Executive Summary

Q4 2024 total income and revenues were $8.7M, up sharply year over year vs $1.8M in Q4 2023, with quarterly net loss improving to $4.0M from $20.1M in the prior-year quarter .
Management highlighted “line of sight on becoming cash flow positive on a consistent basis” from royalties alone and expects R&D and G&A to normalize in H2 2025, signaling an improving cost trajectory .
Portfolio scale and de-risking advanced: MIPLYFFA and OJEMDA received FDA approvals in 2024 and the commercial royalty portfolio grew to six assets; late-stage (Phase 3) holdings rose to 11 assets, with multiple 2025 readouts anticipated .
Key catalysts include portfolio expansion transactions (Twist monetization; Pulmokine acquisition), milestone/royalty cash receipts ($4.0M in Q4, $46.3M in FY24), and upcoming Phase 3 events (ersodetug, seralutinib, Ovaprene) .

What Went Well and What Went Wrong

What Went Well

Portfolio scale and diversification: “Doubled the royalty and milestone portfolio to over 120 royalty assets” in 2024; CEO: “our balanced approach … is beginning to bear fruit,” with over $100M cash on hand and a clear path to sustainable royalty cashflow .
Regulatory approvals strengthening commercial base: Day One’s OJEMDA and Zevra’s MIPLYFFA each received FDA approval, adding to six commercial royalty assets; OJEMDA approval triggered a $9.0M milestone and $2.7M income from 2024 sales .
Transaction execution: $15M Twist monetization added 60+ early-stage programs across ~30 partners; Pulmokine acquisition secured economic interest in seralutinib (Phase 3 PAH), positioning late-stage readouts in 2025 .

What Went Wrong

Credit losses on purchased receivables remained a significant headwind: $7.9M in Q4 related to Talphera and $30.9M for FY24 (Agenus $14.0M, Aronora $9.0M, Talphera $7.9M) .
Elevated interest burden from Blue Owl loan: Q4 interest expense was $3.4M (vs $0.6M in prior-year quarter), maintaining pressure on net income .
DSUVIA commercialization discontinuation by Alora in Nov 2024 reduces expected near-term royalty receipts (DoD sales remain possible), and full-year cash declined despite strong receipts, reflecting $65M deployed for asset acquisitions .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Income and Revenues ($USD Millions)	$1.8	$11.1	$7.2	$8.7
Net Income (Loss) ($USD Millions)	$(20.1)	$16.0	$(17.2)	$(4.0)
Diluted EPS ($USD)	N/A (not disclosed)	$0.84	$(1.59)	N/A (not disclosed)
R&D Expense ($USD Millions)	$0.025	$1.2	$0.8	$0.9
G&A Expense ($USD Millions)	$7.3	$11.0	$8.0	$7.0
Interest Expense ($USD Millions)	$0.6	$3.4	$3.5	$3.4

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Cash Receipts ($USD Millions)	$22.6	$9.9	$4.0
Cash, Cash Equivalents, and Restricted Cash (End of Period, $USD Millions)	$149.9	$146.8	$106.4
Commercial Product Income (Quarter, $USD Millions)	$4.9 (estimated for two products)	$6.5 (estimated for two products)	N/A
Credit Losses / Impairments (Quarter, $USD Millions)	$9.0 (Aronora impairment)	$14.0 (Agenus impairment)	$7.9 (Talphera credit losses)

Notes:

No formal segment breakdown disclosed .
EPS for Q4 2024 not disclosed in the release/8-K; quarterly diluted EPS was disclosed for Q2 and Q3 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Flow Status	H2 2025 onward	None	“Line of sight on becoming cash flow positive on a consistent basis from royalties alone”	Introduced
R&D Expense Trajectory	H2 2025	Elevated due to Kinnate trial wind-down (2024)	Expected to normalize in H2 2025	Improved
G&A Expense Trajectory	H2 2025	Elevated due to Kinnate acquisition costs (2024)	Expected to normalize in H2 2025	Improved
Dividends (Preferred)	Ongoing	Quarterly preferred dividends declared/payed; $5.5M in FY24	Continued quarterly preferred dividends policy (e.g., Dec 19, 2024 declaration)	Maintained

No quantitative revenue/EPS guidance ranges were provided; commentary was qualitative regarding cash flow and expense normalization .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in the document set; trends are drawn from management commentary in Q2–Q4 press releases and the Q4 8-K .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Portfolio Expansion & Acquisitions	Q2: Daré (XACIATO, Ovaprene, Sildenafil Cream), Kinnate acquisition; Q3: Twist monetization (60+ programs)	Pulmokine acquisition adding seralutinib (Phase 3 PAH) economic interest	Expanding
Regulatory Approvals	Q2: OJEMDA approved (pLGG); Q3: MIPLYFFA approved (NPC)	No new approvals disclosed; subsequent events include BTD for ersodetug	De-risking continues
Credit Losses/Impairments	Q2: $9.0M impairment (Aronora); Q3: $14.0M impairment (Agenus)	Q4: $7.9M credit losses (Talphera)	Headwinds moderating
Debt/Interest Burden	Q2: $3.4M interest (Blue Owl loan); Q3: $3.5M	Q4: $3.4M	Stable burden
Cash Receipts	Q2: $22.6M; Q3: $9.9M	Q4: $4.0M	Lower sequentially
Commercial Royalty Base	Q2: OJEMDA milestone and initial income; Q3: MIPLYFFA added as sixth commercial asset	Six commercial assets; building Phase 3 portfolio (11 assets) with 2025 readouts	Strengthening

Management Commentary

CEO Owen Hughes: “Our balanced approach to building the scale of XOMA Royalty’s portfolio by selectively acquiring royalty economics across the lifecycle of drug development is beginning to bear fruit… With over $100 million in cash on hand and a clear path to sustainable cashflow from royalties alone, we are well-positioned to further our goal of driving value for patients and shareholders alike.”
CFO Tom Burns: “Based upon the anticipated incoming cash payments from royalties alone, we have line of sight on becoming cash flow positive on a consistent basis… We expect our R&D and G&A expenses to normalize in the second half of 2025.”
Strategic framing: Commercial royalty portfolio of six assets (VABYSMO, OJEMDA, MIPLYFFA, XACIATO, IXINITY, DSUVIA) anchors near-term receipts; Phase 3 portfolio totals 11 assets with multiple 2025 readouts (ersodetug, seralutinib, Ovaprene) .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the document set; therefore, no Q&A themes or guidance clarifications can be provided from a call transcript [List: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus estimates (EPS, revenue) for Q4 2024 via S&P Global were unavailable at the time of analysis due to API access limits. As a result, no estimate comparison is provided.

Key Takeaways for Investors

Strong YoY growth in quarterly income/revenues with materially improved net loss versus Q4 2023, despite ongoing credit losses; sequential momentum from Q3 to Q4 shows improvement in net loss magnitude .
Portfolio expansion (Twist monetization; Pulmokine acquisition) enhances both early-stage diversification and late-stage optionality ahead of multiple 2025 Phase 3 catalysts (ersodetug, seralutinib, Ovaprene) that can drive milestone/royalty inflections .
Management’s “line of sight” to consistent cash flow positivity from royalties and expected OpEx normalization in H2 2025 is a positive trajectory signal; watch for cash receipts acceleration and cost normalization execution .
Interest expense (~$3.4M quarterly) from the Blue Owl loan remains a structural headwind to earnings; deleveraging or refinancing could be an upside lever if royalty cashflows ramp .
Credit-loss risk persists but moderated in Q4 ($7.9M vs Q3 $14.0M); diligence on partner program status and counterparty health is critical for underwriting forward cashflows .
Cash balance remains robust ($106.4M at year-end including restricted cash) even after $65M deployed for acquisitions in 2024; supports continued disciplined capital deployment without near-term equity dilution .
Near-term trading catalysts: additional licensing/out-licensing updates, royalty receipts cadence, and any Phase 3 data readouts or regulatory events that validate cashflow timing and magnitude; medium-term thesis hinges on diversified royalty aggregation driving sustainable, growing receipts as OpEx normalizes .

XOMA Royalty Corp (XOMA)·Q4 2024 Earnings Summary