XOMA Royalty Corporation (NASDAQ:XOMA) posted fourth-quarter results that came in ahead of analyst expectations, supported by higher royalty receipts and milestone payments from its expanding portfolio of biotechnology assets.
Shares of the company rose about 7% following the earnings announcement.
The biotech royalty company reported earnings of $0.26 per share for the fourth quarter, well above the analyst consensus estimate of a loss of $0.11 per share. Revenue totaled $13.76 million, exceeding forecasts of $11.13 million and marking a 58% increase from the $8.7 million recorded in the same quarter a year earlier.
For the full year 2025, XOMA generated more than $50 million in cash receipts, including $33.6 million from royalties and $16.9 million from milestone payments. Total cash receipts increased 9% compared with 2024, while royalty income rose 68%.
“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. “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.”
Total revenue for the year reached $52.1 million, compared with $28.5 million in 2024, largely driven by higher income tied to VABYSMO and OJEMDA, as well as milestone payments from Rezolute and Takeda. General and administrative expenses rose to $36.1 million from $34.5 million, partly reflecting increased business development activity and ongoing litigation with Janssen Biotech.
During 2025, the company completed seven acquisitions, securing $11.7 million in non-dilutive capital and obtaining economic interests tied to as much as $1.1 billion in potential milestone payments. XOMA ended the quarter with $133.7 million in cash and cash equivalents.