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

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

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

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

XOMA Royalty Stock Performance

Shares of XOMA stock traded up $1.47 on Thursday, hitting $28.82. The company’s stock had a trading volume of 20,252 shares, compared to its average volume of 415,545. XOMA Royalty has a fifty-two week low of $18.35 and a fifty-two week high of $39.92. The company has a market capitalization of $356.82 million, a PE ratio of 39.07 and a beta of 0.86. The stock’s 50 day moving average is $26.13 and its 200-day moving average is $30.49. The company has a debt-to-equity ratio of 1.07, a quick ratio of 3.91 and a current ratio of 3.91.

Institutional Trading of XOMA Royalty

A number of institutional investors have recently bought and sold shares of XOMA. JPMorgan Chase & Co. grew its position in shares of XOMA Royalty by 13.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 4,440 shares of the biotechnology company’s stock worth $112,000 after purchasing an additional 543 shares in the last quarter. Russell Investments Group Ltd. raised its position in shares of XOMA Royalty by 3,436.4% in the third quarter. Russell Investments Group Ltd. now owns 778 shares of the biotechnology company’s stock valued at $30,000 after buying an additional 756 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of XOMA Royalty by 4.5% in the third quarter. Dimensional Fund Advisors LP now owns 29,190 shares of the biotechnology company’s stock valued at $1,124,000 after buying an additional 1,269 shares during the period. Tower Research Capital LLC TRC boosted its stake in shares of XOMA Royalty by 203.1% in the second quarter. Tower Research Capital LLC TRC now owns 2,273 shares of the biotechnology company’s stock valued at $57,000 after buying an additional 1,523 shares during the period. Finally, Barclays PLC grew its position in XOMA Royalty by 12.1% during the fourth 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 XOMA Royalty News

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

Wall Street Analysts Forecast Growth

XOMA has been the subject of a number of research reports. TD Cowen upgraded shares of XOMA Royalty to a “hold” rating in a research note on Friday, February 13th. Leerink Partners restated an “outperform” rating on shares of XOMA Royalty in a research report on Tuesday, February 24th. Stifel Nicolaus set a $50.00 price objective on XOMA Royalty in a report on Friday, December 12th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of XOMA Royalty in a research report on Monday, December 29th. Finally, Benchmark reiterated a “buy” rating on shares of XOMA Royalty in a research note on Friday, December 12th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $61.60.

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.