Royalty Pharma plcRPRX
NasdaqGS•Healthcare•Biotechnology
Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovation in the biopharmaceutical industry in the United States. Its portfolio consists of royalties on approximately 35 marketed therapies and 20 development-stage product candidates that address various therapeutic areas, such as rare disease, oncology, neuroscience, infectious disease, hematology, and diabetes. The company has research and development funding collaboration to advance the development of JNJ-4804, an investigational medicine for autoimmune diseases. The company was founded in 1996 and is based in New York, New York.
Royalty Pharma plc (RPRX) reported trailing twelve months revenue of $2.44B as of March 2026, a 7.8% increase year-over-year. Quarterly revenue reached $630.58M, reflecting continued top-line momentum.
Royalty Pharma plc generated $827.29M in TTM net income, with quarterly EBITDA of $563.04M. The operating margin contracted from 94.0% to 89.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (89.3%) and net margin (46.7%) indicates significant non-operating expenses or interest burden. Net margin has improved from 41.9% a year ago, signaling stronger bottom-line efficiency.
RPRX trades at a P/E of 24.5x (in line with broad market averages) and a P/S of 8.3x. The price-to-book ratio of 2.0x reflects a moderate premium to book value.
The company generated $718.23M in free cash flow over the trailing twelve months, a 20.5% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $19.82B in total assets with $8.58B in long-term debt against $9.94B in stockholders equity for a debt-to-equity ratio of 0.9. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~74.2% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~9.1% on average, adequate but below the threshold typically associated with wide moats.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (6 of 7 quarters up), with ~9.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 23.0% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 4.3x on average — earnings are well-supported by cash generation.
Debt-to-equity has risen 27.6% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.2% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation