Royalty Pharma Q3 Profit Falls

(RTTNews) - Royalty Pharma plc (RPRX) reported weaker results for the third quarter ended September 30, 2025, as higher operating expenses and increased provisions weighed on profitability, despite a modest rise in revenue.

Net income attributable to Royalty Pharma shareholders fell to $288 million, down from $544 million in the same quarter last year.

Operating income declined to $427 million, compared with $735 million a year earlier, as total operating expenses increased to $182 million , from an operating income of $170 million in the prior-year quarter. The company recorded a $12 million provision for changes in expected cash flows from financial royalty assets compared with $228 million gain last year.

Adjusted EBITDA increased 15% year-on-year to $779 million.

Total revenue edged up to $609 million, from $565 million a year earlier, supported by higher income from financial royalty assets, which rose to $579 million from $533 million.

Royalty Receipts grew 11% to $811 million in the third quarter, primarily driven by Voranigo, Tremfya and the cystic fibrosis franchise. Portfolio Receipts increased by 11% to $814 million.

For the full year, the company now expects Portfolio Receipts to be between $3.2 billion and $3.25 billion, up from the previous outlook of $3.05 billion - $3.15 billion, representing expected growth of 14% to 16%.