Royalty Pharma Reports Q3 2026 Results & Raises FY26 Guidance

Financial Results and Operational Highlights

Royalty Pharma plc filed Form 8-K under Item 2.02 announcing financial results for the third quarter ended September 30, 2026.

Key Q3 2026 Financial Metrics:

• Portfolio Receipts: $890 million, up 9% compared to $814 million in Q3 2025.
• Royalty Receipts: $883 million, up 9% YoY, driven primarily by Tremfya (+61%), Voranigo (+65%), Evrysdi (+38%), and Imdelltra, partially offset by generic competition impacting Promacta (-75%) and lower Imbruvica receipts (-24%).
• Operating Cash Flow: Net cash provided by operating activities totaled $686 million compared to $703 million in Q3 2025.
• Adjusted EBITDA (Non-GAAP): $840 million, up 8% from $779 million in Q3 2025.
• Portfolio Cash Flow (Non-GAAP): $673 million compared to $657 million in Q3 2025.

Full-Year 2026 Guidance Update:

• Portfolio Receipts: Raised to a range of $3,500 million to $3,550 million (up from the previous outlook of $3,400 million to $3,500 million), representing expected Royalty Receipts growth of 10% to 11%.
• Operating and Professional Costs: Expected to be 5.5% to 6.0% of Portfolio Receipts (tightened from 5.5% to 6.5%).
• Interest Paid: Maintained at approximately $350 million to $360 million.

Capital Allocation & Balance Sheet:

• Repurchased approximately 1.5 million Class A ordinary shares for $87 million in Q3 2026 ($183 million year-to-date).
• Cash dividend of $0.235 per share paid in Q3, amounting to $135 million.
• Total debt stood at $8.8 billion principal value as of September 30, 2026, down from $9.2 billion at June 30, 2026, after repaying a $380 million term loan in July 2026.
• Cash and cash equivalents totaled $514 million at quarter-end.