Royalty Pharma plc (NASDAQ: RPRX) experienced a pre-market plunge of 6.31% on Wednesday following the release of its fourth-quarter and full-year 2025 results.
The company reported quarterly adjusted earnings per share of $1.47, beating analyst estimates of $1.33. However, quarterly sales came in at $622 million, significantly missing the consensus estimate of $795.915 million by approximately 21.85%. This substantial revenue shortfall appears to be the primary driver behind the stock's sharp decline in pre-market trading.
While other metrics such as adjusted EBITDA of $816 million exceeded expectations, the sales miss overshadowed these positive aspects, leading to negative investor sentiment ahead of the market open.