Revenue growth remains highly erratic due to the lumpiness of milestone payments, with operating margins swinging from a negative 79.9% in 2025Q1 to a positive 47.6% in 2025Q3.
| 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 | 274.48M | 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 % | 51.24% | 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 | 3.81M | 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 | 270.66M | 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 % | 98.61% | 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 | 169.88M | 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 | 94.48M | 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 | 33.24M | 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 | 100.78M | 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 % | 36.72% | 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 | 127.02M | 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 % | 46.28% | 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 % | 578.15% | 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) | 26.24M | 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 | 227.66M | 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 | 12.95M | 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 | 14.1M | 8.94M | 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 | 1.15M | 0 | 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 | 84.1M | 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 | 184.88M | 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 % | 67.36% | 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 | 31.32M | 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 % | 16.94% | 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 | 153.56M | 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 % | 55.95% | 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 % | 215.79% | 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) | 153.56M | 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) | 7.72 | 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 % | 203.51% | 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 | 19.88M | 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 | 19.88M | 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% | - | - | - | - | - | - | - | - | - | - | - |
High Revenue Concentration Volatility
As reported in recent financial filings, Ligand's revenue growth has exhibited extreme quarterly variance, peaking at 122.8% in 2025Q3 before moderating to 14.1% in 2026Q1, reflecting the inherent lumpiness of milestone payments and the unpredictable nature of Captisol material sales across the company's diverse partner pipeline.
The top-line trajectory appears heavily influenced by transactional milestone events rather than consistent organic royalty expansion. Investors should monitor whether the underlying royalty base can sustain growth as the contribution from specific high-visibility assets like Veklury potentially normalizes over the coming fiscal periods.
Based on reported figures, Ligand maintains a structurally high gross margin profile, though quarterly fluctuations—ranging from 64.3% to 143.6%—suggest that accounting adjustments and the timing of material cost recognition significantly distort the core profitability of the royalty-heavy business model on a period-to-period basis.
While the 97.54% average gross margin indicates a highly efficient intellectual property-based model, the volatility in reported COGS warrants caution. This suggests that the company's reported margins may not always reflect the true cash-generative capacity of its royalty streams, necessitating a focus on normalized profitability metrics.
According to recent SEC filings, Ligand's operating income has struggled to scale consistently with gross profit, as evidenced by an operating margin that swung from -79.9% in 2025Q1 to 47.6% in 2025Q3, highlighting the impact of fixed SG&A costs on a relatively small revenue base.
The inability to maintain consistent operating leverage suggests that the company's current cost structure may be optimized for future deal-making rather than immediate profitability. Investors should investigate whether the current SG&A burden is a permanent feature of the platform or if it can be rationalized as the portfolio matures.
As indicated in financial statements, Ligand's net income is frequently impacted by non-operating items and significant stock-based compensation, which reached $14.7M in 2025Q3, complicating the assessment of true recurring earnings power and creating a disconnect between GAAP net income and operational cash flow performance.
The wide variance in net margins, which have fluctuated between -125% and 101.6%, suggests that GAAP earnings are an unreliable indicator of the company's fundamental health. Analysts should prioritize cash-based metrics to strip away the noise created by intangible asset amortization and the lumpy recognition of milestone-related income.
Based on reported figures, the heavy reliance on a concentrated set of commercialized assets creates a significant risk profile, as the potential for patent cliffs or competitive entry could rapidly erode the royalty streams that currently underpin the company's valuation and long-term financial stability.
Short-term growth spikes may mask a long-term degradation in the quality of the royalty portfolio if new acquisitions fail to replace the revenue lost from aging assets. The market may be overestimating the durability of these cash flows, particularly if the pipeline of new partnered programs fails to reach commercialization at the expected rate.
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.