
| EBITDA | 24.21M | 13.4M | 17.56M | 12.8M | 35.35M | 21.9M | 19.93M | 6.26M | 24M | 17.89M | 2.61M | 14.13M | 4.7M | -1.6M | -1.54M | -1.48M | -6.72M | -1.46M | -5.81M | 1.31M | -15.4M | -15.99M | -11.01M | -70.75M | -786.01M | -2.18B | -30.4M | -11M |
| EBITDA Margin % | 59.39% | 29.79% | 46.5% | 30.85% | 62.95% | 59.65% | 64.83% | - | 64.03% | 79.95% | 11.11% | 81.2% | 72.93% | -250.86% | - | - | -14.86% | -2.24% | -9.56% | 2.43% | -35.71% | -32.7% | -18.04% | -89.46% | -867.61% | -1929.03% | -215.6% | -478.26% |
| EBITDA Growth % | 80.65% | -23.69% | 37.23% | -63.8% | 61.43% | 9.86% | 218.15% | -73.9% | 34.16% | 586.57% | -81.55% | 200.47% | 394.24% | -3.56% | -3.98% | 77.93% | -359.29% | 74.81% | -541.98% | 108.54% | 3.71% | -45.3% | 84.44% | 91% | 63.95% | -7071.49% | -176.36% | - |
| D&A (Non-Cash Add-back) | 183K | 1.81M | 2.91M | 2.83M | 4.31M | 12.09M | 4.95M | 28K | 0 | 0 | 10K | 3K | 2K | 5K | 2K | 275K | 1.69M | 1.77M | 1.3M | 1.59M | 2.46M | 5.59M | 9.54M | 30.55M | 153.61M | 896.75M | 82M | 1.9M |
| EBIT | 24.91M | 23.06M | 16.46M | 9.83M | 33.38M | 4.12M | 17.18M | 6.4M | 24M | 17.89M | -336K | 13.88M | 4.56M | -1.6M | -1.54M | -452K | 35.87M | -3.28M | -6.55M | 432K | -17.39M | -18.18M | -18.84M | -106.39M | -837.13M | -3.06B | -112.7M | -12.9M |
| Net Interest Income | 33.64M | -4.68M | -1.85M | -340K | -374K | -455K | -338K | -160K | 0 | 15.84M | -381K | -569K | -19K | 158K | 254K | 0 | -971K | -342K | -771K | -35K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 38.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.84M | 0 | 10K | 49K | 158K | 254K | 275K | 7K | 27K | 87K | 172K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.8M | 4.68M | 1.85M | 340K | 374K | 455K | 338K | 160K | 0 | 0 | 381K | 579K | 68K | 0 | 0 | 275K | 978K | 369K | 858K | 207K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 20.12M | 18.37M | 14.61M | 9.49M | 33.01M | 3.67M | 16.84M | 6.24M | 24M | 10.4M | -1.09M | 13.3M | 4.49M | -1.45M | -1.09M | -727K | 34.9M | -3.65M | -7.85M | -2.21M | -17.77M | -21.45M | -20.86M | -100.39M | -939.62M | -3.08B | -118.7M | -12.9M |
| Pretax Margin % | 49.35% | 40.84% | 38.7% | 22.88% | 58.79% | 9.98% | 54.78% | - | 64.03% | 46.48% | -4.65% | 76.44% | 69.66% | -226.84% | - | - | 77.1% | -5.6% | -12.92% | -4.08% | -41.2% | -43.87% | -34.2% | -126.93% | -1037.17% | -2722.49% | -841.84% | -560.87% |
| Income Tax | 22.65M | 4.88M | -1.27M | -4M | 7.08M | -1.54M | -6.99M | 42K | 15.75M | -21.64M | 3.27M | -10.3M | -9.84M | -24K | -26K | -20K | 3K | 5K | 167K | 219K | 196K | 314K | 318K | 0 | -521K | -4.83M | 6.4M | -300K |
| Effective Tax Rate % | 112.59% | 26.58% | -8.72% | -42.15% | 21.45% | -41.94% | -41.48% | 0.67% | 65.63% | -208% | -300.28% | -77.46% | -219.13% | 1.66% | 2.38% | 2.75% | 0.01% | -0.14% | -2.13% | -9.92% | -1.1% | -1.46% | -1.52% | 0% | 0.06% | 0.16% | -5.39% | 2.33% |
| Net Income | -2.53M | 13.49M | 15.89M | 13.49M | 25.93M | 5.2M | 23.83M | 6.2M | 3.05M | 28.89M | -7.37M | 20.77M | 12.86M | -1.42M | -1.07M | -707K | 34.89M | -3.65M | -8.02M | -2.43M | -17.97M | -21.77M | -20.97M | -96.11M | -942.89M | -3.07B | -118.8M | -12.6M |
| Net Margin % | -6.21% | 29.98% | 42.07% | 32.52% | 46.17% | 14.17% | 77.5% | - | 8.13% | 129.08% | -31.42% | 119.34% | 199.5% | -223.08% | - | - | 77.1% | -5.6% | -13.19% | -4.49% | -41.66% | -44.52% | -34.37% | -121.52% | -1040.78% | -2717.18% | -842.55% | -547.83% |
| Net Income Growth % | -118.78% | -15.1% | 17.76% | -47.97% | 398.44% | -78.17% | 284.63% | 103.31% | -89.45% | 491.97% | -135.49% | 61.44% | 1005.14% | -33.3% | -50.78% | -102.03% | 1054.66% | 54.43% | -230.63% | 86.5% | 17.47% | -3.83% | 78.19% | 89.81% | 69.3% | -2484.91% | -842.86% | - |
| Net Income (Continuing) | -2.53M | 13.49M | 15.89M | 13.49M | 25.93M | 5.2M | 23.83M | 6.2M | 8.25M | 32.04M | -4.36M | 23.6M | 14.33M | -1.42M | -1.07M | -707K | 34.89M | -3.65M | -8.02M | -2.43M | -17.97M | -21.77M | -21.18M | -100.39M | -939.1M | -3.07B | -119.08M | -12.6M |
| 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 | 381K | -3.79M | 1.17M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -30.56M | 3.76M | 4.3M | 4.87M | 5.61M | 7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.21 | 1.08 | 1.25 | 1.05 | 2.02 | 0.40 | 1.85 | 0.47 | 0.23 | 2.22 | -0.57 | 3.20 | 3.10 | -0.34 | -0.26 | -0.17 | 8.50 | -0.89 | -2.16 | -0.70 | -5.83 | -7.52 | -8.72 | -42.90 | -686.09 | -3956.80 | -773.72 | -100.67 |
| EPS Growth % | -119.44% | -13.6% | 19.05% | -48.02% | 405% | -78.38% | 293.62% | 104.35% | -89.64% | 489.47% | -117.81% | 3.23% | 1011.76% | -30.77% | -52.94% | -102% | 1055.06% | 58.8% | -208.57% | 87.99% | 22.47% | 13.76% | 79.67% | 93.75% | 82.66% | -411.4% | -668.57% | - |
| EPS (Basic) | -0.21 | 1.09 | 1.26 | 1.05 | 2.03 | 0.40 | 1.85 | 0.47 | 0.23 | 2.22 | -0.57 | 3.20 | 3.10 | -0.34 | -0.26 | -0.17 | 8.50 | -0.89 | -2.16 | -0.70 | -5.83 | -7.52 | -8.72 | -42.90 | -686.09 | -3956.80 | -773.72 | -100.67 |
| Diluted Shares Outstanding | 12.16M | 12.45M | 12.7M | 12.88M | 12.83M | 12.86M | 12.91M | 13.05M | 13.04M | 13.02M | 12.99M | 6.49M | 4.14M | 4.12M | 4.12M | 4.12M | 4.12M | 4.12M | 3.71M | 3.46M | 3.08M | 2.9M | 2.4M | 2.24M | 1.37M | 776.1K | 153.54K | 62.58K |
| Basic Shares Outstanding | 12.16M | 12.37M | 12.65M | 12.84M | 12.8M | 12.85M | 12.91M | 13.05M | 13.04M | 13.02M | 12.93M | 6.49M | 4.13M | 4.12M | 4.12M | 4.12M | 4.12M | 4.12M | 3.71M | 3.46M | 3.08M | 2.9M | 2.4M | 2.24M | 1.37M | 776.1K | 153.54K | 62.58K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Portfolio Valuation Volatility
As reported in recent financial statements, SWKH's revenue trajectory has shifted toward contraction, with the most recent quarterly figures showing a decline to $8.0 million, reflecting a broader struggle to maintain capital deployment velocity within its specialized life science royalty and lending segments.
The decline in top-line performance suggests that the company is struggling to replace maturing assets with new, high-yielding opportunities. This trend warrants further investigation into whether the current market environment for small-cap biotech financing is limiting the firm's ability to source viable deals.
Based on the provided income statement data, SWKH maintains exceptionally high gross margins consistently exceeding 93%, yet these figures appear disconnected from the underlying net profitability, which has been significantly impacted by non-operating valuation adjustments and potential impairment charges.
While the specialty finance model inherently supports high gross margins due to minimal direct costs, the disparity between these margins and the negative net income suggests that the firm's bottom line is highly sensitive to non-cash fair value fluctuations. Investors should monitor whether these valuation swings are structural or merely transient accounting artifacts.
According to historical income statement filings, SWKH's operating leverage remains inconsistent, as SG&A expenses have fluctuated significantly relative to gross profit, culminating in a recent period where operating income failed to scale effectively against the company's fixed cost base.
The firm's reliance on specialized personnel for complex due diligence creates a high fixed-cost floor that becomes burdensome during periods of revenue decline. This lack of operating scalability suggests that the current cost structure may be misaligned with the firm's recent inability to grow its asset base.
As evidenced by the recent -$19.4 million net income figure, SWKH's reported earnings appear highly volatile and potentially unrepresentative of core operational performance, largely due to the impact of non-operating items and the accounting treatment of its royalty portfolio.
The significant divergence between operating income and net income suggests that investors should focus on cash-on-cash yields rather than GAAP net income. The presence of stock-based compensation and potential tax-related adjustments further complicates the assessment of true earnings power.
Based on an analysis of recent income statements, the primary risk to the investment thesis is the potential for persistent margin compression and asset impairment, which could permanently erode the book value of the royalty portfolio if biotech capital markets remain constrained.
Short-term observers may point to the negative net margin as a sign of fundamental distress, particularly given the recent revenue decline. The firm's inability to deploy its $42.7 million cash pile effectively suggests that the current strategy may be failing to generate sufficient returns to cover its overhead.
Quick answers to the most common questions about buying SWKH stock.
SWK Holdings Corporation (SWKH) reported a net loss of $2.5M for the fiscal year ending 2025.
SWK Holdings Corporation (SWKH) reported an operating income of $24.0M, resulting in an operating profit margin of 58.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SWK Holdings Corporation (SWKH) generated $38.8M in gross profit for the year, representing a gross profit margin of 95.3%. This demonstrates the company's core pricing power and production efficiency.