RPRX Nasdaq Russell 1000 Earnings call
Royalty Pharma (RPRX) · Q2 2026 results and valuation
Share price: $70.01 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 6 May 2026
Net income down 93.9% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−93.9%
Net income vs Q1 2026
Guidance raised
Net income 17.9M vs 294.7M
Revenue +6.9%
Against the same quarter last year (Q2 2025) it is −44.4% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
More upbeat than 57% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
The company will discuss its development stage pipeline during the Q2 2026 call to provide updates on its current project status.
Valuation
Is Royalty Pharma undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.1% growth a year (3-year revenue growth), the model's fair value is $3.68 a share — the stock trades 1800% above it. Today's price assumes 23.1% growth a year.
Current price
$70.01
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+23.1% for 10 yrs
Fair value / share
$3.68
Buy below
$2.76
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Guidance
The company expects to deliver growth in both top line and bottom line through 2030 and beyond.
Source quote
“Third, we expect to deliver strong, low volatility top line and bottom line growth through 2030 and beyond.”
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Guidance ↑
The company raised its guidance for 2026, which means it expects to continue delivering another full year of strong financial performance.
Source quote
“We have again raised our guidance, and we expect to continue to deliver another full year of strong financial performance in 2026.”
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Figure
Royalty Pharma has deployed $1.1 billion of capital on royalty acquisitions so far this year, with an announced value of $1.7…
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“This important milestone reflects the tremendous progress we have made as a company since our IPO, including our consistent strong top line growth, improved diversification and growing cash flows.”
“Looking ahead, we're increasing our 2026 full year guidance for the second consecutive quarter based on the strong business momentum I just highlighted.”
“Our 25th consecutive quarter as a public company with strong predictable double-digit growth and we're achieving this as we continue to deliver on our goal of being the premier capital...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 674.1M | 630.6M | +6.9% | 578.7M | +16.5% |
| Operating income | 133.1M | 563.0M | −76.4% | 209.8M | −36.5% |
| Net income | 17.9M | 294.7M | −93.9% | 32.2M | −44.4% |
| EPS | 0.04 | 0.67 | −94.0% | 0.07 | −42.9% |
| P/E today 30.5 | 30.1 | 25.2 | +4.9 | 15.7 | +14.4 |
Topics
Most discussed now
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Faded since Q1 2026
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Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure · SEC 8-K