On February 11, 2026 Royalty Pharma plc (Nasdaq: RPRX) reported financial results for the fourth quarter and full year 2025 and introduced full year 2026 guidance for Portfolio Receipts.

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"We had one of the most remarkable years in Royalty Pharma’s history in 2025," said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. "We grew Portfolio Receipts by 16%, driven by the strength of our diversified portfolio, we returned a record amount of capital to shareholders and we deployed $2.6 billion on royalty transactions, including our highest year ever for announced synthetic royalty transactions. Further, we achieved an important milestone with the successful internalization of our external manager. Looking ahead, our deal pipeline remains robust and we anticipate multiple events for our development-stage pipeline in 2026 – including pivotal study results for daraxonrasib, pelacarsen and litifilimab – that could unlock additional value. I am confident 2026 will be another year of exciting progress towards strengthening our leadership position in the rapidly growing royalty market and pursuing our goal to be the premier capital allocator in life sciences with consistent, compounding growth."

Strong double-digit growth in Royalty Receipts and Portfolio Receipts

•Royalty Receipts grew 17% to $856 million in the fourth quarter and 13% to $3,127 million in 2025, primarily driven by Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise.
•Portfolio Receipts increased by 18% to $874 million in the fourth quarter and 16% to $3,254 million in 2025.

Balanced capital allocation approach drives value creation

•Capital Deployment of $2.6 billion; added royalties on nine(8) therapies to portfolio in the year, including a ground-breaking partnership with Revolution Medicines for Phase 3 therapy daraxonrasib for pancreatic cancer.

•Repurchased 37 million Class A ordinary shares for $1.2 billion in 2025, including $75 million in the fourth quarter.•Increased quarterly dividend by 7% in the first quarter of 2026.

Positive clinical and regulatory updates across royalty portfolio in 2025

•FDA approvals of Cytokinetics’ Myqorzo (formerly aficamten) in obstructive hypertrophic cardiomyopathy and Johnson & Johnson’s Tremfya in Crohn’s disease and ulcerative colitis.

•Positive Phase 3 results for Teva’s TEV-‘749 in schizophrenia, Gilead’s Trodelvy in 1L metastatic triple negative breast cancer, Emalex’s ecopipam in Tourette’s syndrome and Pharvaris’ deucrictibant in hereditary angioedema.

Financial guidance for full year 2026 (excludes contribution from future transactions)

•Royalty Pharma expects 2026 Portfolio Receipts to be between $3,275 million and $3,425 million.

•2026 Portfolio Receipts guidance includes expected growth in Royalty Receipts of 3% to 8%.

Financial & Liquidity Summary
Three Months Ended December 31,
Twelve Months Ended December 31,
(unaudited)
($ and shares in millions)
2025
2024
Change
2025
2024
Change
Portfolio Receipts
874
742
18%
3,254
2,801
16%
Net cash provided by operating activities
827
743
11%
2,490
2,769
(10)%
Adjusted EBITDA (non-GAAP)*
816
669
22%
2,966
2,565
16%
Portfolio Cash Flow (non-GAAP)*
815
678
20%
2,724
2,452
11%
Weighted average Class A ordinary shares outstanding – diluted
556
589
(6)%
564
594
(5)%

2026 Financial Outlook

Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows:
Provided February 11, 2026
Portfolio Receipts
$3,275 million to $3,425 million
Payments for operating and professional costs
5.5% to 6.5% of Portfolio Receipts
Interest paid
$350 million to $360 million

Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance includes expected Royalty Receipts growth of 3% to 8% in 2026.

Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026.

Payments for operating and professional costs in 2026 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.

Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedule for the term loan assumed as part of the internalization transaction. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million(5), with approximately $175 million in each of the first and third quarters of 2026. De minimis amounts are anticipated in the second and fourth quarters of 2026. These projections assume no additional debt financing in 2026, including no drawdown on the revolving credit facility. In 2025, Royalty Pharma collected interest of $34 million on its cash and cash equivalents.

Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release.

Portfolio Receipts Highlights
Three Months Ended December 31,
(unaudited)
($ in millions)
2025
2024
Change
Products:
Marketers:
Therapeutic Area:
Cystic fibrosis franchise
Vertex
Rare disease
251
237
6%
Trelegy
GSK
Respiratory
95
74
28%
Tysabri
Biogen
Neuroscience
65
61
7%
Evrysdi
Roche
Rare disease
64
56
15%
Tremfya
Johnson & Johnson
Immunology
56
39
44%
Xtandi
Pfizer, Astellas
Oncology
53
46
16%
Imbruvica
AbbVie, Johnson & Johnson
Oncology
40
46
(13)%
Voranigo
Servier
Oncology
39
5
*
Promacta
Novartis
Hematology
27
44
(38)%
Cabometyx/Cometriq
Exelixis, Ipsen, Takeda
Oncology
22
20
13%
Spinraza
Biogen
Rare disease
14
15
(4)%
Erleada
Johnson & Johnson
Oncology
13
11
18%
Trodelvy
Gilead
Oncology
12
11
8%
Imdelltra
Amgen
Oncology
10
—
n/a
Other products(6)
96
67
43%
Royalty Receipts
856
729
17%
Milestones and other contractual receipts
18
13
42%
Portfolio Receipts
874
742
18%

Royalty Receipts was $856 million in the fourth quarter of 2025, an increase of 17% compared to $729 million in the fourth quarter of 2024. The increase was primarily driven by Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise, which was partially offset by a decline from Promacta due to U.S. generic competition which launched in May 2025.

Portfolio Receipts was $874 million in the fourth quarter of 2025, an increase of 18% compared to $742 million in the fourth quarter of 2024, primarily driven by the same Royalty Receipts increases noted above.

(Press release, Royalty Pharma , FEB 11, 2026, View Source [SID1234662604])