Xoma (XOMA) AI Stock Analysis

• Market Cap: $317.75M
• Dividend Yield: N/A
• Average Volume (3M): 53.64K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.33
• Revenue Growth: 118.02%
• EPS Growth: N/A
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.70
• Shares Outstanding: 12,383,103
• 10 Day Avg. Volume: 49,949
• 30 Day Avg. Volume: 53,642
• PEG Ratio: 0.38
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 10.79
• P/FCF Ratio: -22.33
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: 8.13
• Enterprise Value/Ebitda: 34.46
• 1Y Price Target: $71.00
• Price Target Upside: 176.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $30.00 ▲(16.91% Upside)

Overall score reflects mixed financial performance (strong margins but elevated leverage and weak cash-flow trends) as the primary driver, with neutral technical signals and a high P/E weighing on the outlook; positive corporate developments provide a modest offset.

Positive Factors

High margins

Sustained very high gross and improved net margins indicate a capital-light, licensing/royalty-driven business mix with low direct costs. This margin profile supports durable profitability, funds reinvestment or M&A, and underpins a higher return on equity over multiple quarters.

Collaboration/licensing revenue model

A revenue model centered on collaborations, milestones and royalties creates non-dilutive, partner-funded development and predictable long-term royalty streams. Structural partner funding reduces capital needs for R&D and shifts development risk, supporting sustainable cash inflows over time.

Portfolio expansion via acquisitions

Active acquisitions to build a diversified royalty portfolio materially shift company exposure from single assets to a basket of royalties. This structural diversification can smooth revenue volatility, increase recurring income potential, and strengthen long-term cash generation if integration succeeds.

Negative Factors

High leverage

A debt-to-equity ratio of 1.50 indicates elevated leverage for a biotech/royalty vehicle, reducing financial flexibility. Higher interest and principal obligations can constrain capital allocation, increase refinancing risk in stress, and force asset monetization or equity issuance during downturns.

Weak cash conversion

Sharp negative FCF growth and an OCF-to-net-income ratio of 0.20 show earnings are not converting into cash reliably. Over months, poor cash conversion undermines the company’s ability to self-fund R&D, meet debt service, or support acquisitions without external financing or asset sales.

Modest revenue growth

Top-line expansion is limited at under 5% TTM, which constrains scalability even with high margins. Without stronger revenue growth or realized milestone/royalty flows from acquisitions, sustaining margin-driven profits and funding future pipeline investments could require additional capital or deal-dependent outcomes.

Xoma 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 associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. The company focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners. It has a portfolio with approximately 70 assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

How the Company Makes Money

Xoma generates revenue primarily through collaborations and licensing agreements with larger pharmaceutical companies, which pay for the rights to develop and commercialize Xoma's proprietary products. The company's revenue model includes upfront payments, milestone payments tied to the achievement of specific development or regulatory goals, and royalties on sales of partnered products. Additionally, Xoma may engage in research and development services for partners, further contributing to its income. Significant partnerships with established pharmaceutical firms enhance Xoma's revenue potential and enable it to access resources and expertise necessary for advancing its product pipeline.

Xoma Financial Statement Overview

Summary

Mixed fundamentals: strong profitability (TTM gross margin 94.89%, net margin 47.48%) and modest revenue growth (4.79%), offset by higher leverage (debt-to-equity 1.50) and weak cash generation signals (free cash flow growth -278.23% and low operating cash flow to net income of 0.20).

Income Statement

Xoma's income statement shows a strong gross profit margin of 94.89% in the TTM, indicating efficient cost management. The net profit margin has improved significantly to 47.48% from negative figures in previous years, reflecting a turnaround in profitability. Revenue growth is modest at 4.79% TTM, but the company has shown resilience with positive growth after previous declines. However, EBIT and EBITDA margins have fluctuated, indicating some operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.50, suggesting significant leverage which could pose financial risks. However, the return on equity has improved to 22.30% TTM, showing effective use of equity to generate profits. The equity ratio stands at 41.02%, indicating a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth at -278.23% TTM, highlighting potential liquidity issues. The operating cash flow to net income ratio is low at 0.20, suggesting that cash generation from operations is not keeping pace with reported earnings. However, the free cash flow to net income ratio is nearly 1, indicating that free cash flow aligns closely with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.11M	28.49M	4.76M	6.03M	38.16M	29.39M
Gross Profit	44.16M	28.28M	4.62M	5.75M	37.99M	29.21M
EBITDA	10.42M	-5.42M	-22.56M	-16.84M	16.52M	13.81M
Net Income	19.34M	-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet
Total Assets	263.15M	221.28M	234.30M	140.38M	166.56M	125.28M
Cash, Cash Equivalents and Short-Term Investments	92.00M	105.18M	153.45M	58.16M	94.10M	84.22M
Total Debt	131.91M	119.20M	124.45M	34.00K	229.00K	21.26M
Total Liabilities	155.19M	139.36M	145.58M	16.37M	24.69M	38.86M
Stockholders Equity	107.96M	81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow
Free Cash Flow	5.39M	-13.77M	-18.18M	-28.13M	-3.82M	8.88M
Operating Cash Flow	5.39M	-13.75M	-18.16M	-12.88M	22.68M	10.09M
Investing Cash Flow	-4.89M	-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
Financing Cash Flow	-16.76M	-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XOMA, the sentiment is Negative. The current price of 25.66 is below the 20-day moving average (MA) of 27.01, below the 50-day MA of 28.15, and below the 200-day MA of 29.38, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XOMA.

Xoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLUE	75 Outperform	$1.56B	67.19	9.28%	―	1112.27%	―
RAPT	60 Neutral	$1.60B	-5.21	-85.37%	―	―	50.23%
CRVS	59 Neutral	$1.73B	-38.70	-35.82%	―	―	79.27%
XOMA	55 Neutral	$317.75M	34.42	16.22%	―	118.02%	―
OCGN	54 Neutral	$475.44M	-6.69	-289.93%	―	14.26%	-23.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INBX	49 Neutral	$1.11B	―	-144.07%	―	―	―

Xoma Corporate Events

XOMA Royalty Appoints New Chief Financial Officer

XOMA Royalty Corporation announced a leadership transition in its finance organization, effective January 12, 2026, with the appointment of 41-year-old industry veteran Jeffrey Trigilio as Chief Financial Officer, succeeding long-serving finance chief Thomas Burns, who stepped down on the same date and formally ended his employment on January 15, 2026. Trigilio, who brings senior financial and operational experience from Obsidian Therapeutics, Cullinan Therapeutics, and other biotech roles and investment banking, has entered into an employment agreement that aligns his compensation and performance-based equity incentives with XOMA Royalty’s stock performance and long-term growth, while Burns departs with severance, accelerated vesting of certain performance stock units, and a short-term consulting role to support a smooth transition; the move underscores XOMA Royalty’s effort to reinforce its financial leadership as it pursues further expansion of its royalty portfolio in the biotech sector.

The most recent analyst rating on (XOMA) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

XOMA Highlights Royalty Growth Strategy in Updated Presentation

On January 12, 2026, XOMA Royalty Corporation released an updated corporate presentation outlining its differentiated royalty-aggregation business model, current capitalization and growing portfolio of biotechnology-related royalty and milestone assets. The presentation highlighted a 2025 “year in review” marked by multiple royalty acquisitions, out-licensing deals, non-dilutive capital arrangements and significant expected tax benefits, alongside more than $140 million in milestones received since 2017 and over $2 billion in potential future milestones tied to its pipeline. Management emphasized a path to sustained profitability driven by a compounding effect of increasing royalty streams, low operating expenses and a relatively low share count, and pointed to 2026 as a catalyst-rich year, with several key regulatory decisions, late-stage data readouts and product launches in partnered programs that could materially influence future cash flows and enterprise value for shareholders.

The most recent analyst rating on (XOMA) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

Xoma Completes Acquisition of Mural Oncology

On December 5, 2025, XOMA Royalty Corporation completed its acquisition of Mural Oncology plc, following the Irish High Court’s sanctioning of the scheme of arrangement. Mural’s shareholders received $2.035 per share, and Mural’s shares were delisted from Nasdaq. This acquisition aligns with XOMA’s strategy to expand its portfolio of royalty rights in the biotech sector, potentially enhancing its market position and offering new opportunities for stakeholders.

The most recent analyst rating on (XOMA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

XOMA Completes Acquisition of LAVA Therapeutics

XOMA Royalty Corporation, a company involved in royalty monetization, entered into a share purchase agreement with LAVA Therapeutics N.V., a Dutch company, on August 3, 2025. On November 21, 2025, XOMA announced the expiration of the Subsequent Offering Period and the completion of the Post-Offer Reorganization, which resulted in LAVA shareholders receiving cash and contingent value rights for their shares, marking a significant step in XOMA’s acquisition strategy.

The most recent analyst rating on (XOMA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.