Voya Financial announces second-quarter 2025 results
Second-quarter 2025 net income available to common shareholders of $162 million, or $1.66 per diluted share, and after-tax adjusted operating earnings 1 of $240 million, or $2.46 per diluted share.
Results demonstrate solid performance across our businesses, evidenced by continued commercial momentum, net revenue growth, and expense discipline.
Achievement of a significant milestone: exceeding $1 trillion in total assets across Retirement and Investment Management.
Excess capital generation remains strong, and our balance sheet is well-positioned. In the quarter we:
Generated approximately $0.2 billion of excess capital.
Returned $44 million to shareholders through common dividends.
'We are encouraged by another solid quarter of performance across our businesses,' said Heather Lavallee, chief executive officer, Voya Financial. 'Retirement and Investment Management delivered strong earnings and net flows during a dynamic quarter, and our Employee Benefits business saw positive claim development across all products. These results reflect the strength of our diversified and complementary business mix. I want to thank our Voya colleagues for their focus and execution which continue to deliver value for our customers and stakeholders.'
'As we look to the second half of the year, our priorities remain clear — improving margins in Employee Benefits, successfully integrating OneAmerica, and driving strong organic growth. We remain focused on our strategy and well-positioned to deliver long-term value for our shareholders,' Lavallee added.
________________________________
1 This press release includes certain non-GAAP financial measures, including adjusted operating earnings. More information on notable items in the company's financial results, non-GAAP measures, and reconciliations to the most comparable U.S. GAAP measures can be found in the "Use of Non-GAAP Financial Measures" and reconciliation tables at the end of this press release, and in the 'Non-GAAP Financial Measures' section of the company's Quarterly Investor Supplement, which is available at investors.voya.com.
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Second-Quarter 2025 Consolidated Results
Second-quarter 2025 net income available to common shareholders was $162 million, or $1.66 per diluted share, compared with $201 million, or $1.96 per diluted share, in second-quarter 2024. The decrease in the current period was due to non-operating impacts from investment losses and severance expenses, partially offset by growth in after-tax adjusted operating earnings.
Second-quarter 2025 after-tax adjusted operating earnings were $240 million, or $2.46 per diluted share, compared with $223 million, or $2.18 per diluted share, in second-quarter 2024. The growth was primarily due to earnings in Retirement from the business acquired from OneAmerica, higher earnings in Employee Benefits, partially offset by lower Corporate results. Second-quarter 2025 earnings per share also reflect a reduced share count as a result of share repurchases in the prior year.
Business Segment Results
In the second quarter of 2025, we announced we would return to using our prior segment names--Retirement and Employee Benefits, replacing Wealth Solutions and Health Solutions, respectively. The naming convention better reflects and aligns with the services and solutions we provide today in the client markets served by those segments. The change in naming convention did not affect the amounts reported by segment in our financial statements. We will continue to provide products and services through three segments: Retirement, Investment Management and Employee Benefits.
Retirement
Retirement second-quarter 2025 pre-tax adjusted operating earnings were $235 million, up from $214 million in the prior-year period. The increase was primarily due to the acquired business from OneAmerica.
Net revenues for the trailing twelve months (TTM) ended Jun. 30, 2025 grew 12.1% compared with the prior-year period due to positive capital markets, acquired spread and fee-based business from OneAmerica, strong commercial momentum and higher alternative investment income.
Adjusted operating margin for the TTM ended Jun. 30, 2025 was 39.3% compared with 37.1% in the prior-year period. The improvement reflects net revenue growth and disciplined spend management while expanding our business.
Excluding notable items, for the TTM ended Jun. 30, 2025, net revenues grew 9.3% and adjusted operating margin was 40.3%.
Total client assets as of Jun. 30, 2025 were $757 billion, up 30% compared with Jun. 30, 2024, primarily due to assets onboarded from OneAmerica, positive capital markets, and significant recordkeeping wins in the first half of 2025.
Investment Management
Investment Management second-quarter 2025 pre-tax adjusted operating earnings, excluding noncontrolling interest, were $51 million, compared to $50 million in the prior-year period. Growth in fee-based revenues benefiting from continued strong business momentum and positive capital markets year-over-year was largely offset by lower investment capital results.
Net revenues for the TTM ended Jun. 30, 2025 grew 7.2% compared with the prior-year period due to an increase in fee-based revenues reflecting net inflows and positive capital markets.
Adjusted operating margin for the TTM ended Jun. 30, 2025 was 28.0% compared with 25.6% in the prior-year period. The improvement was due to net revenue growth and disciplined expense management.
Excluding notable items, for the TTM ended Jun. 30, 2025, net revenues grew 8.0% and adjusted operating margin was 28.7%.
Investment Management generated net inflows of $1.8 billion (excluding divested businesses) during the three months ended Jun. 30, 2025, representing organic growth of 0.6% for the quarter. The growth reflects continued momentum across multiple channels including Insurance, US Intermediary and International Retail.
Employee Benefits
Employee Benefits second-quarter 2025 pre-tax adjusted operating earnings were $69 million, up from $60 million in the prior-year period. Positive claim development in Stop Loss and favorable Group Life underwriting gains were partially offset by lower Voluntary underwriting gains and strategic investments in Short-Term Disability and Leave Management.
Net revenues for the TTM ended Jun. 30, 2025 declined 13.8% compared with the prior-year period. Adjusted operating margin for the TTM ended Jun. 30, 2025, was 3.7% compared with 19.1% in the prior-year period.
Excluding notable items, for the TTM ended Jun. 30, 2025, net revenues declined 15.4% and adjusted operating margin was 4.2%.
The decline in TTM margins and net revenues primarily reflects negative Stop Loss claim development in the prior year periods.
Employee Benefits second-quarter 2025 annualized in-force premiums and fees declined 6% to $3.6 billion compared with the prior-year period. The decline was as planned and reflects our pricing discipline and risk selection within the Stop Loss business.
Corporate
Corporate second-quarter 2025 pre-tax adjusted operating losses, excluding noncontrolling interest, were $67 million, compared with $53 million of losses in the prior-year period. The increase in losses was primarily driven by incentive compensation reflecting strong business performance.
Capital
For the second-quarter 2025, the company generated approximately $0.2 billion of excess capital. Year-to-date capital generation is approximately 90% of after-tax adjusted operating earnings. In the second quarter, the company returned $44 million of excess capital to shareholders through common stock dividends. As of Jun. 30, 2025, the company had approximately $0.3 billion of excess capital.
In May 2025, the company entered into a 10-year Facility Agreement with a Delaware trust (the "Trust") following the completion of a private placement of Trust securities for $600 million of P-Caps, conducted pursuant to Rule 144A under the Securities Act. Under the Facility Agreement, the company has the right, from time to time, to issue and sell up to $600 million of its 6.012% Senior Notes to the Trust in exchange for a corresponding amount of Treasury securities held by the Trust. In consideration for this right, the company pays the Trust a semi-annual facility fee at a rate of 1.518% per annum on the unexercised portion of the facility. This facility provides the company financial flexibility as proceeds may be drawn upon in any market environment.
Additional Financial Information and Earnings Call
More detailed financial information can be found in the company's quarterly investor supplement, which is available on Voya's investor relations website, investors.voya.com. In addition, Voya will host a conference call on Wednesday, Aug. 6, 2025, at 10 a.m. ET, to discuss the company's second-quarter 2025 results. The call and slide presentation can be accessed via the company's investor relations website at investors.voya.com. A replay of the call will be available on the company's investor relations website, investors.voya.com, starting at approximately 1 p.m. ET on Aug. 6, 2025.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA) is a leading retirement, employee benefits and investment management company. Voya's services and solutions help clear the path to financial confidence and a more fulfilling life for approximately 15.7 million individual, workplace and institutional clients. Certified as a 'Great Place to Work' by the Great Place to Work ® Institute, Voya fosters a culture that values customer-centricity, integrity, accountability, agility and inclusivity. Voya employees fight together with customers and partners for everyone's opportunity for a better financial future. For more information visit voya.com and follow Voya Financial on Facebook, LinkedIn and Instagram.
Use of Non-GAAP Financial Measures
We believe that Adjusted operating earnings before income taxes is a meaningful measure used by management to evaluate our business and segment performance. This measure enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying core business segments. It excludes results from exited businesses and items that tend to be highly variable from period to period based on capital market conditions or other factors which distort the ability to make a meaningful evaluation of our segments. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure Income (loss) before income taxes. Adjusted operating earnings before income taxes does not replace Income (loss) before income taxes as the U.S. GAAP measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both measures when reviewing our financial and operating performance. Each segment's Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) before income taxes for the following items:
Net investment gains (losses);
Income (loss) related to businesses exited or to be exited through reinsurance or divestment;
Income (loss) attributable to noncontrolling interests to which we are not economically entitled;
Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings before income taxes that are available to common shareholders;
Other adjustments may include the following items:
Income (loss) related to early extinguishment of debt;
Impairment of goodwill and intangible assets;
Amortization of acquisition-related intangible assets as well as contingent consideration fair value adjustments;
Expected return on plan assets net of interest costs associated with our qualified defined benefit pension plan and immediate recognition of net actuarial gains (losses) related to all of our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments; and
Other items not indicative of normal operations or performance of our segments or that may be related to events such as capital or organizational restructurings, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate.
Sources of Earnings
We analyze our segment performance based on the sources of earnings. We believe that this supplemental information is useful because we use it to analyze our business and it can help investors understand the main drivers of Adjusted operating earnings before income taxes. The sources of earnings include:
Investment spread and other investment income.
Fee-based margin.
Net underwriting gain (loss).
Administrative expenses.
Premium taxes, fees and assessments.
Net commissions.
DAC/VOBA and other intangibles amortization.
Net Revenue and Adjusted Operating Margin
Adjusted operating margin is defined as Adjusted operating earnings before income taxes divided by net revenue.
Net revenue is the sum of investment spread and other investment income, fee-based margin, and net underwriting gain (loss).
The primary adjustment to derive Net revenue is reducing Adjusted operating revenues by 'Interest credited and other benefits to contract owners / policyholders'. This adjustment primarily reflects the interest credited to customers for general account products in our Retirement and Employee Benefits segments and the benefits paid to customers in our Employee Benefits segment for Group Life, Stop Loss, and Voluntary products. This adjustment allows us to report to investors our investment spread and our net underwriting gain and loss, which are meaningful measures used by management to evaluate our business and segment performance. Investment spread informs investors how we set crediting rates relative to the yield we earn on our general account investments and net underwriting gain and loss informs investors how we set premiums relative to incurred benefits to policyholders ('loss ratio').
We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations.
We report net revenue and adjusted operating margin excluding notable items since they provide the main drivers for Adjusted operating earnings before income taxes excluding the effects of items that are not expected to recur at the same level.
Forward-Looking and Other Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'plan,' and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) global market risks, including general economic conditions, interest rates, inflation, tariffs imposed or threatened by the U.S. or foreign governments and our ability to manage such risks; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through dividends from our subsidiaries or lending programs; (iii) strategic and business risks, including our ability to maintain market share, achieve desired results from our acquisitions and dispositions, or otherwise manage our third-party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations ('MD&A') – Trends and Uncertainties' in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, as filed with the SEC on Feb. 21, 2025, and in our Quarterly Report on Form 10-Q for the three months ended Jun. 30, 2025, to be filed with the SEC on or before Aug. 11, 2025.
VOYA-IR VOYA-CF
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted)
Three Months Ended
(in millions USD, except per share)
6/30/2025
6/30/2024
After-tax (1)
Per share
After-tax (1)
Per share
Net Income (loss) available to Voya Financial, Inc.'s common shareholders
$
162
$
1.66
$
201
$
1.96
Less:
Net investment gains (losses)
(23
)
(0.23
)
16
0.16
Income (loss) related to businesses exited or to be exited through reinsurance or divestment
(24
)
(0.24
)
(29
)
(0.28
)
Other adjustments (2)
(31
)
(0.32
)
(9
)
(0.09
)
Adjusted operating earnings
$
240
$
2.46
$
223
$
2.18
Less:
Alternative investment income and prepayment fees above (below) expectations net of variable compensation
5
0.05
(10
)
(0.09
)
Adjusted operating earnings excluding notable items
$
235
$
2.40
$
232
$
2.27
Expand
Note: Totals may not sum due to rounding.
(1) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. For net investment gains (losses), income (loss) related to businesses exited, and other non-operating items, we apply a 21% tax rate and adjust for related tax benefits and expenses, including changes to tax valuation allowances and impacts related to changes in tax law.
(2) Primarily consists of acquisition and integration costs associated with recent transactions and amortization of acquisition-related intangible assets. For the three months ended Jun. 30, 2025, also includes $18 million, after-tax, of severance costs.
Expand
Note: Totals may not sum due to rounding.
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the three months ended Jun. 30, 2025, was approximately $50 million, pre-tax and before variable compensation. The expectation for prepayment fees is between $1 million and $2 million for the three months ended Jun. 30, 2025, pre-tax and before variable compensation.
(2) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings.
Expand
Adjusted Operating Earnings and Notable Items
Three Months Ended Jun. 30, 2024
a
b
c = a - b
Adjusted operating earnings
Retirement
$
214
$
(8
)
$
222
Investment Management
50
(1
)
51
Employee Benefits
60
(3
)
63
Corporate
(53
)
—
(53
)
Adjusted operating earnings before income taxes
271
(12
)
283
Less: Income taxes (2)
48
(3
)
50
Adjusted operating earnings after income taxes
$
223
$
(10
)
$
232
Adjusted operating earnings per share
2.18
(0.09
)
2.27
Expand
Note: Totals may not sum due to rounding.
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the three months ended Jun. 30, 2024, was approximately $47 million, pre-tax and before variable compensation. The prior long-term expectation for prepayment fees was a 10 basis point annual contribution to yield, which for the three months ended Jun. 30, 2024, was approximately $9 million, pre-tax and before variable compensation.
(2) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings.
Expand
Net Revenue, Adjusted Operating Margin, and Notable Items
Twelve Months Ended Jun. 30, 2025
(in millions USD)
Amounts Including
Notable Items
Alternative investment income and prepayment fees above (below) expectations (1)
Amounts Excluding
Notable Items
a
b
c = a - b
Net revenue
Retirement
$
2,194
$
(37
)
$
2,232
Investment Management
996
(13
)
1,010
Employee Benefits
974
(5
)
979
Total net revenue
$
4,164
$
(56
)
$
4,221
Adjusted operating margin
Retirement
39.3
%
(1.0
)%
40.3
%
Investment Management
28.0
%
(0.7
)%
28.7
%
Employee Benefits
3.7
%
(0.5
)%
4.2
%
Adjusted operating margin, excluding Corporate
28.3
%
(0.9
)%
29.2
%
Expand
Note: Totals may not sum due to rounding.
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for the twelve months ended Jun. 30, 2025, was approximately $194 million, pre-tax and before variable compensation. The expectation for prepayment fees was approximately $22 million for the twelve months ended Jun. 30, 2025, pre-tax and before variable compensation. This reflects the updated expectation for periods after 2024 of approximately $1 million to $2 million per quarter and the prior long-term expectation for periods through 2024 of approximately $8 million to $10 million per quarter with both expectations pre-tax and before variable compensation.
Expand
Net Revenue, Adjusted Operating Margin, and Notable Items
(in millions USD)
Amounts Including
Notable Items
Alternative investment income and prepayment fees above (below) expectations (1)
Other (2)
Amounts Excluding
Notable Items
a
b
c
d = a - b - c
Net revenue
Retirement
$
1,958
$
(85
)
$
—
$
2,043
Investment Management
929
(6
)
—
935
Employee Benefits
1,130
(10
)
(16
)
1,157
Total net revenue
$
4,017
$
(101
)
$
(16
)
$
4,135
Adjusted operating margin
Retirement
37.1
%
(2.6
)%
—
%
39.7
%
Investment Management
25.6
%
(0.6
)%
—
26.2
%
Employee Benefits
19.1
%
(0.7
)%
(1.1
)%
20.9
%
Adjusted operating margin, excluding Corporate
29.4
%
(1.7
)%
(0.3
)%
31.4
%
Expand
Note: Totals may not sum due to rounding.
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the twelve months ended Jun. 30, 2024, was approximately $189 million, pre-tax and before variable compensation. The prior long-term expectation for prepayment fees was a 10 basis point annual contribution to yield, which for the twelve months ended Jun. 30, 2024, was approximately $37 million, pre-tax and before variable compensation.
(2) Includes changes in certain legal and other reserves not expected to recur at the same level.
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Advance Stream Payment Fully Offset at Pueblo Viejo During the second quarter, the value of deliveries received from our gold and silver streams at the Pueblo Viejo mine in the Dominican Republic, when combined with the value of cumulative deliveries received since the July 1, 2015, effective date of the stream agreement, exceed the $610 million advance payment made by Royal Gold to a subsidiary of Barrick Mining Corporation ("Barrick"). Barrick is currently advancing a mine life extension project that is targeted to produce 800,000 ounces of gold per year (100% basis) to the mid-2040s. Production Resumed to Full Rates and Union Contracts Ratified at Andacollo On June 2, 2025, Teck Resources Limited ("Teck"), reported a mechanical issue at Andacollo requiring a maintenance shutdown of the SAG mill. On July 24, 2025, Teck reported that the SAG mill successfully restarted in late June and production has now resumed to full rates, and 2025 copper production guidance is unchanged from the previous guidance range of 45,000 to 55,000 tonnes. Teck does not provide gold production guidance. Teck further reported that both union contracts at Andacollo were ratified in June and July, 2025, respectively, each covering a three year period. Other Property Updates Notable recent updates as reported by the operators of other select portfolio assets include: Producing Properties Rainy River (6.5% gold stream, 60% silver stream): On July 28, 2025, New Gold Inc. ("New Gold") reported second quarter results for the Rainy River mine in Ontario. According to New Gold, June 2025 gold production totaled 37,341 ounces, a monthly production record, and with the mill now processing higher grade open pit material, gold production is expected to continue to increase in the third quarter. New Gold reported that gold production through the first half of 2025 represented approximately 34% of the midpoint of annual guidance range of 265,000 to 295,000 ounces, and Rainy River is on-track for increased production in the second half of the year. Khoemacau (100% silver stream): On July 22, 2025, MMG Limited ("MMG") provided an update on the expansion project at the Khoemacau mine in Botswana. According to MMG, a feasibility study is underway and expected to be completed by the end of 2025, with construction scheduled to begin following the approval of the feasibility study, and first concentrate production expected in 2028. Bellevue (2% NSR royalty): On August 1, 2025, Bellevue Gold Limited ("Bellevue") provided gold production guidance for the Bellevue Gold Mine in Western Australia. Bellevue expects production in the fiscal year ending June 30, 2026, to range between 130,000 and 150,000 ounces, with quarterly performance set to progressively ramp up through the year, and production in the fiscal year ending June 30, 2027 to range between 175,000 and 195,000 ounces. Côté Gold (1% NSR royalty): On June 23, 2025, IAMGOLD Corporation ('IAMGOLD') announced that on June 21, 2025, the Côté Gold mine in Ontario reached a major milestone as the processing plant operated at the nameplate capacity of 36,000 tonnes per day on average over thirty consecutive days. IAMGOLD maintained its gold production guidance at Côté Gold of between 360,000 and 400,000 ounces for 2025. Mara Rosa (1.0% NSR and 1.75% NSR royalties): On July 23, 2025, Hochschild Mining PLC ("Hochschild") provided a quarterly production report for the Mara Rosa operation in Brazil. As previously reported by Hochschild, the operation of the processing plant was temporarily suspended on June 23, 2025, after heavier-than-usual seasonal rainfall as well as contractor performance issues. Hochschild disclosed that mining activity is continuing as planned, and a comprehensive review of all mining, processing and disposal activities is underway to identify constraints to the mine's output. Mara Rosa produced approximately 12,430 GEOs in the second quarter, and Hochschild expects to provide a full update and revised guidance in late August, 2025. Xavantina (25% gold stream): On July 31, 2025, Ero Copper Corp. ("Ero") revised 2025 gold production guidance at the Xavantina mine in Brazil to 40,000 to 50,000 ounces, from the 50,000 to 60,000 guidance range provided previously. Ero reported that production in the first half of 2025 was lower than planned, and ongoing investments in mine modernization and mechanization are expected to drive a step-change in mining rates in the second half of 2025, resulting in higher projected production and lower unit costs that align with the long-term outlook for the operation. Additionally, the delivery threshold of 49,000 ounces was achieved in July, 2025, and the cash price paid by RG AG for each ounce delivered under the stream agreement increased from 25% to 40% of the spot gold price. Development Properties Back River (equivalent ~3.3% GSR royalty on the Goose Project): On June 30, 2025, B2Gold Corp. ('B2Gold') announced the first gold pour at the Goose Project in the Back River Gold District in Nunavut, Canada. According to B2Gold, first ore was processed on June 24, 2025, and the mill has run consistently at approximately 50% of nameplate capacity during this initial phase, as planned. B2Gold expects a ramp up to commercial production in the third quarter of 2025, and has maintained 2025 gold production guidance of between 120,000 and 150,000 ounces. Cactus (2.0% NSR royalty): On June 25, 2025, Arizona Sonoran Copper Company Inc. ("ASCU") announced that it had exercised its right to buy back 0.5% of Royal Gold's aggregate 2.5% NSR royalty on the Cactus Project in Arizona for $7 million. The buyback was expected and was factored into our initial valuation when the royalty was acquired in 2024. Royal Gold will hold a 2.0% NSR royalty after closing, which is targeted to be on or about August 12, 2025. Portfolio Additions Acquisition of Gold Stream on the Kansanshi Mine in Zambia As announced on August 5, 2025, our wholly-owned subsidiary RGLD Gold AG ('RG AG'), entered into a precious metals purchase agreement ('Stream Agreement') for gold deliveries referenced to copper production from the Kansanshi copper-gold mine ('Kansanshi') in the North Western Province of Zambia, operated and 80% owned by a subsidiary of First Quantum Minerals Ltd. ('First Quantum'). RG AG made an advance payment of $1.0 billion ('Advance') in return for a gold stream referenced to copper production, with deliveries of 75 ounces of gold per million pounds of recovered copper produced until the delivery of 425,000 ounces; 55 ounces of gold per million pounds of recovered copper produced between the delivery of 425,001 ounces and 650,000 ounces; and 45 ounces of gold per million pounds of recovered copper produced thereafter. Additionally, and depending on the achievement of certain objectives as described below, RG AG has granted options to First Quantum to accelerate stream deliveries and reduce the outstanding Advance: Acceleration Option 1: From the earlier of the achievement by First Quantum of a minimum 'BB' or equivalent senior unsecured debt rating from a rating agency, or a Net Debt/TTM EBITDA ratio of 2.25x or less over three consecutive quarters starting from March 31, 2026, it will have a one-year period to exercise the option and deliver gold worth up to $200 million over a 14-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to 20%. Acceleration Option 2: If First Quantum achieves either a minimum 'BBB-' or equivalent senior unsecured debt rating from a rating agency, or shows a Net Debt/TTM EBITDA ratio of 1.25x or less over four consecutive quarters, and achieves certain operational conditions, it will have a one-year period to exercise the option and deliver gold worth up to $100 million over a 7-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to a further 10%. RG AG will pay 20% of the spot gold price for each ounce delivered. Should one of the conditions in Acceleration Option 1 be met, Royal Gold will pay 35% of the spot gold price for each ounce delivered. RG AG's interests under the stream agreement are guaranteed by all entities within the Kansanshi ownership chain, from the project company (Kansanshi Mining PLC) through to the parent, First Quantum Minerals Ltd. RG AG also has customary additional protections for a stream agreement including limitations on certain additional encumbrances, restrictions on transfer of mine ownership, sharing for insurance and expropriation proceeds, and typical remedies for events of default. The Kansanshi mine is owned and operated by Kansanshi Mining PLC, which is 80% owned indirectly by First Quantum and 20% by ZCCM Investments Holdings PLC, a company majority-owned by the Government of the Republic of Zambia. First Quantum acquired its interest in the project in 2001, began construction soon after, and achieved commercial production in 2005. As of December 31, 2024, Proven and Probable Reserves consisted of 1.070 billion tonnes grading 0.52% copper and 0.10 grams per tonne gold, calculated using a copper price of $3.50 per pound and a gold price of $1,805 per ounce. As of the same date, Measured and Indicated Resources (inclusive of Reserves) were 1.297 billion tonnes grading 0.57% copper and 0.07 grams per tonne gold, calculated at a 0.2% copper cut-off grade. First Quantum expects a mine life of more than 20 years, and the All-In Sustaining Cost ('AISC') is expected to be in the lower half of the global copper cost curve during the next 10 years of mine life. Royal Gold funded the Advance using available cash and a draw of $825 million on its revolving credit facility. Acquisition of Stream and Royalty Interests on the Warintza Project in Ecuador As previously announced on May 21, 2025, RG AG acquired a gold stream and separate royalty interest in the Warintza copper-gold-molybdenum project in southeastern Ecuador, operated by Solaris Resources Inc. ('Solaris'). The advance payment ('Advance') for the acquisition totals $200 million in cash consideration, including $100 million paid upon closing, $50 million payable after technical approval of the Environmental Impact Assessment ('EIA') and publication of a PFS, which are expected to be complete in the third quarter of 2025, and $50 million payable one year after closing, subject to security perfection in Ecuador. Solaris will direct the proceeds of the Advance towards advancing technical studies, permitting activities, early infrastructure development, the repayment of debt, some district exploration activities and general working capital requirements. After receipt of the full Advance, Solaris expects to be fully funded through to a final investment decision. In return for the Advance, RG AG and Solaris entered into: A Gold Stream Agreement that provides for the delivery to RG AG of 20 ounces of gold per million pounds of recovered copper in return for a cash payment for each ounce delivered of 20% of the spot gold price until the delivery of 90,000 ounces, and 60% of the spot gold price thereafter. The Gold Stream Agreement may be subject to early termination at the option of RG AG or Solaris if a change of control of Solaris or Warintza occurs, or by RG AG if deliveries have not begun by May 21, 2033. The area of interest for the Gold Stream Agreement covers approximately 31 square kilometers, and will expand to 186 square kilometers if the early termination provisions have not been exercised and the first delivery has not been received by May 21, 2033. A Royalty Agreement that provides for payment to RG AG of a net smelter return ('NSR') royalty at an initial rate of 0.30% for all metals produced from an area of interest of approximately 186 square kilometers. The royalty rate will increase by 0.0375% per year until the earlier to occur of the first delivery under the Gold Stream Agreement or May 21, 2033, to a maximum of 0.60%. If the Gold Stream Agreement is subject to early termination, the royalty rate will be the rate in place at the time of exercise if the early termination is exercised by RG AG, or 0.60% if the early termination is exercised by Solaris. RG AG will also maintain certain rights to participate in any future stream, royalty or similar production-based financing on the Warintza land package. The Warintza project consists of a cluster of five separate porphyry copper-molybdenum-gold intrusions that coalesce within two overlapping open pits. Exploration potential is high for near and in-mine targets, as well as within the larger project area. Solaris is targeting a Final Investment Decision by the end of 2026. Acquisition of Royalty Interest on the Lawyers-Ranch Project in British Columbia On May 16, 2025, Royal Gold acquired a 2.0% NSR royalty on the Ranch portion of the Lawyers-Ranch Project operated by Thesis Gold Inc. ('Thesis') from a private seller for cash consideration of $12.5 million. The royalty covers all metals, is perpetual with no buyback rights or caps, and constitutes a real property interest. The Lawyers-Ranch Project is in the Toodoggone Epithermal/Porphyry Trend located in the Toodoggone mining district of Northern British Columbia, and Thesis is currently targeting completion of a Pre-Feasibility Study in the fourth quarter of 2025. This transaction increases Royal Gold's royalty exposure to this emerging trend, which also includes a 0.5% NSR royalty on the Lawyers portion of the Lawyers-Ranch Project and a 0.5% royalty on the Shasta Project, operated by TDG Gold Corp. Corporate Acquisitions Agreements to Acquire Sandstorm Gold and Horizon Copper On July 6, 2025, we entered into arrangement agreements to acquire each of Sandstorm Gold Ltd. ('Sandstorm') and Horizon Copper Corp. ('Horizon'). Under the terms of the agreement with Sandstorm, Royal Gold has agreed to acquire 100% of the issued share capital of Sandstorm in exchange for Royal Gold shares at an exchange ratio of 0.0625 common shares of Royal Gold for each common share of Sandstorm (the 'Sandstorm Transaction'), which reflected a transaction equity value of approximately $3.5 billion at the time of signing. Under the terms of the agreement with Horizon, Royal Gold has agreed to acquire 100% of the issued share capital of Horizon in exchange for cash of C$2.00/share (the 'Horizon Transaction' and together with the Sandstorm Transaction, the 'Transactions'), which reflected a transaction equity value of approximately $196 million at the time of signing. The combined Sandstorm and Horizon portfolios will contribute 40 revenue-producing royalty and stream interests, with a further 28 in the development stage and 154 in the evaluation and exploration stages. After completing the Transactions, Royal Gold's pro-forma portfolio will comprise 393 streams and royalties, largely focused on the Americas, with 80 revenue-producing interests and 47 in development. Royal Gold will also be well capitalized, remain precious metals focused, generate significant free cash flow, and have a portfolio that is well-positioned for organic cash flow growth from a robust development pipeline. The Sandstorm Transaction will be effected by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia). At closing of the Sandstorm Transaction, Royal Gold expects to issue an aggregate of approximately 19 million common shares to Sandstorm shareholders, and following completion of the Sandstorm Transaction, existing Sandstorm shareholders will own approximately 23% of the issued and outstanding common shares of Royal Gold on a fully diluted basis. The Sandstorm Transaction will be subject to the approval of 66 2/3% of the votes cast by shareholders of Sandstorm at a special meeting (the 'Sandstorm Meeting') and the approval of a simple majority of the votes cast by shareholders of Sandstorm at the Sandstorm Meeting excluding votes cast by senior officers and directors, as required under Multilateral Instrument 61-101. In addition, Royal Gold will require approval by a simple majority of the votes cast by Royal Gold shareholders at a special meeting. The full details of the Sandstorm Transaction will be described in Sandstorm's management information circular and Royal Gold's proxy statement to be prepared in accordance with applicable securities laws. The completion of the Sandstorm Transaction is subject to customary closing conditions, as well as the approvals by Royal Gold and Sandstorm's shareholders described above, the approval of the Supreme Court of British Columbia, completion of the Horizon Transaction (which can be waived by Royal Gold in its sole discretion), the listing of shares of Royal Gold's stock to be issued in the transaction on Nasdaq, and regulatory clearances or approvals. The Horizon Transaction will be effected by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia). The Horizon Transaction will be subject to the approval of 66 2/3% of the votes cast by shareholders of Horizon at a special meeting (the 'Horizon Meeting') ') and 66 2/3% of the votes cast by shareholders and warrant holders of Horizon, voting together as a single class at the Horizon Meeting. Sandstorm, as well as the senior officers and directors of Horizon and certain additional Horizon shareholders, which as of July 6, 2025, collectively controlled 54% of the total basic common shares of Horizon, have entered into voting support agreements pursuant to which they have agreed to vote their shares in favor of the Horizon Transaction, subject to certain conditions. Additionally, the Horizon Transaction will be subject to the approval of a simple majority of the votes cast by shareholders of Horizon at the Horizon Meeting excluding votes cast by Sandstorm, senior officers, and directors as required under Multilateral Instrument 61-101. The full details of the Horizon Transaction will be described in Horizon's management information circular to be prepared in accordance with applicable securities laws. The completion of the Horizon Transaction is subject to customary closing conditions, as well as the approval by Horizon's securityholders described above, the approval of the Supreme Court of British Columbia, completion of the Sandstorm Transaction (which can be waived by Royal Gold in its sole discretion), and regulatory clearances or approvals. The Transactions are expected to close in the fourth quarter of 2025. Second Quarter 2025 Overview For the second quarter, we recorded net income and comprehensive income attributable to Royal Gold stockholders ('net income') of $132.3 million, or $2.01 per basic and diluted share, as compared to net income of $81.2 million, or $1.23 per basic and diluted share, for the three months ended June 30, 2024. The increase in net income was primarily attributable to higher revenue and lower tax expense, each discussed below. For the second quarter, we recognized total revenue of $209.6 million, comprised of stream revenue of $133.2 million and royalty revenue of $76.5 million at an average gold price of $3,280 per ounce, an average silver price of $33.68 per ounce and an average copper price of $4.32 per pound. This is compared to total revenue of $174.1 million for the three months ended June 30, 2024, comprised of stream revenue of $123.0 million and royalty revenue of $51.1 million, at an average gold price of $2,338 per ounce, an average silver price of $28.84 per ounce and an average copper price of $4.42 per pound. The increase in our total revenue resulted primarily from higher average gold and silver prices compared to the prior period. Higher gold production from Peñasquito and Manh Choh also contributed to the increase. These increases were partially offset by lower gold sales from Xavantina when compared to the prior year period. Cost of sales, which excludes depreciation, depletion and amortization ("DD&A"), was $24.2 million for the three months ended June 30, 2025 and 2024. Cost of sales is specific to our stream agreements and, except for Mount Milligan, is the result of our purchase of metal for a cash payment that is a set contractual percentage of the spot price for that metal near the date of metal delivery. For Mount Milligan, the cash payments under the stream agreement are the lesser of $435 per ounce or the prevailing market price of gold when purchased and 15% of the spot price for copper near the date of metal delivery. Separately, and in addition to the cash payments under the stream agreement, the Mount Milligan Cost Support Agreement provides for cash payments on gold and copper deliveries that are expected to begin after certain thresholds are met or earlier, if metal prices are below certain thresholds and if requested by Centerra. For further detail on the Mount Milligan Cost Support Agreement refer to our 2024 10-K. General and administrative costs decreased to $10.3 million for the three months ended June 30, 2025, from $10.5 million for the three months ended June 30, 2024. The decrease compared to the prior year period was primarily due to lower non-cash stock compensation expense. DD&A decreased to $31.2 million for the three months ended June 30, 2025, from $35.7 million for the three months ended June 30, 2024. The decrease was primarily due to lower stream depletion rates as a result of proven and probable mineral reserve increases by our operators and lower gold sales from Xavantina compared to the prior year period. These decreases were partially offset by higher production at Voisey's Bay and Manh Choh when compared to the prior year period. For the three months ended June 30, 2025, we recorded income tax expense of $10.5 million, compared to $19.0 million for the three months ended June 30, 2024. The income tax expense resulted in an effective tax rate of 7.4% in the current period, compared with 18.9% for the three months ended June 30, 2024. The lower income tax expense for the three months ended June 30, 2025, included a $9.3 million discrete benefit related to a withholding tax refund on a foreign royalty and a discrete tax benefit of $4.3 million attributable to the release of a valuation allowance. Net cash provided by operating activities totaled $152.8 million for the second quarter, compared to $113.5 million for the three months ended June 30, 2024. The increase was primarily due to higher net cash proceeds received from our stream and royalty interests of $29.3 million, lower income tax payments of $6.1 million and lower debt cash interest payments of $2.0 million when compared to the prior year period. Net cash used in investing activities totaled $112.8 million for the second quarter, compared to $50.9 million for the three months ended June 30, 2024. The period over period change was primarily due to the $100 million payment for the Warintza stream and royalty and the $12.5 million payment for the Lawyers-Ranch royalty in the current period offset by the $51 million acquisition of two Back River Gold District royalties in the prior year period. Net cash used in financing activities totaled $32.6 million for the second quarter, compared to $126.3 million for the three months ended June 30, 2024. The decrease was primarily due to lower debt repayments when compared to the prior year period. This decrease was partially offset by higher dividend payments compared to the prior year period. Other Corporate Updates Revolving Credit Facility Amendment Extends Maturity and Increases Accordion Feature On June 26, 2025, we entered into the sixth amendment to the revolving credit facility dated June 2, 2017, as amended. The principal changes included in the sixth amendment were the extension of the scheduled maturity date by a further two years from June 28, 2028 to June 30, 2030, and an increase to the size of the accordion feature from $250 million to $400 million. As disclosed on August 5, 2025, we exercised the $400 million accordion feature and the aggregate commitment under the revolving credit facility has increased to $1.4 billion. Additionally, the required leverage ratio was revised to be less than or equal to 4.00:1.00 at all times, rather than 4.00:1.00 for only the two fiscal quarters following the consummation of a material permitted acquisition (as defined) and 3.50:1.00 at all other times. Total Available Liquidity of Approximately $1.25 Billion at the end of the Second Quarter Total liquidity at the end of the second quarter was approximately $1.25 billion, which consisted of $266 million of working capital and $1 billion undrawn and available under the revolving credit facility. Following the draw as part of the Kansanshi gold stream acquisition, $575 million remains available under the revolving credit facility. Outlook for 2025 We are currently forecasting that 2025 metal sales, DD&A and effective tax rate will be within the ranges previously provided. Property Highlights A breakdown of revenue for the Company's stream and royalty portfolio can be found on Table 1 for the quarters and six month periods ended June 30, 2025 and June 30, 2024. Table 2 shows a quarterly breakdown of stream metal sales and metal sales attributable to the Company's royalty interests for the Company's principal stream and royalty properties. Table 3 shows Royal Gold's 2025 sales volume guidance and year to date sales volume achieved. Table 4 shows stream segment purchases and sales for the quarters and six month periods ended June 30, 2025 and June 30, 2024 and inventories at June 30, 2025, March 31, 2025 and December 31, 2024. Highlights at certain of the Company's principal producing and development properties during the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, are detailed in the Quarterly Report on Form 10-Q. Royal Gold is a high margin, mid-capitalization company that generates strong cash flows from a large and well-diversified portfolio of precious metal streams, royalties and similar production-based interests located in mining-friendly jurisdictions. Royal Gold shares trade under the symbol 'RGLD' and provide growth, value, and income investors exposure to the metals & mining industry. The Company's website is located at Note: Management's conference call reviewing the second quarter results will be held on Thursday, August 7, 2025, at 12:00 pm Eastern Time (10:00 am Mountain Time). The call will be webcast and archived on the Company's website for a limited time. Additional Investor Information: Royal Gold routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Resources tab. Investors and other interested parties are encouraged to enroll at to receive automatic email alerts for new postings. Forward-Looking Statements: This press release includes 'forward-looking statements' within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like 'will,' 'may,' 'could,' 'should,' 'would,' 'believe,' 'estimate,' 'expect,' 'anticipate,' 'plan,' 'forecast,' 'potential,' 'intend,' 'continue,' 'project,' or negatives of these words or similar expressions. Forward-looking statements include, among others, statements regarding the following: our expected financial performance and outlook, including our 2025 guidance; operators' expected operating and financial performance and other anticipated developments relating to their properties and operations, including production, deliveries, estimates of mineral resources and mineral reserves, environmental and feasibility studies, technical reports, mine plans, capital requirements, liquidity and capital expenditures; anticipated benefits from investments, acquisitions and other transactions; the receipt and timing of future metal deliveries, including deferred amounts at Pueblo Viejo; anticipated liquidity, capital resources, financing, and stockholder returns; borrowings and repayments under our revolving credit facility; plans and expectations with respect to the proposed Transactions; the expected timetable for completing the proposed Transactions; and prices for gold, silver, copper and other metals. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: changes in the price of gold, silver, copper or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators' ability to complete projects on schedule and as planned, operators' changes to mine plans and mineral reserves and mineral resources (including updated mineral reserve and mineral resource information), liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, other adverse government or court actions, or operational disruptions; the risks that a condition to closing of the Sandstorm and Horizon Transactions may not be satisfied, that a party may terminate an arrangement agreement, or that the closing of the Transactions might be delayed or not occur at all; the ultimate timing, outcome, and results of integrating the operations of Royal Gold, Sandstorm and Horizon; the ability of the combined company to realize anticipated synergies in the timeframe expected or at all; changes of control of properties or operators; contractual issues involving our stream or royalty agreements; the timing of deliveries of metals from operators and our subsequent sales of metal; risks associated with doing business in foreign countries; increased competition for stream and royalty interests; environmental risks, including those caused by climate change; potential cyber-attacks, including ransomware; our ability to identify, finance, value, and complete investments, acquisitions or other transactions; adverse economic and market conditions; effects of health epidemics and pandemics; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and other factors described in our reports filed with the Securities and Exchange Commission, including Item 1A, Risk Factors of our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Most of these factors are beyond our ability to predict or control. Other unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements. Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements. Statement Regarding Third-Party Information: Certain information provided in this press release, including information about historical production, production estimates, property descriptions, and property developments, was provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties. No Offer or Solicitation: This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed Transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Important Additional Information and Where to Find It: In connection with the proposed Transactions, Royal Gold, Sandstorm, and Horizon intend to file materials with the SEC and on SEDAR+, as applicable. Royal Gold plans to file proxy materials with the SEC in connection with the solicitation of proxies for Royal Gold's special meeting of shareholders (the 'Royal Gold Special Meeting'). Prior to the Royal Gold Special Meeting, Royal Gold will file a definitive proxy statement (the 'Royal Gold Proxy Statement'), together with a proxy card. Sandstorm intends to file a management information circular (the 'Sandstorm Circular') on SEDAR+ in connection with the solicitation of proxies to obtain Sandstorm shareholder approval of the Sandstorm arrangement. Horizon intends to file a management information circular (the 'Horizon Circular') on SEDAR+ in connection with the solicitation of proxies to obtain Horizon securityholder approval of the Horizon arrangement. This press release is not a substitute for the Royal Gold Proxy Statement, the Sandstorm Circular, the Horizon Circular, or for any other document that Royal Gold, Sandstorm or Horizon may file with the SEC or on SEDAR+ and/or send to their respective securityholders in connection with the proposed transactions. INVESTORS AND SECURITYHOLDERS OF ROYAL GOLD, SANDSTORM AND HORIZON ARE URGED TO CAREFULLY AND THOROUGHLY READ THE ROYAL GOLD PROXY STATEMENT, THE SANDSTORM CIRCULAR, AND THE HORIZON CIRCULAR, RESPECTIVELY, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY ROYAL GOLD, SANDSTORM, AND/OR HORIZON WITH THE SEC OR ON SEDAR+ WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ROYAL GOLD, SANDSTORM, HORIZON, THE PROPOSED TRANSACTIONS, THE RISKS RELATED THERETO, AND RELATED MATTERS. Securityholders of Royal Gold, Sandstorm, and Horizon will be able to obtain, free of charge, copies of the Royal Gold Proxy Statement, Sandstorm Circular, and Horizon Circular, as each may be amended from time to time, and other relevant documents filed by Royal Gold, Sandstorm, and/or Horizon with the SEC or on SEDAR+ (when they become available) through the website maintained by the SEC at or at as applicable. Copies of documents filed with the SEC by Royal Gold will be available, free of charge, from Royal Gold's website at under the 'Investor Resources' tab or by contacting Royal Gold at (303) 573-1660 or InvestorRelations@ Copies of documents filed on SEDAR+ by Sandstorm will be available free of charge from Sandstorm's website at under the 'Investors' tab or by contacting Sandstorm at (844) 628-1164 or info@ Copies of documents filed on SEDAR+ by Horizon will be available free of charge from Horizon's website at under the 'Investors' tab or by contacting Horizon at (604) 336-8189 or info@ Certain Information Regarding Participants: Royal Gold, Sandstorm, Horizon and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be 'participants' (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from Royal Gold shareholders in connection with the Royal Gold Special Meeting. Additional information regarding the identity of these potential participants and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Royal Gold Proxy Statement and other materials to be filed with the SEC in connection with the Royal Gold Special Meeting. Information relating to the foregoing can also be found in Royal Gold's Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 13, 2025, and Royal Gold's definitive proxy statement for its 2025 annual meeting of stockholders filed with the SEC on April 4, 2025. To the extent the holdings of Royal Gold's directors and executive officers in Royal Gold's securities have changed since the amounts described in the April 4, 2025 proxy statement, such changes have been reflected in the following Initial Statements of Beneficial Ownership of Securities on Form 3 and Statements of Change in Ownership on Form 4 filed with the SEC with respect to Royal Gold: Form 4, filed by William Heissenbuttel on April 22, 2025; Form 3, filed by Mark Isto on May 27, 2025; and Form 4, filed by Paul Libner on June 10, 2025. These filings can be found at the SEC's website at Information regarding the executive officers and directors of Sandstorm and Horizon is included in their respective management information circulars for their 2025 shareholder meetings filed on SEDAR+ on April 22, 2025 and May 1, 2025, respectively. More detailed and updated information regarding the identity of participants in the solicitation and their direct or indirect interests (by security holdings or otherwise), will be set forth in the Royal Gold Proxy Statement and other materials to be filed with the SEC or on SEDAR+. These documents can be obtained free of charge from the sources indicated above. Canada Mount Milligan Gold, copper 35% of payable gold and 18.75% of payable copper $ 63,655 $ 52,139 $ 106,463 $ 87,134 Rainy River Gold, silver 6.5% of gold produced and 60% of silver produced 9,095 10,522 19,517 20,231 Latin America Pueblo Viejo Gold, silver 7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver $ 25,619 $ 19,801 $ 54,369 $ 37,562 Andacollo Gold 100% of payable gold 9,489 10,608 22,234 22,297 Xavantina Gold 25% of gold produced 4,946 9,486 10,322 18,760 Africa Wassa Gold 10.5% of payable gold $ 10,149 $ 12,002 $ 22,568 $ 23,345 Khoemacau Silver 100% of payable silver 10,238 8,394 20,200 16,152 Total stream revenue $ 133,191 $ 122,952 $ 255,673 $ 225,481 Royalty: Canada Voisey's Bay Copper, nickel, cobalt 2.7% NVR $ 3,165 $ 1,315 $ 5,665 $ 2,453 Red Chris Gold, copper 1.0% NSR — — 4,477 2,617 Côté Gold Gold 1.0% NSR 1,746 — 3,061 — LaRonde Zone 5 Gold 2.0% NSR 929 712 2,102 1,520 Williams Gold 0.97% NSR 502 488 1,354 839 Other-Canada Various Various 577 520 972 737 United States Cortez Legacy Zone Gold Approx. 9.4% GSR Equivalent $ 8,508 $ 11,214 $ 19,650 $ 24,579 CC Zone Gold Approx. 0.45%-2.2% GSR Equivalent 8,088 4,548 11,642 8,959 Robinson Gold, copper 3.0% NSR 4,697 3,764 9,094 5,547 Manh Choh Gold, silver 3.0% NSR, 28% NSR (silver) 6,306 — 11,930 — Marigold Gold 2.0% NSR 2,212 1,303 4,369 2,709 Leeville Gold 1.8% NSR 2,533 2,137 4,160 3,622 Wharf Gold 0.0%-2.0% sliding-scale GSR 1,577 370 2,748 1,191 Goldstrike Gold 0.9% NSR 368 475 612 971 Other-United States Various Various 3,103 1,462 4,193 1,774 Latin America Peñasquito Gold, silver, lead, zinc 2.0% NSR $ 16,306 11,279 $ 31,715 $ 20,508 El Limon Gold 3.0% NSR 3,024 2,077 6,302 3,387 Dolores Gold, silver 3.25% NSR (gold), 2.0% NSR (silver) 1,324 1,609 2,987 3,148 Mara Rosa Gold, silver 2.75% NSR 1,420 739 2,351 739 Other-Latin America Various Various 250 84 250 196 Australia South Laverton Gold 1.5% NSR, 4.0% NPI $ 2,889 $ 2,253 $ 5,380 $ 4,152 King of the Hills Gold 1.5% NSR 1,544 1,494 3,129 2,685 Bellevue Gold 2.0% NSR 2,508 1,210 3,847 1,788 Gwalia Gold 1.5% NSR 1,054 1,042 2,141 1,813 Wonder Gold, silver 1.5% NSR 885 179 1,372 179 Other-Australia Various Various 937 869 1,904 1,405 Total royalty revenue $ 76,452 $ 51,144 $ 147,407 $ 97,518 Total revenue $ 209,643 $ 174,096 $ 403,080 $ 322,999 For a full description of the Company's stream and royalty interests, refer to the 2024 Asset Handbook, published on April 22, 2025 and available on our website. Expand TABLE 2 Stream Metal and Royalty Sales for Principal Properties Reported Production For The Quarter Ended 2 Property Operator Current Stream/ Royalty Interest 1 Metal(s) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Stream: Mount Milligan Centerra 35% of payable gold Gold 16,600 oz 11,800 oz 11,300 oz 17,600 oz 16,100 oz 18.75% of payable copper Copper 2.3 Mlb 2.2 Mlb 2.8 Mlb 3.1 Mlb 3.4 Mlb Pueblo Viejo Barrick (60%) 7.5% of Barrick's interest in payable gold Gold 5,800 oz 7,700 oz 5,900 oz 7,000 oz 5,800 oz 75% of Barrick's interest in payable silver 3 Silver 204,700 oz 219,400 oz 89,500 oz 332,700 oz 218,200 oz Andacollo Teck 100% of payable gold Gold 3,000 oz 4,400 oz 5,800 oz 4,000 oz 4,500 oz Royalty: Cortez Nevada Gold Mines LLC 9.4% GSR on Legacy Zone 4 Gold 27,900 oz 31,100 oz 52,600 oz 45,300 oz 42,600 oz 0.45%-2.2% GSR on CC Zone 4 Gold 149,000 oz 119,700 oz 149,800 oz 116,500 oz 119,800 oz For a full description of the Company's stream and royalty interests, refer to the 2024 Asset Handbook, published on April 22, 2025 and available on our website. Reported production relates to the amount of stream metal sales and the metal sales attributable to the Company's royalty interests for the stated periods and may differ from the operators' public reporting. The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed. Approximate blended royalty rates as described in the press release 'Royal Gold Announces Acquisition of Additional Royalty Interests on the World-Class Cortez Gold Complex in Nevada and Outlines Simplified Approach to Describing Royal Gold's Multiple Royalty Interests at Cortez' issued January 5, 2023. Expand TABLE 3 2025 Sales Volume Guidance and Year to Date Sales Volume Achieved 2025 Guidance Metal Sales by Segment for the Six Months Ended June 30, 2025 Gold (oz) 210,000 - 230,000 65,400 36,205 101,605 Silver (M oz) 2.7-3.3 1.2 0.3 1.5 Copper (M lb) 13.5 - 16.0 4.5 3.0 7.5 Other Metals (M) $18.0 - $21.0 N/A $13.8 $13.8 1 Stream Sales represents physical metal sold. 2 Royalty Sales represents royalty revenue divided by the average metal price for the period. Expand TABLE 4 Stream Segment Summary Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 As of June 30, 2025 As of March 31, 2025 Gold Stream Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Mount Milligan 8,200 16,600 9,800 16,100 400 8,800 Pueblo Viejo 6,100 5,800 7,000 5,800 6,100 5,800 Andacollo 5,100 3,000 5,800 4,500 3,300 1,100 Other 7,100 6,800 11,800 12,800 2,900 2,700 Total 26,500 32,200 34,400 39,200 12,700 18,400 Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 As of June 30, 2025 As of March 31, 2025 Silver Stream Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Pueblo Viejo 1 196,900 204,700 332,700 218,200 196,900 204,700 Other 409,600 374,000 361,600 375,000 144,100 108,500 Total 606,500 578,700 694,300 593,200 341,000 313,200 Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 As of June 30, 2025 As of March 31, 2025 Copper Stream Purchases (Mlb) Sales (Mlb) Purchases (Mlb) Sales (Mlb) Inventory (Mlb) Inventory (Mlb) Mount Milligan 1.4 2.3 2.5 3.4 — 0.9 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 As of June 30, 2025 As of December 31, 2024 Gold Stream Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Mount Milligan 24,300 28,400 25,100 28,600 400 4,500 Pueblo Viejo 11,900 13,500 12,700 12,000 6,100 7,700 Andacollo 10,600 7,400 10,700 10,200 3,300 — Other 15,900 16,100 25,600 26,500 2,900 3,300 Total 62,700 65,400 74,100 77,300 12,700 15,500 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 As of June 30, 2025 As of December 31, 2024 Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Pueblo Viejo 1 401,600 424,200 550,900 441,200 196,900 219,400 Other 777,100 751,900 744,700 787,000 144,100 119,000 Total 1,178,700 1,176,100 1,295,600 1,228,200 341,000 338,400 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 As of June 30, 2025 As of December 31, 2024 Copper Stream Purchases (Mlb) Sales (Mlb) Purchases (Mlb) Sales (Mlb) Inventory (Mlb) Inventory (Mlb) Mount Milligan 4.5 4.5 5.8 5.8 — — 1 Silver stream purchases do not include 165,700 ounces of silver permitted to be deferred in the first quarter and 465,900 ounces of silver permitted to be deferred in the six month period ending June 30, 2025, based on the terms of the Pueblo Viejo stream agreement. Total deferred deliveries were approximately 2.1 million ounces at June 30, 2025, and the timing for the delivery of the entire deferred amount is uncertain. Expand ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, in thousands except share data) June 30, 2025 December 31, 2024 ASSETS Cash and equivalents $ 248,180 $ 195,498 Royalty receivables 64,994 63,460 Income tax receivable 13,573 1,139 Stream inventory 13,337 12,973 Prepaid expenses and other 1,929 2,217 Total current assets 342,013 275,287 Stream and royalty interests, net 3,141,548 3,042,804 Other assets 88,892 74,039 Total assets $ 3,572,453 $ 3,392,130 LIABILITIES Accounts payable $ 5,506 $ 10,578 Dividends payable 29,640 29,611 Income tax payable 24,421 23,177 Other current liabilities 16,534 21,785 Total current liabilities 76,101 85,151 Deferred tax liabilities 131,644 132,308 Mount Milligan deferred liability 25,000 25,000 Other liabilities 20,749 18,465 Total liabilities 253,494 260,924 Commitments and contingencies EQUITY Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued — — Common stock, $.01 par value, 200,000,000 shares authorized; and 65,760,321 and 65,691,151 shares outstanding, respectively 658 657 Additional paid-in capital 2,229,722 2,228,311 Accumulated earnings 1,076,562 889,989 Total Royal Gold stockholders' equity 3,306,942 3,118,957 Non-controlling interests 12,017 12,249 Total equity 3,318,959 3,131,206 Total liabilities and equity $ 3,572,453 $ 3,392,130 Expand ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, in thousands except share data) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 209,643 $ 174,096 $ 403,080 $ 322,999 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 24,180 24,174 48,685 45,924 General and administrative 10,269 10,511 21,333 21,923 Production taxes 2,201 1,581 3,962 3,031 Depreciation, depletion and amortization 31,153 35,747 64,148 74,512 Total costs and expenses 67,803 72,013 138,128 145,390 Operating income 141,840 102,083 264,952 177,609 Fair value changes in equity securities 3 (63 ) (34 ) 383 Interest and other income 2,713 807 4,762 3,783 Interest and other expense (1,544 ) (2,516 ) (2,701 ) (7,123 ) Income before income taxes 143,012 100,311 266,979 174,652 Income tax expense (10,538 ) (18,991 ) (20,927 ) (46,025 ) Net income and comprehensive income 132,474 81,320 246,052 128,627 Net income and comprehensive income attributable to non-controlling interests (125 ) (112 ) (205 ) (255 ) Net income and comprehensive income attributable to Royal Gold common stockholders $ 132,349 $ 81,208 $ 245,847 $ 128,372 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 2.01 $ 1.23 $ 3.73 $ 1.95 Basic weighted average shares outstanding 65,748,410 65,650,801 65,726,903 65,644,115 Diluted earnings per share $ 2.01 $ 1.23 $ 3.73 $ 1.95 Diluted weighted average shares outstanding 65,820,530 65,767,538 65,806,160 65,753,899 Cash dividends declared per common share $ 0.45 $ 0.40 $ 0.90 $ 0.80 Expand ROYAL GOLD, INC. Consolidated Statements of Cash Flows (Unaudited, in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income and comprehensive income $ 132,474 $ 81,320 $ 246,052 $ 128,627 Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: Depreciation, depletion and amortization 31,153 35,747 64,148 74,512 Non-cash employee stock compensation expense 2,714 3,348 5,911 6,336 Fair value changes in equity securities (3 ) 63 34 (383 ) Deferred tax (benefit) expense (2,191 ) 2,771 (11,019 ) 3,419 Other 222 262 446 484 Changes in assets and liabilities: — — Royalty receivables (7,265 ) (1,581 ) (1,534 ) 8,546 Stream inventory 1,220 513 (363 ) (1,116 ) Income tax receivable (12,203 ) (2,528 ) (12,434 ) (2,961 ) Prepaid expenses and other assets (3,870 ) (233 ) (3,525 ) 10,530 Accounts payable 3,043 1,628 3,178 1,786 Income tax payable 9,076 (3,918 ) 1,244 2,547 Mount Milligan deferred liability — — — 25,000 Other liabilities (1,568 ) (3,877 ) (2,967 ) (5,528 ) Net cash provided by operating activities $ 152,802 $ 113,515 $ 289,171 $ 251,799 Cash flows from investing activities: Acquisition of stream and royalty interests (112,733 ) (51,152 ) (170,979 ) (52,256 ) Proceeds from Khoemacau debt facility — — — 25,000 Other (21 ) 220 (70 ) (85 ) Net cash used in investing activities $ (112,754 ) $ (50,932 ) $ (171,049 ) $ (27,341 ) Cash flows from financing activities: Repayment of debt — (100,000 ) — (200,000 ) Net payments from issuance of common stock (1,488 ) (63 ) (4,499 ) (1,432 ) Common stock dividends (29,634 ) (26,311 ) (59,245 ) (52,603 ) Other (1,506 ) 73 (1,696 ) (358 ) Net cash used in financing activities $ (32,628 ) $ (126,301 ) $ (65,440 ) $ (254,393 ) Net increase (decrease) in cash and equivalents 7,420 (63,718 ) 52,682 (29,935 ) Cash and equivalents at beginning of period 240,760 137,950 195,498 104,167 Cash and equivalents at end of period $ 248,180 $ 74,232 $ 248,180 $ 74,232 Expand Schedule A – Non-GAAP Financial Measures and Certain Other Measures Overview of non-GAAP financial measures: Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles ('GAAP'). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies. We have provided below reconciliations of our non-GAAP financial measures to the comparable GAAP measures. We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measures are subjective and involve significant management judgement. Non-GAAP financial measures used by management in this release or elsewhere include the following: Adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. The net income and adjusted EBITDA margins represent net income or adjusted EBITDA divided by total revenue. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations. Net debt (or net cash) is a non-GAAP financial measure that is calculated by the Company as debt (excluding debt issuance costs) as of a date minus cash and equivalents for that same date. Net debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA is a non-GAAP financial measure that is calculated by the Company as net debt (or net cash) as of a date divided by the TTM adjusted EBITDA (as defined above) ending on that date. We believe that these measures are important to monitor leverage and evaluate the balance sheet. Cash and equivalents are subtracted from the GAAP measure because they could be used to reduce our debt obligations. A limitation associated with using net debt (or net cash) is that it subtracts cash and equivalents and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe that investors may find these measures useful to monitor leverage and evaluate the balance sheet. Adjusted net income and adjusted net income per share are non-GAAP financial measures that are calculated by the Company as net income and net income per share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliations below. We consider these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of our operating results excluding items that we believe are not indicative of our fundamental ongoing operations. The tax effect of adjustments is computed by applying the statutory tax rate in the applicable jurisdictions to the income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero. Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty interests for that same period. We believe that free cash flow represents an additional way of viewing liquidity as it is adjusted for contractual investments made during such period. Free cash flow does not represent the residual cash flow available for discretionary expenditures. We believe it is important to view free cash flow as a complement to our consolidated statements of cash flows. Cash general and administrative expense, or cash G&A, is a non-GAAP financial measure that is calculated by the Company as general and administrative expenses for a period minus non-cash employee stock compensation expense for the same period. We believe that cash G&A is useful as an indicator of overhead efficiency without regard to non-cash expenses associated with employee stock compensation. Three Months Ended June 30, March 31, December 31, September 30, (amounts in thousands) 2025 2025 2024 2024 Net income and comprehensive income $ 132,474 $ 113,578 $ 107,521 $ 96,330 Depreciation, depletion and amortization 31,153 32,995 33,737 36,177 Non-cash employee stock compensation 2,714 3,198 2,579 2,977 Fair value changes in equity securities (3 ) 37 24 425 Interest and other, net (1,169 ) (893 ) (179 ) 581 Income tax expense 10,538 10,389 26,078 21,510 Non-controlling interests in operating income of consolidated subsidiaries (125 ) (80 ) (113 ) (88 ) Adjusted EBITDA $ 175,582 $ 159,224 $ 169,647 $ 157,912 Net income margin 63 % 59 % 53 % 50 % Adjusted EBITDA margin 84 % 82 % 84 % 81 % TTM adjusted EBITDA $ 662,365 Debt $ — Cash and equivalents (248,180 ) Net debt / (cash) $ (248,180 ) Net debt / (cash) to TTM adjusted EBITDA (0.37)x Expand Cash G&A: Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands) 2025 2024 2025 2024 General and administrative expense $ 10,269 $ 10,511 $ 21,333 $ 21,923 Non-cash employee stock compensation (2,714 ) (3,348 ) (5,911 ) (6,336 ) Cash G&A $ 7,555 $ 7,163 $ 15,422 $ 15,587 Expand Three Months Ended June 30, March 31, December 31, September 30, (amounts in thousands) 2025 2025 2024 2024 General and administrative expense $ 10,269 $ 11,063 $ 8,909 $ 10,102 Non-cash employee stock compensation (2,714 ) (3,198 ) (2,579 ) (2,977 ) Cash G&A $ 7,555 $ 7,865 $ 6,330 $ 7,125 TTM cash G&A $ 28,875 Expand Adjusted net income and adjusted net income per share: Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands, except per share data) 2025 2024 2025 2024 Net income and comprehensive income attributable to Royal Gold common stockholders $ 132,349 $ 81,208 $ 245,847 $ 128,372 Fair value changes in equity securities (3 ) 63 34 (383 ) Discrete tax expense related to Mount Milligan Cost Support Agreement — 30 — 13,008 Discrete tax benefit for basis adjustment, net of valuation allowance — — (12,008 ) — Withholding tax refund (9,302 ) — (11,017 ) — Other discrete tax expense (benefit) (4,256 ) 1,279 (4,256 ) 1,279 Tax effect of adjustments 1 (17 ) (9 ) 102 Adjusted net income and comprehensive income attributable to Royal Gold common stockholders $ 118,789 $ 82,563 $ 218,591 $ 142,378 Net income attributable to Royal Gold common stockholders per diluted share $ 2.01 $ 1.23 $ 3.73 $ 1.95 Fair value changes in equity securities — — — (0.01 ) Discrete tax expense related to Mount Milligan Cost Support Agreement — — — 0.20 Discrete tax benefit for basis adjustment, net of valuation allowance — — (0.18 ) — Withholding tax refund (0.14 ) — (0.17 ) — Other discrete tax expense (benefit) (0.06 ) 0.02 (0.06 ) 0.02 Tax effect of adjustments — — — — Adjusted net income attributable to Royal Gold common stockholders per diluted share $ 1.81 $ 1.25 $ 3.32 $ 2.16 Expand Other measures We use certain other measures in managing and evaluating our business. We believe these measures may provide useful information to investors for analysis of our business. We use these measures to compare period-over-period performance and liquidity on a consistent basis and when planning and forecasting for future periods. We believe these measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. Other measures used by management in this release and elsewhere include the following: Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (in total or by reportable segment) for a period divided by the average LBMA PM fixing price for gold for that same period. Depreciation, depletion, and amortization, or DD&A, per GEO is calculated by the Company as depreciation, depletion, and amortization for a period divided by GEOs (as defined above) for that same period. Working capital is calculated by the Company as current assets as of a date minus current liabilities as of that same date. Liquidity is calculated by the Company as working capital plus available capacity under the Company's revolving credit facility. Dividend payout ratio is calculated by the Company as dividends paid during a period divided by net cash provided by operating activities for that same period.
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DoorDash (NASDAQ:DASH) Posts Better-Than-Expected Sales In Q2, Increases Its Orders
On-demand food delivery service DoorDash (NYSE:DASH) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 24.9% year on year to $3.28 billion. Its GAAP profit of $0.65 per share was 49.5% above analysts' consensus estimates. Is now the time to buy DoorDash? Find out in our full research report. DoorDash (DASH) Q2 CY2025 Highlights: Revenue: $3.28 billion vs analyst estimates of $3.16 billion (24.9% year-on-year growth, 3.8% beat) EPS (GAAP): $0.65 vs analyst estimates of $0.43 (49.5% beat) Adjusted EBITDA: $655 million vs analyst estimates of $639.8 million (19.9% margin, 2.4% beat) EBITDA guidance for Q3 CY2025 is $730 million at the midpoint, above analyst estimates of $716.1 million Operating Margin: 5%, up from -7.6% in the same quarter last year Free Cash Flow Margin: 52.2%, up from 16.3% in the previous quarter Orders: 761 million, up 126 million year on year Market Capitalization: $108.2 billion Company Overview Founded by Stanford students with the intent to build 'the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, DoorDash's 28.2% annualized revenue growth over the last three years was exceptional. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis. This quarter, DoorDash reported robust year-on-year revenue growth of 24.9%, and its $3.28 billion of revenue topped Wall Street estimates by 3.8%. Looking ahead, sell-side analysts expect revenue to grow 18.9% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and indicates the market is forecasting success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Orders Request Growth As a gig economy marketplace, DoorDash generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided. Over the last two years, DoorDash's orders, a key performance metric for the company, increased by 20.3% annually to 761 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. In Q2, DoorDash added 126 million orders, leading to 19.8% year-on-year growth. The quarterly print isn't too different from its two-year result, suggesting its new initiatives aren't accelerating request growth just yet. Revenue Per Request Average revenue per request (ARPR) is a critical metric to track because it measures how much the company earns in transaction fees from each request. This number also informs us about DoorDash's take rate, which represents its pricing leverage over the ecosystem, or "cut" from each transaction. DoorDash's ARPR growth has been mediocre over the last two years, averaging 3.5%. This isn't great, but the increase in orders is more relevant for assessing long-term business potential. We'll monitor the situation closely; if DoorDash tries boosting ARPR by taking a more aggressive approach to monetization, it's unclear whether requests can continue growing at the current pace. This quarter, DoorDash's ARPR clocked in at $4.32. It grew by 4.2% year on year, slower than its request growth. Key Takeaways from DoorDash's Q2 Results It was great to see DoorDash increase its number of requests this quarter. We were also happy its revenue outperformed Wall Street's estimates. Overall, this print had some key positives. The stock traded up 4.8% to $270.50 immediately following the results. Sure, DoorDash had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
