LIGAND PHARMACEUTICALS INC
For the period ended Dec 31, 2025. Filed Feb 27, 2026.
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FY2025 · Filed Feb 27, 2026
LGND$314.16+0.0%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Cash flows from operating activities: | |||
| Net income (loss) | $124,453 | $(4,032) | $52,154 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
| Gain on sale of Pelican | — | — | (2,121) |
| Change in estimated fair value of contingent liabilities | 860 | 683 | (265) |
| Depreciation of fixed assets and amortization of intangible assets | 33,775 | 35,239 | 36,521 |
| Gain from short-term investments | (18,433) | (67,901) | (46,365) |
| (Gain) loss from change in fair value of equity method investments and other investments | (90,670) | 34,601 | — |
| Loss from equity method investment in Primrose Bio | — | 7,008 | 1,829 |
| Gain on Pelthos Transaction | (53,072) | — | — |
| Accretion of premium on short-term investments, net | (4,958) | (1,331) | (1,318) |
| Amortization of debt discount and issuance fees | 1,273 | 486 | 240 |
| Loss (gain) on derivative instruments | (1,022) | 20,010 | (250) |
| Non-cash income from financial royalty assets | (8,620) | (5,467) | (878) |
| CECL adjustment to financial royalty assets | (922) | (4,315) | 3,595 |
| Impairment loss of financial royalty assets | 6,197 | 30,572 | 924 |
| Lease amortization expense | 1,942 | 2,126 | 1,735 |
| Share-based compensation | 46,849 | 41,089 | 25,743 |
| Deferred income taxes, net | 22,684 | (15,800) | 11,696 |
| Other | 1,688 | 4,723 | 739 |
| Changes in operating assets and liabilities, net of acquisition: | |||
| Accounts receivable, net | (21,737) | (6,459) | (2,601) |
| Inventory | 4,988 | 9,619 | (10,870) |
| Other economic rights | — | — | (5,000) |
| Accounts payable and accrued liabilities | 5,882 | 13,903 | (4,704) |
| Income taxes receivable and payable | 2,667 | 2,310 | (1,781) |
| Deferred revenue | (578) | (1,308) | 419 |
| Other assets and liabilities | (3,887) | 1,291 | (9,865) |
| Net cash provided by operating activities | 49,359 | 97,047 | 49,577 |
| Cash flows from investing activities: | |||
| Acquisition of financial royalty assets | (10,862) | (17,819) | (50,328) |
| Acquisition of royalty receivables | (813) | — | — |
| Proceeds from financial royalty assets | 10,261 | 7,429 | 418 |
| Purchases of derivatives | (13,792) | — | — |
| Purchases of property and equipment | (452) | (1,821) | (3,521) |
| Purchases of short-term investments | (726,713) | (226,384) | (126,764) |
| Proceeds from sale of short-term investments | 159,584 | 229,367 | 148,765 |
| Proceeds from maturity of short-term investments | 217,700 | 33,131 | 45,402 |
| Cash outflow on deconsolidation of LNHC, Inc. | (8,085) | — | — |
| Cash paid for investment in Primrose Bio | — | (998) | (15,249) |
| Cash paid for other investments | (3,847) | (2,500) | — |
| Cash paid for Novan acquisition, net of restricted cash received | — | — | (10,405) |
|---|---|---|---|
| Cash paid for the Agenus Transaction | — | (75,000) | — |
| Cash paid for Apeiron Acquisition, net of cash received | — | (91,996) | — |
| Cash paid for InvIOs investment | (303) | (4,196) | — |
| Net proceeds from Viking Share Collar and Viking Share Put | — | 7,123 | — |
| Net cash used in investing activities | (377,322) | (143,664) | (11,682) |
| Cash flows from financing activities: | |||
| Gross proceeds from issuance of 2030 Convertible Senior Notes | 460,000 | — | — |
| Debt discount and payment of debt issuance cost | (15,528) | (426) | (949) |
| Purchase of 2030 Convertible Senior Notes hedge | (113,250) | — | — |
| Proceeds from issuance of warrants | 67,390 | — | — |
| Repurchase of common stock | (15,000) | — | — |
| Proceeds from common stock issuance, net of commissions and fees | — | 37,140 | — |
| Repayment of 2023 Notes at maturity | — | — | (76,854) |
| Payments under finance lease obligations | (27) | (25) | (45) |
| Payments to CVR holders | (174) | — | — |
| Net proceeds from stock option exercises and ESPP | 47,501 | 65,588 | 22,448 |
| Taxes paid related to net share settlement of equity awards | (9,599) | (5,136) | (4,547) |
| Proceeds from Pelthos investors bridge loans | 6,910 | — | — |
| Net cash provided by (used) in financing activities | 428,223 | 97,141 | (59,947) |
| Effect of exchange rate changes on cash and cash equivalents | 2,360 | (1,171) | — |
| Net increase (decrease) in cash and cash equivalents | 102,620 | 49,353 | (22,052) |
| Cash and cash equivalents at beginning of year | 72,307 | 22,954 | 45,006 |
| Cash and cash equivalents at end of year | $174,927 | $72,307 | $22,954 |
| Supplemental disclosure of cash flow information | |||
| Interest paid | $321 | $263 | $288 |
| Taxes paid | $7,802 | $19,206 | $8,770 |
| Acquisitions: | |||
| Fair value of tangible assets acquired, net of cash and restricted cash received | $— | $8,965 | $17,887 |
| Goodwill | — | — | 3,709 |
| Intangible assets | — | — | 10,700 |
| Financial royalty assets | — | 106,156 | — |
| Liabilities assumed | — | (23,125) | (21,891) |
| Net cash paid for acquisitions | $— | $91,996 | $10,405 |
| Supplemental schedule of non-cash investing and financing activities: | |||
| Pelthos shares received in exchange for LNHC, Inc. business | $44,092 | $— | $— |
| Pelthos shares received for Ligand bridge loan cancellation | $12,732 | $— | $— |
| Accrued Primrose transaction costs | $— | $— | $998 |
| Addition of right-of-use assets and lease liabilities | $2,315 | $1,769 | $— |
| Accrued royalty from financial royalty assets | $— | $— | $52 |
| Accrued purchases of financial royalty assets | $— | $— | $347 |
| Accrued debt issuance costs | $— | $42 | $41 |
| Accrued fixed asset purchases | $215 | $71 | $— |
| Unrealized gain (loss) on available-for-sale investments, net of tax | $181 | $45 | $167 |
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