XOMA Royalty (NASDAQ: XOMA) swings to 2025 profit as royalties and milestones surge
Rhea-AI Filing Summary
XOMA Royalty Corporation reported a strong turnaround for 2025, with income and revenues rising to
Cash receipts reached
At December 31, 2025, XOMA held cash and cash equivalents of
Positive
- Profitability turnaround: Income and revenues rose to
$52.1 million in 2025 from$28.5 million , with net income improving to$31.7 million from a$13.8 million loss in 2024. - Strong, diversified cash receipts: 2025 cash receipts reached
$50.5 million , including$33.6 million in royalties and$16.9 million in milestone payments and fees, reflecting growing commercial and late-stage royalty streams. - Shareholder-friendly capital allocation: The company repurchased and retired 648,048 common shares for
$16.0 million while ending 2025 with cash and cash equivalents of$133.7 million versus long-term debt of$96.5 million .
Negative
- None.
Insights
XOMA delivered profitable growth in 2025 while expanding its royalty portfolio.
XOMA Royalty shifted from a net loss to net income of
Portfolio cash receipts reached
Capital allocation was shareholder-friendly: the company repurchased 648,048 shares for
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported):
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(I.R.S. Employer Identification Number) |
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N/A
(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 |
Name of each exchange | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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 March 18, 2026, XOMA Royalty Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2025. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 7.01 | Regulation FD Disclosure. |
On March 18, 2026, the Company made available an updated corporate presentation, which is attached to this Current Report on Form 8-K as Exhibit 99.2.
The information in this Form 8-K and the Exhibits attached hereto 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, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Number | Description of Document | |
| 99.1 | Press release entitled “XOMA Royalty Reports 2025 Financial Results and Highlights Recent Business Achievements” dated March 18, 2026. | |
| 99.2 | Corporate Presentation, dated March 18, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURE
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.
| XOMA ROYALTY CORPORATION | ||||||
| Date: March 18, 2026 | By: | /s/ Jeffrey Trigilio | ||||
| Jeffrey Trigilio | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
XOMA Royalty Reports 2025 Financial Results
and Highlights Recent Business Achievements
Portfolio receipts: • Achieved over $50 million of cash receipts, including $33.6 million in royalties and $16.9 million milestones, in full year 2025 • Total receipts increased 9% with royalties up 68% versus full year 2024
Business development: Added 22 assets to portfolio, including five programs in Phase 2 or Phase 3 development
Stock buyback program: Repurchased and retired 648,048 shares for an aggregate of $16.0 million
Company acquisitions: Completed seven acquisitions, accumulating $11.7 million of non-dilutive capital1, economic interests of approximately 25% in up to $1.1 billion of milestones and low to mid-single digit royalties from eight partnered programs
Key 2026 pipeline events: • Phase 2b data from volixibat in PSC in Q2 and Phase 3 data from ersodetug in tumor HI in 2H • Potential for EMA decisions on OJEMDA™ and MIPLYFFA™ marketing authorization applications • Regulatory updates related to ersodetug in congenital HI and seralutinib in PAH
Webcast at 8:00 am Eastern Time today
EMERYVILLE, Calif. – March 18, 2026 (GLOBE NEWSWIRE) – XOMA Royalty Corporation (NASDAQ: XOMA), the biotech royalty aggregator, reported its 2025 fourth quarter and full year financial results and highlighted recent actions that have the potential to deliver additional shareholder value.
“We continue to search for innovative ways to drive enhanced optionality in the XOMA portfolio, with the addition of 22 assets and two platform technologies over the past year,” stated Owen Hughes, Chief Executive Officer of XOMA Royalty. “With multiple commercial assets delivering growing royalty receipts, we achieved positive cash flow from operations and were able to return $16 million of capital through a share buyback in 2025. Looking ahead, with 14 programs in registrational studies, we anticipate a number of catalysts over the ensuing years, including several regulatory updates and late-stage clinical readouts in 2026, which, if positive, will further diversify our commercial royalty streams and drive growing free cash flow in 2027 and beyond.”
| 1 | This amount includes structuring agent fees associated with Repare Therapeutics and ESSA Pharmaceuticals. |
Portfolio Updates
| Day One | • OJEMDA New Drug Application filing in Japan triggered $2 million milestone in 4Q25
• OJEMDA FY 2026 revenue guidance of $225 – $250 million2
• In February 2026, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a positive opinion recommending the conditional marketing authorization of OJEMDA3
• In March 2026, Day One and Servier announced that they have entered into a definitive agreement for Servier to acquire Day One for $21.50 per share in cash, representing a total equity value of approximately $2.5 billion4
| |
| Zevra Therapeutics | • A Marketing Authorization Application for the evaluation of arimoclomol (MIPLYFFA) for the treatment of NPC is under review by the EMA5
| |
| Rezolute | • In December 2025, Rezolute announced that the Phase 3 clinical study of ersodetug for the treatment of congenital hyperinsulinism (“HI”) demonstrated reductions from baseline in hypoglycemia events by self-monitored blood glucose at both ersodetug dose levels, but the reductions were not statistically significant compared to placebo, due to a pronounced study effect6
• Rezolute will meet with FDA under its Breakthrough Therapy Designation in the first quarter of 2026 to determine next steps for the program6
• Rezolute anticipates topline results of upLIFT, a Phase 3, single-arm, open-label study in participants with tumor HI, in the second half of 20266
| |
| Gossamer Bio & Chiesi | • In February 2026, Gossamer Bio announced topline results from the Phase 3 PROSERA clinical trial evaluating seralutinib for the treatment of PAH7
• Seralutinib demonstrated a placebo-adjusted improvement in Six-Minute Walk Distance (6MWD) of +13.3 meters at Week 24 (p = 0.0320), missing the prespecified alpha threshold of 0.0257
• Gossamer plans to meet with the U.S. FDA to discuss the path forward7 |
| 2 | https://ir.dayonebio.com/news-releases/news-release-details/day-one-reports-fourth-quarter-and-full-year-2025-financial |
| 3 | https://www.ipsen.com/press-release/ipsen-receives-positive-chmp-opinion-for-ojemda-for-the-treatment-as-monotherapy-of-
|
| 4 | https://ir.dayonebio.com/news-releases/news-release-details/servier-and-day-one-biopharmaceuticals-announce-acquisition |
| 5 |
https://investors.zevra.com/news-releases/news-release-details/zevra-reports-fourth-quarter-and-full-year-2025-financial |
| 6 |
https://ir.rezolutebio.com/news/detail/371/rezolute-reports-second-quarter-fiscal-2026-financial-results-and-provides-business-update |
| 7 | https://ir.gossamerbio.com/news-releases/news-release-details/gossamer-bio-announces-topline-results-phase-3-prosera-study |
| Volixibat | • Volixibat VISTAS study in primary sclerosing cholangitis (PSC) topline data expected in Q2 20268
• Volixibat VANTAGE study in primary biliary cholangitis (PBC) expected to complete enrollment in H2 20268 |
Business Development Activity
| Takeda Strategic Royalty Share Transaction | • In December 2025, XOMA amended its collaboration with Takeda
• XOMA will receive low to mid-single-digit royalties and up to $852.6 million in potential milestones across nine development-stage assets, including osavampator, which is being evaluated in Phase 3 studies for major depressive disorder; volixibat, which is being evaluated in PSC and PBC; OHB-607, which Oak Hill Bio Ltd and its partner are developing for the prevention of bronchopulmonary dysplasia in extremely premature infants; REC-4881, which is in Phase 2 development for familial adenomatous polyposis; and five early-stage Oak Hill Bio assets
• Prior to amending the collaboration, XOMA held a mid-single digit royalty and $16.25 million in potential milestones associated with mezagitamab
• Following the transaction, XOMA will retain a low single-digit royalty entitlement on mezagitamab and up to $13.0 million in milestones
| |
| Company Acquisitions | • Completed or served as the structuring agent in the acquisition of seven companies since the beginning of 2025
• Accumulated non-dilutive capital of $11.7 million, net of transaction expenses
• Obtained economic interests of approximately 25% in up to $1.1 billion of potential milestone payments and low to mid-single-digit royalties from eight partnered assets
• Eligible for 25-70% of proceeds related to any future out license or sale of legacy assets or platform technology from these companies, including the ctLNP delivery platform from Generation Bio |
Fourth Quarter and Full-Year 2025 Financial Results
In the fourth quarter of 2025, XOMA Royalty received $3.2 million in cash receipts from royalties and commercial payments and $3.3 million in milestone payments and paid $1.4 million in dividends on the XOMA Royalty Perpetual Preferred stocks. For the full year of 2025, XOMA Royalty received $50.5 million in cash receipts, including $33.6 million in royalties and commercial payments and $16.9 million in milestone payments and fees. During 2025, XOMA Royalty deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio, repurchased 648,048 shares of its common stock for a cost of $16.0 million, and paid $5.5 million in dividends on the XOMA Royalty Perpetual Preferred stocks.
Income and Revenue: Income and revenues for the three months ended December 31, 2025 and 2024, were $13.8 million and $8.7 million, respectively. Income and revenues for the years ended December 31, 2025 and 2024, were $52.1 million and $28.5 million, respectively. The increase in both periods was primarily driven by increased income related to VABYSMO® (faricimab-svoa) and OJEMDA™ (tovorafenib) and milestone payments received from Rezolute and Takeda.
| 8 |
https://ir.mirumpharma.com/news/news-details/2026/Mirum-Pharmaceuticals-Reports-Fourth-Quarter-and-Year-
|
General and Administrative (G&A) Expenses: G&A expenses for the three months ended December 31, 2025 and 2024, were $10.4 million and $7.0 million, respectively. G&A expenses for the years ended December 31, 2025 and 2024, were $36.1 million and $34.5 million, respectively. The increase of $1.6 million in 2025 was primarily due to an increase in business development and deal-related costs of $3.7 million and an increase in lease costs of $1.0 million primarily related to the HilleVax acquisition partially offset by $3.6 million in costs related to exit packages for Kinnate senior leadership in 2024.
G&A expenses for the year ended December 31, 2025, also include an increase of approximately $1.1 million associated with ongoing litigation initiated by XOMA Royalty against Janssen Biotech, Inc., asserting claims for breach of contract and unjust enrichment arising from Janssen’s unauthorized use of XOMA’s intellectual property in the commercialization of TREMFYA (guselkumab). XOMA Royalty expects to continue to incur legal fees and other professional service costs associated with pursuing this litigation. Litigation is inherently uncertain, and there can be no assurance regarding the outcome of the matter or the timing or amount of any potential recovery.
XOMA Royalty’s G&A expenses for the three months ended December 31, 2025 and 2024, included non-cash stock-based compensation expenses of $3.9 million and $2.2 million, respectively, and $9.3 million and $10.3 million for the full years of 2025 and 2024, respectively.
Interest Expense: Interest expense for the three months ended December 31, 2025 and 2024, was $3.0 million and $3.4 million, respectively. Interest expense for the twelve months ended December 31, 2025 and 2024, were $13.0 million and $13.8 million, respectively. Interest expense relates to the Blue Owl Loan established in December 2023.
Net Income (Loss): XOMA Royalty reported net income of $6.1 million and $31.7 million for the three months and year ended December 31, 2025, as compared to net losses of $4.0 million and $13.8 million in the corresponding periods of 2024.
Cash Position: On December 31, 2025, XOMA Royalty had cash and cash equivalents of $133.7 million, including $50.8 million in restricted cash. The restricted cash balance included $42.3 million related to the assumed HilleVax lease and $2.2 million related to the Blue Owl Loan. Cash and cash equivalents of $106.4 million as of December 31, 2024, included $4.8 million in restricted cash related to the Blue Owl Loan.
Webcast
The Company will host a webcast on March 18, 2026, at 8:00 am Eastern Time to discuss the results and provide a business update. The webcast will be accessible on the “News & Events” page in the Investors section of XOMA Royalty’s website (https://investors.xoma.com/news-events). A replay of the webcast will be available for 30 days following the live event.
About XOMA Royalty Corporation
XOMA Royalty is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA Royalty acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA Royalty acquires the future economics, the seller receives non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. The Company has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about the Company and its portfolio, please visit www.xoma.com or follow XOMA Royalty Corporation on LinkedIn.
Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the timing and amount of potential commercial payments to XOMA Royalty, expectations around future royalty cash flows covering XOMA Royalty’s core operating expenses (the inflection point) and other developments related to VABYSMO® (faricimab-svoa), OJEMDA™ (tovorafenib), MIPLYFFA™ (arimoclomol), XACIATO™ (clindamycin phosphate) vaginal gel 2%, IXINITY® [coagulation factor IX (recombinant)], DSUVIA® (sufentanil sublingual tablet), and DARE to PLAY™ Sildenafil Cream and Sildenafil Cream, 3.6%; the potential occurrences and timing of the events listed under “ Key 2026 Pipeline Events”; expectations regarding the inflection point in XOMA Royalty’s business model of breakeven operating cash flows; the anticipated timings of regulatory filings and approvals related to assets in XOMA Royalty’s portfolio; and the potential of XOMA Royalty’s portfolio of partnered programs and licensed technologies generating substantial milestone and royalty proceeds over time. 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. These forward-looking statements are not a guarantee of XOMA Royalty’s performance, and you should not place undue reliance on such statements. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; and if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them. Other potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty’s most recent filing on Form 10-K and in other filings with the Securities and Exchange Commission. Consider such risks carefully when considering XOMA Royalty’s prospects. Any forward-looking statement in this press release represents XOMA Royalty’s beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA Royalty disclaims any obligation to update any forward-looking statement, except as required by applicable law.
EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, the commercial assets in XOMA Royalty’s milestone and royalty portfolio are VABYSMO® (faricimab-svoa), OJEMDA™ (tovorafenib), MIPLYFFA™ (arimoclomol), XACIATO™ (clindamycin phosphate) vaginal gel 2%, IXINITY® [coagulation factor IX (recombinant)], DARE to PLAY™ (Sildenafil Cream), and DSUVIA® (sufentanil sublingual tablet). All other assets in the milestone and royalty portfolio are investigational compounds. Efficacy and safety have not been established. There is no guarantee that any of the investigational compounds will become commercially available.
XOMA ROYALTY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Income and revenues: |
||||||||||||||||
| Income from purchased receivables under the EIR method |
$ | 7,706 | $ | 5,081 | $ | 26,745 | $ | 15,066 | ||||||||
| Income from purchased receivables under the cost recovery method |
4,619 | 1,291 | 13,744 | 3,201 | ||||||||||||
| Revenue from contracts with customers |
1,100 | 600 | 10,350 | 6,650 | ||||||||||||
| Revenue recognized under units-of-revenue method |
332 | 1,742 | 1,310 | 3,570 | ||||||||||||
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| Total income and revenues |
13,757 | 8,714 | 52,149 | 28,487 | ||||||||||||
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| Operating expenses: |
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| Research and development |
281 | 864 | 1,712 | 2,875 | ||||||||||||
| General and administrative |
10,410 | 6,993 | 36,092 | 34,478 | ||||||||||||
| Credit losses on purchased receivables |
— | 7,904 | — | 30,904 | ||||||||||||
| Amortization of intangible assets |
884 | 206 | 2,961 | 206 | ||||||||||||
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| Total operating expenses |
11,575 | 15,967 | 40,765 | 68,463 | ||||||||||||
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| Income (loss) from operations |
2,182 | (7,253 | ) | 11,384 | (39,976 | ) | ||||||||||
| Other income (expense), net: |
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| Gains on acquisitions |
3,220 | — | 21,224 | 19,316 | ||||||||||||
| Change in fair value of embedded derivative related to RPA |
— | — | — | 8,100 | ||||||||||||
| Interest expense |
(3,027 | ) | (3,394 | ) | (13,031 | ) | (13,840 | ) | ||||||||
| Other income, net |
3,782 | 1,021 | 12,238 | 6,921 | ||||||||||||
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| Net income (loss) before tax |
6,157 | (9,626 | ) | 31,815 | (19,479 | ) | ||||||||||
| Income tax (expense) benefit |
(54 | ) | 5,658 | (103 | ) | 5,658 | ||||||||||
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| Net income (loss) |
$ | 6,103 | $ | (3,968 | ) | $ | 31,712 | $ | (13,821 | ) | ||||||
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| Net income (loss) available to (attributable to) common stockholders, basic |
$ | 3,319 | $ | (5,336 | ) | $ | 18,516 | $ | (19,293 | ) | ||||||
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| Basic net income (loss) per share available to (attributable to) common stockholders |
$ | 0.27 | $ | (0.45 | ) | $ | 1.53 | $ | (1.65 | ) | ||||||
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| Weighted average shares used in computing basic net income (loss) per share available to (attributable to) common stockholders |
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| 12,208 | 11,868 | 12,081 | 11,701 | |||||||||||||
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| Net income (loss) available to (attributable to) common stockholders, diluted |
$ | 4,679 | $ | (5,336 | ) | $ | 26,184 | $ | (19,293 | ) | ||||||
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| Diluted net income (loss) per share available to (attributable to) common stockholders |
$ | 0.26 | $ | (0.45 | ) | $ | 1.46 | $ | (1.65 | ) | ||||||
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| Weighted average shares used in computing diluted net income (loss) per share available to (attributable to) common stockholders |
18,095 | 11,868 | 17,982 | 11,701 | ||||||||||||
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XOMA ROYALTY CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS |
||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 82,908 | $ | 101,654 | ||||
| Short-term restricted cash |
5,441 | 1,330 | ||||||
| Investment in equity securities |
382 | 3,529 | ||||||
| Trade and other receivables, net |
4,896 | 1,839 | ||||||
| Short-term royalty and commercial payment receivables under the EIR method |
22,780 | 14,763 | ||||||
| Short-term royalty and commercial payment receivables under the cost recovery method |
— | 413 | ||||||
| Prepaid expenses and other current assets |
852 | 2,076 | ||||||
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| Total current assets |
117,259 | 125,604 | ||||||
| Long-term restricted cash |
45,361 | 3,432 | ||||||
| Property and equipment, net |
21 | 32 | ||||||
| Operating lease right-of-use assets |
256 | 319 | ||||||
| Long-term royalty and commercial payment receivables under the EIR method |
4,433 | 4,970 | ||||||
| Long-term royalty and commercial payment receivables under the cost recovery method |
55,888 | 55,936 | ||||||
| Exarafenib milestone asset |
3,600 | 3,214 | ||||||
| Investment in warrants |
697 | — | ||||||
| Intangible assets, net |
44,756 | 25,909 | ||||||
| Other assets - long term |
427 | 1,861 | ||||||
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| Total assets |
$ | 272,698 | $ | 221,277 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 2,208 | $ | 1,053 | ||||
| Accrued and other liabilities |
9,885 | 5,752 | ||||||
| Contingent consideration under RPAs, AAAs, and CPPAs |
— | 3,000 | ||||||
| Operating lease liabilities |
2,464 | 446 | ||||||
| Unearned revenue recognized under units-of-revenue method |
1,268 | 1,361 | ||||||
| Preferred stock dividend accrual |
1,424 | 1,368 | ||||||
| Current portion of long-term debt |
12,526 | 11,394 | ||||||
| Contingent value rights liabilities - current portion |
5,045 | — | ||||||
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| Total current liabilities |
34,820 | 24,374 | ||||||
| Unearned revenue recognized under units-of-revenue method – long-term |
3,193 | 4,410 | ||||||
| Exarafenib milestone contingent consideration |
3,600 | 3,214 | ||||||
| Long-term operating lease liabilities |
20,114 | 483 | ||||||
| Long-term debt |
96,451 | 106,875 | ||||||
| Contingent value rights liabilities - long-term |
10,457 | — | ||||||
| Deferred tax liability |
103 | — | ||||||
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| Total liabilities |
168,738 | 139,356 | ||||||
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| Convertible preferred stock, $0.05 par value, 5,003 shares authorized, issued and outstanding as of December 31, 2025 and December 31, 2024 |
20,019 | 20,019 | ||||||
| Stockholders’ equity: |
||||||||
| 8.625% Series A cumulative, perpetual preferred stock, $0.05 par value, 984,000 shares authorized, issued and outstanding as of December 31, 2025 and December 31, 2024 |
49 | 49 | ||||||
| 8.375% Series B cumulative, perpetual preferred stock, $0.05 par value, 3,600 shares authorized, 1,760.5 and 1,600 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |
— | — | ||||||
| Common stock, $0.0075 par value, 277,333,332 shares authorized, 11,858,955 and 11,952,377 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |
89 | 90 | ||||||
| Additional paid-in capital |
1,305,200 | 1,298,747 | ||||||
| Accumulated other comprehensive income |
53 | 73 | ||||||
| Accumulated deficit |
(1,221,450 | ) | (1,237,057 | ) | ||||
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| Total stockholders’ equity |
83,941 | 61,902 | ||||||
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| Total liabilities, convertible preferred stock and stockholders’ equity |
$ | 272,698 | $ | 221,277 | ||||
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XOMA ROYALTY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, |
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| 2025 | 2024 | |||||||
| Cash flows from operating activities: |
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| Net income (loss) |
$ | 31,712 | $ | (13,821 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Income from purchased receivables under the EIR method |
(5,925 | ) | (15,066 | ) | ||||
| Stock-based compensation expense |
9,273 | 10,312 | ||||||
| Gains on acquisitions |
(21,224 | ) | (19,316 | ) | ||||
| Credit losses on purchased receivables |
— | 30,904 | ||||||
| Gain on sale of equity securities |
(3,663 | ) | — | |||||
| Income tax expense (benefit) |
103 | (5,658 | ) | |||||
| Common stock contribution to 401(k) |
141 | 118 | ||||||
| Amortization of intangible assets |
2,961 | 206 | ||||||
| Depreciation |
11 | 10 | ||||||
| Accretion of long-term debt discount and debt issuance costs |
1,385 | 1,350 | ||||||
| Non-cash lease expense |
64 | 60 | ||||||
| Change in fair value of equity securities |
(90 | ) | (131 | ) | ||||
| Change in fair value of available-for-sale debt securities classified as cash equivalents |
(20 | ) | 73 | |||||
| Change in fair value of derivatives |
(93 | ) | — | |||||
| CVR liability working capital adjustment |
(394 | ) | — | |||||
| Changes in assets and liabilities: |
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| Trade and other receivables, net |
(2,426 | ) | (835 | ) | ||||
| Prepaid expenses and other assets |
3,839 | 302 | ||||||
| Accounts payable and accrued liabilities |
(10,597 | ) | 1,598 | |||||
| Operating lease liabilities |
(876 | ) | (284 | ) | ||||
| Unearned revenue recognized under units-of-revenue method |
(1,310 | ) | (3,570 | ) | ||||
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| Net cash provided by (used in) operating activities |
2,871 | (13,748 | ) | |||||
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| Cash flows from investing activities: |
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| Net cash acquired in Kinnate acquisition |
— | 18,926 | ||||||
| Net cash acquired in Turnstone acquisition |
3,850 | — | ||||||
| Net cash and restricted cash acquired in HilleVax acquisition |
46,384 | — | ||||||
| Net cash, cash equivalents, and restricted cash acquired in LAVA acquisition |
15,263 | — | ||||||
| Net cash and cash equivalents acquired in Mural acquisition |
4,464 | — | ||||||
| Payments of consideration under RPAs, AAAs, and CPPAs |
(8,000 | ) | (53,000 | ) | ||||
| Receipts under RPAs, AAAs, and CPPAs |
3,300 | 29,248 | ||||||
| Net payment for IP acquired under the Pulmokine Acquisition |
— | (20,176 | ) | |||||
| Payment for BioInvent contract-based intangible asset |
(20,725 | ) | — | |||||
| Payment of contingent consideration related to Kinnate IP asset |
(550 | ) | — | |||||
| Purchase of property and equipment |
— | (20 | ) | |||||
| Purchase of equity securities |
(99 | ) | (3,237 | ) | ||||
| Sale of equity securities |
6,999 | — | ||||||
| Payment to issue short-term loan to Xeno |
(5,877 | ) | — | |||||
| Receipt from short-term loan repayment by Xeno |
5,877 | — | ||||||
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| Net cash provided by (used in) investing activities |
50,886 | (28,259 | ) | |||||
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| Cash flows from financing activities: |
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| Proceeds from issuance of common stock |
323 | — | ||||||
| Proceeds from issuance of preferred stock |
4,019 | — | ||||||
| Payments of preferred and common stock issuance and financing costs |
(672 | ) | — | |||||
| Principal payments – debt |
(10,598 | ) | (6,902 | ) | ||||
| Debt issuance costs and loan fees paid in connection with long-term debt |
(80 | ) | (740 | ) | ||||
| Payment of preferred stock dividends |
(5,472 | ) | (5,472 | ) | ||||
| Repurchases of common stock |
(16,043 | ) | (13 | ) | ||||
| Proceeds from exercise of options and other share-based compensation |
5,046 | 5,214 | ||||||
| Taxes paid related to net share settlement of equity awards |
(2,986 | ) | (3,214 | ) | ||||
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| Net cash used in financing activities |
(26,463 | ) | (11,127 | ) | ||||
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| Net increase (decrease) in cash, cash equivalents, and restricted cash |
27,294 | (53,134 | ) | |||||
| Cash, cash equivalents, and restricted cash as of the beginning of the period |
106,416 | 159,550 | ||||||
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| Cash, cash equivalents, and restricted cash as of the end of the period |
$ | 133,710 | $ | 106,416 | ||||
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| Supplemental Cash Flow Information: |
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| Cash paid for interest |
$ | 11,906 | $ | 9,985 | ||||
| Cash paid for taxes |
$ | 277 | $ | — | ||||
| Non-cash investing and financing activities: |
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| Accrual of contingent value rights liability in the Turnstone acquisition |
$ | 1,110 | $ | — | ||||
| Accrual of contingent value rights liability in the HilleVax acquisition |
$ | 5,673 | $ | — | ||||
| Accrual of contingent value rights liability in the LAVA acquisition |
$ | 9,114 | $ | — | ||||
| Right-of-use assets obtained in exchange for operating lease liabilities in the HilleVax acquisition |
$ | 22,525 | $ | — | ||||
| Relative fair value basis reduction of right-of-use assets in the HilleVax acquisition |
$ | (22,525 | ) | $ | — | |||
| Transaction costs in connection with Mural acquisition included in accrued expenses |
$ | 320 | $ | — | ||||
| Excise tax accrual due to stock repurchases |
$ | 68 | $ | — | ||||
| Reclassification of equity classified awards to liabilities |
$ | (739 | ) | $ | — | |||
| Reclassification of deferred issuance cost to equity |
$ | 578 | $ | — | ||||
| Preferred stock dividend accrual |
$ | 1,424 | $ | 1,368 | ||||
| Estimated fair value of the Exarafenib milestone asset |
$ | — | $ | 2,922 | ||||
| Estimated fair value of the Exarafenib milestone contingent consideration |
$ | — | $ | (2,922 | ) | |||
| Right-of-use assets obtained in exchange for operating lease liabilities in the Kinnate acquisition |
$ | — | $ | 824 | ||||
| Relative fair value basis reduction of rights-of-use assets in the Kinnate acquisition |
$ | — | $ | (824 | ) | |||
| Accrual of contingent consideration under the Affitech CPPA |
$ | — | $ | 3,000 | ||||
| Accrual of contingent consideration under the LadRx AAA |
$ | — | $ | 1,000 | ||||
# # #
| Investor contact: |
Media contact: | |
| Juliane Snowden |
Kathy Vincent | |
| XOMA Royalty Corporation |
KV Consulting & Management | |
| +1-646-438-9754 |
kathy@kathyvincent.com | |
| juliane.snowden@xoma.com |
Exhibit 99.2 CORPORATE PRESENTATION THE ROYALTY AGGREGATOR NASDAQ COMMON: XOMA FOR BIOTECH NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO COMPANIES Q1 2026
DISCLAIMERS Certain statements in this presentation are forward-looking statements 10-K and Form 10-Q. Consider such risks carefully when considering within the meaning of Section 27A of the Securities Act of 1933 and XOMA Royalty's prospects. Any forward-looking statements represent Section 21E of the Securities Exchange Act of 1934, including XOMA Royalty’s views only as of the date of this presentation and statements regarding: future potential monetization opportunities, should not be relied upon as representing its views as of any active transactions with significant financial implications, collaborations subsequent date. XOMA Royalty disclaims any obligation to update any poised for significant financial contribution, the ability of our partners forward-looking statement, except as required by law. and their licensees to successfully develop their pipeline programs (including the anticipated timing and occurrence of clinical trial results, NOTE: All references to “portfolio” in this presentation are to milestone regulatory decisions, and commercialization activities), the productivity and/or royalty rights associated with a basket of drug products in of acquired assets, our revenue and cashflow forecasts, upcoming development. All references to “assets” in this presentation are to internal milestones and value catalysts, our future cash needs, our milestone and/or royalty rights associated with individual drug product strategy for value creation, and other statements that relate to future candidates in development. References to royalties or royalty rates periods. These statements are not guarantees of future performance contained herein refer to future potential payment streams regardless and undue reliance should not be placed on them. They are based on of whether or not they are technically defined as royalties in the assumptions that may not prove accurate, and actual results could differ underlying contractual agreement; further, any rates referenced herein materially from those anticipated due to certain risks inherent in the are subject to potential future contractual adjustments. biotechnology industry and for companies engaged in the development of new products in a regulated market. Potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty's most recent filings on Form 2
XOMA ROYALTY’S BUSINESS MODEL: Path to Sustained THE COMPOUNDING Profitability EFFECT GROWING # of ROYALTIES CASH RECEIPTS ↑ LOW EXPENSES LOW SHARE COUNT INFLECTION POINT HIGH EPS LOW EXPENSES SIGNIFICANT SHARE PRICE APPRECIATION 2023 future 3 3
2025 YEAR IN REVIEW Increasing Portfolio Optionality Through Creative Deal Making Opportunistically Returning Excess Capital to Shareholders A P R 2 0 2 5 J U L 2 0 2 5 J A N 2 0 2 5 M A Y 2 0 2 5 Total 22 ADDED 1 O U T L I C E N S I N G R O Y A L T Y A C Q U I S I T I O N R O Y A L T Y + D-Fi Royalty, Warrants Sale of All Pipeline Assets ASSETS Mezagitamab Royalty Cash Phase 2 & 3 PRV 5 N A S D A Q : K N T E N A S D A Q : E P I X P R I V A T E N A S D A Q ( S W ) : B I N V ACQUIRED A U G 2 0 2 5 A U G 2 0 2 5 A U G 2 0 2 5 A U G 2 0 2 5 $ NON-DILUTIVE ~ 12M CAPITAL A C Q U I S I T I O N A C Q U I S I T I O N A C Q U I S I T I O N A C Q U I S I T I O N Cash & TIL Assets Cash & Cytokine Assets Cash & Norovirus Platform PORTFOLIO $ N A S D A Q : M U R A N A S D A Q : L V T X N A S D A Q : T S B X N A S D A Q : H L V X > 50M RECEIPTS D E C 2 0 2 5 N O V 2 0 2 5 D E C 2 0 2 5 $ 1 Dollars R O Y A L T Y X - Δ A C Q U I S I T I O N A C Q U I S I T I O N 16M SHARE ctLNP Royalty Share Agreement Platform BUYBACK Shares ~648k N Y S E : T A K N A S D A Q : R P R X N A S D A Q : G B I O 4 1. XOMA Royalty served as Structuring Agent and financing source to XenoTherapeutics, Inc.
COMMERCIAL PORTFOLIO Provide Stable & Growing Royalty Streams FY25 FY26 Peak Sales 1 1 Marketer Product Indication Royalties Receipts Sales Est Est Wet AMD, DME, $ $ $ 0.5% 22.5M 5.8B 8.3B RVO $ $ $ r/rpLGG Mid-single digit 12.4M 231M 910M Niemann-Pick $ $ $ Mid-single digit 2.9M 130M 392M Disease Type C $ $ Hemophilia-B Mid-single digit 1.7M 35M n/a Bacterial Low to high- $ < 0.5M n/a n/a Vaginosis single digit 37-75% on $ Acute Pain < 0.5M n/a n/a DoW sales 2 FSAD Low-single digit n/a n/a n/a 1. Consensus per Global Data or selected research analyst estimates if not available. AMD = Age-related Macular Degeneration, DME = Diabetic Macular Edema, RVO = Retinal Vein Occlusion, r/rpLGG = Relapsed or 5 2. Commercial availability through a 503B outsourcing facility. Progressive Pediatric Low-Grade Glioma, FSAD = Female Sexual Arousal Disorder, DoW = Department of War
BUILDING THE LONG-TERM XOMA ROYALTY BUSINESS >100 Assets seralutinib (PAH/PH-ILD) (1L pLGG) ersodetug (HI) mezagitamab (ITP/IgAN) 1 volixibat (PBC/PSC) 2 $ osavampator (MDD) > 140M OHB-607 (BPD) milestones received since 2017 rilvegostomig (cancer) UNDISCLOSED Anti-TL1A (UC/Crohn’s) $ > 3B ficlatuzumab (HNSCC) in future potential cetrelimab (cancer) milestones ovaprene (NH Contraception) D-Fi (DEB) sildenafil cream (FSAD) MILESTONES EARLY-STAGE PIPELINE REGISTRATIONAL / PHASE 2b & 3 COMMERCIAL ROYALTIES 1. In development by Mirum Pharmaceuticals under license from Takeda. 6 2. Osavampator is being developed by Takeda in Japan, and by a Takeda partner outside of Japan.
+ B U S I N E S S D E V E L O P M E N T KEY PORTFOLIO EVENTS ANTICIPATED IN 2026 R E G U L A T O R Y C O M M E R C I A L M A R K E T I N G R E G U L A T O R Y G U I D A N C E : S A L E S R A M P S A U T H O R I Z A T I O N R E G I S T R A T I O N P A T H W A Y S D E C I S I O N S ( E M A , J a p a n ) S E R A L U T I N I B E R S O D E T U G R E C -4881 P U L M O N A R Y A R T E R I A L C O N G E N I T A L F A M I L I A L A D E N O M A T O U S H Y P E R T E N S I O N H Y P E R I N S U L I N I S M P O L Y P O S I S ( P A H ) ( c H I ) ( F A P ) ( E M A ) D A T A A N N O U N C E M E N T S PHASE 2b PHASE 3 PHASE 1 / 2 (Registrational) 1 P R O D U C T L A U N C H E R S O D E T U G V O L I X I B A T R I L V E G O S T O M I G H Y P E R I N S U L I N I S M P R I M A R Y S C L E R O S I N G L U N G C A N C E R ( m o n o t h e r a p y ) ( T H I ) C H L O A N G I T I S ( PSC ) 2H26 2Q26 2026 7 1. In development by Mirum Pharmaceuticals under license from Takeda.
EVOLUTION OF XOMA ROYALTY Growing Cash Receipts and Portfolio Optionality Without Shareholder Dilution Assets: 2023 TODAY (1) Commercial: 1 7 7x LATE STAGE (2) Phase 3 / Registrational: 2 14 Phase 2 & Earlier: 57 100+ TOTAL: ~60 >120 2x PORTFOLIO SIZE Financial: (3) ~4x ROYALTY RECEIPTS Royalty Receipts : ~$9M ~$34M ~$ ~$ Beginning Cash: 57M 83M 45% MORE CASH $ $ Share Repurchase: 0M 16M+ / ~648k Shares ONLY 4% MORE SHARES Common Stock: 11.4M 11.9M (1) Included DARE to PLAY (Sildenafil Cream) being sold under 503B pathway by Daré Bioscience (2) 2 remain from 2023, 4 progressed from Phase 2 and 8 were acquired 8 (3) Includes FY 2023 and FY 2025 cash receipts from royalties
TAKEDA STRATEGIC REVENUE SHARING AGREEMENT Economic Interests in 9 Programs added to XOMA Royalty Portfolio Therapeutic Area(s) Potential Asset Mechanism(s) / Indication(s) Royalties Milestones CD-38 antibody, Autoimmune Takeda Revenue Share Assets – AMPA positive $ diseases, neurology, Low to mid- 101M Late Stage (Mezagitamab (TAK- allosteric Aggregate psychiatry, hepatic single digit 079), Osavampator and Volixibat) modulator, IBAT diseases inhibitor Familial Allosteric MEK1/2 Low to mid- REC-4881 Adenomatous Not disclosed inhibitors single digit Polyposis Recombinant Bronchopulmonary Low to mid- $ OHB-607 human IGF- Dysplasia in 223M single digit 1/IGFBP-3 premature infants 5 early-stage assets $ Multiple Multiple Mid-single digit 510M with Oak Hill Bio 9
XOMA M&A TRANSACTIONS 9 Acquisitions Since 2024, Accessing 9 Different Royalties, Plus IP A P R 2 0 2 4 N O V 2 0 2 5 A U G 2 0 2 5 S E P 2 0 2 5 O C T 2 0 2 5 1 5 partnered assets $ Next gen TILs ≤ 281M milestones Norovirus vaccine Neoantigen Platform 15% to XOMA N A S D A Q : K N T E P R I V A T E N A S D A Q : T S B X N A S D A Q : H L V X N A S D A Q : E P I X N O V 2 0 2 5 D E C 2 0 2 5 J A N 2 0 2 6 F E B 2 0 2 6 1 2 partnered assets 1 partnered asset $ $ Partnered assets w/ milestone and ≤ 838M milestones≤ 30M milestones royalty streams to XOMA Cytokine platform 25% to XOMA 10-50% to XOMA ctDNA Platform Wholly owned assets N A S D A Q : L V T X N A S D A Q : M U R A N A S D A Q : R P R X N A S D A Q : G B I O 10 1. XOMA Royalty served as Structuring Agent and financing source to XenoTherapeutics, Inc.
XOMA ROYALTY TRANSACTION CASE STUDY Viracta Therapeutics | DAY101 (now OJEMDA ) Date: March 2021 Consideration to Viracta: $ $ • 13.5M upfront + 20M in milestones XOMA Royalty Receives: • mid-single digit royalties on DAY101 (OJEMDA) $ • ≤ 54M in pre-commercialization milestone payments Future Royalty + Milestone 2 Receipts $ 35.9M Milestone and Royalty Receipts (1) 4Q’23 to Date $ 13.5M UPFRONT Return to date: ~33% IRR 2.7x MOIC 1. Financial information as of 12/31/2025. 11 2. XOMA Royalty remains eligible to receive mid-single-digit royalties on sales of and pre-commercialization milestones related to OJEMDA
XOMA ROYALTY IS DIFFERENTIATED Capital per transaction $ 200M+ Royalty Pharma $ 200M – $ 100M DRI Healthcare Trust FOCUSED ON $ Ligand HCRx 100M – EARLY- to MID-STAGE $ 25M CLINICAL ASSETS $ < 25M P R E C L I N I C A L P H A S E 1 P H A S E 2 P H A S E 3 A P P R O V A L C O M M E R C I A L 12
GROWING PORTFOLIO RECEIPTS XOMA Royalty Cash Receipts ($M) FY2025 Comments $50.5 $46.4 ▪ Royalty receipts +68% $16.9 ▪ 4 programs each contributed $ > 1.5M in royalty receipts, $26.4 including 2 approved within last 2 years ▪ 6 programs contributed to $15.6 $33.6 milestone receipts $6.6 $20.0 $9.0 FY 2023 FY 2024 FY 2025 Royalty Receipts Milestone Receipts 13
XOMA ROYALTY FINANCIAL HIGHLIGHTS 1 FY2025 PORTFOLIO RECEIPTS NON-DILUTIVE CAPITAL $ $ > 50M ~ 12M FY25 positive cash flow from operations Provided by acquisitions since Jan 2025 2 BUSINESS DEVELOPMENT SHARE REPURCHASE $ $ ~ 25M 16M BioInvent (mezagitamab), Castle Creek (D-Fi) Retired ~648k shares @ $24.75 avg price 1. XOMA Royalty accumulated approximately $11.7M of cash and cash equivalents, net of transaction costs, from completing or serving as structuring agent on 7 acquisitions since January 2025. 14 2. Represents $20M upfront purchase paid to BioInvent and $5M contributed to Castle Creek royalty financing for D-Fi.
XOMA ROYALTY SNAPSHOT: Current Capitalization $ 26.61 / SHARE SHARES (FULLY DILUTED 17.6M TREASURY METHOD) $ ~$ MARKET CAP (FULLY DILUTED) 469M 568M $ 69M PERPETUAL PREFERREDS ENTERPRISE VALUE $ 113M ROYALTY BACKED LOAN $ 83M CASH (YE25) 15 15 Note: Share Price as of market close 3/16/2026
XOMA ROYALTY – WHAT WE DO Royalties Science Milestones Structuring The Biotech Royalty Aggregator 16
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Filing Exhibits & Attachments
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