Ligand 2025 Q3 Earnings Surges to $117.27M Net Income, 1735.2% Increase

Ligand (LGND) delivered a blockbuster third quarter in 2025, surpassing expectations across revenue and earnings metrics. The company raised its full-year guidance following robust performance in royalty streams and strategic transactions. Analysts had projected $1.93 in earnings per share (EPS), but Ligand reported $5.68 GAAP EPS and $3.09 adjusted EPS, while revenue surged 122.9% year-over-year.

Revenue

Ligand’s total revenue soared to $115.46 million in Q3 2025, driven by a 47% year-over-year increase in royalty revenue to $46.59 million. Intangible royalty assets accounted for $40.16 million of this total, with income from financial royalty assets adding $6.42 million. Captisol sales reached $10.67 million, and contract revenue and other income surged to $58.20 million, reflecting the Pelthos business sale and Zelsuvmi out-license.

Earnings/Net Income

The company’s net income leapt to $117.27 million, a 1735.2% increase from a $7.17 million loss in Q3 2024. Earnings per share (EPS) jumped to $5.99, reversing a $0.39 loss, marking a 1635.9% improvement. This dramatic turnaround underscores Ligand’s ability to leverage its royalty portfolio and strategic assets. The EPS performance reflects exceptional operational efficiency and asset monetization.

Post-Earnings Price Action Review

Following the earnings release, Ligand’s stock price experienced mixed short-term volatility. Shares dipped 1.45% on the latest trading day but gained 5.84% over the past week and 9.75% month-to-date. The post-earnings rally suggests investor optimism about the company’s guidance upgrade and royalty growth trajectory.

CEO Commentary

Ligand CEO Todd Davis highlighted the strength of the company’s commercial royalty portfolio and the success of recent strategic moves, including the Pelthos transaction and convertible debt financing. He emphasized confidence in sustained momentum from core royalty assets and new capital allocation opportunities.

Guidance

The company raised 2025 full-year revenue guidance to $225–235 million from $200–225 million and adjusted EPS to $7.40–7.65 from $6.70–7.00. Royalties are now projected at $147–157 million, with Captisol sales expected to reach $40 million.

Additional News

Ligand completed a $460 million convertible debt offering in August 2025, with net proceeds allocated to a call spread overlay, share repurchases, and strategic investments. The Pelthos business sale and Zelsuvmi out-license contributed to Q3’s revenue surge. Additionally, the company invested $25 million in Orchestra BioMed’s cardiology programs and acquired global royalty rights to AT220 and AT292 from Arecor Therapeutics, signaling aggressive capital deployment to expand its royalty portfolio.