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Sep 30
Royalty Pharma Q3 2025 Earnings Report
Royalty Pharma reported strong financial results for the third quarter of 2025, driven by double-digit growth in Royalty Receipts and Portfolio Receipts, and raised its full-year 2025 guidance for Portfolio Receipts.
Key Takeaways
Royalty Pharma delivered strong third-quarter 2025 results with double-digit growth in both Royalty Receipts and Portfolio Receipts, primarily driven by Voranigo, Tremfya, and the cystic fibrosis franchise. The company also significantly increased its Capital Deployment to $1.0 billion for the quarter, expanding its portfolio with three innovative therapies, and raised its full-year 2025 guidance for Portfolio Receipts.
Royalty Receipts increased by 11% to $811 million in Q3 2025, compared to $732 million in Q3 2024.
Portfolio Receipts grew by 11% to $814 million in Q3 2025, up from $735 million in Q3 2024.
Capital Deployment reached $1.0 billion in Q3 2025, primarily for new funding agreements and R&D.
The company raised its full-year 2025 guidance for Portfolio Receipts, expecting 14% to 16% growth.
Royalty Pharma
Royalty Pharma
Forward Guidance
Royalty Pharma raised its full-year 2025 guidance for Portfolio Receipts, expecting growth of 14% to 16% year-over-year. The company anticipates total interest paid to be approximately $275 million in 2025, with a decrease in operating and professional costs in the second half due to the internalization transaction.
Positive Outlook
- Raised full-year 2025 Portfolio Receipts guidance to 14% to 16% growth.
- Expected decrease in operating and professional costs in H2 2025 due to internalization.
- Anticipated negligible foreign exchange impact to Portfolio Receipts for 2025.
- Strong capital deployment in Q3 2025 strengthens portfolio for future growth.
- Positive clinical and regulatory updates across the royalty portfolio.
Challenges Ahead
- Total interest paid is anticipated to be approximately $275 million in 2025, increasing to $350-$360 million in 2026.
- Operating and professional costs in 2025 include approximately $70 million in one-time payments.
- Guidance excludes contributions from future transactions, which could impact actual results.
- Assumes no major unforeseen adverse events or changes in foreign exchange rates.
- The term loan has a variable interest rate, introducing some interest rate risk.