Royalty Pharma plc: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 2 raised, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Royalty Receipts rose 14%: Royalty Receipts were $768 million, up from $672 million in the second quarter of 2025, driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Source
• Portfolio Receipts rose 6%: Portfolio Receipts were $773 million, up from $727 million. Milestones and other contractual receipts offset part of the Royalty Receipts gain. Source
• Tremfya, Evrysdi and Voranigo grew: Tremfya receipts rose 53% to $57 million, Evrysdi 42% to $47 million and Voranigo 72% to $46 million, per the portfolio highlights table. Source
• Operating costs at 4.8% of receipts: Payments for operating and professional costs were $37 million, down from $94 million, equal to 4.8% of Portfolio Receipts. Source
• Announced transactions total $1.7 billion: As of August 4, 2026, announced transaction value was $1.7 billion, with Capital Deployment of $1.1 billion to that date. Source
• Portfolio Cash Flow rose to $736 million: Portfolio Cash Flow (non-GAAP) was $736 million, up from $641 million. It is Adjusted EBITDA less net interest paid or received. Source
• Daraxonrasib NDA accepted by FDA: The FDA accepted the daraxonrasib NDA for previously treated pancreatic cancer in July 2026, following positive Phase 3 results reported in April. Source

“Our transaction pipeline remains exciting and we continued to bolster our development-stage pipeline in recent months, bringing total Capital Deployment to over $1 billion so far in 2026.”

Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board

Guidance

What changed from last quarter

• Guidance raised: Full-year Portfolio Receipts guidance raised to $3,400 million to $3,500 million from $3,325 million to $3,450 million. Source
• Guidance raised: Expected Royalty Receipts growth for 2026 raised to 7% to 10% from 4% to 8%. Source
• New: Acquired a portion of Neurimmune AG's royalty on AstraZeneca's cliramitug, a Phase 3 TTR amyloidosis antibody, for up to $425 million including $125 million upfront. Source
• Ended: The $380 million term loan assumed in the internalization was repaid at maturity in July 2026. Source

Results and growth drivers

• Royalty Receipts rose 14%: Royalty Receipts were $768 million, up from $672 million in the second quarter of 2025, driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Source
• Portfolio Receipts rose 6%: Portfolio Receipts were $773 million, up from $727 million. Milestones and other contractual receipts offset part of the Royalty Receipts gain. Source
• Operating cash flow reached $728 million: Net cash provided by operating activities was $728 million, compared with $364 million in the second quarter of 2025. Source
• Adjusted EBITDA rose to $736 million: Adjusted EBITDA (non-GAAP) was $736 million, up from $633 million. It equals Portfolio Receipts less payments for operating and professional costs. Source

Products and customers

• Tremfya, Evrysdi and Voranigo grew: Tremfya receipts rose 53% to $57 million, Evrysdi 42% to $47 million and Voranigo 72% to $46 million, per the portfolio highlights table. Source
• Evrysdi included December royalty benefit: Evrysdi receipts include the benefit of additional royalties acquired in December 2025, the company stated. Source
• Imdelltra and Trodelvy added receipts: Imdelltra receipts were $17 million with no prior-year amount. Trodelvy receipts rose 36% to $14 million. Source
• Cystic fibrosis royalties flat: The cystic fibrosis franchise, marketed by Vertex, produced $194 million in receipts, unchanged from the prior-year quarter. Source

“we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.”

Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board

Costs and margins

• Operating costs at 4.8% of receipts: Payments for operating and professional costs were $37 million, down from $94 million, equal to 4.8% of Portfolio Receipts. Source
• Management fee ended with internalization: The 2026 cost ratio is expected to fall from 8.9% in 2025, mainly because the management fee ended with the internalization. Source
• Development funding expense fell: Research and development funding expense was $98 million, down from $301 million. General and administrative expenses were $162 million, including $107 million of share-based compensation. Source
• Expected cash flow provision charged: The provision for changes in expected cash flows from financial royalty assets was $268 million, compared with a $204 million benefit in the prior-year quarter. Source
• Net income to shareholders lower: Net income attributable to Royalty Pharma plc was $18 million, against $32 million. Consolidated net income was $81 million, against $93 million. Source

Transactions and capital deployment

• Capital Deployment of $349 million: Capital Deployment was $349 million, against $595 million a year earlier, mostly royalty funding for daraxonrasib and R&D funding for two programs. Source
• Announced transactions total $1.7 billion: As of August 4, 2026, announced transaction value was $1.7 billion, with Capital Deployment of $1.1 billion to that date. Source
• Milestone receipts down on prior-year distribution: Milestones and other contractual receipts were $5 million, down 91%, because the prior-year period included a one-time distribution. Source

Cash, debt and shareholder returns

• Portfolio Cash Flow rose to $736 million: Portfolio Cash Flow (non-GAAP) was $736 million, up from $641 million. It is Adjusted EBITDA less net interest paid or received. Source
• Term loan repaid in July: The $380 million term loan matured and was repaid in July 2026, after the quarter end. Source
• Debt principal $9.2 billion: At June 30, 2026, cash and cash equivalents were $812 million and total debt principal was $9.2 billion. Source
• Share repurchases and dividend paid: About 0.9 million shares were repurchased for $45 million in the quarter, and 2 million shares for $96 million in the first half. The quarterly dividend was $0.235 per share. Source
• Diluted share count down 1%: Weighted average diluted Class A shares were 557 million in the quarter, down 1% from 562 million a year earlier. Source

Portfolio developments and approvals

• Daraxonrasib NDA accepted by FDA: The FDA accepted the daraxonrasib NDA for previously treated pancreatic cancer in July 2026, following positive Phase 3 results reported in April. Source
• GSK completed Nuvalent acquisition: GSK completed its acquisition of Nuvalent, including the Jideytro and neladalkib lung cancer programs, and Jideytro received FDA approval in July 2026. Source
• Trodelvy approved for first-line breast cancer: The FDA approved Trodelvy in June 2026 for first-line metastatic triple-negative breast cancer, and the European Commission approved it for a similar population. Source
• Trodelvy and Keytruda lung study stopped: Gilead discontinued a Phase 3 study of Trodelvy with Keytruda in previously untreated metastatic non-small cell lung cancer. Source
• Myqorzo Phase 3 readout positive: Cytokinetics reported positive topline results from the pivotal Phase 3 ACACIA-HCM trial of Myqorzo, which met both dual primary endpoints. Source

Interest and guidance basis

• Interest paid tied to repayment schedule: The interest projections reflect the July 2026 term loan repayment and assume no additional debt financing in 2026. Source
• Interest income partly offset interest paid: The company collected $5 million of interest on its cash and cash equivalents in the second quarter, partly offsetting interest paid. Source
• Guidance excludes later transactions: Guidance excludes contributions from transactions announced after the release date of the press release. Source

Coming up, as management said on 5 August 2026

• Ziihera FDA action date August 25: Jazz's Ziihera supplemental application for first-line HER2-positive gastroesophageal cancer has Priority Review, with an action date of August 25, 2026. Source
• Neladalkib FDA action date November 27: Nuvalent's neladalkib NDA was granted Priority Review, with a PDUFA date of November 27, 2026. Source
• Deucrictibant FDA action date April 2027: Pharvaris's deucrictibant NDA for on-demand hereditary angioedema attacks was accepted, with a PDUFA date of April 23, 2027. Source
• Teva plans vitiligo Phase 2b study: Teva plans to advance TEV-’408 into a Phase 2b study in non-segmental vitiligo, following positive Phase 1b results. Source
• Daraxonrasib EMA accelerated review: The EMA started an accelerated assessment of daraxonrasib in July 2026, per Revolution Medicines. Source

Figures management reported

Risks management discussed

• Financial: Failing the interest coverage, leverage or Portfolio Cash Flow covenants could let lenders require immediate repayment of amounts borrowed. Source
• Demand: Promacta receipts fell 75% to $8 million on U.S. generic competition, and Imbruvica receipts fell 16% in the quarter. Source

Earlier plans management reported on

• Met: The first-quarter release stated this plan. The second-quarter release reports the FDA accepted the NDA for review. Source
• Not stated: The first-quarter release targeted this study for 2026. The second-quarter release describes the Phase 2b plan without a date.

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.