Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms of Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon linked to the Class A common stock of Ares Management Corporation, with a maturity date of November 21, 2029.

Key Highlights

  • Underlier: The Class A common stock of Ares Management Corporation (Bloomberg symbol "ARES UN"), per the filing.
  • Contingent Coupon: At least $25.00 per $1,000 principal amount if payable, corresponding to a rate of at least 2.50% per quarter or at least 10.00% per annum, to be determined on the Trade Date.
  • Coupon Threshold and Barrier Value: Each set at 50% of the Initial Underlier Value, according to the filing.
  • Initial Estimated Value: Expected to be between $905.10 and $955.10 per $1,000 principal amount, which the filing states will be less than the public offering price.
  • Call Feature: Notes may be automatically called beginning approximately six months after the Trade Date if the closing value of the underlier is greater than or equal to the Initial Underlier Value on any quarterly Call Observation Date.
  • Key Dates: Trade Date is November 16, 2026; Issue Date is November 19, 2026; Valuation Date is November 16, 2029; Maturity Date is November 21, 2029.
  • CUSIP: 78018DQ26, filed under Registration Statement No. 333-275898 pursuant to Rule 433.

Structure and Payment Terms of RBC's Ares-Linked Barrier Notes

According to the filing, Royal Bank of Canada is the issuer of these structured notes, which are linked to the closing value of the Class A common stock of Ares Management Corporation. The notes carry a quarterly contingent coupon of at least $25.00 per $1,000 principal amount - corresponding to at least 2.50% per quarter or at least 10.00% per annum - but only if the closing value of the underlier on the immediately preceding Coupon Observation Date is greater than or equal to the Coupon Threshold, which is set at 50% of the Initial Underlier Value. The filing describes a "Memory Coupon" feature, whereby any missed coupon payment may be paid on a later Coupon Payment Date if the coupon condition is subsequently met.

The filing states that if the underlier's closing value equals or exceeds the Initial Underlier Value on any quarterly Call Observation Date beginning approximately six months after the Trade Date, the notes will be automatically called at 100% of principal plus any contingent coupons due. If the notes are not called and the Final Underlier Value at the Valuation Date (November 16, 2029) is at or above the Barrier Value, investors receive their $1,000 principal plus any applicable coupons. However, the filing warns that if the Final Underlier Value falls below the Barrier Value, investors "will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value," and that investors may "lose a substantial portion or all of your principal amount at maturity."

The filing discloses that the initial estimated value of the notes is expected to be between $905.10 and $955.10 per $1,000 principal amount, and specifically notes this will be less than the public offering price. The filing identifies several risk considerations, including credit risk tied to Royal Bank of Canada, potential absence of an active secondary market, uncertain U.S. federal income tax consequences, and possible conflicts of interest involving RBC Capital Markets ("RBCCM") acting as calculation agent. The filing notes that these disclosures reflect the company's own characterizations and are subject to its cautionary language.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus describing the key terms, payment structure, risk factors, and estimated initial value of Auto-Callable Contingent Coupon Barrier Notes linked to Ares Management Corporation's Class A common stock, due November 21, 2029, under CUSIP 78018DQ26.