Biotech royalty aggregator XOMA Royalty 9NASDAQ:XOMA) reported a sharp financial turnaround for its 2025 fiscal year, swinging to a robust profit on the back of surging revenues and executing multiple shareholder-value initiatives.
The company posted full-year net income of $31.7 million, a stark contrast to the $13.8 million net loss reported in the prior year.
For the fourth quarter alone, net income reached $6.1 million, recovering from a $4 million deficit in the same period of 2024.
Top-line growth was the primary catalyst for the company’s improved profitability.
XOMA generated $52.1 million in income and revenues for the full year, a significant jump from the $28.5 million recorded in 2024.
Fourth-quarter revenue also expanded noticeably, reaching $13.8 million compared to $8.7 million in the prior-year quarter.
Management attributed the top-line expansion to increased income tied to VABYSMO and OJEMDA, fortified by milestone payments secured from Rezolute and Takeda.
Throughout 2025, the company maintained an aggressive capital allocation strategy.
XOMA realized $50.5 million in total cash receipts for the year, composed of $33.6 million in royalties and commercial payments alongside $16.9 million in milestone fees.
Flush with this cash generation, the aggregator deployed $25 million to acquire new royalty and milestone assets.
Additionally, the company repurchased nearly 650,000 shares of its common stock for $16 million and distributed $5.5 million in preferred stock dividends.
XOMA exits the year with a heavily fortified balance sheet.
The company reported $133.7 million in cash and cash equivalents at the end of December, up from $106.4 million a year earlier.