XOMA Corporation (NASDAQ:XOMA) Accelerates Royalty Acquisitions Driving Near-Term Cashflow Momentum

Strong cash receipts and a string of strategic acquisitions position XOMA for near-term royalty conversion and portfolio-driven revenue expansion.

Recent News

On September 22, 2025 XOMA declared quarterly cash dividends for its Series A and Series B preferred shares, payable on or about October 15, 2025. On September 15, 2025 XOMA completed its tender offer to acquire HilleVax, making HilleVax a wholly owned subsidiary. XOMA extended an offer to acquire LAVA Therapeutics and reminded shareholders of the November 12, 2025 tender deadline. Management presented a company update at the H.C. Wainwright conference in early September 2025 describing portfolio additions and upcoming Phase 3 readouts.

Technical Analysis

The directional system shows a bullish tilt: DI+ registered a dip-and-reverse while DI- moved lower, and ADX at 24.0 signals an emerging trend strength that supports a near-term directional bias aligned with growing royalty receipts.

MACD trades negative at -0.57 but produced a dip-and-reversal, indicating bullish momentum recovery; the MACD remains below the signal line (-0.54), so momentum improvement appears in its early phase rather than fully confirmed by a crossover.

MRO reads -2.97, indicating the price sits below target and carries modest upside potential toward target convergence; the negative value implies an inclination for price to move higher toward that target over time.

RSI sits at 49.86 with a dip-and-reversal, suggesting buyers regained influence without overbought conditions; that supports continuation of the emerging bullish bias from the directional indicators.

Price structure remains constructive versus longer-term averages: the close at $33.62 sits above the 200-day average ($27.82) yet below the 50-day average ($35.92) and marginally under the 20-day average ($33.73), implying consolidation with upside risk if short-term averages roll higher. Volume shows pickup versus 10-day and 200-day averages, supporting conviction behind recent directional moves.

 


Fundamental Analysis

Cash and liquidity appear supportive of acquisition and royalty strategy: cash stands at $75,060,000 and cash and short-term investments at $83,861,000, while the current ratio equals 4.88x, above the industry peer mean of 3.50x. Net debt totals $38,813,000 and interest coverage sits at 3.84x, indicating the company covers interest expense but carries material leverage relative to operating cashflow.

Profitability metrics show mixed signals. Operating margin equals 85.57% and return on sales equals 85.57%, reflecting accounting recognition of milestone/royalty economics; EBIT margin equals 2.31%, which sits above the industry peer mean of -0.75% and the industry peer median of 0.24% and remains inside the industry peer range up to 3.39%. Return on equity equals 9.95%, above the industry peer mean of 0.76% and the industry peer median of 4.03%.

Top-line dynamics present contrasting entries: reported revenue growth reads 24.60%, while revenue growth QoQ equals -70.83% and revenue growth YoY equals -91.20%; present the raw figures without reconciling timing differences in recognition of milestone receipts. Receivables turnover fell YoY by 93.16%, while days sales outstanding equal 62.44 days.

Earnings and market multiples show notable divergence. Reported EPS equals $0.44 versus an estimate of -$0.15, producing an EPS surprise of 393.33%. Trailing PE equals 58.6x and price-to-sales equals 63.02x; price-to-book sits at 3.67x, below the industry peer mean of 5.28x and the industry peer median of 6.29x. Free cash flow registered -$14,144,000 and free cash flow yield equals -4.17%.

Balance sheet leverage measures higher than typical peers: debt-to-assets equals 51.28% versus an industry peer mean of 17.18%, and debt-to-equity equals 1.24x compared with an industry peer mean of 0.20x. Cash conversion and operating cashflow present partial offsets: operating cashflow equals $6,470,000 and cash flow to earnings equals 134.86%.

Valuation summary: The current valuation as determined by WMDST labels the stock under-valued, reflecting a combination of sizeable cash balances, growing royalty receipts and realized milestone payments that support valuation despite elevated leverage and negative free cash flow in the most recent period.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-06-30
REPORT DATE: 2025-08-13
NEXT REPORT DATE: 2025-11-11
CASH FLOW  Begin Period Cash Flow $ 95.0 M
 Operating Cash Flow $ 6.5 M
 Capital Expenditures —
 Change In Working Capital $ 6.7 M
 Dividends Paid $ -1.37 M
 Cash Flow Delta $ -16.54 M
 End Period Cash Flow $ 78.5 M
 
INCOME STATEMENT REVENUE
 Total Revenue $ 5.4 M
 Forward Revenue $ -207.37 K
COSTS
 Cost Of Revenue —
 Depreciation $ 3.0 K
 Depreciation and Amortization $ 658.0 K
 Research and Development $ 69.0 K
 Total Operating Expenses $ 776.0 K
PROFITABILITY
 Gross Profit —
 EBITDA $ 13.1 M
 EBIT $ 12.4 M
 Operating Income $ 4.6 M
 Interest Income —
 Interest Expense $ 3.2 M
 Net Interest Income $ -3.24 M
 Income Before Tax $ 9.2 M
 Tax Provision —
 Tax Rate 21.0 %
 Net Income $ 9.2 M
 Net Income From Continuing Operations $ 9.2 M
EARNINGS
 EPS Estimate $ -0.15
 EPS Actual $ 0.44
 EPS Difference $ 0.59
 EPS Surprise 393.333 %
 Forward EPS $ -0.12
 
BALANCE SHEET ASSETS
 Total Assets $ 223.5 M
 Intangible Assets $ 45.4 M
 Net Tangible Assets $ 47.0 M
 Total Current Assets $ 104.9 M
 Cash and Short-Term Investments $ 83.9 M
 Cash $ 75.1 M
 Net Receivables $ 1.8 M
 Inventory —
 Long-Term Investments $ 72.2 M
LIABILITIES
 Accounts Payable $ 1.1 M
 Short-Term Debt $ 11.7 M
 Total Current Liabilities $ 21.5 M
 Net Debt $ 38.8 M
 Total Debt $ 114.6 M
 Total Liabilities $ 131.0 M
EQUITY
 Total Equity $ 92.4 M
 Retained Earnings $ -1.23 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 7.72
 Shares Outstanding 12.062 M
 Revenue Per-Share $ 0.45
VALUATION
 Market Capitalization $ 339.0 M
 Enterprise Value $ 369.7 M
 Enterprise Multiple 28.252
Enterprise Multiple QoQ -39.367 %
Enterprise Multiple YoY 250.057 %
Enterprise Multiple IPRWA high: 47.216
XOMA: 28.252
median: 12.571
mean: 5.39
low: -68.907
 EV/R 68.727
CAPITAL STRUCTURE
 Asset To Equity 2.418
 Asset To Liability 1.706
 Debt To Capital 0.554
 Debt To Assets 0.513
Debt To Assets QoQ -4.681 %
Debt To Assets YoY 2082.043 %
Debt To Assets IPRWA high: 0.995
XOMA: 0.513
mean: 0.172
median: 0.065
low: 0.0
 Debt To Equity 1.24
Debt To Equity QoQ -8.363 %
Debt To Equity YoY 2068.229 %
Debt To Equity IPRWA high: 1.577
XOMA: 1.24
mean: 0.202
median: 0.036
low: -1.039
PRICE-BASED VALUATION
 Price To Book (P/B) 3.668
Price To Book QoQ 12.606 %
Price To Book YoY 24.118 %
Price To Book IPRWA high: 16.592
median: 6.295
mean: 5.277
XOMA: 3.668
low: -10.064
 Price To Earnings (P/E) 58.594
Price To Earnings QoQ -84.748 %
Price To Earnings YoY 94.265 %
Price To Earnings IPRWA XOMA: 58.594
high: 44.732
mean: -11.239
median: -13.453
low: -73.374
 PE/G Ratio 0.093
 Price To Sales (P/S) 63.015
Price To Sales QoQ -1.265 %
Price To Sales YoY 20.622 %
Price To Sales IPRWA high: 517.227
XOMA: 63.015
mean: 56.249
median: 19.711
low: 0.25
FORWARD MULTIPLES
Forward P/E -209.83
Forward PE/G -0.331
Forward P/S -1647.59
EFFICIENCY OPERATIONAL
 Operating Leverage 4.594
ASSET & SALES
 Asset Turnover Ratio 0.025
Asset Turnover Ratio QoQ 23.982 %
Asset Turnover Ratio YoY 0.9 %
Asset Turnover Ratio IPRWA high: 0.388
mean: 0.115
median: 0.113
XOMA: 0.025
low: -0.001
 Receivables Turnover 1.461
Receivables Turnover Ratio QoQ 24.973 %
Receivables Turnover Ratio YoY -93.163 %
Receivables Turnover Ratio IPRWA high: 6.517
XOMA: 1.461
median: 1.422
mean: 1.409
low: 0.012
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) 62.436
CASH CYCLE
 Cash Conversion Cycle Days (CCC) —
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA —
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 0.064
 CapEx To Revenue —
 CapEx To Depreciation —
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 194.7 M
 Net Invested Capital $ 206.3 M
 Invested Capital $ 206.3 M
 Net Tangible Assets $ 47.0 M
 Net Working Capital $ 83.4 M
LIQUIDITY
 Cash Ratio 3.901
 Current Ratio 4.881
Current Ratio QoQ -11.905 %
Current Ratio YoY -43.98 %
Current Ratio IPRWA high: 25.128
XOMA: 4.881
mean: 3.496
median: 1.991
low: 0.021
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA 8.757
 Cost Of Debt 2.232 %
 Interest Coverage Ratio 3.84
Interest Coverage Ratio QoQ 128.216 %
Interest Coverage Ratio YoY -32.612 %
Interest Coverage Ratio IPRWA high: 940.414
mean: 44.548
XOMA: 3.84
median: 2.742
low: -1580.294
 Operating Cash Flow Ratio 0.577
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) —
DIVIDENDS
 Dividend Coverage Ratio 6.719
 Dividend Payout Ratio 0.149
 Dividend Rate $ 0.11
 Dividend Yield 0.004
PERFORMANCE GROWTH
 Asset Growth Rate 5.032 %
 Revenue Growth 24.6 %
Revenue Growth QoQ -70.829 %
Revenue Growth YoY -91.197 %
Revenue Growth IPRWA high: 303.4 %
XOMA: 24.6 %
mean: 20.671 %
median: 12.272 %
low: -259.856 %
 Earnings Growth 633.333 %
Earnings Growth QoQ -658.825 %
Earnings Growth YoY -420.393 %
Earnings Growth IPRWA XOMA: 633.333 %
high: 175.0 %
median: 11.33 %
mean: 2.404 %
low: -181.25 %
MARGINS
 Gross Margin —
Gross Margin QoQ —
Gross Margin YoY —
Gross Margin IPRWA —
 EBIT Margin 231.028 %
EBIT Margin QoQ 70.955 %
EBIT Margin YoY -32.623 %
EBIT Margin IPRWA high: 338.783 %
XOMA: 231.028 %
median: 23.755 %
mean: -75.278 %
low: -5123.44 %
 Return On Sales (ROS) 85.574 %
Return On Sales QoQ -36.678 %
Return On Sales YoY -75.043 %
Return On Sales IPRWA high: 89.247 %
XOMA: 85.574 %
median: 28.85 %
mean: -79.046 %
low: -5698.0 %
CASH FLOW
 Free Cash Flow (FCF) $ -14.14 M
 Free Cash Flow Yield -4.173 %
Free Cash Flow Yield QoQ -622.932 %
Free Cash Flow Yield YoY -552.113 %
Free Cash Flow Yield IPRWA high: 36.371 %
median: 0.516 %
mean: -0.337 %
XOMA: -4.173 %
low: -74.318 %
 Free Cash Growth -743.494 %
Free Cash Growth QoQ 323.313 %
Free Cash Growth YoY 379.872 %
Free Cash Growth IPRWA high: 157.51 %
median: 13.256 %
mean: 3.841 %
low: -183.577 %
XOMA: -743.494 %
 Free Cash To Net Income -1.539
 Cash Flow Margin 230.433 %
 Cash Flow To Earnings 1.349
VALUE & RETURNS
 Economic Value Added $ 0.04
 Return On Assets (ROA) 4.214 %
Return On Assets QoQ 286.251 %
Return On Assets YoY -39.007 %
Return On Assets IPRWA high: 36.544 %
XOMA: 4.214 %
median: 1.616 %
mean: -1.397 %
low: -68.545 %
 Return On Capital Employed (ROCE) 6.153 %
 Return On Equity (ROE) 0.099
Return On Equity QoQ 255.341 %
Return On Equity YoY -37.814 %
Return On Equity IPRWA high: 1.117
XOMA: 0.099
median: 0.04
mean: 0.008
low: -1.572
 DuPont ROE 10.385 %
 Return On Invested Capital (ROIC) 4.759 %
Return On Invested Capital QoQ 104.688 %
Return On Invested Capital YoY -143.154 %
Return On Invested Capital IPRWA high: 53.785 %
XOMA: 4.759 %
median: 3.175 %
mean: 1.485 %
low: -71.959 %

Six-Week Outlook

Portfolio-driven catalysts should steer near-term price action: continued royalty and milestone receipts plus integration progress from recent acquisitions favor a constructive price bias. Technical indicators collectively indicate an emerging bullish trend rather than an established one, so expect episodic consolidation between the $31–$37 technical corridor while upside momentum builds if MACD completes a crossover and short-term averages move above the 50-day average. Elevated leverage and negative free cash flow remain constraints on upside scope until additional milestone inflows or distributions materialize.

About XOMA Corporation

XOMA Corporation (NASDAQ:XOMA) develops a strategic portfolio as a biotech royalty aggregator, primarily in the United States and the Asia Pacific region. The company curates a collection of economic rights tied to future milestone and royalty payments from partnered therapeutic candidates, both commercial and pre-commercial. XOMA emphasizes early to mid-stage clinical assets, particularly those in Phase 1 and 2, which possess commercial sales potential and are licensed to partners. Additionally, the company acquires milestone and royalty revenue streams from late-stage clinical or commercial assets. Established in 1981, XOMA Corporation maintains its headquarters in Emeryville, California, and continues to expand its portfolio with various promising assets.



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