Ligand Pharmaceuticals

LGND · Nasdaq · Health Care · Financials, fiscal 2016 to 2025

LGND · Last close · October 26, 2026

$308.30

Ligand Pharmaceuticals' revenue rose 60.4% to $268 million in fiscal 2025. Its operating margin was 15.3%, up from −13.5% a year earlier. Free cash flow was $49 million, down 48.6%. It paid out $15 million in dividends and buybacks, 31% of free cash flow. The diluted share count rose 11.0%.

LIGAND PHARMACEUTICALS INCORPORATED Latest fiscal year ended December 31, 2025 10-K filed February 27, 2026 · 0000886163-26-000006 Updated October 22, 2026

Revenue

$268M

60.4%

Operating margin

15.3%

28.8 pts

Net income

$124M

Free cash flow

$49M

48.6%

Return on capital

4.9%

7.0 pts

Market cap

$6.7B

Oct 26 close

P/E

32.8x

On $9.41 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2017 to 2025, earnings per share grew 35.8% a year and net income 33.2% a year, as buybacks cut the share count by 14%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Ligand Pharmaceuticals yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Ligand Pharmaceuticals' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Ligand Pharmaceuticals' fiscal 2025 free cash flow of $49M, net cash of $287M at December 31, 2025 and 20 million diluted shares, from its filings. The scenarios are fitted to Ligand Pharmaceuticals: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 11.0% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Biotechnology), plus 1 point as a smaller company, worth $6.7B, plus 1 point for unsteady results (a loss in fiscal 2024); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Ligand Pharmaceuticals's own revenue growth, as above. Cautious: growth of 5.5% then 4% a year, 2% after year 10, a 14% discount rate. Base: growth of 11% then 7% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 16.5% then 10% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $308.30
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Ligand Pharmaceuticals' earnings per share of $9.41 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 27.8×, the middle of Ligand Pharmaceuticals' own P/E today, its peers' median and its sector's median (the Health Care median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 14%, 13% and 12%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Krystal Biotech, ADMA Biologics.

Earnings growth in the years ahead (% a year) Starts at Ligand Pharmaceuticals' revenue growth over the last 3 years, 11.0% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $308.30
Value at this multiple, against the last close: —
Ligand Pharmaceuticals' P/E at the last close: 32.8×

Company	Last close	Earnings per share	P/E today
Krystal BiotechKRYS	$313.66	$7.98	39.3×
Ligand PharmaceuticalsLGND	$308.30	$9.41	32.8×
ADMA BiologicsADMA	$11.06	$0.70	15.8×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	341	212	170	256	734
Debt incl. finance leases	321	77	0	0	446
Net debt (negative means net cash)	−20	−135	−170	−256	−287
Net debt to EBITDA	−0.1x	−2.5x	−3.5x	−20.3x	−3.8x
Debt to equity	0.4x	0.1x	0.0x	0.0x	0.4x
Interest coverage	5.3x	1.7x	18.2x	−7.4x	8.7x
Current ratio	11.2x	2.7x	14.2x	8.9x	22.2x
Quick ratio	10.5x	2.5x	12.7x	8.6x	22.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Ligand Pharmaceuticals shares on the open market, and 9 insiders sold $33.2 million, $22.6 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 10, 2026	Martine ZimmermannDirector	Sold	1,200	$285.00	$342,000	Form 4
Sep 3, 2026	Andrew ReardonCLO & Secretary	Sold plan	5,000	$286.09	$1.4 million	Form 4
Aug 12, 2026	Octavio EspinozaChief Financial Officer	Sold plan	31,641	$292.07	$9.2 million	Form 4
Aug 12, 2026	Jason HaasDirector	Sold	7,138	$292.81	$2.1 million	Form 4
Aug 3, 2026	Andrew ReardonCLO & Secretary	Sold plan	5,000	$288.99	$1.4 million	Form 4
Jul 1, 2026	Andrew ReardonCLO & Secretary	Sold plan	5,000	$313.28	$1.6 million	Form 4
Jun 16, 2026	Stephen L SabbaDirector	Sold	2,145	$254.00	$544,830	Form 4
Jun 12, 2026	Jason HaasDirector	Sold	6,461	$255.58	$1.7 million	Form 4
Jun 11, 2026	Jason AryehDirector	Sold	4,500	$250.00	$1.1 million	Form 4
Jun 10, 2026	John L LamattinaDirector	Sold	4,591	$250.88	$1.2 million	Form 4
Jun 10, 2026	Jason AryehDirector	Sold	500	$250.00	$125,000	Form 4
Jun 1, 2026	Andrew ReardonCLO & Secretary	Sold plan	5,000	$227.06	$1.1 million	Form 4

The latest 12 of 32 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Fail	Pass	Fail
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Pass
F-score	6 of 8	3 of 8	5 of 8
Accruals ratio	0.3%	−11.7%	6.0%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Ligand Pharmaceuticals side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Ligand Pharmaceuticals	FY25	60.4%	15.3%	18.2%	4.9%	−3.8x	5
Krystal Biotech	FY25	33.9%	41.5%	48.5%	43.6%	−5.0x	5	Compare
ADMA Biologics	FY25	19.6%	37.5%	5.5%	39.5%	−0.1x	5	Compare
Repligen	FY25	16.4%	7.5%	12.7%	2.4%	−1.7x	—	Compare
Cytokinetics	FY25	376.6%	−695.4%	−607.5%	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	109	141	252	120	164	242	196	131	167	268
Revenue growth	51.5%	29.5%	78.2%	−52.2%	36.0%	47.7%	−18.8%	−33.1%	27.3%	60.4%
Gross profit	103	136	245	—	—	—	—	—	—	—
Research and development	21	27	28	56	40	32	36	24	21	81
Operating income	44	68	164	807	38	104	3	12	−23	41
Net income	−2	13	143	629	−3	57	−33	52	−4	124
Diluted EPS (US$)	−0.08	0.53	5.96	31.85	−0.18	3.31	−1.98	2.94	−0.22	6.13
Diluted shares (millions)	21	24	24	20	17	17	17	18	18	20
Cash flow
Cash from operations	61	89	194	−29	55	79	138	50	97	49
Capital expenditure	2	2	1	3	4	9	18	4	2	0
Free cash flow	59	86	193	−32	50	70	120	46	95	49
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	4	2	123	453	78	0	0	0	0	15
Acquisitions	92	27	6	12	405	0	0	10	0	0
Stock-based compensation	19	25	21	24	31	39	60	26	41	47
Balance sheet at fiscal year end
Cash and short-term investments	141	202	718	1,070	411	341	212	170	256	734
Debt incl. finance leases	—	224	636	639	449	321	77	0	0	446
Total assets	602	671	1,261	1,495	1,362	1,298	763	787	942	1,561
Total liabilities	231	252	700	728	653	476	165	86	111	543
Shareholders' equity	341	400	561	767	710	821	598	701	830	1,017
Margins and ratios
Gross margin	94.9%	96.2%	97.5%	—	—	—	—	—	—	—
Operating margin	40.3%	48.2%	65.1%	671.0%	22.9%	43.0%	1.6%	9.1%	−13.5%	15.3%
Net margin	−1.5%	8.9%	57.0%	523.2%	−1.8%	23.7%	−17.0%	39.7%	−2.4%	46.4%
Free cash flow margin	54.0%	61.2%	76.8%	−26.5%	30.6%	29.0%	61.1%	35.1%	57.0%	18.2%
Return on capital	—	—	30.0%	156.4%	6.9%	13.4%	0.2%	2.0%	−2.0%	4.9%
Return on equity	−0.6%	3.4%	29.8%	94.8%	−0.4%	7.5%	−4.7%	8.0%	−0.5%	13.5%
Return on assets	−0.3%	2.0%	14.8%	45.7%	−0.2%	4.3%	−3.2%	6.7%	−0.5%	9.9%
Net debt to EBITDA	—	0.3x	−0.5x	−0.5x	0.6x	−0.1x	−2.5x	−3.5x	−20.3x	−3.8x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Ligand Pharmaceuticals' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Ligand Pharmaceuticals.