| Summary of Earnings Per Share, Basic and Diluted |
The following table sets forth the reconciliation of the numerator and denominator used to calculate basic and diluted earnings per Class A ordinary share (in thousands, except per share amounts):
| | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Numerator | | | | | | | | Consolidated net income(1) | $ | 81,486 | | | $ | 92,635 | | | $ | 549,741 | | | $ | 527,068 | | | Less: Net income attributable to the Continuing Investors Partnerships | 4,220 | | | 9,671 | | | 82,269 | | | 86,429 | | | Less: Net income attributable to the Legacy Investors Partnerships | 50,500 | | | 48,943 | | | 113,713 | | | 125,792 | | Less: Net income attributable to the Founder’s Equity(2) | 7,933 | | | 963 | | | 23,827 | | | 42,440 | | | Less: Net income attributable to the RP Holdings Class E Interests Holders | 950 | | | 882 | | | 17,360 | | | 882 | | | Net income attributable to Royalty Pharma plc - basic | 17,883 | | | 32,176 | | | 312,572 | | | 271,525 | | | Add: Reallocation of net income attributable to the Continuing Investors Partnerships from the assumed exchanges of Class B ordinary shares | 4,220 | | | 9,671 | | | 82,269 | | | 86,429 | | | Add: Reallocation of net income attributable to the Holders of RP Holdings Class E Interests from the assumed exchanges of eligible Class B ordinary shares | 180 | | | 26 | | | 3,329 | | | 26 | | | Net income attributable to Royalty Pharma plc - diluted | $ | 22,283 | | | $ | 41,873 | | | $ | 398,170 | | | $ | 357,980 | | | | | | | | | | | Denominator | | | | | | | | | Weighted average Class A ordinary shares outstanding - basic | 445,064 | | | 423,514 | | | 440,950 | | | 429,464 | | | Add: Dilutive effects as shown separately below | | | | | | | | | Assumed exchanges of Class B ordinary shares by the Continuing Investors Partnerships | 106,939 | | | 138,348 | | | 111,365 | | | 140,151 | | | Unvested RSUs | 181 | | | 25 | | | 170 | | | 36 | | | Shares contingently issuable for the Equity Performance Awards | 147 | | | 48 | | | 223 | | | 323 | | | Assumed exchanges of eligible Class B ordinary shares by the Holders of RP Holdings Class E Interests | 4,565 | | | 363 | | | 4,644 | | | 183 | | | Weighted average Class A ordinary shares outstanding - diluted | 556,896 | | | 562,298 | | | 557,352 | | | 570,157 | | | | | | | | | | | Earnings per Class A ordinary share - basic | $ | 0.04 | | | $ | 0.08 | | | $ | 0.71 | | | $ | 0.63 | | | Earnings per Class A ordinary share - diluted | $ | 0.04 | | | $ | 0.07 | | | $ | 0.71 | | | $ | 0.63 | |
(1)Consolidated net income for 2025 has been recast as a result of the adoption of ASU 2025-07. See Note 2–Summary of Significant Accounting Policies for further details. (2)Amounts for the first six months of 2025 include Mr. Legorreta’s retained EPAs and employees’ participation in the EPAs, which were considered part of Founder’s Equity prior to the closing of the Internalization.
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