XOMA Royalty Corporation (XOMA)
NASDAQ:XOMA
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XOMA Royalty Corporation
(NASDAQ:XOMA)
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Rating:67Neutral
Price Target:
$45.00
▲(13.32% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by improving financial performance (return to profitability and positive, strengthening cash flow) but tempered by leverage and historical volatility. Technicals are notably strong with price above major moving averages and positive MACD. Valuation is moderate at a ~20.9 P/E with no dividend yield data, while corporate events add support via the announced acquisition and related governance actions.
Positive Factors
Improved Cash Generation
XOMA’s operating and free cash flow turning positive in 2025 and strengthening in the trailing twelve months is a durable improvement. Positive cash generation supports organic reinvestment, bolt-on royalty acquisitions, share repurchases and debt servicing, increasing strategic optionality versus prior negative-cash years.
Negative Factors
Leverage
Leverage with debt exceeding equity materially constrains financial flexibility. Higher debt amplifies downside in revenue stress, increases interest costs, and limits the company’s ability to pursue opportunistic acquisitions or withstand prolonged royalty shortfalls without dilutive financing or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
XOMA’s operating and free cash flow turning positive in 2025 and strengthening in the trailing twelve months is a durable improvement. Positive cash generation supports organic reinvestment, bolt-on royalty acquisitions, share repurchases and debt servicing, increasing strategic optionality versus prior negative-cash years.
Read all positive factors
XOMA Royalty Corporation (XOMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$522.33M
Dividend YieldN/A
Average Volume (3M)53.64K
Price to Earnings (P/E)20.9
Beta (1Y)1.45
Revenue Growth13.16%
EPS GrowthN/A
CountryUS
Employees13
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)1.65
Shares Outstanding12,541,030
10 Day Avg. Volume49,949
30 Day Avg. Volume53,642
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)4.60
Price to Sales (P/S)9.17
P/FCF Ratio166.54
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue15.25
Enterprise Value/Gross Profit16.35
Enterprise Value/Ebitda13.20
Forecast
1Y Price Target
$42.67Price Target Upside7.45% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.12
Revenue Forecast (FY)$68.55M
XOMA Royalty Corporation Business Overview & Revenue Model
Company Description
XOMA Royalty Corp. operates as a biotechnology royalty aggregator in Europe, the United States, and the Asia Pacific. The company engages in helping biotech companies for enhancing human health. It acquires the potential future economics associate...
How the Company Makes Money
XOMA makes money primarily by owning contractual economic interests in biopharmaceutical products and IP that are commercialized or developed by other companies. Its key revenue streams include: (1) Royalty income: XOMA receives a percentage of ne...
XOMA Royalty Corporation Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.23M | 52.15M | 28.49M | 4.76M | 6.03M | 38.16M |
| Gross Profit | 33.80M | 49.18M | 28.28M | 4.62M | 5.75M | 37.99M |
| EBITDA | 41.85M | 47.82M | -5.42M | -22.56M | -16.84M | 16.52M |
| Net Income | 31.51M | 31.71M | -13.82M | -40.83M | -17.10M | 15.80M |
Balance Sheet | ||||||
| Total Assets | 271.86M | 272.70M | 221.28M | 234.30M | 140.38M | 166.56M |
| Cash, Cash Equivalents and Short-Term Investments | 94.96M | 82.91M | 105.18M | 153.45M | 58.16M | 94.10M |
| Total Debt | 124.73M | 131.56M | 119.20M | 124.45M | 34.00K | 229.00K |
| Total Liabilities | 158.96M | 168.74M | 139.36M | 145.58M | 16.37M | 24.69M |
| Stockholders Equity | 112.89M | 103.96M | 81.92M | 88.72M | 124.01M | 141.88M |
Cash Flow | ||||||
| Free Cash Flow | 6.63M | 2.87M | -13.77M | -18.18M | -28.13M | -3.82M |
| Operating Cash Flow | 6.63M | 2.87M | -13.75M | -18.16M | -12.88M | 22.68M |
| Investing Cash Flow | 64.13M | 50.89M | -28.26M | -711.00K | -20.22M | -26.50M |
| Financing Cash Flow | -27.05M | -26.46M | -11.13M | 120.59M | -4.45M | 12.84M |
XOMA Royalty Corporation Technical Analysis
Positive
39.71
Price Trends
36.84
Positive
31.52
Positive
32.30
Positive
Market Momentum
1.28
Positive
63.70
Neutral
43.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XOMA, the sentiment is Positive. The current price of 39.71 is below the 20-day moving average (MA) of 41.55, above the 50-day MA of 36.84, and above the 200-day MA of 32.30, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 43.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XOMA.
XOMA Royalty Corporation Risk Analysis
XOMA Royalty Corporation disclosed 3 risk factors in its most recent earnings report. XOMA Royalty Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
XOMA Royalty Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $522.33M | 20.89 | 30.21% | ― | 13.16% | ― | |
55 Neutral | $1.59B | -6.06 | -40.99% | ― | -73.07% | -2335.85% | |
54 Neutral | $1.49B | -7.83 | -563.89% | ― | 550.00% | -107.04% | |
52 Neutral | $1.06B | -24.04 | -38.92% | ― | ― | 17.91% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $453.62M | -7.56 | -9999.00% | ― | -1.26% | -23.97% |
* Healthcare Sector Average
XOMA
XOMA Royalty Corporation
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XOMA Royalty Corporation Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
XOMA Royalty Advances Merger Plans and Governance Changes
Positive
May 22, 2026
On May 21, 2026, XOMA Royalty Corporation held its 2026 Annual Meeting of Stockholders, where shareholders approved amendments to the 2010 Long Term Incentive and Stock Award Plan, adding 425,000 shares and extending its term to March 16, 2036, an...
M&A TransactionsRegulatory Filings and Compliance
XOMA Royalty amends merger agreement with Ligand Pharmaceuticals
Neutral
May 18, 2026
On April 27, 2026, XOMA Royalty Corporation entered into a merger agreement under which Flex Merger Sub, a wholly owned subsidiary of Ligand Pharmaceuticals, will merge with a newly formed Nevada entity, XOMA Royalty Holdings Corporation, created ...
Business Operations and StrategyLegal ProceedingsM&A Transactions
XOMA Royalty to be Acquired by Ligand Pharmaceuticals
Positive
Apr 27, 2026
On April 27, 2026, XOMA Royalty agreed to be acquired by fellow biotech royalty aggregator Ligand Pharmaceuticals for $39 per share in cash, valuing the target at about $739 million and reflecting a roughly 14% premium to XOMA Royalty’s 30-d...
Business Operations and StrategyStock BuybackFinancial Disclosures
XOMA Royalty Reports Strong 2025 Results and Growth
Positive
Mar 18, 2026
On March 18, 2026, XOMA Royalty reported its fourth-quarter and full-year 2025 results, posting $50.5 million in cash receipts, including $33.6 million in royalties and $16.9 million in milestones, a 9% increase in total receipts and a 68% jump in...
Business Operations and StrategyStock BuybackFinancial DisclosuresLegal Proceedings
XOMA Highlights Royalty Aggregation Strategy in Updated Presentation
Positive
Mar 2, 2026
On March 2, 2026, XOMA Royalty Corporation released an updated corporate presentation that highlights its differentiated position as a biotech royalty aggregator focused on smaller, early- to mid-stage clinical assets. The presentation underscores...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.