Second Quarter 2025 Financial Results

For the second quarter 2025, SWK reported total revenue of $10.1 million, a 6.5% decrease compared to $10.8 million for the second quarter 2024. The $0.7 million decrease in revenue for the three months ended June 30, 2025 consisted of a $1.2 million decrease in Finance Receivables segment revenue, driven by the sale of the majority of our royalty portfolio, offset by a $0.5 million increase in Pharmaceutical Development segment revenue.

Income before income tax expense for the quarter was $4.6 million and $4.7 million for the three months ended June 30, 2025 and 2024, respectively. Second quarter 2025 income before income tax expense benefited from a decrease in provision expense, offset by a decrease in gains on warrant exercises and a revaluation of finance receivables, relative to the same period in the prior year.

GAAP net income for the quarter ended June 30, 2025, decreased to $3.5 million, or $0.29 per diluted share, from $3.7 million, or $0.30 per diluted share, for the second quarter 2024.

For the second quarter 2025, non-GAAP adjusted net income was $4.6 million, or $0.38 per share. Non-GAAP adjusted net income for the Finance Receivables segment was $4.6 million, an increase from $2.6 million for the second quarter 2024.

Total investment assets (defined as finance receivables, net of allowance for credit losses, marketable investments, and warrant assets) were $242.8 million as of June 30, 2025, an 8.9% decrease compared with total investment assets of $266.7 million as of June 30, 2024. The decline was primarily due to the monetization of the majority of the company's royalty assets during the first and second quarters for total proceeds of approximately $51.3 million. The allowance for credit losses at quarter's end totaled $8.8 million, a decrease of $4.3 million from the second quarter of 2024.

During the second quarter SWK repurchased 58,954 shares for a total purchase price of $0.9 million. Year-to-date through August 8, 2025,SWK repurchased 198,162 shares for a total purchase price of $3.0 million.

GAAP book value per share was $20.23 as of June 30, 2025, an 11.0%decrease compared to $22.72 as of June 30, 2024 and a 6.8% increase after considering the $4.00 per share special dividend. Non-GAAP tangible financing book value per share totaled $18.47, an 8.3%decrease compared to $20.14 at June 30, 2024 and an 11.7% increase after considering the $4.00 per share special dividend. Management views non-GAAP tangible financing book value per share as a relevant metric to value the Company's core finance receivable business. Non-GAAP tangible financing book value per share removes the value of the deferred tax assets and MOD3 net asset value.

Adjusted Non-GAAP Net Income

The following table provides a reconciliation of SWK's reported (GAAP) consolidated net income to SWK's adjusted consolidated net income (Non-GAAP):

In the table above, management has deducted the impact of the following items: (i) change in the fair-market value of equities and warrants, (ii) income taxes, as the Company has substantial net operating losses to offset against future income, (iii) amortization expense associated with MOD3 intangible assets, (iv) gain on revaluation of finance receivable held for sale, (v) change in fair value of acquisition-related contingent consideration, (vi) intangible asset impairment, and (vii) foreign currency (gains) losses.

Finance Receivables Adjusted Non-GAAP Net Income

The following table provides a reconciliation of SWK's consolidated adjusted non-GAAP net income before provision for income tax expense, listed in the table above, to the finance receivables non-GAAP adjusted net income. The table eliminates MOD3 operating loss. The adjusted net income before income tax expense is derived in the table above and eliminates MOD3 operating income (loss), excluding MOD3 amortization expenses.

Non-GAAP Tangible Finance Book Value Per Share

The following table provides a reconciliation of SWK's GAAP book value per share to its non-GAAP tangible finance book value per share. The table eliminates the deferred tax assets, intangible assets, MOD3 property and equipment and acquisition-related contingent consideration (in thousands, except per share data):

Non-GAAP Financial Measures

This release includes non-GAAP adjusted net income, non-GAAP finance receivable segment net income, and non-GAAP tangible financing book value per share, which are metrics that are not compliant with generally accepted accounting principles in the United States (GAAP).

Non-GAAP adjusted net income is adjusted for certain items including (i) changes in the fair-market value of public equity-related assets and SWK's warrant assets as mark-to-market changes are non-cash, (ii) income taxes as the Company has substantial net operating losses to offset against future income, (iii) changes in the fair-market value of contingent consideration associated with the MOD3 acquisition, and (iv) depreciation and amortization expenses, primarily associated with the 2019 acquisition of MOD3.

In addition to the adjustments noted above, non-GAAP finance receivable segment net income also excludes MOD3 operating gains or losses.

Non-GAAP tangible financing book value per share excludes the deferred tax asset, intangible assets, and contingent consideration associated with the MOD3 transaction.

These non-GAAP measures may not be directly comparable to similar measures used by other companies in the Company's industry, as other companies may define such measures differently. Management believes that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to our operations and financial condition. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to better understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.

Conference Call Information

SWK Holdings will host a conference call on August 15, 2025, at 9:00 a.m. CST, to discuss its corporate and financial results for the second quarter 2025.

Interested participants and investors may access the call via the numbers below:

1. 888-506-0062 (U.S.)

2. 973-528-0011 (International)

The participant Access Code is 117203 or ask for the SWK Holdings call.

An archive of the webcast will remain available on the SWK Holdings' website for 12 months, starting later that day. https://investors.swkhold.com/events

About SWK Holdings Corporation

SWK Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing medical technologies and products. SWK's unique financing structures provide flexible financing solutions at an attractive cost of capital to create long-term value for all SWK stakeholders. SWK's solutions include structured debt, traditional royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from $5.0 million to $25.0 million. Additional information on the life science finance market is available on the Company's website at www.swkhold.com.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect SWK's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in SWK's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

For more information, please contact:

Investor Relations and Media
Susan Xu
728-323-0959
investorrelations@swkhold.com