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RPRX

Royalty Pharma plc

RPRX

Royalty Pharma plc • NASDAQ
$40.01 ▲ 0.43% (+0.17)
Market Cap $17.37 B
52w High $41.24
52w Low $24.05
Dividend Yield 0.88%
P/E 22.86
Volume 1.62M
Outstanding Shares 434.11M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $609.291M ▲ $182.135M ▼ $288.217M ▲ 47.304% ▲ $0.67 ▲ $525.052M ▲
Q2-2025 $578.665M ▲ $368.866M ▲ $30.176M ▼ 5.215% ▼ $0.071 ▼ $159.303M ▼
Q1-2025 $568.247M ▼ $34.065M ▼ $238.349M ▲ 41.945% ▲ $0.56 ▲ $498.694M ▲
Q4-2024 $593.641M ▲ $232.127M ▲ $208.214M ▼ 35.074% ▼ $0.47 ▼ $400.112M ▼
Q3-2024 $564.69M $-170.384M $543.987M 96.334% $1.22 $872.864M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $955.044M ▼ $19.347B ▲ $9.726B ▲ $6.414B ▲
Q2-2025 $1.488B ▼ $18.323B ▲ $8.82B ▲ $6.348B ▼
Q1-2025 $1.816B ▲ $17.608B ▼ $7.82B ▼ $6.689B ▼
Q4-2024 $1.771B ▲ $18.223B ▲ $7.88B ▲ $6.947B ▲
Q3-2024 $1.764B $18.042B $7.784B $6.87B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-463.609M ▼ $639.627M ▲ $-900.15M ▼ $567.559M ▲ $307.036M ▲ $640.741M ▲
Q2-2025 $30.176M ▼ $426.972M ▼ $-370.146M ▼ $-512.638M ▲ $-455.812M ▼ $426.972M ▼
Q1-2025 $433.433M ▲ $596.076M ▼ $503.917M ▲ $-941.299M ▼ $158.694M ▲ $596.076M ▼
Q4-2024 $334.351M ▼ $742.525M ▲ $-505.588M ▲ $-257.963M ▲ $-21.026M ▲ $742.525M ▲
Q3-2024 $806.358M $703.614M $-1.193B $-325.505M $-814.592M $703.614M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Financial Royalty Assets
Financial Royalty Assets
 $1.07Bn ▲$540.00M ▼$550.00M ▲$580.00M ▲
Royalty Income Other
Royalty Income Other
 $60.00M ▲$30.00M ▼$30.00M ▲$30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Royalty Pharma’s income statement shows a business with steady top-line performance and generally high profitability, but with some accounting volatility. Revenue has been quite stable over the last several years, which is typical for a diversified royalty portfolio rather than a single-product biotech. Profitability is strong in most years, reflecting the capital‑light nature of royalty income, with limited direct operating costs. The clear outlier is a very weak earnings year in the middle of the period, almost certainly driven by one‑off items, revaluations, or deal timing rather than a collapse of the core business. Since then, earnings have rebounded to healthier levels, though not back to the prior peak per share, suggesting that while the franchise is solid, reported profits can swing from year to year due to non‑operational factors.

Balance Sheet

Balance Sheet The balance sheet shows a company built around long‑dated financial assets funded by a mix of equity and meaningful debt. Total assets have trended upward, indicating ongoing investment into new royalty streams. Shareholders’ equity has also been climbing steadily, which signals that value has been accumulated over time rather than eroded. Debt levels are sizeable and have increased over the period, which is consistent with a financing‑driven model but does introduce sensitivity to interest costs and leverage management. Cash on hand moves around from year to year as the company deploys capital into deals, but the overall picture is of a balance sheet that is robust yet clearly reliant on prudent use of borrowing.

Cash Flow

Cash Flow Cash flow is a major strength. The company consistently generates solid cash from operations, even in years when reported earnings were temporarily weak. Because the business does not require heavy spending on physical assets, free cash flow closely matches operating cash flow, making it a very cash‑efficient model. This reliable cash generation supports ongoing royalty acquisitions, debt servicing, and returns of capital, while also giving management flexibility to act on large transactions when opportunities arise. The pattern suggests a business whose economic reality is often better captured in cash flows than in accounting earnings.

Competitive Edge

Competitive Edge Royalty Pharma occupies a distinctive and powerful niche: it is a leading, scaled buyer and creator of biopharma royalty streams. Its long track record, scientific and financial expertise, and deep relationships with drug developers, universities, and research institutions give it privileged access to deals that many others never see. Scale matters in this space; the firm can write large checks and handle complex structures, which smaller rivals struggle to match. Its lower cost of capital as a public, established platform further strengthens its negotiating position. The main competitive challenges are growing interest in royalty financing from new entrants and the constant need to source attractive, risk‑adjusted deals as existing drugs mature or face patent expirations and pricing pressure.

Innovation and R&D

Innovation and R&D Rather than running labs, Royalty Pharma innovates in how drug development is financed. Its key innovation is the use of “synthetic royalties,” where it creates new royalty streams directly with developers in exchange for funding, offering them non‑dilutive capital and flexibility. The firm also leans heavily on a data‑driven evaluation platform to assess clinical and commercial potential, which is a form of intellectual infrastructure that substitutes for traditional R&D. It has been increasingly active in royalties tied to late‑stage and development‑stage drugs across oncology, rare diseases, cardiology, and immunology, effectively building a pipeline of future cash flows similar in spirit to a pharma pipeline, but with shared risk. Governance changes, such as internalizing management, and ongoing experimentation with deal structures are additional forms of “process innovation” that can improve efficiency and alignment over time.

Summary

Overall, Royalty Pharma is a specialized healthcare financing business with a stable, high‑margin revenue base and very strong cash generation, supported by a growing portfolio of royalty assets. The financials point to a resilient core model, though reported profits can be choppy due to one‑time items, asset revaluations, and deal timing. The balance sheet carries notable leverage, which is typical for this kind of platform but requires disciplined risk management and continued access to capital markets. Competitively, the company benefits from scale, expertise, and relationships that create a meaningful moat, even as competition for attractive royalty assets slowly increases. Future performance will hinge on how well its pipeline of royalty interests in newer therapies ramps up, how successfully it continues to deploy capital into high‑quality deals, and how it navigates structural risks such as drug pricing pressure, patent cliffs, and interest‑rate dynamics.

NEWS

November 26, 2025 · 8:15 AM UTC

Royalty Pharma to Present at Upcoming Investor Conferences

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November 5, 2025 · 7:00 AM UTC

Royalty Pharma Reports Third Quarter 2025 Results

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November 4, 2025 · 7:15 AM UTC

Royalty Pharma Acquires Royalty Interest in Alnylam's AMVUTTRA for $310 Million from Blackstone Life Sciences

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October 17, 2025 · 8:15 AM UTC

Royalty Pharma Declares Fourth Quarter 2025 Dividend

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October 9, 2025 · 4:15 PM UTC

Royalty Pharma to Announce Third Quarter 2025 Financial Results on November 5, 2025

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