Financial Performance - In 2025, XOMA received total cash receipts of $50.5 million, comprising $33.6 million from commercial payments and $16.9 million from milestone payments and other fees[35]. - XOMA earned $7.7 million in royalties from OJEMDA in 2025, following its FDA approval in April 2024[50]. - The company generated a net income of $31.7 million and cash flows from operations of $2.9 million for the year ended December 31, 2025, but has an accumulated deficit of $1.2 billion[152]. - The company has historically incurred significant operating losses and negative cash flows from operations since inception, raising concerns about future profitability[152]. - The company has financed operations primarily through equity securities, debt, and collaboration payments, with future profitability dependent on successful product development and commercialization by partners[153]. Portfolio and Assets - The company has a diversified portfolio with economic rights to over 120 assets, including seven commercial-stage assets and 14 late-stage therapeutic candidates[38]. - The commercial asset VABYSMO® generated $22.5 million in royalties for XOMA in 2025, with a royalty rate of 0.5% on future net sales[40]. - The late-stage asset Ersodetug has an estimated potential milestone of $210 million, with a royalty rate of high single digit to mid-teens[41]. - Acquired rights to receive future royalties and milestone payments related to aldoxorubicin, including potential payments of up to $342.7 million and royalties in the low to mid-teens percentage range for orphan indications[52]. - The company’s asset portfolio is not fully diversified, and the failure of key products could materially affect financial results, as seen with the termination of the iscalimab license agreement[171]. Milestone and Royalty Strategy - XOMA's strategy includes acquiring additional milestone and royalty revenue streams, having closed seven transactions since the beginning of 2025, adding approximately $11.7 million in cash and cash equivalents[37]. - The company has added 22 milestone and royalty interests to its portfolio since the beginning of 2025[38]. - The company is eligible for up to $54.0 million in potential milestone payments related to OJEMDA, following an upfront payment of $13.5 million for the acquisition of rights[48]. - The company is eligible to receive milestone payments of up to $20.8 million related to TAK-079 (mezagitamab) and a 4% royalty on future sales of all products under the Takeda Collaboration Agreement[83]. - The company has earned three milestone payments totaling $12.0 million under the Rezolute License Agreement for the development of ersodetug (RZ358) as of May 2025[87]. Regulatory and Market Risks - Regulatory approvals for development-stage product candidates are subject to extensive requirements, and unknown problems may lead to restrictions or market withdrawal, negatively impacting potential royalty payments[129]. - The biopharmaceutical industry is highly competitive, and products generating royalties may become obsolete due to new developments or regulatory changes, affecting revenue[140]. - The FDA and other regulatory agencies have substantial discretion in the approval process, which can lead to delays or rejections of product applications[184]. - The company may face material impacts on royalties if royalty providers are unable to obtain or transfer Rare Pediatric Disease Priority Review Vouchers[207]. - The introduction of generic drugs could significantly reduce sales of branded products, adversely affecting potential milestones and royalties[210]. Competition and Market Position - The company faces competition from other entities seeking to aggregate royalties or provide financing to biotechnology and pharmaceutical companies, which may impact its market position[103]. - The competition for acquiring or in-licensing promising products is intense, with larger multinational pharmaceutical companies having more resources, which may lead to higher acquisition costs[175]. - There is no assurance that future asset acquisitions will yield returns or risk profiles similar to the current portfolio, and profitability is uncertain[173]. - The company may face reduced opportunities in the royalty acquisition market due to changes in competition and industry growth rates[159]. Intellectual Property and Legal Risks - The company holds a number of patents and applications in the U.S. and internationally, with expected expiration dates ranging from 2028 to 2043 for various programs[108]. - The validity and enforceability of issued patents are uncertain, and U.S. patents may be subject to post-grant review procedures that could result in the loss of valuable patent rights[229]. - Potential infringement on the intellectual property rights of others could lead to costly litigation and reduced royalties[233]. - Reliance on trade secrets and confidentiality agreements is crucial for maintaining competitive advantage, but breaches may occur[232]. Business Development and Future Growth - The company plans to continue business development efforts to acquire potential milestone and royalty streams or companies, with future growth depending on the availability of suitable products at acceptable prices and terms[175]. - The company is actively reviewing acquisition opportunities in various stages, which may involve significant competition and costs[119]. - The company may seek to expand its market opportunity by acquiring securities from other biopharmaceutical companies, which may carry risks and uncertainties[124]. - The company’s royalty aggregator strategy relies heavily on the successful development and commercialization of clinical-stage product candidates[126].

Corporate Updates - XOMA Royalty Corporation updated its corporate presentation on March 2, 2026, which includes key financial results and operational insights[5]. - The updated presentation is referenced in Item 2.02, indicating significant financial data is available on pages 10-11 of the document[4]. Stock Information - The company is listed on the Nasdaq Global Market under the ticker symbol XOMA, with a par value of $0.0075 per share for common stock[2]. Financial Reporting - The company has not elected to use the extended transition period for complying with new financial accounting standards, indicating a commitment to timely reporting[3]. - The report does not include specific financial metrics or performance indicators, suggesting further details may be found in the attached corporate presentation[6].

Company Overview - XOMA Royalty Corporation (XOMA) generates financial income through royalties, milestones, and other fees from programs operated by other biotechnology and pharmaceutical companies [1]. Financial Structure - The cash inflows received by XOMA are derived from various programs run by other biotech or pharmaceutical firms, indicating a reliance on external partnerships for revenue generation [1].

Financial Performance - In Q3 2025, XOMA Royalty reported income of $9.4 million, up from $7.2 million in Q3 2024, and year-to-date income of $38.4 million compared to $19.8 million in the same period last year [10]. - The company recorded net income of $14.1 million for Q3 2025, a significant improvement from a net loss of $17.2 million in Q3 2024 [17]. - Total income and revenues for the three months ended September 30, 2025, were $9,351,000, an increase of 30% compared to $7,197,000 for the same period in 2024 [25]. - Net income for the three months ended September 30, 2025, was $14,100,000, compared to a net loss of $17,243,000 for the same period in 2024 [25]. - Basic net income per share available to common stockholders for the three months ended September 30, 2025, was $0.74, compared to a loss of $1.59 for the same period in 2024 [25]. - Net income for the nine months ended September 30, 2025, was $25,609, compared to a net loss of $9,853 in the same period of 2024 [29]. Cash and Assets - XOMA Royalty's cash and cash equivalents stood at $130.6 million as of September 30, 2025, including $85.4 million in restricted cash [18]. - Cash and cash equivalents decreased to $45,189,000 as of September 30, 2025, from $101,654,000 as of December 31, 2024 [27]. - Total assets increased to $263,151,000 as of September 30, 2025, compared to $221,277,000 as of December 31, 2024 [27]. - Total liabilities increased to $155,194,000 as of September 30, 2025, from $139,356,000 as of December 31, 2024 [27]. - The total stockholders' equity increased to $87,938,000 as of September 30, 2025, from $61,902,000 as of December 31, 2024 [27]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $130,553, down from $146,816 at the end of the previous year [29]. Expenses - Research and development expenses for the first nine months of 2025 were $1.4 million, a decrease from $2.0 million in the same period of 2024 [11]. - General and administrative expenses for the first nine months of 2025 were $25.7 million, down from $27.5 million in the same period of 2024 [12]. - Research and development expenses for the three months ended September 30, 2025, were $69,000, a significant decrease from $817,000 for the same period in 2024 [25]. - General and administrative expenses for the three months ended September 30, 2025, were $9,734,000, compared to $8,020,000 for the same period in 2024 [25]. Acquisitions and Investments - The company completed acquisitions of Turnstone Biologics and HilleVax, and announced acquisitions of LAVA Therapeutics and Mural Oncology [2]. - XOMA Royalty expects to secure economic interests in two partnered assets through the acquisition of LAVA Therapeutics, including PF-08046052 and JNJ-89853413 [6]. - The company reported gains on acquisitions of $18,004,000 for the three months ended September 30, 2025 [25]. - The company acquired net cash of $46,832 in the HilleVax acquisition and $3,943 in the Turnstone acquisition [29]. Cash Flow and Other Financial Metrics - Net cash provided by operating activities was $8,372, a significant improvement from a cash outflow of $10,845 in the prior year [29]. - The company reported a net cash increase of $24,137 in cash, cash equivalents, and restricted cash during the period, compared to a decrease of $12,734 in the previous year [29]. - Cash paid for interest increased to $11,906 from $9,985 year-over-year [29]. - Payments of consideration under RPAs, AAAs, and CPPAs totaled $8,000, down from $37,000 in the previous year [29]. - The company recognized a gain on the sale of equity securities amounting to $6,999 [29]. - Principal payments on debt were $10,598, compared to $6,902 in the prior year [29]. - The company reported an adjustment for income from EIR method purchased receivables of $627, compared to a negative adjustment of $9,985 in the previous year [29]. Future Outlook - XOMA Royalty anticipates several clinical readouts in the coming months that could significantly impact its business trajectory [5].

Financial Performance - Net income for the three and nine months ended September 30, 2025, was $14.1 million and $25.6 million, respectively[302]. - Total income and revenues for the three months ended September 30, 2025, were $9,351,000, an increase of 30% compared to $7,197,000 in 2024; for the nine months ended September 30, 2025, total income and revenues were $38,392,000, up 94% from $19,773,000 in 2024[322]. - Income from purchased receivables under the EIR method for the three months ended September 30, 2025, was $6,962,000, a 28% increase from $5,423,000 in 2024; for the nine months, it rose to $19,039,000 from $9,985,000, reflecting a 91% increase[324]. - Total cash receipts from royalties and commercial payments for the nine months ended September 30, 2025, amounted to $30.3 million, up from $18.2 million in 2024, reflecting a growth of 66.5%[343]. Acquisitions and Milestone Payments - The acquisition of HilleVax in September 2025 totaled $105.3 million, including a $17.9 million bargain purchase gain[303][304]. - The acquisition of Turnstone in August 2025 amounted to $9.6 million, with a recognized bargain purchase gain of $1.8 million[305]. - A milestone payment of $5.0 million was earned from Rezolute in May 2025 for the completion of its Phase 3 trial[312]. - The company recognized a $3.0 million milestone payment from Takeda for the first patient dosed in the Phase 3 trial of mezagitamab[317]. - The company is eligible to receive up to $270 million in payments from the Kinnate acquisition, with distributions to CVR holders already initiated[315]. - The company has potential future milestone payments totaling $12.1 million that are contingent upon the achievement of specific developmental milestones by licensees[355]. Expenses and Financial Position - Research and development expenses for the three months ended September 30, 2025, were $817,000, a decrease of 88% from $1,431,000 in 2024; for the nine months, R&D expenses were $2,011,000, down 29% from $2,580,000 in 2024[329]. - General and administrative expenses for the three months ended September 30, 2025, were $9,734,000, an increase of 21% from $8,020,000 in 2024; for the nine months, G&A expenses decreased to $25,682,000 from $27,485,000, a decline of 7%[331]. - Total interest expense for the three months ended September 30, 2025, was $3,301,000, a decrease of 6% from $3,493,000 in 2024; for the nine months, it decreased to $10,004,000 from $10,446,000, a decline of 4%[333]. - Cash and cash equivalents as of September 30, 2025, were $45,189,000, a decrease of 56% from $101,654,000 as of December 31, 2024; working capital decreased to $82,402,000 from $101,230,000, a decline of 18%[339]. - As of September 30, 2025, the company had an accumulated deficit of $1.2 billion and $45.2 million in unrestricted cash and cash equivalents[343]. Financing Activities - The company entered into a new ATM Agreement allowing for the sale of up to $75.0 million in common stock[310]. - The company paid BioInvent $20.0 million to acquire remaining rights to milestone payments and royalties, with an additional $10.0 million contingent upon FDA approval of mezagitamab[314]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $8.4 million, a significant increase of $19.2 million compared to a net cash used of $(10.8) million in 2024[340]. - Net cash provided by investing activities was $31.5 million, primarily driven by the HilleVax acquisition with net cash acquired of $46.8 million and the sale of equity securities for $7.0 million[341]. - Net cash used in financing activities totaled $15.8 million, mainly due to principal repayments on the Blue Owl Loan of $10.6 million and dividend payments of $4.1 million[342]. Stock and Dividends - The stock repurchase program authorized by the Board allows for the purchase of up to $50.0 million of common stock, with $2.4 million repurchased as of September 30, 2025[350]. - Holders of Series A Preferred Stock are entitled to cumulative cash dividends at a rate of 8.625%, while Series B Preferred Stock dividends are at 8.375%[356]. - The company plans to continue making scheduled dividend payments using existing capital resources[356]. Future Obligations - The company expects to incur approximately $41.7 million in undiscounted costs under the Boston Lease acquired in the HilleVax acquisition, which expires on December 31, 2032[349]. - There were no credit losses on purchased receivables for the three or nine months ended September 30, 2025; credit losses for the nine months ended September 30, 2024, were $23,000,000[332].

Core Viewpoint - TECNO and DXOMARK have launched the world's first fully automated imaging laboratory in Chongqing, setting a new scientific benchmark for smartphone imaging through advanced automation technology [1] Group 1: Company Collaboration - The TECNO DXOMARK Joint Imaging Laboratory integrates DXOMARK Camera V6's advanced automated testing solutions [1] - This collaboration aims to elevate smartphone imaging innovation and performance to new heights by combining scientific expertise with advanced laboratory capabilities [1] Group 2: Technological Impact - The automated technology accelerates the global transition towards more inclusive, precise, and standardized photography technology [1] - The implementation of Camera V6 standards in this laboratory is expected to fundamentally change the objective assessment of imaging quality [1] Group 3: Innovation Acceleration - The partnership significantly speeds up TECNO's innovation process, providing users with a more authentic and inclusive experience [1]

Exhibit 99.1 XOMA Royalty Reports Second Quarter and Year to Date 2025 Financial Results and Highlights Recent Business Achievements Business development: Purchased mezagitamab royalty and milestone rights held by BioInvent International and will secure royalty economic interests in two early-stage partnered assets through XOMA Royalty's recently announced acquisition of LAVA Therapeutics. Company acquisitions: Announced XOMA Royalty's acquisitions of Turnstone Biologics, LAVA Therapeutics, and HilleVax; ac ...

Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from __________to__________ Commission File Number: 001-39801 XOMA Royalty Corporation UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the quarterly period ended June 30, 2025 OR Securities registered pursuant to Section 12(b) of the Act: | Title of each class: | T ...

Financial Performance - For the three months ended March 31, 2025, the company generated net income of $2.4 million, compared to a net loss of $8.6 million for the same period in 2024[245]. - Total income and revenues for the three months ended March 31, 2025, were $15.9 million, an increase of $14.4 million from $1.5 million in the same period in 2024[252]. - The company earned a $3.0 million milestone payment from Takeda for the first patient dosed in its Phase 3 clinical trial of mezagitamab (TAK-079)[248]. - Income from purchased receivables under the EIR method for the three months ended March 31, 2025, included estimated income of $5.8 million related to sales of VABYSMO[253]. - Total other (expense) income, net for Q1 2025 was $(95,000), a decrease of $2.1 million compared to $1.96 million in Q1 2024[262]. - Investment income decreased by $0.8 million to $0.9 million in Q1 2025 due to decreased balances and market interest rates[262]. - Net cash provided by operating activities was $2.2 million in Q1 2025, an increase of $7.1 million compared to $(4.9 million) in Q1 2024[265]. - Total cash receipts for Q1 2025 were $17.96 million, up from $9.77 million in Q1 2024, driven by increased royalties from VABYSMO[267]. Expenses - R&D expenses for the three months ended March 31, 2025, were $1.3 million, a significant increase from $33 thousand in the same period in 2024, primarily due to licensing fees related to the Takeda collaboration[258]. - G&A expenses decreased to $8.1 million for the three months ended March 31, 2025, from $8.5 million in the same period in 2024, mainly due to reduced stock compensation costs[259]. - Interest expense for the three months ended March 31, 2025, was $3.5 million, slightly lower than $3.6 million in the same period in 2024[261]. - The company expects to incur $0.4 million in incremental costs related to its new headquarters lease in Emeryville, California[272]. Cash Position - Cash and cash equivalents as of March 31, 2025, were $90.3 million, down $11.4 million from $101.7 million as of December 31, 2024[264]. - The outstanding principal balance under the Blue Owl Loan Agreement was $113.6 million as of March 31, 2025, with an annual interest rate of 9.875%[274]. Future Expectations - The company expects to receive up to $270 million in upfront and milestone payments from the Kinnate acquisition, with future royalty payments ranging from low single digits to mid-teens on commercial sales[246]. - The company expects future revenue and income to be driven by milestone and royalty payments associated with its portfolio of therapeutic candidates[244]. Accumulated Deficit and Tax Benefits - The company had an accumulated deficit of $1.2 billion as of March 31, 2025, consistent with the previous year[245]. - The company has $5.9 million in gross unrecognized tax benefits, which will not impact the effective tax rate due to a full valuation allowance[263]. Stock Repurchase Program - The stock repurchase program authorized up to $50 million, with $0.6 million spent to repurchase 26,488 shares as of March 31, 2025[273].

Financial Performance - XOMA Royalty reported total income and revenues of $15.9 million for Q1 2025, a significant increase from $1.5 million in Q1 2024[8] - The company achieved a net income of $2.4 million in Q1 2025, compared to a net loss of $8.6 million in Q1 2024[14] - Total income and revenues for Q1 2025 reached $15,912,000, a significant increase from $1,490,000 in Q1 2024, representing a growth of approximately 964%[22] - Net income for Q1 2025 was $2,367,000, compared to a net loss of $8,595,000 in Q1 2024, marking a turnaround in profitability[22] - Basic net income per share for Q1 2025 was $0.06, compared to a loss of $0.86 per share in Q1 2024[22] Cash Flow and Liquidity - Cash receipts for Q1 2025 totaled $18.0 million, including $13.4 million from royalties and commercial payments, and $4.6 million from milestones and fees[15] - The company had cash and cash equivalents of $95.0 million as of March 31, 2025, down from $106.4 million at the end of 2024[15] - Cash and cash equivalents decreased to $90,265,000 as of March 31, 2025, down from $101,654,000 at the end of 2024[24] - Net cash provided by operating activities for Q1 2025 was $2,198,000, a recovery from a cash outflow of $4,947,000 in Q1 2024[26] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $11,389,000 for Q1 2025, compared to a decrease of $17,149,000 in Q1 2024[26] Expenses - Research and Development expenses rose to $1.3 million in Q1 2025, up from $33,000 in Q1 2024, primarily due to licensing fees related to Takeda's Phase 3 milestone[9] - General and Administrative expenses decreased to $8.1 million in Q1 2025 from $8.5 million in Q1 2024, mainly due to lower stock compensation costs[10] - Research and development expenses increased to $1,293,000 in Q1 2025 from $33,000 in Q1 2024, indicating a focus on innovation and product development[22] - Payments of consideration under RPAs, AAAs, and CPPAs amounted to $8,000,000 in Q1 2025, compared to $15,000,000 in Q1 2024, indicating a reduction in cash outflows for these agreements[26] Strategic Activities - XOMA Royalty acquired a royalty interest in Castle Creek Biosciences' D-Fi (FCX-007), contributing $5 million to a $75 million financing transaction[4] - The company received a $4.0 million milestone payment related to Day One Biopharmaceuticals' Marketing Authorization Application filing with the EMA[8] - XOMA Royalty initiated share repurchase activity, deploying $0.5 million to repurchase 25,828 shares of common stock[15] - XOMA Royalty anticipates continued growth in cash flow generation from accelerating royalty receipts and a robust pipeline of partnered programs[3] Balance Sheet - Total assets decreased to $212,750,000 as of March 31, 2025, compared to $221,277,000 at the end of 2024[24] - Total liabilities decreased to $128,121,000 as of March 31, 2025, down from $139,356,000 at the end of 2024, reflecting improved financial health[24]