The following table sets forth the activity in the cumulative allowance for changes in expected cash flows from financial royalty assets, inclusive of the cumulative allowance for credit losses (in thousands):


	Activity for the Period
Balance at December 31, 2025(1)	$	(3,397,481)

Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets	(458,161)
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets	388,340
Write-off of cumulative allowance(2)	478,785

Current period provision for credit losses, net	(911)
Reclassification from allowance for credit losses on unfunded commitments upon funding(3)	(46,033)
Balance at June 30, 2026	$	(3,035,461)

(2)Primarily relates to amounts removed from the cumulative allowance due to changes in expected cash flows associated with Tazverik as a result of the gross write-off of the related $548.3 million financial royalty asset.

(3)Relates to the allowance for credit losses on the unfunded second royalty tranche with Revolution Medicines Inc. (“Revolution Medicines”) that was previously recorded within Other liabilities on the condensed consolidated balance sheet and reclassified to the cumulative allowance on financial royalty assets upon funding. Refer to Note 15–Commitments and Contingencies for additional information.