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SWK Holdings Corporation (SWKH)
NASDAQ:SWKH
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SWK Holdings
(NASDAQ:SWKH)
Select Model
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Rating:77Outperform
Price Target:
$19.50
▲(19.34% Upside)
SWK Holdings' strong financial performance and attractive valuation are key strengths, supported by positive technical indicators. The merger with Runway Growth is a strategic advantage, though the reduction in credit commitments presents a potential risk.
Positive Factors
Merger with Runway Growth
The merger with Runway Growth is a strategic move that enhances SWK's market position and financial profile, potentially increasing asset base and exposure in healthcare.
Strong Profitability
High gross and net profit margins indicate efficient operations and strong profitability, supporting sustainable business growth and investment capacity.
Low Leverage
Low leverage provides financial stability and flexibility, allowing SWK to pursue growth opportunities without significant debt burden.
Negative Factors
Decline in Free Cash Flow Growth
A decline in free cash flow growth could impact future liquidity and limit the company's ability to reinvest in growth or manage debt effectively.
Reduction in Credit Commitments
The reduction in credit commitments may limit SWK's financial flexibility and ability to support new investments or manage operational needs.
Fluctuating Revenue Growth
Inconsistent revenue growth can pose a risk to long-term stability, affecting planning and investment strategies.
SWK Holdings (SWKH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.35M
Dividend YieldN/A
Average Volume (3M)10.06K
Price to Earnings (P/E)9.3
Beta (1Y)0.05
Revenue Growth2.70%
EPS Growth100.41%
CountryUS
Employees24
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.59
Shares Outstanding12,095,906
10 Day Avg. Volume10,090
30 Day Avg. Volume10,058
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)0.54
Price to Sales (P/S)3.46
P/FCF Ratio6.79
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue4.39
Enterprise Value/Gross Profit4.60
Enterprise Value/Ebitda5.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SWK Holdings Business Overview & Revenue Model
Company DescriptionSWK 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 businesses within pharmaceuticals, biotechnology, and medical technology, offering both debt and equity financing to support their growth and development. SWK Holdings aims to leverage its expertise and industry relationships to enhance the value of its investments and achieve sustainable returns.
How the Company Makes MoneySWK Holdings generates revenue primarily through its investment activities, which include providing financing solutions such as loans and equity investments to life sciences companies. The company earns interest income from its debt investments, as well as potential capital gains from equity stakes in portfolio companies. Additionally, SWK may receive fees for advisory services and for managing its investment portfolio. Key revenue streams include interest payments from borrowers, dividend income from equity holdings, and profits from the sale of investments. Strategic partnerships with biotech firms and other financial institutions can also contribute to SWK's earnings by facilitating access to new investment opportunities and enhancing its market presence.
SWK Holdings Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 06, 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.Q2-2025 Updates
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.
Non-GAAP Adjusted Net Income
For the second quarter, both non-GAAP adjusted net income and finance segment adjusted non-GAAP net income totaled $4.6 million, indicating a strong earnings performance.
Increase in Tangible Financing Book Value
The non-GAAP tangible financing book value per share increased year-over-year by 11.7% after the $4 per share special dividend.
Successful MOD3 Sale
Aptar Group exercised its option to acquire the majority of the MOD3 assets for $6.9 million, which is seen as a successful outcome for SWK shareholders.
Decrease in Operating Expenses
Total operating expenses decreased to $5.4 million from $9.9 million year-over-year, largely due to a $3.3 million decrease in provision for credit losses.
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.
Decrease in GAAP Book Value Per Share
There was an 11% decrease in GAAP book value per share to $20.23 compared to $22.72 as of June 30, 2024, adjusting for the $4 per share dividend.
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
SWK Holdings shows strong profitability and cash flow metrics, with robust EBIT and EBITDA margins. The balance sheet is stable with low leverage, although revenue growth has been inconsistent.Income Statement
SWK Holdings demonstrates strong profitability with high gross and net profit margins, indicating efficient cost management and profitability. However, the revenue growth rate has been inconsistent, with a recent decline in TTM (Trailing-Twelve-Months) data. The EBIT and EBITDA margins are robust, reflecting strong operational performance.85
Very Positive
Balance Sheet
The company maintains a low debt-to-equity ratio, suggesting conservative leverage and financial stability. Return on equity is moderate, indicating decent profitability relative to shareholder equity. The equity ratio is healthy, showing a strong equity base relative to total assets.78
Positive
Cash Flow
SWK Holdings shows positive free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is near unity, reflecting effective cash management.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.13M | 44.99M | 37.76M | 41.48M | 56.16M | 36.71M |
| Gross Profit | 43.01M | 42.78M | 34.32M | 34.53M | 48.81M | 32.44M |
| EBITDA | 34.78M | 24.87M | 19.37M | 12.66M | 37.70M | 16.21M |
| Net Income | 22.73M | 13.49M | 15.89M | 13.49M | 25.93M | 5.20M |
Balance Sheet | ||||||
| Total Assets | 289.36M | 332.24M | 334.25M | 299.62M | 282.67M | 273.90M |
| Cash, Cash Equivalents and Short-Term Investments | 10.21M | 5.93M | 4.50M | 6.16M | 43.90M | 4.22M |
| Total Debt | 31.92M | 37.65M | 43.13M | 2.44M | 8.00K | 11.76M |
| Total Liabilities | 35.16M | 43.55M | 53.94M | 19.69M | 15.43M | 33.39M |
| Stockholders Equity | 254.21M | 288.69M | 280.31M | 279.93M | 267.24M | 240.51M |
Cash Flow | ||||||
| Free Cash Flow | 23.28M | 22.91M | 14.39M | 7.91M | 33.22M | 15.33M |
| Operating Cash Flow | 23.88M | 23.05M | 14.89M | 8.20M | 34.30M | 19.27M |
| Investing Cash Flow | 22.28M | -10.13M | -48.95M | -43.55M | 25.76M | -35.17M |
| Financing Cash Flow | -53.12M | -12.22M | 33.14M | -1.36M | -20.20M | 7.75M |
SWK Holdings Technical Analysis
Positive
16.34
Price Trends
16.99
Positive
16.08
Positive
15.25
Positive
Market Momentum
0.13
Positive
56.08
Neutral
74.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKH, the sentiment is Positive. The current price of 16.34 is below the 20-day moving average (MA) of 17.27, below the 50-day MA of 16.99, and above the 200-day MA of 15.25, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $210.35M | 9.34 | 8.45% | ― | 2.70% | 100.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $241.14M | 3.95 | 35.45% | 5.39% | ― | ― | |
65 Neutral | $188.59M | 21.67 | 9.23% | 5.42% | 4.18% | -9.53% | |
61 Neutral | $162.24M | 16.45 | 3.51% | 21.24% | -55.82% | -4.97% | |
60 Neutral | ― | 10.23 | 9.66% | 17.91% | 630.98% | 234.98% |
* Financial Sector Average
SWKH
SWK Holdings
17.39
4.52
35.12%
SSSS
SuRo Capital
9.60
3.31
52.57%
WHF
WhiteHorse
6.98
-1.39
-16.61%
EARN
Ellington Residential Mortgage
5.41
-0.25
-4.42%
SAMG
SilverCrest Asset Management
15.41
-1.54
-9.09%
NXDT
NexPoint Diversified Real Estate Trust
4.12
-0.60
-12.71%
SWK Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
SWK Holdings Reduces Credit Agreement Commitments
Negative
Dec 5, 2025
On December 4, 2025, SWK Holdings Corporation, along with SWK Funding LLC and First Horizon Bank, entered into a Sixth Amendment to their Credit Agreement. This amendment reduced the aggregate commitments from $60 million to $10 million, potentially impacting the company’s financial flexibility and stakeholder interests.
The most recent analyst rating on (SWKH) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on SWK Holdings stock, see the SWKH Stock Forecast page.
M&A TransactionsRegulatory Filings and Compliance
SWK Holdings Merger with Runway Growth Finance Approved
Neutral
Dec 4, 2025
SWK Holdings Corporation, a Delaware-based company, announced its merger with Runway Growth Finance Corp. through a series of mergers, with the final merger expected to complete in the first quarter of 2026. The U.S. Federal Trade Commission’s Bureau of Competition granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which is a significant step towards the merger’s completion, though it remains subject to customary closing conditions including stockholder approval.
The most recent analyst rating on (SWKH) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on SWK Holdings stock, see the SWKH Stock Forecast page.
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.