XOMA Royalty (NASDAQ:XOMA) Issues Quarterly Earnings Results, Beats Expectations By $0.16 EPS

XOMA Royalty (NASDAQ:XOMA) posted its earnings results on Wednesday. The biotechnology company reported $0.12 earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.16, Zacks reports. XOMA Royalty had a return on equity of 2.91% and a net margin of 32.28%.The firm had revenue of $13.76 million for the quarter, compared to analyst estimates of $11.13 million.

Here are the key takeaways from XOMA Royalty’s conference call:

• Portfolio growth — XOMA added 22 assets in 2025 (now >120 total) and has seven commercial programs, with total portfolio receipts surpassing $50M and royalty receipts of $34M (up 68% year‑over‑year).
• Strong financials and cash returns — Full‑year GAAP revenue was $52.1M (vs. $28.5M in 2024) with GAAP net income of $31.7M, positive operating cash flow, ~$83M unrestricted cash at year‑end, and $16M returned via share buybacks (≈5% of shares).
• Dealmaking and platform optionality — A December revenue‑share with Takeda reallocated mezagitamab economics into potential low‑ to mid‑single‑digit royalties plus up to $853M of milestones across nine assets, and XOMA acquired Generation Bio platforms (ctLNP and iqDNA) intended for out‑licensing to generate future royalties/milestones.
• Clinical risk realized — Two portfolio Phase III programs (Rezolute in congenital hyperinsulinism and Gossamer’s seralutinib in PAH) failed to meet primary statistical thresholds, though both sponsors plan FDA discussions to pursue potential paths forward.
• Outlook and capital structure — Management says royalties could cover operating costs by 2027 if current trends continue, the Blue Owl loan is being amortized (could be repaid by 2030), and management may pursue refinancing or preferred optimization depending on future execution.

XOMA Royalty Stock Up 5.4%

NASDAQ XOMA traded up $1.47 during trading on Thursday, hitting $28.82. The stock had a trading volume of 20,252 shares, compared to its average volume of 415,545. XOMA Royalty has a 12 month low of $18.35 and a 12 month high of $39.92. The company has a debt-to-equity ratio of 1.07, a quick ratio of 3.91 and a current ratio of 3.91. The company’s 50-day moving average price is $26.13 and its two-hundred day moving average price is $30.49. The company has a market capitalization of $356.82 million, a PE ratio of 39.07 and a beta of 0.86.

Institutional Trading of XOMA Royalty

Hedge funds and other institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. grew its position in shares of XOMA Royalty by 3,436.4% in the 3rd quarter. Russell Investments Group Ltd. now owns 778 shares of the biotechnology company’s stock valued at $30,000 after acquiring an additional 756 shares during the period. Tower Research Capital LLC TRC grew its holdings in XOMA Royalty by 203.1% during the second quarter. Tower Research Capital LLC TRC now owns 2,273 shares of the biotechnology company’s stock worth $57,000 after purchasing an additional 1,523 shares during the period. BNP Paribas Financial Markets increased its position in XOMA Royalty by 266.6% during the third quarter. BNP Paribas Financial Markets now owns 3,226 shares of the biotechnology company’s stock worth $124,000 after buying an additional 2,346 shares during the last quarter. JPMorgan Chase & Co. raised its stake in XOMA Royalty by 13.9% in the second quarter. JPMorgan Chase & Co. now owns 4,440 shares of the biotechnology company’s stock valued at $112,000 after buying an additional 543 shares during the period. Finally, Raymond James Financial Inc. acquired a new stake in shares of XOMA Royalty in the second quarter valued at approximately $116,000. 95.92% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have recently commented on XOMA shares. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of XOMA Royalty in a research report on Monday, December 29th. Stifel Nicolaus set a $50.00 target price on shares of XOMA Royalty in a report on Friday, December 12th. TD Cowen upgraded shares of XOMA Royalty to a “hold” rating in a report on Friday, February 13th. UBS Group set a $76.00 price objective on shares of XOMA Royalty in a research report on Tuesday, December 9th. Finally, HC Wainwright cut their price objective on shares of XOMA Royalty from $104.00 to $97.00 and set a “buy” rating on the stock in a research report on Thursday, December 11th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $61.60.

XOMA Royalty News Summary

Here are the key news stories impacting XOMA Royalty this week:

• Positive Sentiment: Q4 results beat expectations — XOMA reported Q4 revenue of $13.76M and reported EPS that beat consensus, driven by robust royalty receipts; the upside in both revenue and earnings fueled the intraday move. Q4 2025 Earnings Call Transcript
• Positive Sentiment: Strong full‑year cash receipts — XOMA reported over $50M of cash receipts for 2025 (about $33.6M in royalties and $16.9M in milestones), with royalties up ~68% year‑over‑year, signaling improving underlying cash flow from the royalty portfolio. XOMA Reports 2025 Financial Results
• Positive Sentiment: Management flagged pipeline catalysts ahead — Commentary with the results and the earnings call highlighted upcoming milestones/catalysts from portfolio assets that could drive future royalty receipts and share re-rating. Benzinga: XOMA Jumps After Q4 Double Beat
• Positive Sentiment: Insider and analyst activity supportive — CEO made a material share purchase recently (mentioned in filings and coverage), and recent analyst coverage remains constructive with buy/outperform notes and elevated price targets versus today’s price. Quiver Quant: Q4 2025 Earnings & Insider Data
• Neutral Sentiment: Preferred dividend declared — XOMA declared the quarterly cash dividend on its Series A preferred ($0.53906 per share); this is routine and affects preferred holders directly rather than common equity. GlobeNewswire: Preferred Stock Dividends
• Neutral Sentiment: Full earnings package available — The company posted its press release, slide deck and earnings call transcript (useful for drilling into asset-level receipts and timing). Press Release / Slide Deck
• Negative Sentiment: Minor insider selling and valuation/technical considerations — Some insider sales by senior finance staff were recorded and the stock remains below its 200‑day moving average (~$30.49), which may cap near‑term upside for technical traders. Quiver Quant: Insider & Institutional Activity

XOMA Royalty Company Profile

XOMA Royalty (NASDAQ: XOMA) is a specialty healthcare royalty company that acquires and manages royalty interests in small-molecule and biologic drugs. The company’s business model centers on purchasing royalty streams on marketed or near-market pharmaceutical products, providing capital to developers in exchange for a share of future net sales. By focusing on late-stage assets with established clinical and commercial profiles, XOMA Royalty aims to generate predictable, long-term cash flows for its shareholders.

The company’s investment portfolio spans a range of therapeutic areas, including oncology, immunology and rare diseases.