| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 63.69 | 23.1% | 33.7% |
| Total Income | 63.69 | 23.1% | 33.7% |
| Expenditure | 55.10 | 60.4% | 40.6% |
| PBT | 64.30 | 365.1% | 473.1% |
| Net Profit | 48.51 | 463.4% | 900.2% |
| OPM | 13.49% | 20.09pp | 4.24pp |
| NPM | 76.16% | 101.96pp | 65.98pp |
| EPS | 2.42 | 461.2% | 868.0% |
Ligand Pharmaceuticals Reports Q2 2026 Financial Results, Driven by 32% Royalty Revenue Growth
06 Aug 2026 · 6 Aug, 4:38 pm
Summary
Ligand Pharmaceuticals reported a strong second quarter of 2026, with total revenues and income reaching $63.7 million, a 34% increase year-over-year, primarily driven by a 32% surge in royalty revenue to $48.0 million. Adjusted net income grew significantly by 59% to $50.8 million, or $2.37 per diluted share. The company also raised the low end of its full-year 2026 adjusted earnings per diluted share guidance to $9.00-$9.50. Management highlighted the strong momentum from key products and strategic advancements, including a $700 million convertible debt financing and the acquisition of XOMA Royalty, which is expected to be immediately accretive.
Key Highlights
- 1
Ligand reported total revenues and income of $63.7 million for the second quarter of 2026, a 34% increase year-over-year.
- 2
Royalty revenue grew by 32% year-over-year to $48.0 million in Q2 2026, driven by strong performance from Filspari, Zelsuvmi, and Ohtuvayre.
- 3
Adjusted net income for the second quarter of 2026 was $50.8 million, or $2.37 per diluted share, representing year-over-year growth of 59% and 48%, respectively.
- 4
For the six months ended June 30, 2026, total revenues and income increased by 24% to $115.4 million, with royalties up 42% to $91.0 million.
- 5
Adjusted net income for the first six months of 2026 was $85.4 million, or $4.00 per diluted share, a 46% and 36% increase year-over-year, respectively.
- 6
The company raised the low end of its 2026 adjusted EPS guidance to $9.00-$9.50.
- 7
Ligand completed a $700 million convertible debt financing at a 0% interest rate and closed the acquisition of XOMA Royalty during the quarter.
Management Comments
Todd Davis
Ligand delivered another strong quarter, with royalty revenue growing 32% year-over-year and continued momentum from Filspari following its FSGS approval by the FDA. During the quarter, we also completed a $700 million convertible debt financing at a 0% interest rate, giving us access to low cost capital while maintaining a disciplined capital structure. Shortly after quarter-end, we closed our acquisition of XOMA Royalty, adding more than 120 commercial, clinical and preclinical-stage assets to our portfolio and further diversifying our royalty base across therapeutic areas, development stages, and partners. This transaction meaningfully strengthens our position as a leading biopharma royalty aggregator and, combined with our broadened portfolio, positions Ligand for a strong second half of 2026 and beyond.
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