SWK Holdings Corporation (SWKH)
NASDAQ:SWKH
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SWK Holdings
(NASDAQ:SWKH)
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Rating:61Neutral
Price Target:
$18.00
▲(10.16% Upside)
Action:ReiteratedDate:04/01/26
The score is primarily supported by strong, resilient cash generation and a generally adequate balance sheet, which offset recent earnings volatility. However, the 2025 net loss and negative P/E weigh heavily, and technical indicators point to neutral-to-soft momentum. Corporate events are mixed, with the approved merger positive but reduced credit capacity a notable constraint.
Positive Factors
Consistent strong operating and free cash flow
Sustained positive operating and free cash flow gives SWK durable internal funding for new life‑science financings, cushions against credit losses, and reduces reliance on external capital. Over a 2–6 month horizon this supports steady origination and portfolio management despite income volatility.
Negative Factors
2025 net loss and inconsistent revenue trends
A 2025 net loss and uneven revenue history indicate volatile earnings quality and raise the risk that returns from the financing portfolio will fluctuate. This structural earnings variability can impair reinvestment plans and make capital allocation and forecasting more difficult over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent strong operating and free cash flow
Sustained positive operating and free cash flow gives SWK durable internal funding for new life‑science financings, cushions against credit losses, and reduces reliance on external capital. Over a 2–6 month horizon this supports steady origination and portfolio management despite income volatility.
Read all positive factors
SWK Holdings (SWKH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.33M
Dividend YieldN/A
Average Volume (3M)10.06K
Price to Earnings (P/E)―
Beta (1Y)>-0.01
Revenue Growth2.70%
EPS Growth100.41%
CountryUS
Employees24
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-1.60
Shares Outstanding12,095,979
10 Day Avg. Volume10,090
30 Day Avg. Volume10,058
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.89
Price to Sales (P/S)5.13
P/FCF Ratio7.81
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue4.46
Enterprise Value/Gross Profit4.68
Enterprise Value/Ebitda7.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.1
Revenue Forecast (FY)N/A
SWK Holdings Business Overview & Revenue Model
Company Description
SWK Holdings Corporation (SWKH) is a diversified investment firm specializing in providing financial solutions and strategic capital to companies in the life sciences sector. The company focuses on identifying and investing in innovative businesse...
How the Company Makes Money
SWK Holdings makes money primarily by earning investment income from its life science-focused finance portfolio. Key revenue streams include: (1) Interest income on loans and structured financings it originates or acquires for life science compani...
SWK Holdings Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
SWK Holdings demonstrated a strong quarter with significant asset sales leading to substantial shareholder returns and increased non-GAAP metrics. However, these positives were slightly offset by a decrease in finance receivables revenue and GAAP book value per share. Overall, the sentiment is positive as the highlights, particularly the strategic asset sales and increased shareholder value, outweigh the lowlights.Positive Updates
Asset Sales and Shareholder Returns
SWK Holdings completed the sale of the majority of its royalty and MOD3 subsidiary assets at approximately book value. Subsequently, $49 million was returned to shareholders through a $4 per share dividend, and an additional $3 million through the repurchase of approximately 200,000 shares.
Negative Updates
Decrease in Finance Receivables Segment Revenue
A year-over-year decrease of $1.2 million in finance receivables segment revenue was reported, primarily due to a $3.4 million decrease in interest and fees from paydowns and asset sales.
Read all updates
Q2-2025 Updates
Positive
Negative
Asset Sales and Shareholder Returns
SWK Holdings completed the sale of the majority of its royalty and MOD3 subsidiary assets at approximately book value. Subsequently, $49 million was returned to shareholders through a $4 per share dividend, and an additional $3 million through the repurchase of approximately 200,000 shares.
Read all positive updates
Company Guidance
During the SWK Holdings Second Quarter 2025 Conference Call, several key metrics and financial decisions were highlighted. The company completed the sale of most of its royalty assets and assets at its MOD3 subsidiary, returning $49 million to shareholders via a $4 per share dividend. Additionally, $3 million was returned through the repurchase of approximately 200,000 shares. SWK's remaining financial assets include $234 million in gross performing first lien term loans with a 14.1% yield, $5 million in public equities warrants, and 11 private warrants and earnouts carried at $0 for GAAP purposes, against which it holds an $8.8 million general loan loss reserve. The non-GAAP adjusted net income for the quarter was $4.6 million, with a non-GAAP tangible financing book value per share of $18.47, marking an 11.7% year-over-year increase after factoring in the special dividend. The GAAP book value per share was $20.23, representing an 11% decrease compared to the previous year, but adjusting for the dividend, it showed a 6.8% increase. Operating expenses were reduced to $5.4 million from $9.9 million the previous year, primarily due to a significant decrease in provisions for credit losses. The company also bought back nearly 60,000 shares for $900,000 during the quarter.SWK Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.76M | 44.99M | 37.76M | 41.48M | 56.16M |
| Gross Profit | 38.84M | 42.78M | 34.32M | 34.53M | 48.81M |
| EBITDA | 25.10M | 24.87M | 19.37M | 12.66M | 37.70M |
| Net Income | -2.53M | 13.49M | 15.89M | 13.49M | 25.93M |
Balance Sheet | |||||
| Total Assets | 272.42M | 332.24M | 334.25M | 299.62M | 282.67M |
| Cash, Cash Equivalents and Short-Term Investments | 42.76M | 5.93M | 4.50M | 6.16M | 43.90M |
| Total Debt | 32.11M | 37.65M | 43.13M | 2.44M | 8.00K |
| Total Liabilities | 37.32M | 43.55M | 53.94M | 19.69M | 15.43M |
| Stockholders Equity | 235.10M | 288.69M | 280.31M | 279.93M | 267.24M |
Cash Flow | |||||
| Free Cash Flow | 26.77M | 22.91M | 14.39M | 7.91M | 33.22M |
| Operating Cash Flow | 27.29M | 23.05M | 14.89M | 8.20M | 34.30M |
| Investing Cash Flow | 68.06M | -10.13M | -48.95M | -43.55M | 25.76M |
| Financing Cash Flow | -58.51M | -12.22M | 33.14M | -1.36M | -20.20M |
SWK Holdings Technical Analysis
Negative
16.34
Price Trends
16.96
Negative
17.02
Negative
16.04
Negative
Market Momentum
-0.08
Positive
33.41
Neutral
39.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKH, the sentiment is Negative. The current price of 16.34 is below the 20-day moving average (MA) of 16.81, below the 50-day MA of 16.96, and above the 200-day MA of 16.04, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.41 is Neutral, neither overbought nor oversold. The STOCH value of 39.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWKH.
SWK Holdings Risk Analysis
SWK Holdings disclosed 49 risk factors in its most recent earnings report. SWK Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SWK Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $164.53M | 11.23 | 5.30% | 21.24% | -55.82% | -4.97% | |
61 Neutral | $192.33M | -82.58 | 8.40% | ― | 2.70% | 100.41% | |
61 Neutral | $273.93M | 4.69 | ― | 5.39% | ― | ― | |
61 Neutral | $161.11M | 27.23 | 7.70% | 5.42% | 4.18% | -9.53% | |
60 Neutral | ― | -2.35 | -6.59% | 17.91% | 630.98% | 234.98% |
* Financial Sector Average
SWKH
SWK Holdings
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21.19%
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SWK Holdings Corporate Events
Business Operations and StrategyM&A TransactionsShareholder Meetings
SWK Holdings Shareholders Approve Merger with Runway
Positive
Apr 1, 2026
On March 31, 2026, SWK Holdings Corporation stockholders voted at a special meeting to approve a merger agreement under which SWK will merge with a wholly owned subsidiary of Runway Growth Finance Corp., with the subsidiary surviving as a wholly o...
Business Operations and StrategyPrivate Placements and Financing
SWK Holdings Amends Credit Facility, Reduces Lending Commitments
Negative
Feb 13, 2026
On February 12, 2026, SWK Holdings Corporation and its subsidiary SWK Funding LLC amended their existing credit agreement with First Horizon Bank and other lenders, revising financial covenants and cutting the aggregate lending commitments from $1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.