XOMA Royalty Corporation (XOMA)
NASDAQ:XOMA
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XOMA Royalty Corporation
(NASDAQ:XOMA)
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Rating:68Neutral
Price Target:
$46.00
▲(15.84% Upside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by improving financial performance (return to strong profitability and positive/free cash flow, but with meaningful volatility and leverage risk). Technicals add support with a positive trend and healthy momentum. Corporate events are a strong positive due to the pending acquisition and related capital structure actions, while valuation is roughly neutral with a moderate P/E and no dividend support.
Positive Factors
Royalty-based business model
A royalty and milestone model transfers commercialization and manufacturing risk to third parties while delivering recurring, low-capex cashflows. This structure supports durable revenue streams, scalable portfolio growth through acquisitions, and predictable long-term cash generation if underlying drugs maintain sales.
Negative Factors
Elevated leverage
Sustained debt levels above equity constrain financial flexibility, raise interest obligations, and amplify downside in periods with weaker royalty receipts. High leverage may limit capacity to buy new assets, fund opportunistic growth, or absorb missed milestones without additional financing or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty-based business model
A royalty and milestone model transfers commercialization and manufacturing risk to third parties while delivering recurring, low-capex cashflows. This structure supports durable revenue streams, scalable portfolio growth through acquisitions, and predictable long-term cash generation if underlying drugs maintain sales.
Read all positive factors
XOMA Royalty Corporation (XOMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$742.51M
Dividend YieldN/A
Average Volume (3M)53.64K
Price to Earnings (P/E)25.5
Beta (1Y)1.43
Revenue Growth13.16%
EPS GrowthN/A
CountryUS
Employees13
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)1.65
Shares Outstanding17,678,741
10 Day Avg. Volume49,949
30 Day Avg. Volume53,642
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)4.60
Price to Sales (P/S)9.17
P/FCF Ratio166.54
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue15.28
Enterprise Value/Gross Profit16.38
Enterprise Value/Ebitda11.03
Forecast
1Y Price Target
$39.00Price Target Upside-1.79% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.79
Revenue Forecast (FY)$60.73M
XOMA Royalty Corporation Business Overview & Revenue Model
Company Description
XOMA Royalty Corp. functions as a specialist in aggregating biotechnology royalties, with its operations extending across Europe, the United States, and the Asia Pacific region. The company is dedicated to fostering advancements in human health by...
How the Company Makes Money
XOMA makes money primarily by owning contractual economic interests in biopharmaceutical products and IP that are commercialized or developed by other companies. Its key revenue streams include: (1) Royalty income: XOMA receives a percentage of ne...
XOMA Royalty Corporation Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial story: substantial year-over-year revenue and royalty growth, a large and diversified expansion of the royalty portfolio, positive GAAP net income and operating cash flow, meaningful liquidity ($≈83M), and shareholder returns via buybacks. Offsetting risks include recent Phase III clinical setbacks, ongoing litigation with uncertain outcomes and associated costs, some reliance on non-cash GAAP gains, and interest and cash outflows that reduced unrestricted cash modestly. Overall, the company portrays momentum toward an inflection point where royalties may cover operating costs, but execution risks from development-stage assets and litigation remain.Positive Updates
Significant Revenue and Royalty Growth
Full year GAAP income and revenue grew to $52.1M from $28.5M in 2024 (≈+82.8%). Total portfolio cash receipts reached $50.5M (+9% YoY) and royalty receipts were $34M, a 68% increase versus 2024.
Negative Updates
Phase III Clinical Setbacks
Two Phase III programs in the portfolio failed to meet primary statistical thresholds: Rezolute's congenital hyperinsulinism program and Gossamer Bio's seralutinib for pulmonary arterial hypertension, introducing near-term risk and uncertainty for related royalty potential.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Revenue and Royalty Growth
Full year GAAP income and revenue grew to $52.1M from $28.5M in 2024 (≈+82.8%). Total portfolio cash receipts reached $50.5M (+9% YoY) and royalty receipts were $34M, a 68% increase versus 2024.
Read all positive updates
Company Guidance
Management guided that XOMA is approaching an inflection point where royalties alone could cover core operating costs—potentially reaching breakeven operating cash flows in 2027 and beyond—supported by FY2025 results: GAAP revenue $52.1M (vs $28.5M in 2024), cash receipts $50.5M (+9% YoY) including $34M of royalties (+68% YoY) from 4 programs, ≈$17M of cash milestone payments, and ≈$83M of unrestricted cash. They reiterated a disciplined capital-allocation approach while growing the portfolio (22 assets + 2 platform technologies added in 2025, portfolio >120 assets vs ~60 in 2023; 7 commercial programs; 14 registrational-stage programs) and highlighted near-term 2026 catalysts (Rezolute topline H2 2026; volixibat VISTAS Q2 2026; REC‑4881 FDA engagement H1 2026; AZ TIGIT data through 2026). Capital activity included ~$25M deployed for royalty/milestone rights, $16M of share repurchases retiring ~648,000 shares (~5% at an average $24.75), Blue Owl loan principal down to $112.5M (from $123M) with potential repayment by 2030 if VABYSMO trends continue, and the Takeda revenue‑share deal that could yield low‑/mid‑single‑digit royalties plus up to $853M in milestones across 9 assets.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 | 50.16M | 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
41.10
Positive
34.29
Positive
33.27
Positive
Market Momentum
0.36
Positive
60.86
Neutral
40.59
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 41.83, below the 50-day MA of 41.10, and above the 200-day MA of 33.27, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 40.59 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $742.51M | 25.45 | 30.21% | ― | 13.16% | ― | |
55 Neutral | $1.58B | -10.04 | -40.99% | ― | -73.07% | -2335.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $1.06B | -22.84 | -38.92% | ― | ― | 17.91% | |
46 Neutral | $1.37B | -11.12 | -563.89% | ― | 550.00% | -107.04% | |
45 Neutral | $436.69M | -5.54 | -9999.00% | ― | -1.26% | -23.97% |
* Healthcare Sector Average
XOMA
XOMA Royalty Corporation
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15.78
60.18%
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XOMA Royalty Corporation Corporate Events
Delistings and Listing ChangesDividendsM&A Transactions
XOMA Details Merger Timeline and Preferred Share Redemption
Positive
Jun 12, 2026
On June 12, 2026, XOMA Royalty Corporation said it expects the previously announced acquisition of XOMA Royalty Holdings Corporation by Ligand Pharmaceuticals to close on or about July 14, 2026, pending remaining conditions. In parallel with the m...
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...
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.