Revenue surged 33.7% YoY in 2026Q2 to $63.7M with gross margin at 95.0%, but operating margin of 13.5% trails peers due to elevated SG&A and R&D costs, while net income of $48.5M was inflated by non-operating gains.
Ligand Pharmaceuticals Incorporated (LGND) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 290.54M | 268.09M | 167.13M | 131.31M | 196.25M | 241.54M | 163.56M | 120.28M | 251.45M | 141.1M | 108.97M | 71.91M | 64.54M | 48.97M | 31.39M | 30.04M | 23.54M | 38.94M | 27.32M | 12.89M | 140.96M | 176.61M | 163.51M | 141.14M | 96.64M | 76.34M | 48.11M | 40.9M | 17.7M | 51.7M | 36.8M |
| Revenue Growth % | 54.89% | 60.4% | 27.28% | -33.09% | -18.75% | 47.68% | 35.98% | -52.17% | 78.21% | 29.48% | 51.53% | 11.43% | 31.78% | 56.03% | 4.5% | 27.61% | -39.55% | 42.56% | 111.84% | -90.85% | -20.18% | 8.01% | 15.85% | 46.05% | 26.59% | 58.68% | 17.63% | 131.07% | -65.76% | 40.49% | 50.2% |
| Cost of Goods Sold | 4.12M | 6.59M | 11.07M | 35.05M | 52.83M | 62.18M | 30.42M | 11.35M | 6.34M | 5.37M | 5.57M | 5.81M | 9.14M | 5.73M | 3.6M | 4.91M | 0 | 15.23M | 0 | 0 | 22.64M | 39.85M | 39.8M | 31.62M | 20.31M | 13.95M | 1.62M | 3.1M | -7.7M | -9.8M | -9.4M |
| COGS % of Revenue | - | 2.46% | 6.63% | 26.69% | 26.92% | 25.74% | 18.6% | 9.43% | 2.52% | 3.8% | 5.11% | 8.07% | 14.16% | 11.71% | 11.47% | 16.34% | - | 39.12% | - | - | 16.06% | 22.56% | 24.34% | 22.4% | 21.01% | 18.27% | 3.36% | 7.58% | -43.5% | -18.96% | -25.54% |
| Gross Profit | 286.42M | 261.5M | 156.06M | 96.27M | 143.42M | 179.37M | 133.14M | 108.94M | 245.12M | 135.74M | 103.4M | 66.11M | 55.4M | 43.24M | 27.79M | 25.13M | 23.54M | 23.7M | 27.32M | 12.89M | 118.32M | 136.76M | 123.71M | 109.52M | 76.33M | 62.39M | 46.49M | 37.8M | 25.4M | 61.5M | 46.2M |
| Gross Margin % | 98.58% | 97.54% | 93.37% | 73.31% | 73.08% | 74.26% | 81.4% | 90.57% | 97.48% | 96.2% | 94.89% | 91.93% | 85.84% | 88.29% | 88.53% | 83.66% | 100% | 60.88% | 100% | 100% | 83.94% | 77.44% | 75.66% | 77.6% | 78.99% | 81.73% | 96.64% | 92.42% | 143.5% | 118.96% | 125.54% |
| Gross Profit Growth % | - | 67.56% | 62.11% | -32.88% | -20.04% | 34.72% | 22.22% | -55.56% | 80.58% | 31.27% | 56.42% | 19.32% | 28.12% | 55.62% | 10.58% | 6.75% | -0.7% | -13.22% | 111.84% | -89.1% | -13.49% | 10.55% | 12.95% | 43.48% | 22.34% | 34.2% | 22.99% | 48.82% | -58.7% | 33.12% | 63.83% |
| Operating Expenses | 185.49M | 214.3M | 178.66M | 84.32M | 140.38M | 75.52M | 95.64M | -698.14M | 81.39M | 67.66M | 58.48M | 37.76M | 34.69M | 27.26M | 26.9M | 25.27M | 51.79M | 70.32M | 52.59M | 73.07M | 287.09M | 163.23M | 161.08M | 128.7M | 100.48M | 85.53M | 92.37M | 94.1M | 95M | 92.3M | 79.1M |
| OpEx % of Revenue | - | 79.94% | 106.9% | 64.21% | 71.53% | 31.26% | 58.48% | -580.42% | 32.37% | 47.95% | 53.67% | 52.5% | 53.75% | 55.66% | 85.7% | 84.12% | 220.03% | 180.58% | 192.54% | 566.69% | 203.67% | 92.43% | 98.51% | 91.19% | 103.98% | 112.04% | 192.01% | 230.07% | 536.72% | 178.53% | 214.95% |
| Selling, General & Admin | 103.43M | 92.45M | 78.65M | 52.79M | 70.06M | 46.79M | 60.01M | 41.88M | 37.73M | 28.65M | 26.62M | 24.38M | 22.57M | 17.98M | 16.11M | 14.98M | 29.72M | 15.21M | 23.79M | 30.41M | 248.28M | 107.16M | 95.88M | 61.02M | 41.68M | 34.43M | 34.11M | 27.3M | 16.6M | 10.1M | 10.2M |
| SG&A % of Revenue | - | 34.48% | 47.06% | 40.2% | 35.7% | 19.37% | 36.69% | 34.82% | 15.01% | 20.31% | 24.43% | 33.9% | 34.97% | 36.72% | 51.32% | 49.86% | 126.28% | 39.06% | 87.08% | 235.85% | 176.14% | 60.68% | 58.63% | 43.23% | 43.13% | 45.1% | 70.91% | 66.75% | 93.79% | 19.54% | 27.72% |
| Research & Development | 41.35M | 81.18M | 21.43M | 24.54M | 36.08M | 32.1M | 40.5M | 55.91M | 27.86M | 26.89M | 21.22M | 13.38M | 12.12M | 9.27M | 10.79M | 10.29M | 22.07M | 39.87M | 30.77M | 44.62M | 41.93M | 56.08M | 65.2M | 67.68M | 58.81M | 51.1M | 51.29M | 59.4M | 70.7M | 72.4M | 59.5M |
| R&D % of Revenue | - | 30.28% | 12.82% | 18.69% | 18.39% | 13.29% | 24.76% | 46.48% | 11.08% | 19.05% | 19.47% | 18.61% | 18.78% | 18.94% | 34.38% | 34.26% | 93.75% | 102.39% | 112.65% | 346.08% | 29.74% | 31.75% | 39.88% | 47.95% | 60.85% | 66.94% | 106.6% | 145.23% | 399.44% | 140.04% | 161.68% |
| Other Operating Expenses | 2M | 40.67M | 78.59M | 7M | 34.24M | -3.38M | -4.87M | -795.93M | 15.79M | 12.12M | 10.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.96M | -1.96M | -3.12M | 0 | 0 | 0 | 0 | 0 | 6.97M | 7.4M | 7.7M | 9.8M | 9.4M |
| Operating Income | 100.93M | 47.2M | -22.61M | 11.94M | 3.04M | 103.85M | 37.5M | 807.08M | 163.73M | 68.08M | 43.88M | 27.33M | 19.63M | 14.94M | 574K | -698K | -29.3M | -9.97M | -97.28M | -60.17M | -168.77M | -26.47M | -37.37M | -19.18M | -24.15M | -23.14M | -45.88M | -56.3M | -69.6M | -30.8M | -32.9M |
| Operating Margin % | 34.74% | 17.61% | -13.53% | 9.09% | 1.55% | 42.99% | 22.93% | 670.99% | 65.11% | 48.25% | 40.27% | 38% | 30.41% | 30.51% | 1.83% | -2.32% | -124.5% | -25.6% | -356.13% | -466.69% | -119.73% | -14.99% | -22.86% | -13.59% | -24.99% | -30.31% | -95.37% | -137.65% | -393.22% | -59.57% | -89.4% |
| Operating Income Growth % | - | 308.79% | -289.3% | 293.22% | -97.08% | 176.94% | -95.35% | 392.94% | 140.51% | 55.12% | 60.58% | 39.25% | 31.34% | 2503.31% | 182.23% | 97.62% | -194.01% | 89.75% | -61.66% | 64.34% | -537.57% | 29.17% | -94.86% | 20.59% | -4.38% | 49.57% | 18.5% | 19.11% | -125.97% | 6.38% | -32.13% |
| EBITDA | 134.96M | 80.97M | 12.63M | 48.46M | 46.43M | 154.8M | 65.47M | 850.81M | 180.42M | 80.6M | 55.17M | 29.96M | 22.28M | 17.61M | 3.3M | 2.09M | -27.09M | -6.83M | -96.22M | -57.56M | -152.55M | -7.76M | -22.1M | -4.9M | -13.68M | -16.56M | -38.91M | -48.9M | -61.9M | -21M | -23.5M |
| EBITDA Margin % | 46.45% | 30.2% | 7.56% | 36.91% | 23.66% | 64.09% | 40.03% | 707.34% | 71.75% | 57.12% | 50.63% | 41.66% | 34.53% | 35.95% | 10.52% | 6.96% | -115.1% | -17.55% | -352.28% | -446.41% | -108.22% | -4.4% | -13.51% | -3.47% | -14.15% | -21.7% | -80.88% | -119.56% | -349.72% | -40.62% | -63.86% |
| EBITDA Growth % | 20759.66% | 540.97% | -73.93% | 4.38% | -70.01% | 136.45% | -92.31% | 371.57% | 123.86% | 46.07% | 84.19% | 34.43% | 26.56% | 433.35% | 57.79% | 107.72% | -296.49% | 92.9% | -67.17% | 62.27% | -1864.88% | 64.86% | -351.12% | 64.19% | 17.42% | 57.43% | 20.43% | 21% | -194.76% | 10.64% | -10.85% |
| D&A (Non-Cash Add-back) | 34.03M | 33.77M | 35.24M | 36.52M | 43.39M | 50.95M | 27.97M | 43.73M | 16.69M | 12.52M | 11.29M | 2.63M | 2.66M | 2.66M | 2.73M | 2.79M | 2.21M | 3.13M | 1.05M | 2.62M | 16.22M | 18.71M | 15.28M | 14.28M | 10.47M | 6.57M | 6.97M | 7.4M | 7.7M | 9.8M | 9.4M |
| EBIT | 239.71M | 158.96M | 5.55M | 64.32M | 37.81M | 91.82M | 28.71M | 832.38M | 221.61M | 68.63M | 20.8M | 27.33M | 20.71M | 15.98M | 1.22M | 254K | -15.35M | -9.6M | -97.31M | -52.72M | -78.08M | -43.63M | -15.38M | -74.02M | -43.85M | -23.14M | -45.88M | -61.29M | -69.6M | -30.8M | -32.9M |
| Net Interest Income | 18.03M | 8.94M | 5.02M | 7.05M | 247K | -18.73M | -19.34M | -7.32M | -34.28M | -11.4M | -12.18M | -11.8M | -4.86M | -2.08M | -2.92M | -2.3M | 382K | 316K | 1.96M | 7.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 23.31M | 13.66M | 8.05M | 7.71M | 2.05M | 886K | 8.08M | 28.43M | 14M | 0 | 0 | 0 | 0 | 0 | 381K | 31K | 440K | 586K | 2.16M | 8.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.28M | 4.71M | 3.04M | 656K | 1.8M | 19.62M | 27.41M | 35.74M | 48.28M | 11.4M | 12.18M | 11.8M | 4.86M | 2.08M | 3.31M | 2.51M | 58K | 270K | 202K | 735K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 137.03M | 111.76M | 25.12M | 51.72M | 32.97M | -31.65M | -36.21M | -10.44M | 9.6M | -10.85M | -35.92M | 8M | -8.32M | -5.74M | -4.44M | -2.86M | 13.9M | 95K | -239K | 6.72M | -96.19M | -9.87M | -7.54M | -20.39M | -8.36M | -8.36M | -825K | -707K | -43M | -61.3M | 3.7M |
| Pretax Income | 237.96M | 158.96M | 2.52M | 63.66M | 36.01M | 72.2M | 1.29M | 796.64M | 173.33M | 57.23M | 7.96M | 35.33M | 11.3M | 9.21M | -3.87M | -2.93M | -15.4M | -9.87M | -97.52M | -53.46M | -174.27M | 36.34M | -44.91M | -37.46M | -32.6M | -31.5M | -46.71M | -62M | -112.6M | -92.1M | -29.2M |
| Pretax Margin % | 81.9% | 59.29% | 1.51% | 48.48% | 18.35% | 29.89% | 0.79% | 662.31% | 68.93% | 40.56% | 7.3% | 49.13% | 17.51% | 18.8% | -12.31% | -9.75% | -65.44% | -25.35% | -357% | -414.58% | -123.63% | 20.58% | -27.46% | -26.54% | -33.73% | -41.26% | -97.08% | -151.59% | -636.16% | -178.14% | -79.35% |
| Income Tax | 40.74M | 34.51M | 6.55M | 9.84M | 41.23M | -4.15M | -5.31M | 167.34M | 30.01M | 44.67M | 10.33M | -219.6M | 410K | 374K | -1.19M | -13.1M | -2.62M | -7.92M | -55K | -18.7M | -38.41M | 59K | 233K | 18.28M | 8.45M | 19.86M | 26.49M | 18.4M | 48.3M | 69.4M | 4.4M |
| Effective Tax Rate % | 17.12% | 21.71% | 260.13% | 15.46% | 114.49% | -5.74% | -410.68% | 21.01% | 17.31% | 78.06% | 129.74% | -621.57% | 3.63% | 4.06% | 30.82% | 447.2% | 16.99% | 80.27% | 0.06% | 34.98% | 22.04% | 0.16% | -0.52% | -48.81% | -25.91% | -63.04% | -56.72% | -29.68% | -42.9% | -75.35% | -15.07% |
| Net Income | 197.22M | 124.45M | -4.03M | 52.15M | -33.36M | 57.14M | -2.98M | 629.3M | 143.32M | 12.56M | -1.64M | 257.31M | 12.02M | 11.42M | -527K | 10.18M | -12.52M | -1.95M | -98.11M | 281.69M | -31.74M | -36.4M | -45.14M | -37.46M | -32.6M | -42.99M | -72.38M | -74.7M | -117.9M | -100.2M | -37.3M |
| Net Margin % | 67.88% | 46.42% | -2.41% | 39.72% | -17% | 23.66% | -1.82% | 523.19% | 57% | 8.9% | -1.5% | 357.8% | 18.63% | 23.32% | -1.68% | 33.88% | -53.17% | -5% | -359.19% | 2184.64% | -22.52% | -20.61% | -27.61% | -26.54% | -33.73% | -56.32% | -150.44% | -182.64% | -666.1% | -193.81% | -101.36% |
| Net Income Growth % | 359.97% | 3186.63% | -107.73% | 256.33% | -158.39% | 2014.17% | -100.47% | 339.09% | 1041.45% | 867.48% | -100.64% | 2039.93% | 5.28% | 2267.17% | -105.18% | 181.31% | -542.45% | 98.01% | -134.83% | 987.4% | 12.79% | 19.37% | -20.5% | -14.93% | 24.19% | 40.59% | 3.11% | 36.64% | -17.66% | -168.63% | 41.9% |
| Net Income (Continuing) | 197.22M | 124.45M | -4.03M | 53.82M | -5.22M | 76.35M | 6.6M | 629.3M | 143.32M | 12.56M | -2.37M | 227.44M | 10.89M | 8.83M | -2.67M | 9.71M | -12.79M | -8.34M | -97.46M | -34.76M | -56.59M | -36.03M | -45.14M | -94.47M | -52.26M | -42.99M | -59.28M | -74.72M | -117.9M | -100.2M | -37.3M |
| Discontinued Operations | 0 | 0 | 0 | -1.67M | -28.14M | -19.21M | -9.58M | 0 | 0 | 0 | 731K | 0 | 0 | 2.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.03 | 6.13 | -0.22 | 2.94 | -1.98 | 3.34 | -0.18 | 31.85 | 5.96 | 0.53 | -0.08 | 12.12 | 0.56 | 0.55 | -0.03 | 0.52 | -0.64 | -0.10 | -6.16 | 17.22 | -2.36 | -2.95 | -3.68 | -3.18 | -2.83 | -4.34 | -7.80 | -9.51 | -17.51 | -18.15 | -7.78 |
| EPS Growth % | 333.75% | 2886.36% | -107.48% | 248.48% | -159.28% | 1955.56% | -100.57% | 434.4% | 1024.53% | 775.16% | -100.65% | 2064.29% | 1.82% | 2175.47% | -105.1% | 181.25% | -540% | 98.38% | -135.77% | 829.66% | 20% | 19.84% | -15.72% | -12.37% | 34.79% | 44.36% | 17.98% | 45.69% | 3.53% | -133.29% | 54.74% |
| EPS (Basic) | - | 6.44 | -0.22 | 3.02 | -1.98 | 3.46 | -0.18 | 33.13 | 5.96 | 0.60 | -0.08 | 13.00 | 0.59 | 0.56 | -0.03 | 0.52 | -0.64 | -0.10 | -6.16 | 17.22 | -2.36 | -2.95 | -3.68 | -3.18 | -2.83 | -4.34 | -7.80 | -9.51 | -17.51 | -18.15 | -7.78 |
| Diluted Shares Outstanding | 21.84M | 20.29M | 18.29M | 17.76M | 16.87M | 17.25M | 16.18M | 19.76M | 24.07M | 23.48M | 20.83M | 21.23M | 21.43M | 20.75M | 19.85M | 19.71M | 19.61M | 18.86M | 15.92M | 16.35M | 13.44M | 12.34M | 12.28M | 11.78M | 11.52M | 9.9M | 9.28M | 7.86M | 6.73M | 5.52M | 4.8M |
| Basic Shares Outstanding | 20.06M | 19.34M | 18.29M | 17.3M | 16.87M | 16.63M | 16.18M | 19M | 24.05M | 21.03M | 20.83M | 19.79M | 20.42M | 20.31M | 19.1M | 19.66M | 19.61M | 18.86M | 15.92M | 16.35M | 13.44M | 12.34M | 12.28M | 11.78M | 11.52M | 9.9M | 9.28M | 7.86M | 6.73M | 5.52M | 4.8M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 89.72% | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LGND stock.
For fiscal year 2025, Ligand Pharmaceuticals Incorporated (LGND) reported total revenue of $268.1M. This represents a 628.5% increase compared to $36.8M in 1996.
Ligand Pharmaceuticals Incorporated (LGND) is profitable, generating $124.5M in net income for the fiscal year ending 2025 with a net profit margin of 46.4%.
Ligand Pharmaceuticals Incorporated (LGND) reported an operating income of $47.2M, resulting in an operating profit margin of 17.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Ligand Pharmaceuticals Incorporated (LGND) generated $261.5M in gross profit for the year, representing a gross profit margin of 97.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Concentration in key royalty assets
Metrics are mathematically derived from official filings.
Royalty Momentum Offsets Lumpiness
LGND's revenue surged 60.4% TTM, driven by 32% YoY royalty growth and Filspari's ramp, though quarterly volatility persists from milestone timing and Veklury fluctuations.
The 2026Q2 revenue of $63.7M reflects a 33.7% YoY increase, but the sequential jump from Q1's $51.7M underscores the lumpy nature of milestone and material sales. Management's guidance raise, coupled with royalty growth, suggests the underlying portfolio is inflecting higher, yet investors should monitor whether the 60.4% TTM growth rate is sustainable given the concentration in a few key assets.
Gross Margin Resilience, Operating Drag
Gross margin remains structurally high at 95.0% in 2026Q2, but operating margin of 13.5% trails peers like Innoviva (38.5%), implying elevated SG&A and R&D costs relative to the royalty model.
The 97.5% average gross margin over the period confirms the capital-light royalty model, yet the gap to operating margin (17.6% TTM) suggests significant overhead investment. This may reflect platform maintenance and deal-sourcing costs, but the 2026Q2 R&D spike to $14.7M (from $2.1M in Q1) warrants monitoring for whether it signals a strategic pivot or one-time charges.
Operating Leverage Masked by Volatility
Operating income swung from -$36.2M in 2025Q1 to $54.9M in 2025Q3, highlighting extreme volatility; the 2026Q2 operating margin of 13.5% is below the 33.6% seen in Q1, suggesting overhead is not scaling with revenue.
The royalty-heavy model should exhibit high operating leverage, but the data shows SG&A and R&D expenses fluctuating independently of revenue, compressing margins in some quarters. The 2026Q2 SG&A of $29.1M (45.7% of revenue) is notably elevated, implying that the company is investing in infrastructure or deal-making, which may pressure near-term profitability despite top-line growth.
Non-Operating Items Distort Net Income
Net income in 2026Q2 reached $48.5M (76.2% net margin) despite operating income of only $8.6M, indicating significant non-operating gains; SBC of $13.7M further inflates expenses.
The wide gap between operating and net income suggests reliance on non-operating items such as fair value adjustments or one-time gains, which may not be recurring. SBC of $13.7M in 2026Q2 (21.5% of revenue) is substantial and, when added back, reduces reported EPS quality. Investors should adjust for these items to assess underlying profitability.
SG&A and R&D Outpace Royalty Model
SG&A averaged $22.5M per quarter over the last five quarters, while R&D spiked to $14.7M in 2026Q2, suggesting increased investment that may not align with the capital-light strategy.
The cost structure reveals that SG&A is the largest expense line, consuming 45.7% of revenue in 2026Q2, which is high for a royalty aggregator. The R&D spike in 2026Q2, though possibly tied to the APEIRON acquisition, indicates a potential shift toward more development activity, which could erode margins if sustained. Management's expense discipline will be critical to maintaining profitability.
2025Q3 Marks a Turning Point
2025Q3 saw revenue jump to $115.5M (122.8% YoY) and net income to $117.3M, driven by a one-time gain; this quarter likely reflects the peak of Veklury-related income and milestone payments.
The 2025Q3 results were exceptional, with operating margin of 47.6% and net margin of 101.6%, but these figures are not sustainable as they include non-recurring items. The subsequent quarters show a normalization to lower revenue and margins, indicating that the inflection was temporary. The lasting impact is a higher revenue base, but the quality of earnings remains questionable.
Concentration and Expense Creep Risks
The bull case hinges on royalty growth, but the 17.6% operating margin and reliance on Kyprolis and Veklury expose LGND to patent cliffs and expense inflation that could compress margins.
Short-sellers would highlight that operating margin is far below peers like Innoviva (38.5%), and the elevated SG&A and R&D suggest the company is not fully leveraging its royalty model. Additionally, the concentration in a few key assets means any clinical or competitive setback could disproportionately impact revenue. The recent EPS beat was narrow, and the guidance raise may not fully offset these structural risks.