Royal Gold posted second-quarter 2026 revenue of $451 million and net income of $236 million, up 115% and 79% year-over-year, yet kept buying back shares even as depreciation, G&A, and interest costs all climbed. Diversification across its royalty portfolio is driving the growth, while one-time items complicate how much of it repeats.
Revenue and cash flow jump sharply
Royal Gold reported second-quarter 2026 results on August 6, and the numbers show a company operating at a different scale than a year ago. Revenue reached $451 million, operating cash flow hit a record $335 million, and net income landed at $236 million — gains of 115%, 119%, and 79% over the same period last year. Management still spent the quarter buying back shares, arguing the market has not caught up to what the portfolio is worth.
No single royalty or stream contributed more than 13% of revenue, and only two assets crossed 10%, a direct result of the 2025 acquisitions management had promised would spread out risk. Adjusted net income came to $218 million, or $2.56 per share, up 41% year-over-year.
Buybacks and debt repayment continue
Capital returns backed up the growth story. The company kept paying its dividend while buying back stock. Royal Gold paid $40 million in dividends at an annualized rate of $1.90 per share, 6% higher than a year earlier. It also repurchased 147,000 shares for $30 million during the quarter. At the same time, the company repaid $200 million on its revolver, followed by another $75 million in July, with a further $100 million planned for mid-August. Total available liquidity stood at $1.2 billion at quarter end.
Costs climb alongside the growth
However, the same quarter that produced record cash flow also produced record costs. Depreciation, depletion, and amortization expense jumped to $96 million from $31 million a year earlier, or $962 per GEO compared with $487 per GEO, driven largely by higher carrying values from the Kansanshi stream and the Sandstorm and Horizon assets picked up in 2025. Interest expense climbed to $10 million from $1.5 million, a byproduct of carrying a larger revolver balance for part of the year.
Part of the headline growth was not repeatable, either. Royal Gold recognized $22 million of incremental revenue this quarter from an advanced delivery of 5,000 ounces tied to the Relief Canyon settlement, pulling forward ounces originally scheduled through 2027. Hedge fund ownership climbed from 39 funds to 44 in the most recent quarter. Shares trade at a forward P/E of 21.51, as of August 14.
Source: Insider Monkey
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