Ligand Pharmac-B | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 115.46 M

Revenue: As of FY2025 Q3, the actual value is USD 115.46 M, beating the estimate of USD 58.05 M.

EPS: As of FY2025 Q3, the actual value is USD 5.68, beating the estimate of USD 1.0467.

EBIT: As of FY2025 Q3, the actual value is USD 51.97 M.

Revenue from Intangible Royalty Assets: $40.2 million in Q3 2025, up 51% from $26.6 million in Q3 2024. YTD 2025 revenue was $91.8 million, up 36% from $67.5 million in YTD 2024.
Income from Financial Royalty Assets: $6.4 million in Q3 2025, up 25% from $5.2 million in Q3 2024. YTD 2025 income was $18.6 million, up 189% from $6.5 million in YTD 2024.
Royalties: $46.6 million in Q3 2025, up 47% from $31.7 million in Q3 2024. YTD 2025 royalties were $110.5 million, up 49% from $74.0 million in YTD 2024.
Captisol Sales: $10.7 million in Q3 2025, up 71% from $6.3 million in Q3 2024. YTD 2025 sales were $32.4 million, up 41% from $23.0 million in YTD 2024.
Contract Revenue and Other Income: $58.2 million in Q3 2025, up 320% from $13.8 million in Q3 2024. YTD 2025 income was $65.5 million, up 139% from $27.4 million in YTD 2024.

Cost of Captisol: $3.8 million in Q3 2025, up 55% from $2.4 million in Q3 2024. YTD 2025 cost was $11.6 million, up 40% from $8.2 million in YTD 2024.
Amortization of Intangibles: $8.1 million in Q3 2025, consistent with $8.3 million in Q3 2024. YTD 2025 amortization was $24.6 million, consistent with $24.7 million in YTD 2024.
Research and Development: $21.0 million in Q3 2025, up from $5.7 million in Q3 2024. YTD 2025 expense was $77.7 million, up from $17.0 million in YTD 2024.
General and Administrative: $28.4 million in Q3 2025, up from $24.5 million in Q3 2024. YTD 2025 expense was $67.4 million, up from $53.0 million in YTD 2024.
Financial Royalty Assets Impairment: No impairment in Q3 2025. YTD 2024 impairment was $26.5 million.
Fair Value Adjustments to Partner Program Derivatives: - $0.8 million in Q3 2025, compared to $7.8 million in Q3 2024. No adjustments in YTD 2025.

Operating Cash Flow: $3.4 million in YTD 2025, down from $68.6 million in YTD 2024.
Investing Cash Flow: - $359.2 million in YTD 2025, down from - $105.0 million in YTD 2024.
Financing Cash Flow: $419.9 million in YTD 2025, up from $76.8 million in YTD 2024.

Gain (Loss) from Short-Term Investments: $7.8 million in Q3 2025, up from $2.4 million in Q3 2024. YTD 2025 loss was - $3.6 million, down from $98.9 million gain in YTD 2024.
Gain (Loss) from Change in Fair Value of Equity-Method Investments and Other Investments: $75.9 million in Q3 2025, up from - $3.0 million in Q3 2024. YTD 2025 gain was $75.9 million, up from - $34.6 million loss in YTD 2024.
Interest Income: $3.9 million in Q3 2025, up from $1.3 million in Q3 2024. YTD 2025 income was $7.3 million, up from $6.1 million in YTD 2024.
Interest Expense: - $0.9 million in Q3 2025, up from - $0.7 million in Q3 2024. YTD 2025 expense was - $2.9 million, up from - $2.2 million in YTD 2024.
Other Non-Operating Expense, Net: - $0.4 million in Q3 2025, down from - $9.5 million in Q3 2024. YTD 2025 expense was - $1.6 million, down from - $13.6 million in YTD 2024.

Core Business Focus: Ligand Pharmaceuticals Incorporated aims to continue generating value through a diversified portfolio of biopharmaceutical product revenue streams supported by an efficient and low corporate cost structure. The company plans to leverage its Captisol and NITRICIL platform technologies to support the clinical development of high-value medicines.
Non-Core Business: Ligand is exploring strategic investments and acquisitions to bring in new assets, pipelines, and technologies to generate additional revenue streams. Recent investments include the Pelthos Transaction and strategic capital investments in Arecor and Orchestra BioMed.
Priority: The company emphasizes strategic investments with concrete projections, such as the $25 million investment in Orchestra BioMed and the $7 million investment in Arecor, to support late-stage partnered cardiology programs and acquire global royalty rights, respectively.