Royalty Pharma Q2 Revenue Misses Estimates, Raises FY Outlook

Royalty Pharma reported Q2 revenue of $579M, a 7.8% YoY increase, but missed expectations by $114.74M. The company raised its FY outlook and had cash and cash equivalents of $632M as of June 30. Portfolio receipts growth was not specified.

Royalty Pharma (NASDAQ: RPRX) reported its Q2 2025 earnings on Wednesday, August 6th, with a revenue of $579 million, a 7.8% year-over-year (YoY) increase, but falling short of expectations by $114.74 million. The company's consensus revenue estimate was $693.74 million [1].

As of June 30, 2025, Royalty Pharma held $632 million in cash and cash equivalents, with a total debt principal value of $8.2 billion. The company's portfolio receipts grew by 20% to $727 million, while royalty receipts increased by 11% to $672 million. The net cash provided by operating activities amounted to $364 million [2].

Notably, Royalty Pharma raised its full-year 2025 outlook for portfolio receipts, projecting a range of $3,050 million to $3,150 million, up from the previous estimate of $2,975 to $3,125 million. This represents an expected growth of 9% to 12% compared to the previous guidance of 6% to 12%. The company also projects a 6-12% growth in its 2025 portfolio receipts with a $2 billion share buyback plan [1].

The earnings report indicates that while Royalty Pharma missed its revenue target, the company is optimistic about its future prospects. The raised FY 2025 outlook suggests that management believes in the potential of its pipeline and the growth opportunities ahead. Investors should closely monitor the company's progress in the coming quarters to assess the validity of these projections.

References:
[1] https://seekingalpha.com/news/4478591-royalty-pharma-q2-2025-earnings-preview
[2] https://seekingalpha.com/news/4479711-royalty-pharma-reports-q2-results-raises-fy-outlook