MeritValue

XOMA Royalty Corp

XOMAdata completeness 88%17 fiscal years on file
The thesis, from the filings

XOMA Royalty Corp earns about -1% on invested capital, but has diluted owners by 47% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$36.5M1$4.15M2$2.65M3$6.65M4$10.4M4
Net income$15.8M5−$17.1M6−$40.8M7−$13.8M8$31.7M8
Operating cash flow$22.7M9−$12.9M10−$18.2M11−$13.7M12$2.87M12
Capital expenditure—$15.2M13$17,00014$20,00015—
Free cash flow (derived)—−$28.1M10−$18.2M11−$13.8M12—
Total debt—$016$124.1M17$118.3M18$109M18
Cash & equivalents$93.3M19$57.8M20$153.3M21$101.7M22$82.9M22
Diluted shares12.2M11,41311.5M11.7M18.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$46.68
your share of equity
Profit it earned you last year
$17.64
Free cash flow it threw off
—
Debt you’d be carrying
$60.6

10 shares is a claim on $46.68 of net worth that earned you $17.64 last year, against $60.6 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-1% avg · 5y
FY21 33%FY22 -20%FY23 -53%FY24 -6%FY25 41%

It earned an average -1% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+47% shares · 5y

Share count is up 47% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$12.38
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-23-003259 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-24-002782 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001558370-23-003259 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001558370-24-002782 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001558370-23-003259 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001558370-24-002782 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-12-31 · accession 0001558370-23-003259 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2022-12-31 · accession 0001558370-24-002782 (LongTermDebt)
  17. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2021-12-31 · accession 0001558370-23-003259 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0001558370-24-002782 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0001558370-25-003131 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0001104659-26-030872 (CashAndCashEquivalentsAtCarryingValue)