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Royalty Pharma (NASDAQ:RPRX) Misses Q2 Revenue Estimates
Royalty Pharma (NASDAQ:RPRX) Misses Q2 Revenue Estimates

Yahoo

time06-08-2025

  • Business
  • Yahoo

Royalty Pharma (NASDAQ:RPRX) Misses Q2 Revenue Estimates

Healthcare royalties company Royalty Pharma (NASDAQ:RPRX) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 7.8% year on year to $579 million. Its GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy Royalty Pharma? Find out in our full research report. Royalty Pharma (RPRX) Q2 CY2025 Highlights: Revenue: $579 million vs analyst estimates of $590 million (7.8% year-on-year growth, 1.9% miss) EPS (GAAP): $0.16 vs analyst estimates of $0.17 (in line) Adjusted EBITDA: $633 million vs analyst estimates of $606.6 million (109% margin, 4.4% beat) Free Cash Flow was $364 million, up from -$138.6 million in the same quarter last year Market Capitalization: $15.97 billion 'We delivered excellent second quarter 2025 results, as the strength of our diversified portfolio drove 20% growth in Portfolio Receipts, and raised our full year guidance,' said Pablo Legorreta, Royalty Pharma's founder and Chief Executive Officer. Company Overview Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ:RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Royalty Pharma's sales grew at a tepid 3.6% compounded annual growth rate over the last five years. This wasn't a great result compared to the rest of the healthcare sector, but there are still things to like about Royalty Pharma. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Royalty Pharma's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.2% annually. We can better understand the company's revenue dynamics by analyzing its most important segment, Portfolio Receipts. Over the last two years, Royalty Pharma's Portfolio Receipts revenue averaged 11.8% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company's performance. This quarter, Royalty Pharma's revenue grew by 7.8% year on year to $579 million, missing Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 26.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will catalyze better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Royalty Pharma has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average operating margin of 54.3%. Looking at the trend in its profitability, Royalty Pharma's operating margin rose by 31.9 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company's margin has increased by 84.1 percentage points on a two-year basis. in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Royalty Pharma, its EPS declined by 17.3% annually over the last five years while its revenue grew by 3.6%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. Diving into the nuances of Royalty Pharma's earnings can give us a better understanding of its performance. A five-year view shows Royalty Pharma has diluted its shareholders, growing its share count by 58.8%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Royalty Pharma reported EPS at $0.16, in line with the same quarter last year. This print missed analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Royalty Pharma's Q2 Results We struggled to find many positives in these results. Its EPS missed and its revenue fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 1.7% to $37.25 immediately after reporting. Royalty Pharma underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.

Royalty Pharma Declares Third Quarter 2025 Dividend
Royalty Pharma Declares Third Quarter 2025 Dividend

Globe and Mail

time18-07-2025

  • Business
  • Globe and Mail

Royalty Pharma Declares Third Quarter 2025 Dividend

NEW YORK, July 18, 2025 (GLOBE NEWSWIRE) -- The board of directors of Royalty Pharma plc (Nasdaq: RPRX) has approved the payment of a dividend for the third quarter of 2025 of $0.22 per Class A ordinary share. The dividend will be paid on September 10, 2025, to shareholders of record at the close of business on August 15, 2025. About Royalty Pharma Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry's leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma's current portfolio includes royalties on more than 35 commercial products, including Vertex's Trikafta, GSK's Trelegy, Roche's Evrysdi, Johnson & Johnson's Tremfya, Biogen's Tysabri and Spinraza, AbbVie and Johnson & Johnson's Imbruvica, Astellas and Pfizer's Xtandi, Novartis' Promacta, Pfizer's Nurtec ODT and Gilead's Trodelvy, and 16 development-stage product candidates. For more information, visit

A bullish breakout in this little-known pharma stock is forming, charts show
A bullish breakout in this little-known pharma stock is forming, charts show

CNBC

time11-06-2025

  • Business
  • CNBC

A bullish breakout in this little-known pharma stock is forming, charts show

Out of a universe of more than 10,000 tradable names, a strict technical screen we run at CappThesis recently surfaced just six stocks worth a closer look. One of them is Royalty Pharma (RPRX) , and we think the chart deserves our attention right now. There are four key reasons why RPRX stands out: 1. A bullish inverse head-and-shoulders pattern is nearing completion The first — and most importantly from our perspective — is a bullish inverse head-and-shoulders pattern has taken shape over the past several months. These patterns can mark a trend reversal or continuation of a trend. This particular formation has a combination of the two. The pattern has taken shape after a prolonged downtrend from the past few years. That said, the stock has been in rally-mode since bottoming in early December. The formation's neckline is near $34, and the stock is getting closer to challenging that level. A decisive breakout above that line would complete the pattern and trigger a breakout. The projected upside target based on the height of the formation is $39. That level also aligns with resistance from mid-2022. 2. Pattern forming above a larger base breakout What makes this setup even more compelling is that the inverse H & S pattern has been constructed above the breakout zone of a much larger base. The prior breakout occurred near $32, where rally attempts had been snuffed out multiple times since 2023. As the saying goes, once resistance is overtaken, it then becomes support, which is the case now. The ability of RPRX to hold above the prior breakout zone while forming a continuation pattern increases the probability of a sustained move higher. 3. Longer-term context supports the bull case Zooming out, RPRX still has plenty of ground to recover. The stock reached a high of $56.50 shortly after its IPO in mid-2020. Since then, it's been in a multiyear downtrend before bottoming out in late 2024. That prolonged decline may have caused previously eager buyers to become disinterested. This is understandable given how well so many other stocks have done the last two years. However, the sell-off helped reset expectations, valuations, and sentiment—creating a potential springboard if this pattern can be leveraged. Further, the 38.2% Fibonacci retracement of the entire decline from 2020 through 2023 is near $33. That lines up with the 32-breakout zone discussed above, making this area even more important to potentially overtake. 4. Relative strength From a relative strength perspective, RPRX has been outperforming many other biotech counterparts. We can see this via the relative strength line vs. the XBI ETF. Thus, the comeback is evident both on an absolute basis and relative to RPRX's peers, which of course is constructive for further gains as well. The bottom line is that RPRX has done a good job bouncing from its lows, and for that to develop into a more substantial and long-term uptrend, the stock must continue to form and break out from bullish chart formations. It has a chance to continue that process now. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

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