Ligand Pharmac-B | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 63.69 M

Revenue: As of FY2026 Q2, the actual value is USD 63.69 M, beating the estimate of USD 60.76 M.

EPS: As of FY2026 Q2, the actual value is USD 2.22, beating the estimate of USD 1.2063.

EBIT: As of FY2026 Q2, the actual value is USD 3.041 M.

Second Quarter 2026 Financial Results

Total Revenues and Income

Ligand Pharmaceuticals Incorporated reported total revenues and income of $63.7 million for the second quarter of 2026, a 34% increase from $47.6 million in the same period of 2025, primarily due to higher royalty revenue.

Royalty Revenue

Royalties totaled $48.0 million, up 32% from $36.4 million in the prior-year period, largely driven by royalties from Travere Therapeutics’ Filspari, Pelthos Therapeutics’ Zelsuvmi, and Merck’s Ohtuvayre.

Captisol Sales

Captisol® sales were $8.0 million, compared to $8.3 million in the second quarter of 2025.

Contract Revenue and Income

Contract revenue and income increased to $7.7 million from $2.9 million in the prior-year period.

Operating Costs and Expenses

• Cost of Captisol: $3.2 million in Q2 2026, up from $2.9 million in Q2 2025.
• Amortization of Intangibles: $8.1 million in Q2 2026, compared to $8.3 million in Q2 2025.
• Research and Development Expense: Increased to $14.7 million from $6.6 million in Q2 2025.
• General and Administrative Expense: Rose to $29.1 million from $20.2 million in the prior-year period.

Operating Income

Operating income was $8.591 million in Q2 2026, slightly up from $8.444 million in Q2 2025.

Non-Operating Income, Net

Net non-operating income was $55.7 million for Q2 2026, a significant increase from $2.8 million in Q2 2025.

Net Income

GAAP Net Income was $48.5 million for Q2 2026, compared to $4.8 million for Q2 2025. Adjusted Net Income was $50.8 million for Q2 2026, an increase of 59% from $32.0 million in Q2 2025.

Income Tax Expense

Income tax expense was - $15.796 million in Q2 2026, compared to - $6.376 million in Q2 2025.

Year-to-Date (Six Months Ended June 30, 2026) Financial Results

Total Revenues and Income

Total revenues and income for the six months ended June 30, 2026, were $115.4 million, a 24% increase from $93.0 million in the same period of 2025.

Royalty Revenue

Royalties for the six months ended June 30, 2026, were $91.0 million, up 42% from $63.9 million in the prior-year period.

Captisol Sales

Captisol sales decreased to $16.6 million from $21.7 million for the same period in 2025.

Operating Costs and Expenses

• Cost of Captisol: $6.5 million for the six months ended June 30, 2026, down from $7.8 million in the prior-year period.
• Research and Development Expenses: $16.8 million for the six months ended June 30, 2026, a decrease from $56.7 million in 2025.
• General and Administrative Expense: $50.0 million for the six months ended June 30, 2026, up from $39.0 million in 2025.

Operating Income (Loss)

Operating income was $25.959 million for the six months ended June 30, 2026, a significant improvement from an operating loss of - $27.772 million in the prior-year period.

Non-Operating Income (Expenses), Net

Non-operating income, net, was $14.1 million for the six months ended June 30, 2026, compared to a non-operating expense, net, of - $11.2 million in 2025.

Net Income (Loss)

GAAP Net Income was $35.2 million for the six months ended June 30, 2026, a substantial improvement from a GAAP net loss of - $37.6 million in 2025. Adjusted Net Income was $85.4 million for the six months ended June 30, 2026, representing growth of 46% from $58.6 million in 2025.

Income Tax Expense (Benefit)

Income tax expense was - $4.882 million for the six months ended June 30, 2026, compared to an income tax benefit of $1.353 million in 2025.

Liquidity and Capital Resources

As of June 30, 2026, Ligand Pharmaceuticals Incorporated held $1.36 billion in cash, cash equivalents, and short-term investments, an increase from $733.5 million at December 31, 2025. Following the XOMA Acquisition, the company has approximately $700 million in deployable capital for additional royalty acquisitions and strategic investments. The company completed an offering of $700 million aggregate principal amount of 0.00% convertible senior notes due 2031, with net proceeds of approximately $679 million after deducting fees and expenses.

2026 Financial Guidance Update

Ligand Pharmaceuticals Incorporated is reaffirming its full-year 2026 revenue guidance. The company is raising the low end of its adjusted earnings per diluted share guidance, now expecting $9.00 to $9.50, up from the previous range of $8.50 to $9.50. This adjustment reflects stronger cost synergies from the XOMA Acquisition, incremental net interest income from the 2031 Notes, and a reduced share count due to share repurchases.