| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 78.75 | 23.6% | 31.8% |
| Total Income | 78.75 | 23.6% | 31.8% |
| Expenditure | 94.50 | 71.5% | 56.1% |
| PBT | -44.09 | 168.6% | 131.2% |
| Net Profit | -28.49 | 158.7% | 124.3% |
| OPM | -20.01% | 33.50pp | 67.59pp |
| NPM | -36.17% | 112.33pp | 136.17pp |
| EPS | -1.43 | 159.1% | 123.9% |
Ligand Reports Q3 2026 Results: Royalty Revenue Up 51% to $70.3M, Raises Full-Year EPS Guidance
29 Oct 2026 · 2d ago, 4:47 pm
Summary
Ligand Pharmaceuticals reported strong third-quarter performance with royalty revenue surging 51% year-over-year to $70.3 million, bolstered by contributions from the XOMA portfolio and key commercial assets. While total revenues and income saw a reported decrease of 32% to $78.7 million, this was primarily due to the exclusion of significant divestiture-related income from the prior year; on a comparable basis, total revenues and income increased by 26%. Adjusted net income for the quarter was $57.5 million, a 10% decrease year-over-year, impacted by prior-year income and increased administrative expenses. The company raised its full-year 2026 adjusted diluted EPS guidance to $9.50-$9.75 and reaffirmed revenue guidance, reflecting confidence in its royalty aggregation strategy.
Key Highlights
- 1
Third-quarter royalty revenue increased by 51% year-over-year to $70.3 million, driven by the XOMA portfolio and continued momentum in key royalty assets.
- 2
Total revenues and income for the third quarter of 2026 were $78.7 million, a decrease of 32% compared to the prior-year period which included significant divestiture-related income.
- 3
Excluding the prior-year Pelthos divestiture-related income, total revenues and income increased by 26% year-over-year for the third quarter.
- 4
Adjusted net income for the third quarter decreased by 10% to $57.5 million, or $2.67 per diluted share, compared to $63.8 million, or $3.09 per diluted share, in the prior year.
- 5
Year-to-date royalty revenue increased by 46% to $161.3 million, accounting for 83% of total revenues and income.
- 6
Ligand is raising its full-year 2026 adjusted diluted EPS guidance to a range of $9.50 to $9.75, from the previous $9.00 to $9.50.
- 7
The company completed the acquisition of XOMA Royalty in July 2026, significantly expanding its royalty portfolio to over 200 assets.
Management Comments
Todd Davis
Ligand delivered another strong quarter, with royalty revenue growing 51% year-over-year, driven by contribution from the XOMA portfolio and continued commercial momentum across our key royalty assets, including Filspari. We also continued to put capital to work in differentiated assets, acquiring a royalty interest in Santen’s Ryjunea and entering into a structured financing agreement with AvenCell Therapeutics to advance its next-generation CAR-T pipeline. With a strong balance sheet and a portfolio of over 200 assets, we are well positioned to continue executing our royalty aggregation strategy, and we look forward to sharing an updated five-year outlook at our investor day on December 8th.
Informational and educational content only. Not investment advice.