RGLD Earnings Miss Estimates in Q3, Shares Rise 4% on Record Revenues

Core Insights - Royal Gold, Inc. (RGLD) reported a 4% increase in shares following the release of third-quarter 2025 results, which showcased record revenues and improved earnings [1] - The company achieved adjusted earnings per share (EPS) of $2.06, up from $1.47 in the same quarter last year, but fell short of the Zacks Consensus Estimate of $2.30 [1][7] - Total revenues reached a record $252 million, reflecting a 30% year-over-year increase, driven by higher average metal prices and increased production from key mines [2][7] Financial Performance - RGLD's stream revenues were $166 million, a 24.8% increase year over year, while royalty revenues rose to $86 million, up 41.5% [2] - The cost of sales for the quarter was $31 million, compared to $27 million in the prior year, with general and administrative expenses remaining flat at $10 million [3] - Adjusted EBITDA was reported at $206 million, marking a 30.5% year-over-year increase, with an adjusted EBITDA margin of 82%, slightly up from 81% in the previous year [3] Cash Position - Net cash from operating activities was $174 million, an increase from $137 million in the prior-year quarter, with cash and cash equivalents at approximately $173 million, down from $195 million at the end of 2024 [4] Recent Developments - On October 20, 2025, RGLD completed the acquisition of Sandstorm Gold Ltd. and Horizon Copper Corp., although their results were not included in the third-quarter financials [5] - Sandstorm reported revenues of $57.5 million for the quarter, while Horizon's revenues were $6 million [5] Stock Performance - Over the past year, Royal Gold's shares have increased by 23.8%, in contrast to the industry's growth of 97.4% [6] Peer Comparisons - Newmont Corporation (NEM) reported adjusted earnings of $1.71 per share, with revenues of $5.52 billion, up 20% year over year [10] - Agnico Eagle Mines Limited (AEM) posted adjusted earnings of $2.16 per share and revenues of $3.06 billion, reflecting a 41.9% year-over-year increase [11] - Kinross Gold Corporation (KGC) registered adjusted earnings of 44 cents per share, with revenues rising 25.8% year over year to $1.80 billion [12]