third quarter of 2026
Filed Nov 4, 2026Portfolio Receipts growth of 9% to $890 million; Royalty Receipts growth of 9%; raised full year 2026 Portfolio Receipts guidance to $3,500 million to $3,550 million.
Portfolio Receipts and Royalty Receipts each grew 9%, Adjusted EBITDA increased 8%, and the company raised 2026 Portfolio Receipts guidance. GAAP net income attributable to Royalty Pharma plc declined to $145 million, reflecting a $150 million financial royalty asset impairment and higher other expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Portfolio Receipts, three months ended September 30other | $890M | – | 9% |
| Royalty Receipts, three months ended September 30other | $883M | – | 9% |
| Milestones and other contractual receipts, three months ended September 30other | $7M | – | 138% |
| Net cash provided by operating activities, three months ended September 30GAAP | $686M | – | (2)% |
| Adjusted EBITDA, three months ended September 30non-GAAP | $840M | – | 8% |
| Portfolio Cash Flow, three months ended September 30non-GAAP | $673M | – | 2% |
| Payments for operating and professional costs, three months ended September 30GAAP | −$50M | – | – |
| Payments for operating and professional costs as a percentage of Portfolio Receipts, three months ended September 30other | 5.6% of Portfolio Receipts | – | – |
| Interest paid, net, three months ended September 30other | −$167M | – | – |
| Weighted average Class A ordinary shares outstanding - diluted, three months ended September 30GAAP | 557M | – | (0)% |
| Income from financial royalty assets, three months ended September 30GAAP | $648M | – | – |
| Other royalty income and revenues, three months ended September 30GAAP | $42M | – | – |
| Total income and other revenues, three months ended September 30GAAP | $690M | – | – |
| Provision for changes in expected cash flows from financial royalty assets, three months ended September 30GAAP | −$88M | – | – |
| Provision for credit losses on unfunded commitments, three months ended September 30GAAP | $4M | – | – |
| Research and development funding expense, three months ended September 30GAAP | $63M | – | – |
| General and administrative expenses, three months ended September 30GAAP | $150M | – | – |
| Financial royalty asset impairment, three months ended September 30GAAP | $150M | – | – |
| Total operating expense, net, three months ended September 30GAAP | $279M | – | – |
| Operating income, three months ended September 30GAAP | $411M | – | – |
| Equity in earnings of equity method investees, three months ended September 30GAAP | −$9M | – | – |
| Interest expense, three months ended September 30GAAP | $90M | – | – |
| Other expense/(income), net, three months ended September 30GAAP | $63M | – | – |
| Total other expense/(income), net, three months ended September 30GAAP | $144M | – | – |
| Consolidated net income before tax, three months ended September 30GAAP | $267M | – | – |
| Income tax expense, three months ended September 30GAAP | — | – | – |
| Consolidated net income, three months ended September 30GAAP | $267M | – | – |
| Net income attributable to non-controlling interests, three months ended September 30GAAP | $122M | – | – |
| Net income attributable to Royalty Pharma plc, three months ended September 30GAAP | $145M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $2.13B | – | – |
| Capital Deployment, three months ended September 30other | −$362M | – | – |
| Capital Deployment, nine months ended September 30other | −$1.24B | – | – |
| Cash and cash equivalents, as of September 30GAAP | $514M | – | – |
| Total current and non-current financial royalty assets, net, as of September 30GAAP | $17.08B | – | – |
| Total assets, as of September 30GAAP | $19.46B | – | – |
| Current portion of long-term debt, as of September 30GAAP | $997M | – | – |
| Long-term debt, net of current portion, as of September 30GAAP | $7.59B | – | – |
| Total liabilities, as of September 30GAAP | $9.67B | – | – |
| Total shareholders’ equity, as of September 30GAAP | $9.79B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cystic fibrosis franchise | $225M | – | 1% |
| Trelegy | $89M | – | (6)% |
| Tremfya | $80M | – | 61% |
| EvrysdiRoyalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025. | $71M | – | 38% |
| Tysabri | $67M | – | (1)% |
| Voranigo | $55M | – | 65% |
| Xtandi | $51M | – | 3% |
| Imbruvica | $31M | – | (24)% |
| Cabometyx/Cometriq | $24M | – | 13% |
| Imdelltra | $19M | – | n/a |
| Trodelvy | $16M | – | 30% |
| Spinraza | $14M | – | 0% |
| Amvuttra | $10M | – | n/a |
| PromactaDeclines from Promacta due to U.S. generic competition. | $9M | – | (75)% |
| Other products | $121M | – | 6% |
full year 2026 outlook
- RevenuePortfolio Receipts $3,500 million to $3,550 million
- Operating expensesPayments for operating and professional costs 5.5% to 6.0% of Portfolio Receipts
- NoteExpected Royalty Receipts growth of 10% to 11% in 2026
- NoteInterest paid $350 million to $360 million
- NoteEstimated foreign exchange impact of approximately +1% to Portfolio Receipts
Capital returns
- Paid a quarterly dividend of $0.235 per share, equating to $135 million in dividends and distributions, in the third quarter of 2026.
- Repurchased approximately 1.5 million Class A ordinary shares for $87 million in the third quarter.
- Repurchased 3.5 million Class A ordinary shares for $183 million during the first nine months of 2026.
- Dividends to shareholders were $(105) million in the third quarter and $(315) million in the nine months ended September 30, 2026.
- Repurchases of Class A ordinary shares were $(86) million in the third quarter and $(181) million in the nine months ended September 30, 2026.
What drove it
- Royalty Receipts growth was primarily driven by Tremfya, Voranigo, Evrysdi and Imdelltra.
- Portfolio Receipts growth also reflected higher Milestones and other contractual receipts.
- The company announced value of transactions of $1.9 billion and Capital Deployment of $1.6 billion as of November 3, 2026.
- Third-quarter Capital Deployment of $362 million consisted primarily of R&D funding for JNJ-4804 and upfront payments for cliramitug, Zoryve and Mimrylo.
- The company acquired a Zoryve royalty for $100 million upfront, a Mimrylo royalty for $100 million, and a portion of Neurimmune AG’s cliramitug royalty interest for up to $425 million, including $125 million upfront.
- Payments for operating and professional costs are expected to decrease as a percentage of Portfolio Receipts compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025.
Concerns
- Net income attributable to Royalty Pharma plc was $145 million, compared to $284 million in the third quarter of 2025.
- Royalty Pharma recorded a non-cash impairment charge of $150 million related to pelacarsen after Novartis reported that the Phase 3 Lp(a)HORIZON trial did not meet its primary endpoint in the overall study population.
- Promacta Portfolio Receipts declined 75% to $9 million due to U.S. generic competition.
- Imbruvica Portfolio Receipts declined 24% to $31 million.
- Interest paid, net increased to $(167) million from $(123) million.
What to watch
- Delivery against full-year 2026 Portfolio Receipts guidance of $3,500 million to $3,550 million and expected Royalty Receipts growth of 10% to 11%.
- The estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.
- Fourth-quarter interest paid, which is anticipated to be a de minimis amount.
- Potential deployment from up to $1.9 billion of announced new transactions, including potential future milestones.
- Clinical and regulatory progress for portfolio assets, including the April 23, 2027 PDUFA date for deucrictibant immediate-release, the late first-quarter 2027 PDUFA date for ecopipam, and the May 27, 2027 PDUFA target action date for obexelimab.
Balance sheet and cash flow
- Cash and cash equivalents were $514 million as of September 30, 2026.
- Total debt with principal value was $8.8 billion as of September 30, 2026.
- The reduction in total debt from $9.2 billion as of June 30, 2026 reflects payment of the $380 million term loan in July 2026.
- Net cash provided by operating activities was $686 million in the third quarter and $2,133 million in the nine months ended September 30, 2026.
- Net cash used in investing activities was $(286) million in the third quarter and $(993) million in the nine months ended September 30, 2026.
- Net cash used in financing activities was $(699) million in the third quarter and $(1,245) million in the nine months ended September 30, 2026.
- Net change in cash and cash equivalents was $(298) million in the third quarter and $(105) million in the nine months ended September 30, 2026.
Analysis
Royalty Pharma reported third-quarter Portfolio Receipts of $890 million and Royalty Receipts of $883 million, each up 9% from the prior-year period. The increase was led by Tremfya, Voranigo, Evrysdi and Imdelltra, while higher milestones and other contractual receipts also supported Portfolio Receipts. Tremfya rose 61% to $80 million, Voranigo rose 65% to $55 million, and Evrysdi rose 38% to $71 million. Evrysdi also benefited from additional royalties acquired in December 2025.
The portfolio remained mixed below the leading growth contributors. Promacta fell 75% to $9 million because of U.S. generic competition, Imbruvica fell 24% to $31 million, and Trelegy declined 6% to $89 million. The company also recorded a $150 million non-cash impairment charge related to pelacarsen after the Phase 3 Lp(a)HORIZON trial did not meet its primary endpoint in the overall study population. These items, together with higher other expense, contributed to a decline in net income attributable to Royalty Pharma plc to $145 million from $284 million.
Liquidity measures expanded despite lower reported operating cash flow. Adjusted EBITDA increased 8% to $840 million and Portfolio Cash Flow increased 2% to $673 million. Payments for operating and professional costs were 5.6% of Portfolio Receipts. Net cash provided by operating activities was $686 million, compared with $703 million in the prior-year quarter, while interest paid, net increased to $(167) million from $(123) million.
Capital allocation remained active. Third-quarter Capital Deployment was $362 million, and nine-month Capital Deployment was $1.2 billion. The company announced transactions valued at up to $1.9 billion as of November 3, 2026, acquired royalties on Zoryve and Mimrylo, and acquired a portion of the cliramitug royalty interest. It returned capital through a $0.235 per-share quarterly dividend and approximately 1.5 million Class A ordinary shares repurchased for $87 million. Cash and cash equivalents were $514 million, while total debt with principal value was $8.8 billion following the $380 million term-loan payment in July 2026.
Management raised full-year 2026 Portfolio Receipts guidance to $3,500 million to $3,550 million from $3,400 million to $3,500 million and expects Royalty Receipts growth of 10% to 11%. Guidance excludes contributions from future transactions and assumes no additional debt financing in 2026. Payments for operating and professional costs are now guided to 5.5% to 6.0% of Portfolio Receipts, while interest paid guidance remains $350 million to $360 million.
Management, verbatim
Royalty Pharma delivered excellent third quarter 2026 results and we again raised our financial guidance.
Pablo Legorreta, Chief Executive Officer and Chairman of the Board
We delivered 9% growth in Royalty Receipts for the quarter and double-digit growth year-to-date.
Pablo Legorreta, Chief Executive Officer and Chairman of the Board
Looking ahead, with a robust deal pipeline and strong fundamental tailwinds supporting our business, we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.
Pablo Legorreta, Chief Executive Officer and Chairman of the Board
Not in the filing
stated, not guessed- GAAP diluted earnings per share
- Non-GAAP earnings per share
- Gross margin
- Free cash flow
- Prior-quarter comparisons for reported third-quarter metrics
- A separately provided previous-release outlook for actual-versus-prior-guidance comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.