Key Highlights

  • Portfolio receipts rose 9.3% to USD 889.6 million, and income from financial Royalty Assets grew 11.9% to USD 647.6 million.
  • A USD 150.4 million pelacarsen Impairment cut attributable Net Income to USD 144.7 million from USD 284.2 million.
  • GAAP diluted EPS fell to USD 0.32 from USD 0.66, while Adjusted EBITDA rose 7.7% to USD 839.7 million.
  • Tremfya royalty income more than doubled to USD 77.1 million, while cystic fibrosis royalties slipped 1.0%.

Royalty Pharma plc (NASDAQ:RPRX) reported third quarter total income and other revenues of USD 690.1 million, up 13.3% from USD 609.3 million. Net income attributable to the company was USD 144.7 million, down 49.1% from USD 284.2 million, or USD 0.32 per diluted Class A share compared with USD 0.66. Portfolio receipts, the company's key cash measure, increased to USD 889.6 million from USD 813.6 million.

Royalty Income by Product

Income from financial royalty assets rose 11.9% to USD 647.6 million, and other royalty income and revenues rose 39.4% to USD 42.5 million. The cystic fibrosis Franchise remained the largest contributor at USD 212.2 million, down 1.0%. Tremfya income climbed 106.0% to USD 77.1 million, Evrysdi rose 8.1% to USD 59.4 million, Voranigo rose 11.8% to USD 44.9 million and Trelegy was roughly flat at USD 39.6 million.

The company also disclosed that it has not received the full amount of royalty receipts it believes it is contractually owed on Alyftrek net sales since the second quarter of 2025. It has started the dispute resolution procedures in its agreements, and any amounts would be recognized only after resolution in its favor.

Impairment, Costs and Net Income

The main drag on Earnings was a non-cash impairment of USD 150.4 million tied to pelacarsen, after the Phase 3 trial of the Lp(a) therapy did not meet its primary endpoint in the overall study population. The charge brought nine month impairments to USD 219.8 million, which also include USD 69.4 million related to Tazverik. Net provision income of USD 88.3 million, driven by higher projected cash flows, partly offset the charge.

General and administrative expenses rose 26.4% to USD 150.1 million, including USD 105.1 million of share-based compensation compared with USD 73.4 million a year earlier. Research and Development funding expense rose to USD 63.2 million from USD 50.5 million. Operating Income edged down 3.8% to USD 410.8 million, and interest expense rose 13.7% to USD 90.5 million. Losses on Equity and Debt securities of USD 66.4 million contrasted with gains of USD 71.3 million a year earlier.

Cash Flow, Debt and Capital Returns

Adjusted EBITDA, a Credit agreement measure, rose to USD 839.7 million from USD 779.4 million, and portfolio Cash Flow after interest increased to USD 673.0 million from USD 656.7 million. For nine months, portfolio receipts reached USD 2.59 billion, up from USD 2.38 billion, and net cash from Operating Activities was USD 2.13 billion compared with USD 1.66 billion.

Senior unsecured notes outstanding were USD 8.8 billion at a weighted average coupon of 3.75%, and a USD 380 million term Loan was repaid in July. Cash stood at USD 513.7 million, compared with USD 618.7 million at the end of 2025. The company paid a quarterly Dividend of USD 0.235 per Class A share and repurchased USD 181.1 million of shares over nine months, compared with USD 1.15 billion a year earlier.

Figures Worth Comparing

Quarterly portfolio receipts of USD 889.6 million compare with GAAP total income and other revenues of USD 690.1 million, a gap that reflects the effective interest accounting applied to royalty assets. Adjusted EBITDA of USD 839.7 million compares with net income attributable to the company of USD 144.7 million. The USD 150.4 million impairment compares with USD 69.4 million recorded in March, and USD 8.8 billion of notes compares with USD 513.7 million of cash.