The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our results of operations, cash flows, other changes in financial condition and business performance. MD&A is provided as a supplement to, and should be read in conjunction with, our 2025 Annual Report on Form 10-K and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Special Note Regarding Forward-Looking Statements included elsewhere in this Quarterly Report on Form 10-Q and in Part II, Item 1A. Risk Factors. Royalty Pharma plc is a public limited company that is incorporated under the laws of England and Wales and is a holding company. “Royalty Pharma,” the “Company,” “we,” “us” and “our” refer to Royalty Pharma plc and its subsidiaries on a consolidated basis. Our principal asset is a controlling equity interest in Royalty Pharma Holdings Ltd (“RP Holdings”), a private limited company incorporated under the laws of England and Wales. We conduct our business through RP Holdings and its subsidiaries. Business Overview We are the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry. Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. We have assembled a portfolio of royalties which entitles us to payments based directly on the top-line sales of many of the industry’s leading therapies, which includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates. Background and Format of Presentation RP Holdings is owned by Royalty Pharma plc and, indirectly, by various partnerships (the “Continuing Investors Partnerships”) and, in addition, post-Internalization (as defined below), by the Holders of RP Holdings Class E Interests (as defined below). RP Holdings is the sole owner of Royalty Pharma Investments 2019 ICAV (“RPI 2019 ICAV”), which is an Irish collective asset management vehicle and is the successor to Royalty Pharma Investments, an Irish unit trust. In 2022, we became an indirect owner of an 82% economic interest in Royalty Pharma Investments ICAV, which was previously owned directly by Royalty Pharma Investments. In connection with the Internalization, Royalty Pharma Investments distributed all of its assets to Royalty Pharma Investments 2011 ICAV (together with Royalty Pharma Investments ICAV, “Old RPI”). We consummated an exchange offer on February 11, 2020 (the “Exchange Offer”) to facilitate our initial public offering (“IPO”). Prior to the Exchange Offer, Royalty Pharma Investments was owned by various partnerships (the “Legacy Investors Partnerships”). Through the Exchange Offer, investors, which represented 82% of the aggregate limited partnership in the Legacy Investors Partnerships, exchanged their limited partnership interests in the Legacy Investors Partnerships for limited partnership interests in RPI US Partners 2019, LP and RPI International Holdings 2019, LP which are part of the Continuing Investors Partnerships. Following the Exchange Offer, we became the indirect owner of an 82% economic interest in Royalty Pharma Investments which entitled us to 82% of the economics of its wholly-owned subsidiary RPI Finance Trust, a Delaware statutory trust (“RPIFT”) and 66% of Royalty Pharma Collection Trust, a Delaware statutory trust (“RPCT”). In December 2023, we acquired the remaining interest in RPCT owned by Royalty Pharma Select Finance Trust, a Delaware statutory trust (“RPSFT”). Prior to the Internalization (as defined below), we were externally managed by RP Management, LLC, a Delaware limited liability company (the “Legacy Manager” or “RPM”), pursuant to advisory and management agreements (collectively, the “Legacy Management Agreement”). 31 On January 10, 2025, we entered into an agreement (as amended, the “Purchase Agreement”) with RPM, Royalty Pharma Manager, LLC, a Delaware limited liability company (“RP Manager”) and the sellers named therein (the “Sellers”). Pursuant to the Purchase Agreement, RPM contributed substantially all of its assets and liabilities to RP Manager and we agreed to acquire all of the equity interests of RP Manager from the Sellers (the “Internalization”). The Sellers included our founder, chief executive officer and chairman, Pablo Legorreta, RPM I, LLC and RP MIP Holdings, LLC (“RP MIP Holdings”). The equity interest holders of RP MIP Holdings include our named executive officers and certain employees of the Legacy Manager, who became employees of Royalty Pharma, LLC, a wholly-owned subsidiary of RP Holdings, in connection with the Internalization. We completed the acquisition of RP Manager on May 16, 2025. Understanding Our Financial Reporting Our portfolio of investments contains royalties and royalty-like terms held through different forms or instruments. Most of the royalties we acquire are treated as investments in cash flow streams and are classified as financial assets measured under the effective interest method in accordance with generally accepted accounting principles in the United States (“GAAP”). Under this accounting methodology, we calculate the effective interest rate on each financial royalty asset using a forecast of the expected cash flows to be received over the life of the financial royalty asset relative to the initial acquisition price. The yield, which is calculated at the end of each reporting period and applied prospectively, is then recognized via accretion into our income at the effective rate of return over the expected life of the financial royalty asset. The measurement of income from our financial royalty assets requires significant judgments and estimates, including management’s judgment in forecasting the expected future cash flows of the underlying royalties and the expected duration of each financial royalty asset. Our cash flow forecasts are updated each reporting period primarily using sell-side equity research analysts’ consensus sales estimates. We then calculate our expected royalty receipts by applying our royalty terms to these consensus sales forecasts. As we update our forecasted cash flows on a periodic basis and recalculate the present value of the remaining future cash flows, any shortfall when compared to the carrying value of the financial royalty asset is recorded directly in the condensed consolidated statements of operations as non-cash provision expense. If, in a subsequent period, there is an increase in expected cash flows or if actual cash flows are greater than cash flows previously expected, we reverse the provision expense previously recorded in part or in full by recording a non-cash credit to the provision, or provision income. As a result of the non-cash charges associated with applying the effective interest method accounting methodology to our financial royalty assets, our condensed consolidated statements of operations activity can be volatile and unpredictable. Small declines in sell-side equity research analysts’ consensus sales forecasts over a long time horizon can result in an immediate non-cash income statement expense recognition, even though the applicable cash inflows will not be realized for many years into the future. For example, in late 2014 we acquired the cystic fibrosis franchise and shortly after, declines in near-term sales forecasts of sell-side equity research analysts caused us to recognize non-cash provision expense in our condensed consolidated statements of operations. Over the course of the next 10 quarters, we continued to recognize non-cash provision expense because of these changes in sales forecasts, ultimately reaching a peak cumulative allowance of $1.30 billion by September 30, 2017. With the approval of Vertex’s Trikafta, in October 2019, sell-side equity research analysts’ consensus sales forecasts increased to reflect the larger addressable market and the extension of the expected duration of the Trikafta royalty, resulting in the reversal of the remaining $1.10 billion cumulative allowance. The recognition of the associated non-cash provision income of $1.10 billion in 2019 was not tied to royalty receipts, but rather to the increase in sales forecasts due to the U.S. Food and Drug Administration (“FDA”) approval of Trikafta. This example illustrates the volatility caused by our accounting model in our condensed consolidated statements of operations. We believe there is no direct correlation between income from financial royalty assets and royalty receipts due to the nature of the accounting methodology applied for financial royalty assets. Further, income from financial royalty assets and the provision for changes in expected cash flows related to these financial royalty assets can be volatile and unpredictable. Our operations have historically been financed primarily with cash flows generated by our royalties. Given the importance of cash flows and their predictability to management’s operation of the business, management uses Portfolio Receipts (as defined below) as a primary measure of our operating performance. See “—Portfolio Overview” for additional discussion regarding Portfolio Receipts. 32 Understanding Our Results of Operations We report non-controlling interests related to the portion of ownership interests of consolidated subsidiaries not owned by us and which are attributable to: 1. The Legacy Investors Partnerships’ ownership of approximately 18% in Old RPI, which is the only remaining historical non-controlling interest that existed prior to our IPO. The value of this non-controlling interest will continue to decline over time as the assets in Old RPI expire. The Legacy Investors Partnerships are referred to as the “legacy non-controlling interests.” 2. The Continuing Investors Partnerships’ indirect ownership in RP Holdings through their indirect ownership of RP Holdings’ Class B ordinary shares (the “RP Holdings Class B Interests”). RP Holdings Class B Interests are exchangeable into our Class A ordinary shares. As the Continuing Investors Partnerships conduct exchanges, the Continuing Investors Partnerships’ indirect ownership in RP Holdings decreases and the value of this non-controlling interest decreases. 3. Pablo Legorreta’s ultimate ownership of the RP Holdings’ Class C ordinary share (the “RP Holdings Class C Special Interest”) which entitles him to receive Equity Performance Awards (“Founder’s Equity”). Equity Performance Awards (“EPAs”) represent 20% of the Net Economic Profit (as defined below) generated from investments made during each two-year investment period (each, a “Portfolio”). Net Economic Profit is defined as the aggregate cash receipts for all new portfolio investments in a Portfolio less Total Expenses, which is defined as interest expense, operating expense and recovery of acquisition cost related to that Portfolio. Distributions of EPAs occur only upon the satisfaction of specified performance and return thresholds. EPAs are generally settled in RP Holdings’ Class B Interests, which are immediately exchanged upon issuance for Class A ordinary shares. A portion of the EPAs may be paid in cash as a tax advance to cover income tax obligations incurred by the beneficial owners of the RP Holdings Class C Special Interest. Mr. Legorreta granted ownership units in the entities that hold the RP Holdings Class C Special Interest to certain employees of RPM, who became employees of Royalty Pharma, LLC, a wholly-owned subsidiary of RP Holdings, in connection with the Internalization. These grants allow such employees to participate on a pro rata basis in the economic returns of the EPAs for a specific Portfolio (the “Employee EPAs”). Prior to the Internalization, Founder’s Equity, which included the Employee EPAs, was accounted for as an equity transaction and recorded as non-controlling interest. Following the Internalization, Founder’s Equity, which no longer includes Employee EPAs, continues to be accounted as non-controlling interest. 4. The Sellers’ indirect ownership in RP Holdings through their indirect ownership of RP Holdings’ Class E ordinary shares (the “RP Holdings Class E Interests”). In connection with the Internalization, we issued 24.5 million RP Holdings Class E Interests, subject to vesting conditions, to the Sellers (the “Holders of RP Holdings Class E Interests”) as part of the transaction considerations. Upon vesting, the RP Holdings Class E Interests become exchangeable on a one-for-one basis for Class A ordinary shares, and upon such exchange, the value of this non-controlling interest decreases. The Continuing Investors Partnerships, the Founder’s Equity and the Holders of RP Holdings Class E Interests, collectively, are referred to as the “continuing non-controlling interests.” Total income and other revenues Total income and other revenues is primarily comprised of interest income from our financial royalty assets and royalty income generally arising from successful commercialization of products developed through research and development (“R&D”) funding agreements. Most of our royalties are classified as financial assets as our ownership rights are generally passive in nature. The royalty payor that accounted for greater than 10% of our total income and other revenues is shown in the table below: For the Three Months Ended June 30, For the Six Months Ended June 30, Royalty Payor Royalty 2026 2025 2026 2025 Vertex Cystic fibrosis franchise 32 % 35 % 33 % 35 % 33 Income from financial royalty assets Our financial royalty assets represent investments in cash flow streams with yield components that most closely resemble loans measured at amortized cost under the effective interest method. We calculate the effective interest rate using forecasted expected cash flows to be received over the life of the royalty asset relative to the initial acquisition price. Interest income is recognized at the effective rate of return over the expected life of the asset, which is calculated at the end of each reporting period and applied prospectively. As changes in sell-side equity research analysts’ consensus sales estimates are updated on a quarterly basis, the effective rate of return changes. For example, if sell-side equity research analysts’ consensus sales forecasts increase, the yield to derive income on a financial royalty asset will increase and result in higher income for subsequent periods. Variables affecting the recognition of interest income from financial royalty assets under the prospective effective interest method include any one of the following: (1) additional acquisitions, (2) changes in expected cash flows of the underlying pharmaceutical products, derived primarily from sell-side equity research analysts’ consensus sales forecasts, (3) regulatory approval of additional indications which leads to new cash flow streams, (4) changes to the estimated duration of the royalty (e.g., patent expiration date), (5) changes in amounts and timing of projected royalty receipts and milestone payments and (6) changes in the portion of sales that are subject to the royalty, which is referred to as royalty bearing sales. Our financial royalty assets are directly linked to sales of underlying pharmaceutical products whose life cycle typically peaks at a point in time, followed frequently by declining sales trends due to the entry of generic competition, resulting in natural declines in the asset balance and periodic interest income over the life of our royalties. The recognition of interest income from royalties requires management to make estimates and assumptions around many factors, including those impacting the variables noted above. Other royalty income and revenues Other royalty income and revenues primarily includes income from financial royalty assets that have been fully amortized, on which we may continue to collect royalties beyond the estimated duration, and income from synthetic royalties and milestones arising out of R&D funding agreements. Provision for changes in expected cash flows from financial royalty assets The Provision for changes in expected cash flows from financial royalty assets includes the following: •non-cash expense or income related to the current period activity resulting from adjustments to the cumulative allowance for changes in expected cash flows; and •non-cash expense or income related to the provision for current expected credit losses, which reflects the activity for the period, primarily due to new financial royalty assets with limited protective rights and changes to cash flow estimates for financial royalty assets with limited protective rights. As discussed above, income is accreted on our financial royalty assets using the effective interest method. As we update our forecasted cash flows on a periodic basis and recalculate the present value of the remaining future cash flows, any shortfall when compared to the carrying value of the financial royalty asset is recorded directly in the condensed consolidated statements of operations through the line item Provision for changes in expected cash flows from financial royalty assets. If, in a subsequent period, there is an increase in expected cash flows or if actual cash flows are greater than cash flows previously expected, we reverse the provision expense previously recorded in part or in full by recording a credit to the provision, or provision income. The same variables and management’s estimates affecting the recognition of interest income on our financial royalty assets noted above also directly impact the provision. 34 Provision for credit losses on unfunded commitments The provision for credit losses on unfunded commitments, a non-cash item, represents the current expected credit losses on the unfunded portions of a two part funding arrangement we entered into with Revolution Medicines, Inc. (“Revolution Medicines”) in the second quarter of 2025. As of June 30, 2026, the unfunded commitments include the potential purchase of additional royalty interests on daraxonrasib, which, if funded, will be accounted for as financial royalty assets, and funding of senior secured term loans. Because we have limited protective rights with respect to each unfunded portion once the committed funding is provided, we are required to recognize an allowance for current expected credit losses based on our estimate of probability of future funding. We estimate this allowance using the probability of default and loss given default method. We are required to reassess our estimate of current expected credit losses as of each reporting date and any subsequent change to such allowance, which can be income or expense, is reflected within Provision for credit losses on unfunded commitments in the condensed consolidated statements of operations. R&D funding expense We enter into R&D funding agreements with counterparties to acquire royalties or milestones on product candidates. R&D funding expense consists of development-stage funding costs recognized under these agreements, which may be made upfront, as milestones upon achievement of certain predefined criteria, or over time as the related product candidates undergo clinical trials. General and administrative expenses Prior to the Internalization, the most significant component of general and administrative (“G&A”) expenses was the Management Fees (as defined below). Under the Legacy Management Agreement, we paid a quarterly operating and personnel payment to RPM or its affiliates equal to 6.5% of the cash receipts from Royalty Investments (as defined in the Legacy Management Agreement) and 0.25% of the value of our security investments under GAAP as of the end of such quarter (“Management Fees”). Following the Internalization, we no longer pay Management Fees; instead, employee compensation expenses represent the most significant component of G&A expenses. Employee compensation includes cash-based and share-based expenses. Share-based compensation expenses arising from the Internalization primarily include the following: 1.Approximately 22.8 million RP Holdings Class E Interests with an aggregate fair value of approximately $755.4 million, which are expensed over vesting periods on a straight-line basis of generally five to nine years. As of June 30, 2026, we had $570.9 million of unrecognized compensation expense related to 17.2 million RP Holdings Class E Interests that are expected to vest over a weighted average period of 5.0 years. 2.The vesting of the Employee EPAs over their remaining service periods and the subsequent change in their fair value. The fair value of the Employee EPAs is driven by the projected performance of the investments within the Portfolio and will fluctuate based on the timing and amount of investments made during the investment period as well as the actual and expected returns on the investments. Additionally, as each new Portfolio commences after the Internalization, any related Employee EPAs will also be recognized as share-based compensation expense over the required service periods of generally four years and included within General and administrative expenses in the condensed consolidated statements of operations. Lastly, G&A expenses include rent, legal fees and other expenses for professional services. 35 Equity in earnings of equity method investees Equity in earnings of equity method investees primarily includes the results of our share of income or loss from the following non-consolidated affiliates: 1.Legacy SLP Interest. In connection with the Exchange Offer, we acquired an equity method investment from the Continuing Investors Partnerships in the form of a special limited partnership interest in the Legacy Investors Partnerships (the “Legacy SLP Interest”) in exchange for issuing shares in our subsidiary. The Legacy SLP Interest entitles us to the equivalent of performance distribution payments that would have been paid to the general partner of the Legacy Investors Partnerships and a performance income allocation on a similar basis. As the Legacy Investors Partnerships no longer participate in investment opportunities, the value of the Legacy SLP Interest is expected to decline over time. 2.The Avillion Entities. The Avillion Entities (as defined below) partner with global biopharmaceutical companies to perform R&D in exchange for success-based milestones or royalties if products are commercialized. Our investments in Avillion Financing I, LP (“Avillion I”) and BAv Financing II, LP (“Avillion II” and together with Avillion I, the “Avillion Entities”) are accounted for using the equity method. Other (income)/expense, net Other (income)/expense, net primarily includes the changes in fair value of our equity securities and available for sale debt securities, including related forwards and funding commitments, and interest income. Net income attributable to non-controlling interests The net income attributable to non-controlling interests includes income attributable to the legacy non-controlling interests and the continuing non-controlling interests. Since the Legacy Investors Partnerships no longer participate in investment opportunities, the related net income attributable to the legacy non-controlling interests is expected to continue to decline over time as the assets held by Old RPI mature. The net income attributable to the continuing non-controlling interests related to the Continuing Investors Partnerships and the Holders of RP Holdings Class E Interests is expected to decline over time if the investors who indirectly own the RP Holdings Class B Interests and RP Holdings Class E Interests, respectively, conduct exchanges for our Class A ordinary shares. Net income attributable to non-controlling interests above can fluctuate significantly from period to period, primarily driven by volatility in the income statement activity of the respective underlying entity as a result of the non-cash charges associated with applying the effective interest accounting methodology to our financial royalty assets as described in the section titled “Understanding Our Financial Reporting.” Further, the net income attributable to the continuing non-controlling interests includes EPAs attributable to Founder’s Equity. 36 Results of Operations Our historical results of operations for 2025 have been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative. The comparison of our historical results of operations is as follows (in thousands): For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Income and other revenues Income from financial royalty assets $ 638,027 $ 550,418 87,609 15.9 $ 1,233,019 $ 1,089,908 143,111 13.1 Other royalty income and revenues 36,114 28,247 7,867 27.9 71,698 57,004 14,694 25.8 Total income and other revenues 674,141 578,665 95,476 16.5 1,304,717 1,146,912 157,805 13.8 Operating expense/(income) Provision for changes in expected cash flows from financial royalty assets 268,216 (203,938) 472,154 * 70,732 (331,078) 401,810 * Provision for credit losses on unfunded commitments 13,068 92,535 (79,467) (85.9) 9,368 92,535 (83,167) (89.9) Research and development funding expense 97,851 300,500 (202,649) (67.4) 137,641 351,000 (213,359) (60.8) General and administrative expenses 161,887 179,769 (17,882) (9.9) 321,377 290,475 30,902 10.6 Financial royalty asset impairment — — — n/a 69,443 — 69,443 n/a Total operating expense, net 541,022 368,866 172,156 46.7 608,561 402,932 205,629 51.0 Operating income 133,119 209,799 (76,680) (36.5) 696,156 743,980 (47,824) (6.4) Other (income)/expense Equity in earnings of equity method investees (4,077) (2,693) (1,384) 51.4 (25,835) (9,136) (16,699) 182.8 Interest expense 93,617 68,668 24,949 36.3 187,339 133,929 53,410 39.9 Other (income)/expense, net (37,907) 51,189 (89,096) * (15,089) 92,119 (107,208) * Total other expense, net 51,633 117,164 (65,531) (55.9) 146,415 216,912 (70,497) (32.5) Consolidated net income 81,486 92,635 (11,149) (12.0) 549,741 527,068 22,673 4.3 Net income attributable to non-controlling interests 63,603 60,459 3,144 5.2 237,169 255,543 (18,374) (7.2) Net income attributable to Royalty Pharma plc $ 17,883 $ 32,176 (14,293) (44.4) $ 312,572 $ 271,525 41,047 15.1 *Percentage change is not meaningful. 37 Total income and other revenues Income from financial royalty assets Income from financial royalty assets by top products is as follows, in order of contribution to income for the first six months of 2026 (in thousands): For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Cystic fibrosis franchise $ 214,309 $ 203,466 10,843 5.3 $ 426,290 $ 398,581 27,709 7.0 Evrysdi 58,817 48,584 10,233 21.1 114,532 100,361 14,171 14.1 Tremfya 65,780 35,923 29,857 83.1 112,470 74,048 38,422 51.9 Voranigo 44,487 39,190 5,297 13.5 88,278 69,716 18,562 26.6 Trelegy 40,674 38,629 2,045 5.3 79,745 73,406 6,339 8.6 Tysabri 28,680 29,818 (1,138) (3.8) 55,648 61,145 (5,497) (9.0) Other products 185,280 154,808 30,472 19.7 356,056 312,651 43,405 13.9 Total income from financial royalty assets $ 638,027 $ 550,418 87,609 15.9 $ 1,233,019 $ 1,089,908 143,111 13.1 Three months ended June 30, 2026 and 2025 Income from financial royalty assets increased by $87.6 million, or 15.9%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by an increase in interest income from Tremfya and the cystic fibrosis franchise, as well as $27.6 million of interest income from Imdelltra, which was acquired in the third quarter of 2025 and is reflected within other products in the table above. The increase in income from Tremfya was primarily driven by an increase in sell-side equity research analysts’ consensus sales forecasts. The increase in income from the cystic fibrosis franchise was primarily driven by higher interest income following the reversal of the allowance for changes in expected cash flows related to the FDA approval of Alyftrek in the fourth quarter of 2024. Six months ended June 30, 2026 and 2025 Income from financial royalty assets increased by $143.1 million, or 13.1%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by $46.9 million of interest income from Imdelltra, which was acquired in the third quarter of 2025 and is reflected within other products in the table above, as well as increases in interest income from Tremfya and the cystic fibrosis franchise. The increase in income from Tremfya was primarily driven by an increase in sell-side equity research analysts’ consensus sales forecasts. The increase in income from the cystic fibrosis franchise was primarily driven by higher interest income following the reversal of the allowance for changes in expected cash flows related to the FDA approval of Alyftrek in the fourth quarter of 2024. Other royalty income and revenues Three months ended June 30, 2026 and 2025 Other royalty income and revenues increased by $7.9 million or 27.9% in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by the growth in Trodelvy sales. Six months ended June 30, 2026 and 2025 Other royalty income and revenues increased by $14.7 million, or 25.8%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the growth in Trodelvy sales. 38 Provision for changes in expected cash flows from financial royalty assets Provision activity is a combination of income and expense items. The provision breakdown by royalty asset (exclusive of the provision for current expected credit losses) based on the largest contributors to each period’s provision income or expense (in thousands) is as follows: For the Three Months Ended June 30, 2026 For the Three Months Ended June 30, 2025 Royalty Royalty Adstiladrin $ 130,005 Evrysdi $ (170,534) Cystic fibrosis franchise 109,059 Xtandi (37,609) Orladeyo 36,775 Tremfya (25,114) Xtandi 19,180 Tysabri 30,466 Tysabri (63,160) Promacta 46,187 Other 28,395 Other (39,423) Total provision, exclusive of provision for credit losses 260,254 Total provision, exclusive of provision for credit losses (196,027) Provision for current expected credit losses 7,962 Provision for current expected credit losses (7,911) Total provision $ 268,216 Total provision $ (203,938) For the Six Months Ended June 30, 2026 For the Six Months Ended June 30, 2025 Royalty Royalty Adstiladrin $ 186,231 Cystic fibrosis franchise $ (259,353) Cystic fibrosis franchise 109,059 Trelegy (66,647) Orladeyo 36,775 Xtandi (58,408) Evrysdi (89,080) Evrysdi (48,233) Tysabri (154,548) Tysabri 49,033 Other (18,616) Other 73,947 Total provision, exclusive of provision for credit losses 69,821 Total provision, exclusive of provision for credit losses (309,661) Provision for current expected credit losses 911 Provision for current expected credit losses (21,417) Total provision $ 70,732 Total provision $ (331,078) Three months ended June 30, 2026 and 2025 In the second quarter of 2026, we recorded provision expense of $268.2 million, comprised of $260.3 million in provision expense for changes in expected cash flows and $8.0 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Adstiladrin, due to a decline in its sales forecast. In addition, we recorded provision expenses related to the cystic fibrosis franchise, due to an increase in the estimated sales forecast attributable to Alyftrek based on consensus estimates and the conservative assumption that royalties will only be collected on the tezacaftor component of Alyftrek and not on the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of Alyftrek is the same as ivacaftor and is therefore royalty-bearing, beginning in the second quarter of 2025, we did not receive from Vertex the full amount of royalty receipts on Alyftrek net sales to which we believe that we are contractually entitled. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. The provision expense was partially offset by provision income related to Tysabri due to an increase in sell-side equity research analysts’ consensus sales forecasts. In the second quarter of 2025, we recorded provision income of $203.9 million, comprised of $196.0 million in provision income for changes in expected cash flows and $7.9 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to Evrysdi and Xtandi due to increases in sell-side equity research analysts’ consensus sales forecasts. 39 Six months ended June 30, 2026 and 2025 In the first six months of 2026, we recorded provision expense of $70.7 million, comprised of $69.8 million in provision expense for changes in expected cash flows and $0.9 million in provision expense for current expected credit losses. We recorded provision expense for changes in expected cash flows primarily related to Adstiladrin due to decline in its sales forecast. In addition, we recorded provision expenses related to the cystic fibrosis franchise, due to an increase in the estimated sales forecast attributable to Alyftrek based on consensus estimates and the conservative assumption that royalties will only be collected on the tezacaftor component of Alyftrek and not on the deuterated ivacaftor component. Although we believe that the deuterated ivacaftor component of Alyftrek is the same as ivacaftor and is therefore royalty-bearing, beginning in the second quarter of 2025, we did not receive from Vertex the full amount of royalty receipts on Alyftrek net sales to which we believe that we are contractually entitled. If deuterated ivacaftor is determined to be royalty-bearing, we may recognize provision income in our results of operations at that time. The provision expense was partially offset by provision income related to Tysabri and Evrysdi due to increases in sell-side equity research analysts’ consensus sales forecasts. In the first six months of 2025, we recorded provision income of $331.1 million, comprised of $309.7 million in provision income for changes in expected cash flows and $21.4 million in provision income for current expected credit losses. We recorded provision income for changes in expected cash flows primarily related to the cystic fibrosis franchise and Trelegy due to increases in sell-side equity research analysts’ consensus sales forecasts. The provision income for changes in expected cash flows was partially offset by provision expense related to Tysabri due to declines in sell-side equity research analysts’ consensus sales forecasts. Provision for credit losses on unfunded commitments Three months ended June 30, 2026 and 2025 Provision for credit losses on unfunded commitments decreased by $79.5 million, or 85.9%, in the second quarter of 2026 as compared to the second quarter of 2025. In the second quarter of 2025, we entered into a funding arrangement with Revolution Medicines and recognized provision expense for credit losses of $92.5 million related to the unfunded portions of the arrangement. In the second quarter of 2026, we did not enter into any new funding arrangement that required a provision for credit losses on the unfunded portions. Six months ended June 30, 2026 and 2025 Provision for credit losses on unfunded commitments decreased by $83.2 million, or 89.9% in the first six months of 2026 as compared to the first six months of 2025. In the first six months of 2025, we entered into a funding arrangement with Revolution Medicines and recognized provision expense for credit losses of $92.5 million related to the unfunded portions of the arrangement. In the first six months of 2026, we did not enter into any new funding arrangement that required a provision for credit losses on the unfunded portions. R&D funding expense Three months ended June 30, 2026 and 2025 R&D funding expense decreased by $202.6 million, or 67.4%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by R&D funding of $250.0 million related to daraxonrasib recorded in the second quarter of 2025. Six months ended June 30, 2026 and 2025 R&D funding expense decreased by $213.4 million, or 60.8%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by R&D funding of $250.0 million related to daraxonrasib recorded in the second quarter of 2025. 40 G&A expenses Three months ended June 30, 2026 and 2025 G&A expenses decreased by $17.9 million, or 9.9%, in the second quarter of 2026 as compared to the second quarter of 2025. In the second quarter of 2025, G&A expenses were higher, primarily driven by $15.0 million of acquisition-related costs for the Internalization and $23.8 million of cash-based Management Fees recognized prior to the Internalization, which was completed in May 2025. The decrease in period-over-period G&A expenses was partially offset by higher share-based compensation expense that began to be recognized following the Internalization. In the second quarter of 2026, we recognized $123.3 million of employee compensation expense, which included $106.5 million of share-based compensation expense and $16.7 million of cash-based compensation expense. In the second quarter of 2025, prior to the Internalization, we recognized $23.8 million of cash-based Management Fees, and following the Internalization, we recognized $108.5 million of employee compensation expense, which included $90.1 million of share-based compensation expense and $18.3 million of cash-based compensation expense. See Note 4–Share-Based Compensation for additional information. Six months ended June 30, 2026 and 2025 G&A expenses increased by $30.9 million, or 10.6%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by higher share-based compensation expense recognized following the Internalization, which was completed in May 2025. The increase in period-over-period G&A expenses was partially offset by the absence of $28.7 million of acquisition-related costs for the Internalization in the prior period and the elimination of Management Fees following the Internalization. In the first six months of 2026, we recognized $261.4 million of employee compensation expense, which included $227.9 million of share-based compensation expense and $33.6 million of cash-based compensation expense. In the first six months of 2025, prior to the Internalization, we recognized $113.6 million of cash-based Management Fees, and following the Internalization, we recognized $108.5 million of employee compensation expense, which included $90.1 million of share-based compensation expense and $18.3 million of cash-based compensation expense. See Note 4–Share-Based Compensation for additional information. Financial royalty asset impairment Three months ended June 30, 2026 and 2025 We did not recognize impairment charges in the second quarter of 2026 or 2025. Six months ended June 30, 2026 and 2025 We recognized a financial royalty asset impairment charge of $69.4 million in the first six months of 2026 related to Tazverik following announcements by Ipsen and Eisai in March 2026 of the voluntary withdrawal of Tazverik across all indications and markets. We did not recognize impairment charges in the first six months of 2025. Equity in earnings of equity method investees Three months ended June 30, 2026 and 2025 Equity in earnings of equity method investees was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. 41 Six months ended June 30, 2026 and 2025 Equity in earnings of equity method investees increased by $16.7 million, or 182.8%, in the first six months of 2026 as compared to the first six months of 2025. Equity in earnings of equity method investees in the first six months of 2026 was primarily driven by a $15.2 million gain related to our portion of the Airsupra sales-based milestone that the Avillion Entities received from AstraZeneca. Equity in earnings of equity method investees in the first six months of 2025 was primarily driven by an income allocation from the Legacy SLP Interest of $10.6 million. Interest expense Three months ended June 30, 2026 and 2025 Interest expense increased by $24.9 million, or 36.3%, in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by the issuance of $2.0 billion of senior unsecured notes in September 2025. Six months ended June 30, 2026 and 2025 Interest expense increased by $53.4 million, or 39.9%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the issuance of $2.0 billion of senior unsecured notes in September 2025 and the $380 million term loan that we assumed as part of the Internalization. The weighted average coupon rate on our senior unsecured notes outstanding as of June 30, 2026 and 2025 was 3.75% and 3.06%, respectively. Refer to the “Liquidity and Capital Resources” section for additional discussion of our debt financing arrangements. Other (income)/expense, net Three months ended June 30, 2026 and 2025 Other income, net of $37.9 million in the second quarter of 2026 was primarily comprised of $69.2 million of gains on equity securities and $5.1 million of interest income earned on cash and cash equivalents, partially offset by $34.9 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements. Other expense, net of $51.2 million in the second quarter of 2025 was primarily comprised of $30.6 million of losses on equity securities and $27.4 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements, partially offset by $8.3 million of interest income earned on cash and cash equivalents. Six months ended June 30, 2026 and 2025 Other income, net of $15.1 million in the first six months of 2026 was primarily comprised of $49.0 million of gains on equity securities and $11.4 million of interest income earned on cash and cash equivalents, partially offset by $41.6 million of losses on available for sale debt securities due to changes in fair value of the Cytokinetics Funding Arrangements. Other expense, net of $92.1 million in the first six months of 2025 was primarily comprised of $76.4 million of losses on equity securities and $30.7 million of losses on available for sale debt securities primarily driven by the changes in the fair value of the Cytokinetics Funding Arrangements, partially offset by $19.6 million of interest income on cash and cash equivalents. Net income attributable to non-controlling interests Three months ended June 30, 2026 and 2025 Net income attributable to Legacy Investors Partnerships was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. 42 Net income attributable to Continuing Investors Partnerships decreased by $5.5 million, or 56.4% in the second quarter of 2026 as compared to the second quarter of 2025, primarily driven by lower net income attributable to RP Holdings as a result of provision expense recognized in 2026 as compared to provision income recognized in 2025. Net income attributable to Founder’s Equity increased by $7.0 million in the second quarter of 2026 as compared to the second quarter of 2025, driven by an increase in EPAs attributable to Founder’s Equity as a result of higher Net Economic Profit, reflecting higher cash receipts from portfolio investments. Net income attributable to RP Holdings Class E Interests was relatively flat in the second quarter of 2026 as compared to the second quarter of 2025. We issued 24.5 million RP Holdings Class E Interests in connection with the Internalization in the second quarter of 2025. Six months ended June 30, 2026 and 2025 Net income attributable to Legacy Investors Partnerships decreased by $12.1 million, or 9.6% in the first six months of 2026 as compared to the first six months of 2025, primarily driven by lower net income attributable to Old RPI as a result of impairment charges related to Tazverik. Net income attributable to Continuing Investors Partnerships decreased by $4.2 million, or 4.8% in the first six months of 2026 as compared to the first six months of 2025, primarily driven by a decline in the Continuing Investors Partnerships’ ownership of RP Holding due to the ongoing exchanges by investors in the Continuing Investors Partnerships who indirectly own RP Holdings Class B Interests for our Class A ordinary shares. Net income attributable to Founder’s Equity decreased by $18.6 million, or 43.9%, in the first six months of 2026 as compared to the first six months of 2025, primarily driven by the Internalization completed in May 2025. Prior to the Internalization, net income attributable to Founder’s Equity included both Mr. Legorreta’s retained EPAs and employee participation in the EPAs. In the first six months of 2026, Founder’s Equity includes only Mr. Legorreta’s retained EPAs. Net income attributable to RP Holdings Class E Interests increased by $16.5 million in the first six months of 2026 as compared to the first six months of 2025. We issued 24.5 million RP Holdings Class E Interests in connection with the Internalization in the second quarter of 2025. Portfolio Overview Our business model is different from that of traditional operating companies in the biopharmaceutical industry. Our operating performance is a function of our liquidity as our operations have historically been financed primarily with cash flows generated by our royalties. We use the cash generated by our existing royalties to fund investments in new royalties. We consider a variety of metrics in assessing the performance of our business. Portfolio Receipts is a key performance metric that represents our ability to generate cash from our portfolio investments, the primary source of capital that we can deploy to make new portfolio investments. Portfolio Receipts also enables management to better analyze our liquidity and long-term growth prospects by providing a more granular product-by-product presentation of the underlying cash generation of our royalty investments. Portfolio Receipts is defined as the sum of royalty receipts and milestones and other contractual receipts. Royalty receipts include variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to us (“Royalty Receipts”). Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to the legacy non-controlling interests, that are attributed to us. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to our fundamental business strategy. 43 Portfolio Receipts is calculated as the sum of the following line items from our GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships. Our portfolio consists of royalties on more than 35 marketed therapies and 19 development-stage product candidates. The therapies in our portfolio address therapeutic areas such as rare diseases, neuroscience, oncology, hematology, immunology, respiratory and diabetes, and are delivered to patients across both primary and specialty care settings. The table below shows Portfolio Receipts, including Royalty Receipts by product and milestones and other contractual receipts, in order of contribution to total Royalty Receipts for the first six months of 2026 (in thousands): Products Marketer(s) Therapeutic Area For the Three Months Ended June 30, Change For the Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Cystic fibrosis franchise(1) Vertex Rare disease $ 193,941 $ 193,818 123 0.1 $ 447,195 $ 443,548 3,647 0.8 Trelegy GSK Respiratory 58,232 56,618 1,614 2.9 155,913 141,853 14,060 9.9 Evrysdi Roche Rare disease 46,644 32,895 13,749 41.8 126,301 85,550 40,751 47.6 Tysabri Biogen Neuroscience 66,527 55,844 10,683 19.1 125,865 116,910 8,955 7.7 Tremfya Johnson & Johnson Immunology 56,667 36,958 19,709 53.3 120,651 72,606 48,045 66.2 Xtandi Pfizer, Astellas Oncology 44,495 41,861 2,634 6.3 95,523 94,339 1,184 1.3 Voranigo Servier Oncology 45,602 26,495 19,107 72.1 92,441 46,036 46,405 100.8 Imbruvica AbbVie, Johnson & Johnson Oncology 36,408 43,583 (7,175) (16.5) 74,320 89,435 (15,115) (16.9) Cabometyx/Cometriq Exelixis, Ipsen, Takeda Oncology 22,895 20,365 2,530 12.4 45,488 41,033 4,455 10.9 Imdelltra Amgen Oncology 16,582 — 16,582 n/a 33,318 — 33,318 n/a Trodelvy Gilead Oncology 13,513 9,952 3,561 35.8 26,943 22,557 4,386 19.4 Promacta Novartis Hematology 8,050 32,639 (24,589) (75.3) 25,233 76,828 (51,595) (67.2) Spinraza Biogen Rare disease 10,697 12,002 (1,305) (10.9) 22,387 24,894 (2,507) (10.1) Amvuttra Alnylam Rare disease 8,899 — 8,899 n/a 17,165 — 17,165 n/a Other products(2) 138,777 108,675 30,102 27.7 246,363 204,395 41,968 20.5 Royalty Receipts $ 767,929 $ 671,705 96,224 14.3 $ 1,655,106 $ 1,459,984 195,122 13.4 Milestones and other contractual receipts 5,047 55,759 (50,712) (90.9) 43,234 106,772 (63,538) (59.5) Portfolio Receipts(3) $ 772,976 $ 727,464 45,512 6.3 $ 1,698,340 $ 1,566,756 131,584 8.4 (1)The cystic fibrosis franchise includes the following approved products: Kalydeco, Orkambi, Symdeko/Symkevi, Trikafta/Kaftrio and Alyftrek. (2)Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, IDHIFA, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis, Soliqua and distributions from the Legacy SLP Interest, which are presented as Distributions from equity method investees on the condensed consolidated statements of cash flows. (3)Portfolio Receipts for 2025 does not include the $511 million of proceeds from our sale of the MorphoSys Development Funding Bonds because it was treated as an asset sale. Analysis of Portfolio Receipts The key drivers of Portfolio Receipts are discussed below: •Cystic fibrosis franchise – Royalty Receipts from the cystic fibrosis franchise, including Kalydeco, Orkambi, Symdeko/Symkevi, Trikafta/Kaftrio and Alyftrek, which is marketed by Vertex for the treatment of cystic fibrosis, increased by $3.6 million in the first six months of 2026 as compared to the first six months of 2025. Performance was relatively consistent versus the prior year period, as growth in overall cystic fibrosis franchise sales reflected a mix shift toward Alyftrek, resulting in a lower blended royalty rate. 44 •Trelegy – Royalty Receipts from Trelegy, which is marketed by GSK for the maintenance treatment of chronic obstructive pulmonary disease and asthma, increased by $14.1 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued volume growth across all regions, reflecting patient demand, single inhaler triple therapy class growth and increased market share. •Evrysdi – Royalty Receipts from Evrysdi, which is marketed by Roche for the treatment of spinal muscular atrophy, increased by $40.8 million in the first six months of 2026 as compared to the first six months of 2025, attributable to continued growth in Europe and tender-related buying in international markets. Additionally, Royalty Receipts benefited from the incremental royalties we acquired in the fourth quarter of 2025. •Tysabri – Royalty Receipts from Tysabri, which is marketed by Biogen for the treatment of multiple sclerosis, increased by $9.0 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by favorable channel dynamics globally and pricing adjustments in the United States, partially offset by increased competition in the rest of world. •Tremfya – Royalty Receipts from Tremfya, which is marketed by Johnson & Johnson for the treatment of plaque psoriasis, active psoriatic arthritis and inflammatory bowel disease, increased by $48.0 million in the first six months of 2026 as compared to the first six months of 2025, driven by market share gains and market growth, including strong uptake across recently launched inflammatory bowel disease indications. •Xtandi – Royalty Receipts from Xtandi, which is marketed by Pfizer and Astellas for the treatment of prostate cancer, increased by $1.2 million in the first six months of 2026 as compared to the first six months of 2025, relatively consistent with the prior year period. •Voranigo – Royalty Receipts from Voranigo, which is marketed by Servier for the treatment of low-grade glioma, increased by $46.4 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by its strong launch in the United States. •Imbruvica – Royalty Receipts from Imbruvica, which is marketed by AbbVie and Johnson & Johnson for the treatment of blood cancers and chronic graft versus host disease, decreased by $15.1 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued competitive pressures. •Cabometyx/Cometriq – Royalty Receipts from Cabometyx/Cometriq, which is marketed by Exelixis, Ipsen and Takeda, primarily for the treatment of advanced renal cell carcinoma, hepatocellular carcinoma and neuroendocrine tumors, increased by $4.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by continued demand growth from uptake in combination with Opdivo in first-line renal cell carcinoma and previously treated advanced neuroendocrine tumors. •Imdelltra – Royalty Receipts from Imdelltra, which is marketed by Amgen for the treatment of extensive-stage small cell lung cancer were $33.3 million in the first six months of 2026, primarily driven by its strong global launch as it establishes a new standard of care in second-line extensive stage small cell lung cancer. We acquired the Imdelltra royalty in the third quarter of 2025 and began receiving Royalty Receipts in the fourth quarter of 2025. •Trodelvy – Royalty Receipts from Trodelvy, which is marketed by Gilead for the treatment of metastatic triple-negative breast cancer and pre-treated hormone receptor-positive, human epidermal growth factor receptor 2 (“HER2”)-negative metastatic breast cancer, increased by $4.4 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by higher demand. •Promacta – Royalty Receipts from Promacta, which is marketed by Novartis for the treatment of chronic immune thrombocytopenia purpura and aplastic anemia, decreased by $51.6 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by generic competition. 45 •Spinraza – Royalty Receipts from Spinraza, which is marketed by Biogen for the treatment of spinal muscular atrophy, decreased by $2.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by lower U.S. demand and the timing of shipments in certain international markets, as well as Spinraza achieving the $1.5 billion sales cap earlier in 2025 than in the prior year. •Amvuttra – Royalty Receipts from Amvuttra, which is marketed by Alnylam for the treatment of transthyretin (“TTR”) amyloidosis with cardiomyopathy and for hereditary TTR amyloidosis with polyneuropathy were $17.2 million in the first six months of 2026, primarily driven by continued growth in U.S. patient demand following its second quarter 2025 launch in TTR amyloidosis cardiomyopathy. We acquired the Amvuttra royalty in the fourth quarter of 2025 and began receiving Royalty Receipts in the first quarter of 2026. •Other products – Royalty Receipts from other products increased by $42.0 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by strong contributions from Niktimvo and Yorvipath, partially offset by the expiration of the Farxiga and Soliqua royalties. •Milestones and other contractual receipts decreased by $63.5 million in the first six months of 2026 as compared to the first six months of 2025, primarily attributable to a one-time distribution related to the Legacy SLP Interest and the quarterly repayment on the MorphoSys Development Funding Bonds, both received in the prior year period. Current period Milestones and other contractual receipts include payments for Airsupra, Bosulif and Cytokinetics. Key Developments Relating to Our Portfolio Recent key developments related to products in our portfolio are discussed below: Commercial Products •Jideytro. In July 2026, GSK announced that the FDA approved Jideytro (formerly known as zidesamtinib), a ROS proto-oncogene 1 (“ROS1”)-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer who have received a prior ROS1 kinase inhibitor. •Trodelvy. In June 2026, Gilead announced that the FDA approved Trodelvy for the first-line treatment of certain patients with metastatic triple-negative breast cancer. In June 2026, Gilead announced that the European Commission (“EC”) approved Trodelvy as a first-line treatment for certain patients with metastatic triple-negative breast cancer who are not candidates for PD-L1 inhibitors. In June 2026, Gilead announced the discontinuation of the Phase 3 KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda for patients with previously untreated metastatic non-small cell lung cancer. •Imdelltra. In June 2026, the EC approved Imdelltra for the treatment of adult patients with extensive-stage small cell lung cancer. •Erleada. In May 2026, Johnson & Johnson announced that the Phase 3 PROTEUS study evaluating Erleada in combination with androgen deprivation therapy before and after radical prostatectomy, in patients with high-risk localized or locally advanced prostate cancer, met its primary endpoints. •Tremfya. In May 2026, Johnson & Johnson announced that the FDA approved a supplemental Biologics License Application (“BLA”) for Tremfya to include the inhibition of progression of structural joint damage in adults with active psoriatic arthritis. •Myqorzo. In May 2026, Cytokinetics announced positive topline results from ACACIA-HCM, the pivotal Phase 3 clinical trial of Myqorzo in patients with non-obstructive hypertrophic cardiomyopathy. The study met both dual primary endpoints, demonstrating statistically significant improvements from baseline to week 36 versus placebo. 46 •Ziihera. In April 2026, Jazz Pharmaceuticals announced that the FDA accepted for filing a supplemental BLA for Ziihera, in combination regimens for the first‑line treatment of adult patients with HER2‑positive metastatic gastroesophageal adenocarcinoma, and granted Priority Review, with a Prescription Drug User Fee Act (“PDUFA”) date of August 25, 2026. Development-Stage Product Candidates •Daraxonrasib. In July 2026, Revolution Medicines announced that the FDA accepted for review the company’s New Drug Application (“NDA”) for daraxonrasib, an oral RAS(ON) multi-selective inhibitor, for previously treated metastatic pancreatic ductal adenocarcinoma. In July 2026, Revolution Medicines announced that the European Medicines Agency (“EMA”) started an accelerated assessment of daraxonrasib. In April 2026, Revolution Medicines announced positive Phase 3 results from the RASolute-302 trial evaluating daraxonrasib in patients with previously treated metastatic pancreatic cancer. •Neladalkib. In July 2026, GSK announced that it completed the acquisition of Nuvalent for approximately $10.6 billion, including neladalkib and Jideytro (formerly known as zidesamtinib), two highly selective ROS1 and anaplastic lymphoma kinase inhibitors for the treatment of non-small cell lung cancer. In May 2026, Nuvalent announced the FDA accepted its NDA for neladalkib for filing and granted the application Priority Review with a PDUFA date of November 27, 2026. •TEV-’408. In July 2026, Teva Pharmaceuticals (“Teva”) announced plans to advance TEV-’408 into a Phase 2b study in patients with non-segmental vitiligo, following positive Phase 1b results. •Deucrictibant. In July 2026, Pharvaris announced that the FDA accepted its NDA for deucrictibant immediate-release for the on-demand treatment of hereditary angioedema attacks and assigned a PDUFA date of April 23, 2027. •Ecopipam. In June 2026, Teva announced the completion of its acquisition of Emalex Biosciences for up to $900 million, including $700 million at closing, which added ecopipam and other neuroscience therapies to its portfolio. Furthermore, Teva announced the submission of an NDA to the FDA for ecopipam for the treatment of pediatric Tourette syndrome. •Obexelimab. In May 2026, Zenas BioPharma announced the submission of a BLA to the FDA for obexelimab for the treatment of Immunoglobulin G4-related disease. •TEV-’749. In May 2026, Teva announced that the EMA accepted for review its Marketing Authorization Application for TEV-’749 for the treatment of schizophrenia in adults. Investments Overview Ongoing investment in new royalties is fundamental to the long-term prospects of our business. New investments provide a source of growth for our Royalty Receipts, supplementing growth within our existing portfolio and offsetting declines for royalties on products that have lost market exclusivity. We evaluate an array of royalty acquisition opportunities on a continuous basis and expect to continue to make acquisitions in the ordinary course of our business. We have established a strong track record of identifying, evaluating and investing in royalties tied to leading products across therapeutic areas and treatment modalities. We invest in approved products and development-stage product candidates that have generated robust proof of concept data. We invest in these therapies through the purchase of royalties, milestones and other contractual receipts by making hybrid investments and by acquiring businesses with significant existing royalty assets or the potential for the creation of such assets. 47 During the first six months of 2026, we invested $876.7 million in royalties, milestones and other contractual receipts. While volatility exists in the funding of new acquisitions on a year-to-year basis due to the unpredictable timing of new investment opportunities, we have consistently deployed significant amounts of cash when measured over multi-year periods. Our approach is rooted in a highly disciplined evaluation process that is not dictated by a minimum annual investment threshold. Summary of Acquisition Activities •In July 2026, we acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class TTR-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart. •In March 2026, we acquired a royalty interest in Denali Therapeutics’ Avlayah upon FDA accelerated approval for $200 million. Avlayah is Denali’s lead investigational Transport VehicleTM-enabled enzyme replacement therapy for the treatment of mucopolysaccharidosis type II (“MPS II, or Hunter syndrome”). We will make a $75 million payment upon European Medicines Agency approval if achieved by December 31, 2029. •In March 2026, we entered into an R&D co-funding agreement with Johnson & Johnson to provide $500 million over two years for the development of JNJ‑4804, an investigational medicine for autoimmune diseases. •In March 2026, we acquired a royalty interest in Ziihera from Zymeworks Inc. for $250 million. Ziihera, which is marketed by Jazz Pharmaceuticals and BeOne Medicines, is approved for HER2-positive metastatic biliary tract cancer and is in development for HER2-positive gastric cancer. •In January 2026, we announced a funding agreement with Teva for TEV-’408 for up to $500 million. The agreement includes up to $75 million to co-fund a Phase 2b study for vitiligo targeted for 2026. Based on the results of this study, we have the option to provide up to an additional $425 million to co-fund the Phase 3 development program. Liquidity and Capital Resources Overview Our primary source of liquidity is cash provided by operations. For the first six months of 2026 and 2025, we generated $1.4 billion and $960.1 million, respectively, in Net cash provided by operating activities. We believe that our existing capital resources, cash provided by operating activities and access to our Revolving Credit Facility (as defined below) will continue to allow us to meet our operating and working capital requirements, to fund planned strategic acquisitions and R&D funding agreements, and to meet our debt service obligations for the foreseeable future. We have historically operated at a low level of fixed operating costs. We no longer pay Management Fees following the Internalization, which comprised the majority of our cash G&A expenses historically. Our primary cash operating expenses, other than R&D funding commitments, include interest expense, employee personnel costs, rent expense and legal and professional fees. We have access to substantial sources of funds in the capital markets and we may, from time to time, seek additional capital through a combination of additional debt or equity financings. As of June 30, 2026 and December 31, 2025, the par value of all of our outstanding borrowings was $9.2 billion, respectively. Additionally, we have up to $1.8 billion of available revolving commitments under our Revolving Credit Facility (as defined below) and up to $350.0 million of an uncommitted line of credit under our Uncommitted Credit Facility (as defined below). A summary of our borrowing activities, balances and compliance with certain debt covenants under various financing arrangements is included in Note 12–Borrowings of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. 48 We have historically funded our investments through operating cash flows, equity contributions and debt. Our low operating costs coupled with a lack of capital expenditures and low taxes have contributed to our strong financial profile, resulting in high operating leverage and high cash flow conversion. We expect to continue funding our current and planned operating costs (excluding acquisitions) principally through our cash flow from operations and investments through cash flow and issuances of equity and debt. We have supplemented our available cash and cash equivalents on hand with attractive debt capital to fund certain strategic acquisitions. Our ability to satisfy our working capital needs, debt service and other obligations, and to comply with the financial covenants under our financing agreements depends on our future operating performance and cash flow, which are in turn subject to prevailing economic conditions and other factors, many of which are beyond our control. Cash Flows The following table and analysis of cash flow changes presents a summary of our cash flow activities (in thousands): For the Six Months Ended June 30, 2026 2025 Change Cash provided by/(used in): Operating activities $ 1,446,694 $ 960,060 $ 486,634 Investing activities (707,587) 191,935 (899,522) Financing activities (545,817) (1,449,113) 903,296 Analysis of Cash Flow Changes Operating Activities Cash provided by operating activities increased by $486.6 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by a decrease in development-stage funding payments, an increase in cash collections from financial royalty assets and a decrease in payments for operating and professional costs as a result of the Internalization, partially offset by higher interest payments. Investing Activities Cash used in investing activities in the first six months of 2026 was $707.6 million as compared to cash provided by investing activities of $191.9 million in the first six months of 2025. In the first six months of 2026, cash used in investing activities was primarily driven by cash used for acquisitions of financial royalty assets. In the first six months of 2025, cash provided by investing activities was primarily driven by proceeds from the sale of the MorphoSys Development Funding Bonds, partially offset by milestone payments and purchases of available for sale debt securities. Financing Activities Cash used in financing activities decreased by $903.3 million in the first six months of 2026 as compared to the first six months of 2025, primarily driven by decreases in repurchases of our Class A ordinary shares. Sources of Capital As of June 30, 2026 and December 31, 2025, our cash and cash equivalents totaled $812.0 million and $618.7 million, respectively. We intend to fund short-term and long-term financial obligations as they mature through cash and cash equivalents, future cash flows from operations or the issuance of additional debt. Our ability to generate cash flows from operations, issue debt or enter into financing arrangements on acceptable terms could be adversely affected if there is a material decline in the sales of the underlying pharmaceutical products in which we hold royalties, deterioration in our key financial ratios or credit ratings, or other material unfavorable changes in business conditions. Currently, we believe that we have sufficient financial flexibility to issue debt, enter into other financing arrangements and attract long-term capital on acceptable terms to support our growth objectives. 49 Borrowings Our borrowings consisted of the following (in thousands): Type of Borrowing Date of Issuance Maturity As of June 30, 2026 As of December 31, 2025 Senior Unsecured Notes: $1,000,000, 1.75% (issued at 98.284% of par) 9/2020 9/2027 $ 1,000,000 $ 1,000,000 $500,000, 5.15% (issued at 98.758% of par) 6/2024 9/2029 500,000 500,000 $1,000,000, 2.20% (issued at 97.760% of par) 9/2020 9/2030 1,000,000 1,000,000 $600,000, 4.45% (issued at 98.909% of par) 9/2025 3/2031 600,000 600,000 $600,000, 2.15% (issued at 98.263% of par) 7/2021 9/2031 600,000 600,000 $500,000, 5.40% (issued at 97.872% of par) 6/2024 9/2034 500,000 500,000 $900,000, 5.20% (issued at 97.989% of par) 9/2025 9/2035 900,000 900,000 $1,000,000, 3.30% (issued at 95.556% of par) 9/2020 9/2040 1,000,000 1,000,000 $1,000,000, 3.55% (issued at 95.306% of par) 9/2020 9/2050 1,000,000 1,000,000 $700,000, 3.35% (issued at 97.565% of par) 7/2021 9/2051 700,000 700,000 $500,000, 5.90% (issued at 97.617% of par) 6/2024 9/2054 500,000 500,000 $500,000, 5.95% (issued at 95.824% of par) 9/2025 9/2055 500,000 500,000 Term Loan See below 7/2026 380,000 380,000 Total senior unsecured debt 9,180,000 9,180,000 Unamortized debt discount and issuance costs (218,108) (229,083) Total debt carrying value 8,961,892 8,950,917 Less: Current portion of long-term debt (380,000) (380,000) Total long-term debt $ 8,581,892 $ 8,570,917 Senior Unsecured Notes As of June 30, 2026, our total principal amount of senior unsecured notes outstanding was $8.8 billion (the “Notes”) with a weighted average coupon rate of 3.75%. The Notes require semi-annual interest payments. Indentures governing the Notes contain certain covenants with which we were in compliance as of June 30, 2026. Term Loan assumed from Internalization In connection with the Internalization, RP Holdings and RP Manager were each joined as a borrower under RPM’s then existing $380 million term loan (the “Term Loan”) with Bank of America, N.A (as amended, the “Loan Agreement”). Pablo Legorreta, Legorreta Investments, LLC and Legorreta Investments II LLC are guarantors under the Term Loan. Upon the closing of the Internalization, RPM was released as a borrower under the Term Loan. In the third quarter of 2025, the Loan Agreement was amended to accelerate the maturity of the Term Loan to July 31, 2026 and decrease the applicable interest rate. Following the amendment, the Term Loan is subject to an interest rate, at our option, of either (i) the Daily SOFR plus 1.25% or (ii) Term SOFR plus 1.25%, each as defined in the Loan Agreement. Interest is payable in arrears quarterly. We made the first interest payment in the third quarter of 2025. The Term Loan is subject to certain customary covenants, that among other things, require us to maintain (i) a Consolidated Leverage Ratio, (ii) a Consolidated Coverage Ratio, and (iii) a Consolidated Portfolio Cash Flow Ratio, each as described further below under the description of the Credit Agreement that governs the Revolving Credit Facility. In July 2026, we repaid the Term Loan upon maturity. Uncommitted Credit Facility In August 2025, we entered into an uncommitted line of credit agreement with Société Générale (the “Uncommitted Credit Facility”) which provides for an aggregate borrowing capacity of up to $350.0 million for general corporate purposes within a quarter. As of June 30, 2026, there were no outstanding borrowings under the Uncommitted Credit Facility. 50 Senior Unsecured Revolving Credit Facility On May 22, 2026, RP Holdings, as borrower, entered into a Revolving Credit Agreement (the “Credit Agreement”), which refinanced and replaced in its entirety the Amended and Restated Revolving Credit Agreement, dated as of September 15, 2021, as amended. The Credit Agreement provides for a $1.8 billion unsecured revolving credit facility (the “Revolving Credit Facility”) for general corporate purposes and matures on May 22, 2031. As of June 30, 2026, we have a borrowing capacity of $1.8 billion under the Revolving Credit Facility. The Credit Agreement that governs the Revolving Credit Facility and the amended loan agreement that governs the Term Loan contain certain customary covenants, that among other things, require us to maintain (i) a Consolidated Leverage Ratio at or below 4.00 to 1.00 (or at or below 4.50 to 1.00 following a qualifying material acquisition) of consolidated funded debt to Adjusted EBITDA, each as defined and calculated as set forth in the Credit Agreement, (ii) a Consolidated Coverage Ratio at or above 2.50 to 1.00 of Adjusted EBITDA to consolidated interest expense, each as defined and calculated as set forth in the Credit Agreement and (iii) a Consolidated Portfolio Cash Flow Ratio at or below 5.00 to 1.00 (or at or below 5.50 to 1.00 following a qualifying material acquisition) of consolidated funded debt to Portfolio Cash Flow, each as defined and calculated as set forth in the Credit Agreement. We were in compliance with the financial covenants as of June 30, 2026. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that are key components of certain material covenants contained within the Credit Agreement. Noncompliance with the financial covenants under the Credit Agreement could result in our lenders requiring us to immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments and acquiring and disposing of assets. The table below presents Adjusted EBITDA and Portfolio Cash Flow, each as calculated according to its respective definition in our Credit Agreement (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Portfolio Receipts $ 772,976 $ 727,464 $ 1,698,340 $ 1,566,756 Payments for operating and professional costs(1) (36,789) (94,026) (73,040) (195,721) Adjusted EBITDA (non-GAAP) $ 736,187 $ 633,438 $ 1,625,300 $ 1,371,035 Interest (paid)/received, net (369) 7,866 (167,398) (118,931) Portfolio Cash Flow (non-GAAP) $ 735,818 $ 641,304 $ 1,457,902 $ 1,252,104 (1)In the first six months of 2025, amount included a $33 million payment related to the Management Fees on the sale of the MorphoSys Development Funding Bonds. 51 Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. We caution readers that amounts presented in accordance with our definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. A reconciliation of Adjusted EBITDA and Portfolio Cash Flow to Net cash provided by operating activities, the closest GAAP measure, is presented below (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by operating activities (GAAP) $ 728,459 $ 363,983 $ 1,446,694 $ 960,060 Adjustments: Proceeds from available for sale debt securities(1), (2) 4,320 2,880 8,640 15,466 Distributions from equity method investees(2) (13,214) 62,988 29,092 99,250 Interest paid/(received), net(2) 369 (7,866) 167,398 118,931 Development-stage funding payments 97,851 300,500 123,351 351,000 Distributions to legacy non-controlling interests - Portfolio Receipts(2) (86,147) (89,220) (164,120) (173,845) Payments for Employee EPAs 4,549 173 14,245 173 Adjusted EBITDA (non-GAAP) $ 736,187 $ 633,438 $ 1,625,300 $ 1,371,035 Interest (paid)/received, net(2) (369) 7,866 (167,398) (118,931) Portfolio Cash Flow (non-GAAP) $ 735,818 $ 641,304 $ 1,457,902 $ 1,252,104 (1)Amounts include quarterly repayments on the Cytokinetics Commercial Launch Funding and a quarterly repayment on the MorphoSys Development Funding Bonds before they were sold in January 2025. (2)The table below shows the line item for each adjustment and the direct location for such line item in the condensed consolidated statements of cash flows. Reconciling Adjustment Statements of Cash Flows Classification Interest (paid)/received, net Operating activities (Interest paid less Interest received) Distributions from equity method investees Investing activities Proceeds from available for sale debt securities Investing activities Distributions to legacy non-controlling interests - Portfolio Receipts Financing activities Uses of Capital Acquisitions of Royalties We acquire product royalties in ways that can be tailored to the needs of our partners through a variety of structures: •Third-party Royalties – Existing royalties on approved or late-stage development therapies. A royalty is the contractual right to a percentage of top-line sales from a licensee’s use of a product, technology or intellectual property. The majority of our current portfolio consists of third-party royalties. •Synthetic Royalties – Newly-created royalties on approved or late-stage development therapies with strong proof of concept. A synthetic royalty is the contractual right to a percentage of top-line sales by the developer or marketer of a therapy in exchange for funding. •Other Funding Modalities – We may provide other forms of capital to our partners as a component within a royalty transaction, to increase the scale of our capital. This may include debt, direct equity investments and launch and development capital (in exchange for fixed long-term payments). Additionally, we may identify additional opportunities, platforms or technologies that leverage our capabilities. Distributions to Shareholders We paid dividends and distributions of $271.1 million and $259.3 million in the first six months of 2026 and 2025, respectively. We do not have a legal obligation to pay a quarterly dividend or dividends at any specified rate or at all. 52 Class A Ordinary Share Repurchases In January 2025, our board of directors authorized a share repurchase program under which we may repurchase up to $3.0 billion of our Class A ordinary shares. The repurchases may be made in the open market or in privately negotiated transactions. The share repurchase program has been approved by our board of directors through June 2027 and shareholders have approved the terms of our share repurchase contracts and counterparties thereto through June 2031. In the first six months of 2026, we repurchased 2.0 million shares at a cost of approximately $95.6 million. As of June 30, 2026, approximately $1.7 billion remained available under the share repurchase program. Other Funding Arrangements In June 2025, we entered into a $2 billion funding arrangement with Revolution Medicines, consisting of a synthetic royalty of up to $1.25 billion on daraxonrasib in five $250 million tranches, of which tranches one and two have been funded, and senior secured term loans of up to $750 million. As of June 30, 2026, $1.5 billion of the funding commitment remained unfunded. We have a long-term funding arrangement with Cytokinetics which is comprised of seven tranches of up to $525 million in total funding (“Cytokinetics Commercial Launch Funding”). As of June 30, 2026, $175 million remained available under the Cytokinetics Commercial Launch Funding. We may enter into funding agreements where we are contractually obligated to fund R&D activities performed by our development partners. As of June 30, 2026, we have unfunded commitments of $502.6 million for JNJ-4804 and TEV-’408. We also have certain milestones payable to our counterparties that are contingent on the successful achievement of certain development, regulatory approval or commercial milestones. These contingent milestone payments are not considered contractual obligations. In the first six months of 2026, we paid a $50 million sales-based milestone related to Trelegy. In the first six months of 2025, we paid a $200 million regulatory milestone following the FDA approval of a new manufacturing hub for Adstiladrin and sales-based milestones of $50 million and $18.6 million related to Trelegy and Erleada, respectively. Guarantor Financial Information Our obligations under the Notes are fully and unconditionally guaranteed by RP Holdings and RP Manager, our non-wholly owned subsidiaries (together, the “Guarantor Subsidiaries”). Our remaining subsidiaries (the “Non-Guarantor Subsidiaries”) do not guarantee the Notes. Under the terms of the indenture governing the Notes, Royalty Pharma plc and the Guarantor Subsidiaries each fully and unconditionally, jointly and severally, guarantee the payment of interest, principal and premium, if any, on the Notes. As of June 30, 2026, the total outstanding and guaranteed Notes had a par value and carrying value was $8.8 billion and $8.6 billion, respectively. 53 The following financial information presents summarized combined balance sheet information as of June 30, 2026 and December 31, 2025 and summarized combined statement of operations information for the first six months of 2026 for Royalty Pharma plc, RP Holdings and RP Manager. All intercompany balances and transactions between these entities are eliminated in the presentation of the combined financial statements. RP Holdings’ most significant asset is its investment in operating subsidiaries, which has been eliminated in the table below to exclude investments in Non-Guarantor Subsidiaries. Our operating subsidiaries hold the majority of our cash and cash equivalents, marketable securities and financial royalty assets. As a result, our ability to make required payments on the Notes depends on the performance of our operating subsidiaries and their ability to distribute funds to us. There are no material restrictions on distributions from the operating subsidiaries. Amounts presented below do not represent our total consolidated amounts (in thousands): Summarized Combined Balance Sheets As of June 30, 2026 As of December 31, 2025 Current assets $ 36,403 $ 27,054 Current interest receivable on intercompany notes due from Non-Guarantor Subsidiaries 61,497 26,932 Non-current assets 927,120 926,732 Non-current intercompany notes receivable due from Non-Guarantor Subsidiaries 2,952,133 3,011,820 Current liabilities 515,676 515,312 Current interest payable on intercompany notes due to Non-Guarantor Subsidiaries 23,264 26,932 Non-current liabilities 9,294,242 9,147,894 Non-current intercompany notes payable due to Non-Guarantor Subsidiaries 1,936,654 2,208,840 Summarized Combined Statement of Operations For the Six Months Ended June 30, 2026 Interest income on intercompany notes receivable due from Non-Guarantor Subsidiaries $ 79,384 Other intercompany income from Non-Guarantor Subsidiaries 54,139 Other income 393 Interest expense on intercompany notes due to Non-Guarantor Subsidiaries 41,151 Other intercompany operating expenses with Non-Guarantor Subsidiaries 41,670 Operating expenses 438,290 Net loss 387,195 Critical Accounting Policies and Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses. Certain of these policies are considered critical as they have the most significant impact on our financial condition and results of operations and require the most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain. On an ongoing basis, we evaluate our estimates that are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of income and expenses that are not readily apparent from other sources. Because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. Our most critical accounting policies relate to our financial royalty assets. Similarly, the most significant judgments and estimates applied by management are associated with the measurement of our financial royalty assets at amortized cost using the prospective effective interest method. The application of the prospective approach to calculate interest income from our financial royalty assets requires management’s judgment in forecasting the expected future cash flows of the underlying royalties. There have been no material changes to our critical accounting policies and estimates as described in our Annual Report on Form 10-K. 54