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Sep 30, 2025
Ligand Q3 2025 Earnings Report
Ligand reported a sharp rise in revenue and profitability in Q3 2025, driven by strong royalty income, a significant out-license deal, and a gain on a business sale.
Key Takeaways
Ligand’s Q3 2025 results showed a dramatic increase in total revenue and profitability, boosted by a $28.6M gain on the sale of its Pelthos business and a $24.5M out-license of Zelsuvmi. Royalties and Captisol sales also improved year-over-year.
Total revenue surged to $115.5M from $51.8M in Q3 2024, up 123%
GAAP net income was $117.3M versus a net loss of $7.2M last year
Adjusted EPS reached $3.09, nearly doubling from $1.84 in Q3 2024
Cash and short-term investments increased to $664.5M
Revenue by Segment
Forward Guidance
Ligand raised full-year 2025 revenue guidance to $225–$235M and adjusted EPS to $7.40–$7.65, reflecting stronger performance in royalties, contract revenue, and Captisol sales.
Positive Outlook
- 2025 revenue guidance raised to $225M–$235M from $200M–$225M
- Adjusted EPS guidance increased to $7.40–$7.65 from $6.70–$7.00
- Royalty revenue expected to reach $147M–$157M
- Captisol sales outlook raised to $40M from previous $35M–$40M
- Core contract revenue guided at $38M, up from $25M–$35M
Challenges Ahead
- R&D expenses increased due to funding obligations (e.g., Orchestra BioMed)
- Higher G&A expenses from Pelthos-related transaction costs
- No specific revenue outlook for Zelsuvmi despite licensing gain
- Some EPS gains were non-recurring (e.g., Pelthos sale)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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