Royalty Pharma(RPRX) - 2025 Q3 - Quarterly Results

Financial Performance - Royalty Pharma reported Portfolio Receipts of $814 million for Q3 2025, an 11% increase from $735 million in Q3 2024[5]. - Royalty Receipts grew 11% to $811 million in Q3 2025, driven by Voranigo, Tremfya, and the cystic fibrosis franchise[7]. - Adjusted EBITDA for Q3 2025 was $779 million, a 15% increase from $679 million in Q3 2024[5]. - The company reported total income and other revenues of $609 million for Q3 2025, compared to $565 million in Q3 2024, marking an increase of 7.8%[48]. - Consolidated net income attributable to Royalty Pharma plc for Q3 2025 was $288 million, down from $544 million in Q3 2024, representing a decline of 47%[48]. - Portfolio Cash Flow for Q3 2025 was $657 million, up 6% from $617 million in Q3 2024[5]. - Adjusted EBITDA for the quarter was reported at $779 million, an increase from $679 million in the previous year, indicating a strong operational performance[57]. - Net cash provided by operating activities was $703 million for the quarter, slightly down from $704 million year-over-year, with a total of $1.663 billion for the year compared to $2.026 billion last year[54]. Guidance and Projections - The company raised its full year 2025 guidance for Portfolio Receipts to between $3,200 million and $3,250 million, reflecting expected growth of 14% to 16%[4]. - Royalty Pharma's 2025 Portfolio Receipts guidance is projected to be between $3,200 million and $3,250 million, reflecting a year-over-year growth of approximately 14% to 16%[25]. - Operating and professional costs are expected to be around 9% to 9.5% of Portfolio Receipts, with one-time payments of approximately $70 million anticipated in 2025[26]. - Total interest paid in 2025 is expected to be approximately $275 million, with projections for 2026 indicating an increase to around $350 million to $360 million[27]. - The company expects a negligible foreign exchange impact on Portfolio Receipts, assuming current rates remain stable throughout 2025[25]. Capital Management - Capital Deployment in Q3 2025 was $1.0 billion, primarily for new royalty acquisitions and research funding[16]. - Royalty Pharma repurchased approximately 4 million Class A ordinary shares for $152 million in Q3 2025, totaling $1.2 billion in share repurchases for the first nine months of 2025[12]. - The company reported a net cash used in investing activities of $958 million for the quarter, compared to $1.193 billion in the previous year, with significant acquisitions of financial royalty assets totaling $962 million[54]. - Net cash provided by financing activities was $563 million for the quarter, a turnaround from a net cash used of $326 million in the previous year, primarily due to proceeds from long-term debt issuance[54]. - The company reported a total of $1,275 million in proceeds from a revolving credit facility, which was fully repaid in the same period, indicating active management of liquidity[54]. Assets and Liabilities - The company had cash and cash equivalents of $939 million and total debt of $9.2 billion as of September 30, 2025[11]. - Total current and non-current financial royalty assets increased to $16,624 million in Q3 2025 from $15,911 million in Q3 2024, reflecting a growth of 4.5%[51]. - Royalty Pharma's total liabilities increased to $9,726 million in Q3 2025 from $7,880 million in Q3 2024, indicating a rise of 23.3%[51]. - Royalty Pharma's cash and cash equivalents stood at $939 million as of September 30, 2025, slightly up from $929 million a year earlier[51]. - The company ended the period with cash and cash equivalents of $939 million, compared to $950 million at the end of the previous quarter[54]. Strategic Initiatives - The company expects to initiate a Phase 3 trial for daraxonrasib in metastatic pancreatic cancer in Q4 2025, supported by positive initial data[7]. - Royalty Pharma acquired a royalty on Amgen's Imdelltra for up to $950 million and entered into a funding agreement on obexelimab for up to $300 million[7]. - The company made milestone payments totaling $269 million during the year, indicating ongoing investment in development-stage projects[54]. - The company announced the release of Deloitte's report on the biopharma royalty market, highlighting the critical role of royalties in funding biopharma innovation[29]. Cash Flow and Collections - Cash collections from financial royalty assets increased to $882 million in the latest quarter, up from $792 million year-over-year, while total cash collections for the year reached $2.439 billion, compared to $2.206 billion last year[54]. - Portfolio Cash Flow, defined as Adjusted EBITDA minus net interest paid, was $657 million for the quarter, up from $617 million year-over-year, reflecting improved cash generation capabilities[57]. - Distributions to legacy non-controlling interests were $102 million for the quarter, consistent with the previous year, highlighting stable cash outflows to stakeholders[57].