Royalty Pharma (Nasdaq: RPRX) posts double-digit 2025 growth and issues 2026 Portfolio Receipts guidance

Rhea-AI Filing Summary

Royalty Pharma plc reported strong growth for Q4 and full year 2025 and issued 2026 guidance. Portfolio Receipts rose 18% in Q4 2025 to $874 million and 16% for 2025 to $3,254 million, while Royalty Receipts grew 13% to $3,127 million, led by Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise.

Adjusted EBITDA increased 16% to $2,966 million and Portfolio Cash Flow rose 11% to $2,724 million in 2025, though net cash from operating activities declined to $2,490 million from $2,769 million. The company deployed $2.6 billion on royalty transactions and repurchased 37 million shares for $1.2 billion, alongside $512 million of dividends, supported by $619 million of cash and $9.2 billion of debt at year-end.

For 2026, Royalty Pharma expects Portfolio Receipts of $3,275 million to $3,425 million, implying Royalty Receipts growth of 3% to 8%, with lower operating and professional costs as a percentage of Portfolio Receipts following the internalization of its external manager and interest paid projected at $350 million to $360 million.

Positive

• Robust 2025 growth and profitability: Portfolio Receipts rose 16% to $3,254 million and Adjusted EBITDA increased 16% to $2,966 million, supported by strong contributions from Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise.
• Significant capital deployment and shareholder returns: The company invested $2.6 billion in royalty transactions while repurchasing 37 million shares for $1.2 billion and paying $512 million in dividends, alongside a 7% dividend increase for early 2026.

Negative

• None.

Insights

Biopharmaceutical royalties and cash-flow analyst

Strong 2025 growth, heavy reinvestment and buybacks, with moderate 2026 outlook.

Royalty Pharma delivered double-digit expansion in 2025, with Portfolio Receipts up 16% to $3,254 million and Adjusted EBITDA up 16% to $2,966 million. Growth was driven by newer and expanding assets like Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise.

The company combined this with sizable capital deployment of $2.6 billion into new and existing royalty streams and returned capital via $1.2 billion of share repurchases and $512 million of dividends. These actions reduced diluted share count by 5–6% year over year but also contributed to a lower year-end cash balance of $619 million and higher debt of $9.2 billion.

For 2026, guidance for Portfolio Receipts of $3,275–$3,425 million and Royalty Receipts growth of 3–8% suggests a slower, but still positive, trajectory. Management expects operating and professional costs to fall as a percentage of Portfolio Receipts after completing the manager internalization on May 16, 2025, while interest paid is projected at $350–$360 million based on existing debt.

FALSE000180276800018027682026-02-112026-02-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 11, 2026

Royalty Pharma plc

(Exact Name of Registrant as Specified in its Charter)

England and Wales			001-39329			98-1535773
(State or other jurisdiction of incorporation)			(Commission File Number)			(I.R.S. Identification No.)

110 East 59th Street
New York, New York			10022
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (212) 883-0200

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Ordinary Shares, par value $0.0001 per share

RPRX

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On February 11, 2026, Royalty Pharma plc issued a press release announcing its financial results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information included in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.			Description
99.1			Press release issued by Royalty Pharma plc, dated February 11, 2026
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			ROYALTY PHARMA PLC
Date: February 11, 2026			By:			/s/ Terrance Coyne
						Terrance Coyne
						Chief Financial Officer

1

ROYALTY PHARMA REPORTS Q4 AND FULL YEAR 2025 RESULTS

• Portfolio Rece ipts of $874 million in Q4 2025 and $3,254 million for FY 2025

• Portfolio Receipts growth of 18% in Q4 2025 and 16% for FY 2025

• Net cas h provided by operating activities of $827 million in Q4 2025 and $2,490 million for FY 2025

• Full year 2026 guidance: Portfolio Receipts expected to be $3,275 million to $3,425 million

NEW YORK, NY, February 11, 2026 - Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the fourth

quarter and full year 2025 and introduced full year 2026 guidance for Portfolio Receipts.

“We had one of the most remarkable years in Royalty Pharma’s history in 2025,” said Pablo Legorreta, Royalty Pharma’s

Chief Executive Officer and Chairman of the Board. “We grew Portfolio Receipts by 16%, driven by the strength of our

diversified portfolio, we returned a record amount of capital to shareholders and we deployed $2.6 billion on royalty

transactions, including our highest year ever for announced synthetic royalty transactions. Further, we achieved an

important milestone with the successful internalization of our external manager. Looking ahead, our deal pipeline remains

robust and we anticipate multiple events for our development-stage pipeline in 2026 - including pivotal study results for

daraxonrasib, pelacarsen and litifilimab - that could unlock additional value. I am confident 2026 will be another year of

exciting progress towards strengthening our leadership position in the rapidly growing royalty market and pursuing our

goal to be the premier capital allocator in life sciences with consistent, compounding growth.”

Strong double-digit growth in Royalty Receipts and Portfolio Receipts

• Royalty Receipts grew 17% to $856 million in the fourth quarter and 13% to $3,127 million in 2025 , primarily

driven by Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise.

• Portfolio Receipts increased by 18% to $874 million in the fourth quarter and 16% to $3,254 million in 2025 .

Balanced capital allocation approach drives value creation

• Capital Deployment of $2.6 billion ; added royalties on nine (8) therapies to portfolio in the year , including a ground-

breaking partnership with Revolution Medicines for Phase 3 therapy daraxonrasib for pancreatic cancer.

• Repurchased 37 million Class A ordinary shares for $1.2 billion in 2025, including $75 million in the fourth quarter.

• Increased quarterly dividend by 7% in the first quarter of 2026.

Positive clinical and regulatory updates across royalty portfolio in 2025

• FDA approvals of Cytokinetics' Myqorzo (formerly aficamten) in obstructive hypertrophic cardiomyopathy and

Johnson & Johnson's Tremfya in Crohn's disease and ulcerative colitis.

• Positive Phase 3 results for Teva's TEV-'749 in schizophrenia, Gilead's Trodelvy in 1L metastatic triple negative

breast cancer, Emalex's ecopipam in Tourette's syndrome and Pharvaris' deucrictibant in hereditary angioedema.

Financial guidance for full year 2026 (excludes contribution from future transactions)

• Royalty Pharma expects 2026 Portfolio Receipts to be between $3,275 million and $3,425 million .

• 2026 Portfolio Receipts guidance includes expected growth in Royalty Receipts of 3% to 8% .

Financial & Liquidity Summary

	Three Months Ended December 31,			Twelve Months Ended December 31,
	(unaudited)
($ and shares in millions)	2025	2024	Change	2025	2024	Change
Portfolio Receipts	874	742	18%	3,254	2,801	16%
Net cash provided by operating activities	827	743	11%	2,490	2,769	(10)%
Adjusted EBITDA (non-GAAP)*	816	669	22%	2,966	2,565	16%
Portfolio Cash Flow (non-GAAP)*	815	678	20%	2,724	2,452	11%
Weighted average Class A ordinary shares outstanding - diluted	556	589	(6)%	564	594	(5)%

*See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with

the credit agreement.

2

2026 Financial Outlook

Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the

date of this release, as follows:

	Provided February 11, 2026
Portfolio Receipts	$3,275 million to $3,425 million
Payments for operating and professional costs	5.5% to 6.5% of Portfolio Receipts
Interest paid	$350 million to $360 million

Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above

Portfolio Receipts guidance includes expected Royalty Receipts growth of 3% to 8% in 2026.

Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio

Receipts, assuming current foreign exchange rates prevail for the rest of 2026.

Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts,

compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the

internalization transaction on May 16, 2025.

Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the

quarterly interest payment schedule for the term loan assumed as part of the internalization transaction. In 2026, Royalty

Pharma anticipates interest paid to be approximately $350 million to $360 million (5) , with approximately $175 million in

each of the first and third quarters of 2026. De minimis amounts are anticipated in the second and fourth quarters of 2026.

These projections assume no additional debt financing in 2026, including no drawdown on the revolving credit facility. In

2025, Royalty Pharma collected interest of $34 million on its cash and cash equivalents.

Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no

major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions

announced subsequent to the date of this press release.

3

Portfolio Receipts Highlights

			Three Months Ended December 31,
			(unaudited)
($ in millions)			2025	2024	Change
Products:	Marketers:	Therapeutic Area:
Cystic fibrosis franchise	Vertex	Rare disease	251	237	6%
Trelegy	GSK	Respiratory	95	74	28%
Tysabri	Biogen	Neuroscience	65	61	7%
Evrysdi	Roche	Rare disease	64	56	15%
Tremfya	Johnson & Johnson	Immunology	56	39	44%
Xtandi	Pfizer, Astellas	Oncology	53	46	16%
Imbruvica	AbbVie, Johnson & Johnson	Oncology	40	46	(13)%
Voranigo	Servier	Oncology	39	5	*
Promacta	Novartis	Hematology	27	44	(38)%
Cabometyx/Cometriq	Exelixis, Ipsen, Takeda	Oncology	22	20	13%
Spinraza	Biogen	Rare disease	14	15	(4)%
Erleada	Johnson & Johnson	Oncology	13	11	18%
Trodelvy	Gilead	Oncology	12	11	8%
Imdelltra	Amgen	Oncology	10	—	n/a
Other products (6)			96	67	43%
Royalty Receipts			856	729	17%
Milestones and other contractual receipts			18	13	42%
Portfolio Receipts			874	742	18%

*Percentage change is not meaningful.

Amounts shown in the table may not add due to rounding. Results for full year 2025 and 2024 are shown in Table 5.

Royalty Receipts was $856 million in the fourth quarter of 2025 , an increase of 17% compared to $729 million in the fourth

quarter of 2024 . The increase was primarily driven by Voranigo, Trelegy, Tremfya and the cystic fibrosis franchise, which

was partially offset by a decline from Promacta due to U.S. generic competition which launched in May 2025.

Portfolio Receipts was $874 million in the fourth quarter of 2025 , an increase of 18% compared to $742 million in the

fourth quarter of 2024 , primarily driven by the same Royalty Receipts increases noted above.

4

Liquidity and Capital Resources

Royalty Pharma’s liquidity and capital resources are summarized below:

As of December 31, 2025 , Royalty Pharma had cash and cash equivalents of $619 million and total debt with principal value

of $9.2 billion .

In 2025 , Royalty Pharma paid a quarterly dividend of $0.22 per share, equating to $512 million in dividends and

distributions. In the first quarter of 2026, Royalty Pharma increased its quarterly dividend by 7% to $0.235 per share.

In January 2025, Royalty Pharma announced a new share repurchase program under which it may repurchase up to $3.0

billion of its Class A ordinary shares. Royalty Pharma repurchased approximately two million Class A ordinary shares for

$75 million in the fourth quarter and 37 million shares for $1.2 billion for the full year of 2025. The weighted-average

number of diluted Class A ordinary shares outstanding for the fourth quarter of 2025 was 556 million , a decline of 6% as

compared to 589 million for the fourth quarter of 2024 . The weighted-average number of diluted Class A ordinary shares

outstanding for full year 2025 was 564 million as compared to 594 million for full year 2024 .

In January 2025, Royalty Pharma accelerated its return by selling the MorphoSys Development Funding Bonds for $511

million. This payment, combined with quarterly repayments received prior to the sale, resulted in total cash proceeds of

$530 million on the $300 million investment that was made in September 2022. The proceeds provided added flexibility to

pursue the company's dynamic capital allocation strategy.

Liquidity Summary

	Three Months Ended December 31,		Twelve Months Ended December 31,
	(unaudited)
($ in millions)	2025	2024	2025	2024
Portfolio Receipts	874	742	3,254	2,801
Payments for operating and professional costs	(58)	(72)	(288)	(236)
Adjusted EBITDA (non-GAAP)	816	669	2,966	2,565
Interest (paid)/received, net	(0)	8	(242)	(113)
Portfolio Cash Flow (non-GAAP)	815	678	2,724	2,452

Amounts may not add due to rounding.

• Adjusted EBITDA (non-GAAP) was $816 million in the fourth quarter of 2025 . Adjusted EBITDA is calculated as

Portfolio Receipts minus payments for operating and professional costs.

• Portfolio Cash Flow (non-GAAP) was $815 million in the fourth quarter of 2025 . Portfolio Cash Flow is calculated

as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty

Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned

to shareholders through dividends or share purchases, or utilized for other discretionary investments.

Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP

financial measure, net cash provided by operating activities.

Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital

Deployment was $887 million in the fourth quarter of 2025 , consisting primarily of upfront payments for the Amvuttra,

zidesamtinib and neladalkib royalty transactions and remaining royalties on Evrysdi (see 'Royalty Transactions'), as well as

the Cytokinetics Commercial Launch Funding and research and development funding for litifilimab. Capital Deployment for

the full year 2025 amounted to $2.6 billion .

5

The table below details Capital Deployment by category:

Capital Deployment

	Three Months Ended December 31,		Twelve Months Ended December 31,
	(unaudited)
($ in millions)	2025	2024	2025	2024
Purchases of available for sale debt securities	(100)	—	(175)	(150)
Acquisitions of financial royalty assets	(734)	(496)	(1,698)	(2,506)
Acquisitions of other financial assets	—	—	—	(18)
Development-stage funding payments	(51)	(1)	(452)	(2)
Milestone payments	(3)	(25)	(271)	(75)
Investments in equity method investees	—	—	—	(11)
Contributions from legacy non-controlling interests - R&D	—	0	0	1
Capital Deployment	(887)	(522)	(2,596)	(2,761)

Amounts may not add due to rounding.

Royalty Transactions

During 2025, Royalty Pharma announced new transactions of up to $4.7 billion which reflects the entire amount of

potential capital committed for new transactions, including potential future milestones.

Recent transactions include:

• In January 2026, Royalty Pharma announced a funding agreement with Teva Pharmaceuticals for TEV-’408 for up

to $500 million. The agreement includes $75 million to co-fund a Phase 2b study for vitiligo targeted for 2026.

Based on the future results from the Phase 2b study in vitiligo, Royalty Pharma will have an option to provide an

additional $425 million to co-fund the Phase 3 development program.

• In December 2025, Royalty Pharma acquired the remaining royalties on Roche's Evrysdi for the treatment of spinal

muscular atrophy from PTC Therapeutics for an upfront payment of $240 million and up to $60 million in sales-

based milestones.

• In December 2025, Royalty Pharma acquired a pre-existing royalty interest in Nuvalent's neladalkib and

zidesamtinib from an undisclosed party for up to $315 million, including an upfront payment of $155 million.

Neladalkib and zidesamtinib are next-generation tyrosine kinase inhibitors (TKIs). Neladalkib is in development for

patients with anaplastic lymphoma kinase (ALK) mutation-positive non-small cell lung cancer (NSCLC) and

zidesamtinib is in development for ROS proto-oncogene 1 (ROS1) mutation-positive NSCLC.

• In December 2025, Royalty Pharma announced a transaction to acquire a royalty interest in Denali Therapeutics’

tividenofusp alfa for up to $275 million. Tividenofusp alfa is Denali’s lead investigational TransportVehicle-enabled

enzyme replacement therapy for the treatment of mucopolysaccharidosis type II (MPS II, or Hunter syndrome).

Royalty Pharma will make a $200 million payment contingent on U.S. Food and Drug Administration (FDA)

accelerated approval and a $75 million payment on European Medicines Agency (EMA) approval if achieved by

December 31, 2029.

The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at

www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors

section of Royalty Pharma’s website at www.royaltypharma.com .

6

Key Developments Relating to the Portfolio

The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the

marketers of the products.

Spinraza	In January 2026, Biogen announced that the European Commission granted marketing authorization for a high dose regimen of Spinraza for spinal muscular atrophy.
pelabresib	In January 2026, Novartis announced plans to submit a European Union regulatory filing for pelabresib in 2026, and that it would begin a new Phase 3 study in 2026 in the United States, Canada and Japan.
obexelimab	In January 2026, Zenas BioPharma (Zenas) announced positive results from the Phase 3 INDIGO trial of obexelimab in Immunoglobulin G4-related disease (lgG4-RD), which met the primary endpoint demonstrating a clinically meaningful and highly statistically significant reduction in risk of lgG4-RD flare. Zenas anticipates submitting a Biologics License Application (BLA) in Q2 2026 and a Marketing Authorization Application to the EMA in the second half of 2026. In October 2025, Zenas announced positive results from the Phase 2 trial of obexelimab in relapsing multiple sclerosis, which demonstrated a highly statistically significant 95% relative reduction in new gadolinium (Gd)-enhancing T1 lesions over week 8 and week 12 compared with placebo. Zenas anticipates reporting 24-week data in the first quarter of 2026.
Myqorzo (aficamten)	In December 2025, Cytokinetics announced the FDA approval of Myqorzo for the treatment of adults with symptomatic obstructive hypertrophic cardiomyopathy.
TEV-'749	In December 2025, Teva Pharmaceuticals submitted a New Drug Application to the FDA for olanzapine LAI for the treatment of schizophrenia in adults.
deucrictibant	In December 2025, Pharvaris announced positive topline data from the RAPIDe-3 pivotal Phase 3 study, which met its primary endpoint and all secondary efficacy endpoints with statistical significance. The data will serve as the basis for marketing authorization applications expected to be filed in first half of 2026.
Cobenfy	In December 2025, Bristol Myers Squibb announced that it will enroll additional patients in the Phase 3 ADEPT-2 study of Cobenfy in psychosis associated with Alzheimer’s disease. Following consultation with the FDA and a review by the independent Data Monitoring Committee, the study will continue as planned with results expected by the end of 2026.
Imdelltra	In November 2025, Amgen announced that the FDA granted full approval to Imdelltra for the treatment of adult patients with extensive stage small cell lung cancer (ES-SCLC) with disease progression on or after platinum-based chemotherapy, converting Imdelltra’s prior accelerated approval into a full approval.
Tysabri	In November 2025, Sandoz announced the U.S. launch of Tyruko, the first and only FDA- approved biosimilar to Biogen’s Tysabri.
Trodelvy	In November 2025, Gilead announced the Phase 3 ASCENT-07 study investigating Trodelvy as a first-line (1L) treatment for HR+/HER2-negative metastatic breast cancer patients did not meet the primary endpoint of progression-free survival. Overall survival is a key secondary endpoint and was not mature at the time of the primary analysis. In October 2025, Gilead announced that based on the positive Phase 3 updates from ASCENT-03 and ASCENT-04, it has submitted two supplemental BLAs for Trodelvy in 1L metastatic triple-negative breast cancer and expects regulatory decisions in 2026.
daraxonrasib	In October 2025, Revolution Medicines announced that the FDA granted a non-transferrable voucher for daraxonrasib under the Commissioner’s National Priority Voucher pilot program, which accelerates target review times to 1-2 months versus 6+ months.
litifilimab	In October 2025, Biogen announced that both litifilimab Phase 3 studies for systemic lupus erythematosus are fully enrolled with expected data readout for both studies accelerated to the second half of 2026.

7

Financial Results Call

Royalty Pharma will host a conference call and simultaneous webcast to discuss its fourth quarter and full year 2025 results

today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://

www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of

the conference call and webcast will be archived on the company’s website for at least 30 days.

About Royalty Pharma plc

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation

across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and

non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty

Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of

the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial

products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas

and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s

Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 20 development-stage product candidates.

Forward-Looking Statements

The information set forth herein does not purport to be complete or to contain all of the information you may desire.

Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of

this document at any time, nor any sale of securities, shall under any circumstances create an implication that the

information contained herein is correct as of any time after such date or that information will be updated or revised to

reflect information that subsequently becomes available or changes occurring after the date hereof.

This document contains statements that constitute “forward-looking statements” as that term is defined in the United

States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions,

expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast

with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans,

growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction,

including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding

management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases,

you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,”

“plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar

expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information

currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s

performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to

many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the

statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these

risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would

occur. The forward-looking statements included in this document are made only as of the date hereof. The company does

not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results

of any revisions to any such statements to reflect future events or developments, except as required by law.

Certain information contained in this document relates to or is based on studies, publications, surveys and other data

obtained from third-party sources and the company’s own internal estimates and research. While the company believes

these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no

representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party

sources. In addition, all of the market data included in this document involves a number of assumptions and limitations,

and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its

own internal research is reliable, such research has not been verified by any independent source.

For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and

Exchange Commission ("SEC") by visiting EDGAR on the SEC's website at www.sec.gov.

8

Portfolio Receipts

Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty

Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio

Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes

variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are

attributed to Royalty Pharma.

Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed

contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma.

Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an

accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not

include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are

not central to Royalty Pharma’s fundamental business strategy, and excludes the $511 million in 2025 proceeds from the

sale of the MorphoSys Development Funding Bonds.

Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP consolidated statements

of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty

cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less

Distributions to legacy non-controlling interests - Portfolio Receipts , which represent contractual distributions of Royalty

Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships.

Use of Non-GAAP Measures

Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and

therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio

Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain

material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts

presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar

measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and

you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under

GAAP.

The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the

credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants

under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If

Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in

certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and

disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty

Pharma’s liquidity.

Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the

company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when

considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments,

dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit

committee and investors evaluate the company’s ability to generate liquidity from operating activities.

The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP

financial measure, being net cash provided by operating activities in Table 4.

Royalty Pharma Investor Relations and Communications

+1 (212) 883-6772

ir@royaltypharma.com

9

Royalty Pharma plc

Condensed Consolidated Statements of Operations (unaudited)

Table 1

	Three Months Ended December 31,		Twelve Months Ended December 31,
($ in millions)	2025	2024	2025	2024
Income and other revenues
Income from financial royalty assets	592	562	2,261	2,149
Other royalty income and revenues	30	32	117	114
Total income and other revenues	622	594	2,378	2,264
Operating expense/(income)
Provision for changes in expected cash flows from financial royalty assets	23	164	(296)	732
Provision for credit losses on unfunded commitments	(4)	—	89	—
Research and development funding expense	51	1	452	2
General and administrative expenses (includes 126 , 291 , 1 , and 3 of share- based compensation expense for the three months and twelve months ended December 31, 2025 and 2024 , respectively)	164	68	573	237
Total operating expense, net	234	232	819	971
Operating income	388	362	1,560	1,292
Other (income)/expense
Equity in earnings of equity method investees	(4)	(32)	(29)	(30)
Interest expense	94	66	308	226
Other income, net	(58)	(7)	(43)	(234)
Total other expense/(income), net	32	27	235	(38)
Consolidated net income before tax	356	334	1,324	1,331
Income tax expense	—	—	—	—
Consolidated net income	356	334	1,324	1,331
Net income attributable to non-controlling interests	142	126	553	472
Net income attributable to Royalty Pharma plc	214	208	771	859

Amounts may not add due to rounding.

10

Royalty Pharma plc

Selected Balance Sheet Data (unaudited)

Table 2

($ in millions)	As of December 31, 2025	As of December 31, 2024
Cash and cash equivalents	619	929
Total current and non-current financial royalty assets, net	17,063	15,911
Total assets	19,621	18,223
Current portion of long-term debt	380	998
Long-term debt, net of current portion	8,571	6,615
Total liabilities	9,906	7,880
Total shareholders’ equity	9,715	10,342

11

Royalty Pharma plc

Consolidated Statements of Cash Flows (unaudited)

Table 3

	Three Months Ended December 31,		Twelve Months Ended December 31,
($ in millions)	2025	2024	2025	2024
Cash flows from operating activities:
Cash collections from financial royalty assets	916	777	3,355	2,983
Cash collections from intangible royalty assets	0	0	1	15
Other royalty cash collections	29	30	114	109
Distributions from equity method investees	—	—	13	13
Interest received	6	9	34	46
Development-stage funding payments	(51)	(1)	(452)	(2)
Payments for operating and professional costs	(58)	(72)	(288)	(236)
Payments for Employee EPAs	(9)	—	(11)	—
Interest paid	(7)	(1)	(276)	(160)
Net cash provided by operating activities	827	743	2,490	2,769
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	—	—	(74)	—
Distributions from equity method investees	5	3	105	24
Investments in equity method investees	—	—	—	(11)
Purchases of equity securities	(54)	—	(58)	(63)
Proceeds from equity securities	35	—	35	99
Purchases of available for sale debt securities	(100)	—	(175)	(150)
Proceeds from available for sale debt securities	3	13	21	20
Proceeds from sales of available for sale debt securities	—	—	511	—
Acquisitions of financial royalty assets	(734)	(496)	(1,698)	(2,506)
Acquisitions of other financial assets	—	—	—	(18)
Milestone payments	(3)	(25)	(271)	(75)
Other	—	—	(9)	2
Net cash used in investing activities	(848)	(506)	(1,614)	(2,678)
Cash flows from financing activities:
Distributions to legacy non-controlling interests - Portfolio Receipts	(79)	(81)	(355)	(362)
Distributions to continuing non-controlling interests	(41)	(31)	(167)	(125)
Dividends to shareholders	(94)	(94)	(378)	(376)
Repurchases of Class A ordinary shares	(81)	(53)	(1,227)	(230)
Contributions from legacy non-controlling interests - R&D	—	0	0	1
Contributions from non-controlling interests - other	—	1	6	4
Proceeds from revolving credit facility	—	—	1,275	—
Repayment of revolving credit facility	—	—	(1,275)	—
Repayment of long-term debt	—	—	(1,000)	—
Proceeds from issuance of long-term debt, net of discount	—	—	1,954	1,471
Debt issuance costs and other	(3)	0	(17)	(13)
Other	(2)	0	(2)	(9)
Net cash (used in)/provided by financing activities	(300)	(257)	(1,186)	361
Net change in cash and cash equivalents	(320)	(20)	(310)	452
Cash and cash equivalents, beginning of period	939	950	929	477
Cash and cash equivalents, end of period	619	929	619	929

EPAs: Equity Performance Awards. Amounts may not add due to rounding.

12

Royalty Pharma plc

GAAP to Non-GAAP Reconciliation (unaudited)

Table 4

	Three Months Ended December 31,		Twelve Months Ended December 31,
($ in millions)	2025	2024	2025	2024
Net cash provided by operating activities (GAAP)	827	743	2,490	2,769
Adjustments:
Proceeds from available for sale debt securities (7)	3	13	21	20
Distributions from equity method investees (7)	5	3	105	24
Interest paid/(received), net (7)	0	(8)	242	113
Development-stage funding payments	51	1	452	2
Distributions to legacy non-controlling interests - Portfolio Receipts (7)	(79)	(81)	(355)	(362)
Payments for Employee EPAs	9	—	11	—
Adjusted EBITDA (non-GAAP)	816	669	2,966	2,565
Interest (paid)/ received , net (7)	(0)	8	(242)	(113)
Portfolio Cash Flow (non-GAAP)	815	678	2,724	2,452

EPAs: Equity Performance Awards. Amounts may not add due to rounding.

13

Royalty Pharma plc

Fourth Quarter and Full Year Portfolio Receipts Highlights (unaudited)

Table 5

	Three Months Ended December 31,			Twelve Months Ended December 31,
($ in millions)	2025	2024	Change	2025	2024	Change
Products:
Cystic fibrosis franchise	251	237	6%	917	857	7%
Trelegy	95	74	28%	332	284	17%
Tysabri	65	61	7%	250	262	(5)%
Evrysdi	64	56	15%	202	174	16%
Xtandi	53	46	16%	197	169	17%
Tremfya	56	39	44%	178	140	28%
Imbruvica	40	46	(13)%	170	191	(11)%
Promacta	27	44	(38)%	142	158	(11)%
Voranigo	39	5	*	118	5	*
Cabometyx/Cometriq	22	20	13%	85	73	16%
Spinraza	14	15	(4)%	52	45	17%
Trodelvy	12	11	8%	47	43	8%
Erleada	13	11	18%	46	39	18%
Imdelltra	10	—	n/a	10	—	n/a
Other products (6)	96	67	43%	381	333	15%
Royalty Receipts	856	729	17%	3,127	2,771	13%
Milestones and other contractual receipts	18	13	42%	128	31	314%
Portfolio Receipts	874	742	18%	3,254	2,801	16%

*Percentage change is not meaningful .

Amounts may not add due to rounding.

14

Royalty Pharma plc

Description of Approved Indications for Select Portfolio Therapies

Table 6

Cystic fibrosis franchise	Cystic fibrosis
Trelegy	Chronic obstructive pulmonary disease and asthma
Tysabri	Relapsing forms of multiple sclerosis
Evrysdi	Spinal muscular atrophy
Tremfya	Plaque psoriasis, psoriatic arthritis, ulcerative colitis and Crohn’s disease
Xtandi	Prostate cancer
Imbruvica	Hematological malignancies and chronic graft versus host disease
Voranigo	Low-grade glioma
Promacta	Chronic immune thrombocytopenia purpura and aplastic anemia
Cabometyx/Cometriq	Kidney, liver and thyroid cancer
Spinraza	Spinal muscular atrophy
Erleada	Prostate cancer
Trodelvy	Breast cancer
Imdelltra	Small cell lung cancer

15

Notes

(1) Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.”

(2) Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and

professional costs reflect Payments for operating and professional costs from the GAAP consolidated statements of cash flows. See GAAP to Non-

GAAP reconciliation in Table 4.

(3) Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP

reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing

royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary

investments.

(4) Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP consolidated statements of cash flows:

Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other

financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D .

(5) The term loan that Royalty Pharma assumed as part of the Internalization has a Secured Overnight Financing Rate (SOFR) based variable interest

rate. Royalty Pharma estimated the related interest payment for 2026 based on the forward curve as of February 5, 2026.

(6) Other products primarily include Royalty Receipts on the following products: Crysvita, Emgality, Entyvio, Farxiga/Onglyza, IDHIFA, Nesina, Nurtec

ODT, Orladeyo, Prevymis, Soliqua and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on

the GAAP consolidated statements of cash flows.

(7) The table below shows the line item for each adjustment and the direct location for such line item on the GAAP consolidated statements of cash

flows.

Reconciling Adjustment	Statements of Cash Flows Classification
Interest (paid)/received, net	Operating activities (Interest paid less Interest received)
Distributions from equity method investees	Investing activities
Proceeds from available for sale debt securities	Investing activities
Distributions to legacy non-controlling interests - Portfolio Receipts	Financing activities

(8) Includes royalty interest on Denali ’ s tividenofusp alfa which is contingent on its FDA accelerated approval.

FAQ

How did Royalty Pharma (RPRX) perform financially in full year 2025?

Royalty Pharma reported strong 2025 growth, with Portfolio Receipts rising 16% to $3,254 million and Royalty Receipts up 13% to $3,127 million. Adjusted EBITDA increased 16% to $2,966 million, and Portfolio Cash Flow grew 11% to $2,724 million, reflecting solid underlying portfolio performance.

What guidance did Royalty Pharma (RPRX) provide for 2026 Portfolio Receipts?

For 2026, Royalty Pharma expects Portfolio Receipts between $3,275 million and $3,425 million. This outlook embeds anticipated Royalty Receipts growth of 3% to 8% and assumes a small positive foreign exchange impact of about 1%, excluding contributions from future, currently unannounced transactions.

How much capital did Royalty Pharma (RPRX) deploy and return to shareholders in 2025?

In 2025, Royalty Pharma deployed about $2.6 billion into royalty and related transactions. It also repurchased 37 million Class A shares for $1.2 billion and paid $512 million in dividends and distributions, reflecting a balanced strategy of portfolio growth and shareholder returns.

What were Royalty Pharma’s (RPRX) key liquidity and debt figures at the end of 2025?

As of December 31, 2025, Royalty Pharma held $619 million in cash and cash equivalents and had total debt with principal value of about $9.2 billion. Total assets were $19,621 million, with total shareholders’ equity of $9,715 million, influenced by significant share repurchases.

How did Royalty Pharma’s (RPRX) operating cash flow and non-GAAP metrics trend in 2025?

Net cash provided by operating activities was $2,490 million, down from $2,769 million in 2024. However, non-GAAP Adjusted EBITDA rose to $2,966 million and Portfolio Cash Flow increased to $2,724 million, highlighting strong cash generation from the royalty portfolio despite year-on-year cash flow variability.

Which products most contributed to Royalty Pharma’s (RPRX) 2025 growth?

Growth was driven by the cystic fibrosis franchise, Trelegy, Tremfya, Evrysdi and Voranigo, among others. In Q4 2025, Royalty Receipts were $856 million, up 17%, with particularly strong percentage increases from Tremfya, Voranigo and several newer oncology and rare disease assets.

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