XOMA Royalty (NASDAQ:XOMA) Releases Quarterly Earnings Results

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

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

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

XOMA Royalty Price Performance

XOMA Royalty stock traded up $0.94 during trading hours on Thursday, reaching $28.29. 21,485 shares of the stock were exchanged, compared to its average volume of 415,652. The company has a current ratio of 3.91, a quick ratio of 3.91 and a debt-to-equity ratio of 1.07. XOMA Royalty has a twelve month low of $18.35 and a twelve month high of $39.92. The company has a market cap of $350.32 million, a P/E ratio of 38.22 and a beta of 0.86. The stock has a 50 day moving average of $26.13 and a two-hundred day moving average of $30.49.

Analysts Set New Price Targets

XOMA has been the topic of a number of research reports. UBS Group set a $76.00 price target on shares of XOMA Royalty in a research note on Tuesday, December 9th. Benchmark restated a “buy” rating on shares of XOMA Royalty in a research report on Friday, December 12th. Stifel Nicolaus set a $50.00 price objective on XOMA Royalty in a report on Friday, December 12th. HC Wainwright decreased their target price on XOMA Royalty from $104.00 to $97.00 and set a “buy” rating on the stock in a research report on Thursday, December 11th. Finally, TD Cowen upgraded XOMA Royalty to a “hold” rating in a research note on Friday, February 13th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $61.60.

Institutional Trading of XOMA Royalty

A number of institutional investors and hedge funds have recently made changes to their positions in the company. JPMorgan Chase & Co. increased its stake in XOMA Royalty by 13.9% in the second quarter. JPMorgan Chase & Co. now owns 4,440 shares of the biotechnology company’s stock valued at $112,000 after acquiring an additional 543 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in XOMA Royalty by 3,436.4% during the third quarter. Russell Investments Group Ltd. now owns 778 shares of the biotechnology company’s stock worth $30,000 after purchasing an additional 756 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of XOMA Royalty by 4.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 29,190 shares of the biotechnology company’s stock valued at $1,124,000 after purchasing an additional 1,269 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in shares of XOMA Royalty by 203.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,273 shares of the biotechnology company’s stock valued at $57,000 after purchasing an additional 1,523 shares during the last quarter. Finally, Barclays PLC raised its holdings in shares of XOMA Royalty by 12.1% during the 4th quarter. Barclays PLC now owns 14,822 shares of the biotechnology company’s stock worth $394,000 after buying an additional 1,598 shares in the last quarter. Institutional investors own 95.92% of the company’s stock.

Key Headlines Impacting XOMA Royalty

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

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

About XOMA Royalty

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

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