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Royalty Pharma cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$686M in Q3 2026 · $3.0B over twelve months

Operating cash flow$686M
Free cash flow+$686M
Cash / net income2.6×

Analysis

In Q3 2026, Royalty Pharma generated $686M of operating cash flow. That is $16.5M less than in Q3 2025 ($703M).

Over the twelve months to Sep 30, 2026, operating cash flow was $3.0B; the largest uses were other investing ($1.8B), other financing ($1.1B), buybacks ($262M); the cash balance fell by $425M.

Operating cash flow was $686M against net income of $267M — 2.6× profit, cash ran ahead of reported earnings. The largest differences: impairments +$150M, stock-based pay +$105M, payables −$7.5M.

Free cash flow

Royalty Pharma: free cash flow by quarterRoyalty Pharma: free cash flow by quarter$743MQ4 2024$596MQ1 2025$364MQ2 2025$703MQ3 2025$827MQ4 2025$718MQ1 2026$728MQ2 2026$686MQ3 2026
Operating cash flow less capital spending.
Royalty Pharma: operating cash flow against capital spendingRoyalty Pharma: operating cash flow against capital spendingOperating cash flowCapital spending$743M$0Q4 2024$596M$0Q1 2025$364M$0Q2 2025$703M$0Q3 2025$827M$0Q4 2025$718M$0Q1 2026$728M$0Q2 2026$686M$0Q3 2026
Latest (Q3 2026): Operating cash flow $686M, Capital spending $0.

Capital allocation, year by year

Royalty Pharma: where the cash came from (up) and went (down), by fiscal yearRoyalty Pharma: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingAcquisitionsBuybacksFY2021: Operating cash flow $2.0BFY2021: Net borrowing $1.3B$3.3BFY2021FY2022: Operating cash flow $2.1B$2.1BFY2022FY2023: Operating cash flow $3.0BFY2023: Buybacks −$305M$3.0BFY2023FY2024: Operating cash flow $2.8BFY2024: Buybacks −$230M$2.8BFY2024FY2025: Operating cash flow $2.5BFY2025: Acquisitions −$74.4MFY2025: Buybacks −$1.2B$2.5BFY2025
Over these 5 years operating cash flow totalled $12.4B; the largest uses were buybacks ($1.8B) and acquisitions ($74.4M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$545M
Debt$8.6B
Net debt$8.0B
Due within a year$997M

Royalty Pharma funds itself: free cash flow was $3.0B over the last twelve months, and $545M of cash and investments stands against $8.6B of debt ($997M due within a year, 0.5× covered by cash).

Where the cash came from and went

Royalty Pharma: sources (+) and uses (−) of cash, Q3 2026Royalty Pharma: sources (+) and uses (−) of cash, Q3 2026Operating cash flow$686MOther financing−$579MCash drawn (+) / kept (−)$298MOther investing−$286MBuybacks−$86.3MPartners−$33.2M
Royalty Pharma: sources (+) and uses (−) of cash, TTM to Q3 2026Royalty Pharma: sources (+) and uses (−) of cash, TTM to Q3 2026Operating cash flow$3.0BOther investing−$1.8BOther financing−$1.1BCash drawn (+) / kept (−)$425MBuybacks−$262MPartners−$148M

From profit to cash

Royalty Pharma: net income to operating cash flow, Q3 2026Royalty Pharma: net income to operating cash flow, Q3 2026Net income$267MDepreciation & amortization$1.2MStock-based pay$105MImpairments$150MOther non-cash$2.9MPayables−$7.5MPrepaid and other assets−$3.8MOther liabilities−$922KOperating cash flow$686M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowAcquisitionsBuybacksCash drawn (+) / kept (−)Free cash flow
Q3 2026$686M—−$86.3M$298M$686M
Q2 2026$728M—−$44.6M−$226M$728M
Q1 2026$718M—−$50.1M$32.3M$718M
Q4 2025$827M—−$80.5M$320M$827M
Q3 2025$703M−$226K−$146M−$307M$703M
Q2 2025$364M—−$292M$456M$364M
Q1 2025$596M—−$709M−$159M$596M
Q4 2024$743M—−$52.6M$21.0M$743M

Royalty Pharma: income statement and cash flow

Royalty Pharma, Q3 2026: revenue $690M (+13% year over year), operating margin 59.5%. The chart follows the revenue to costs, profit and cash.

Royalty Pharma: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.