ROYAL GOLD INC 10-Q

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) March 31, 2026 December 31, 2025 ASSETS Cash and equivalents $ 234,142 $ 233,719 Royalty receivables 142,804 110,846 Income tax receivable 109 2,108 Stream inventory 30,864 25,883 Prepaid expenses and other 4,360 4,890 Total current assets 412,279 377,446 Stream and royalty interests, net (Note 3) 8,539,286 8,583,875 Equity method investment (Note 4) 314,281 300,854 Marketable securities (Note 5) 97,114 172,880 Other assets 126,746 102,469 Total assets $ 9,489,706 $ 9,537,524 LIABILITIES Accounts payable $ 7,269 $ 10,060 Dividends payable 40,330 40,186 Income tax payable 32,469 33,303 Other current liabilities 37,023 37,367 Total current liabilities 117,091 120,916 Debt (Note 6) 595,689 895,436 Deferred tax liabilities 1,187,876 1,190,672 Mount Milligan deferred liability (Note 7) 69,211 69,211 Other liabilities 57,575 55,942 Total liabilities 2,027,442 2,332,177 Commitments and contingencies (Note 14) EQUITY Preferred stock, $ .01 par value, 10,000,000 shares authorized; and 0 shares issued — — Common stock, $ .01 par value, 200,000,000 shares authorized; and 84,787,272 and 84,499,692 shares outstanding, respectively 846 845 Additional paid-in capital 5,946,311 5,928,123 Accumulated other comprehensive income — 993 Accumulated earnings 1,467,969 1,227,169 Total Royal Gold stockholders’ equity 7,415,126 7,157,130 Non-controlling interests 47,138 48,217 Total equity 7,462,264 7,205,347 Total liabilities and equity $ 9,489,706 $ 9,537,524 The accompanying notes are an integral part of these consolidated financial statements. 3 ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands except share data) Three Months Ended March 31, 2026 March 31, 2025 Revenue (Note 8) $ 469,125 $ 193,436 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 60,337 24,506 General and administrative 17,531 11,063 Production taxes 3,291 1,761 Depreciation, depletion and amortization 90,875 32,995 Total costs and expenses 172,034 70,325 Operating income 297,091 123,111 Fair value changes in equity securities 5,950 ( 37 ) Gain on sale of marketable securities 14,115 — Interest and other income 3,192 2,049 Interest and other expense ( 13,242 ) ( 1,156 ) Income before income taxes 307,106 123,967 Income tax expense (Note 11) ( 25,398 ) ( 10,389 ) Net income 281,708 113,578 Net income attributable to non-controlling interests ( 578 ) ( 80 ) Net income attributable to Royal Gold common stockholders $ 281,130 $ 113,498 Net income $ 281,708 $ 113,578 Adjustments to comprehensive income, net of tax: Realized gain on available-for-sale debt securities ( 993 ) — Comprehensive income 280,715 113,578 Comprehensive income attributable to non-controlling interests ( 578 ) ( 80 ) Comprehensive income attributable to Royal Gold stockholders $ 280,137 $ 113,498 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 3.31 $ 1.72 Basic weighted average shares outstanding 84,720,260 65,705,157 Diluted earnings per share $ 3.30 $ 1.72 Diluted weighted average shares outstanding 85,017,635 65,791,551 Cash dividends declared per common share $ 0.475 $ 0.45 The accompanying notes are an integral part of these consolidated financial statements. 4 ROYAL GOLD, INC. Consolidated Statements of Changes in Stockholders’ Equity Three months ended March 31, 2026, and 2025 (Unaudited, amounts in thousands except share data) Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at December 31, 2025 84,499,692 $ 845 $ 5,928,123 $ 993 $ 1,227,169 $ 48,217 $ 7,205,347 Sandstorm converted options exercises 251,246 1 20,173 — — — 20,174 Stock-based compensation and related share issuances 36,334 — ( 1,985 ) — — — ( 1,985 ) Distributions to non-controlling interests — — — — — ( 1,657 ) ( 1,657 ) Net income — — — — 281,130 578 281,708 Other comprehensive loss — — — ( 993 ) — — ( 993 ) Dividends declared — — — — ( 40,330 ) — ( 40,330 ) Balance at March 31, 2026 84,787,272 $ 846 $ 5,946,311 $ — $ 1,467,969 $ 47,138 $ 7,462,264 Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at December 31, 2024 65,691,151 $ 657 $ 2,228,311 $ — $ 889,989 $ 12,249 $ 3,131,206 Stock-based compensation and related share issuances 44,153 — 186 — — — 186 Distributions to non-controlling interests — — — — — ( 190 ) ( 190 ) Net income — — — — 113,498 80 113,578 Dividends declared — — — — ( 29,634 ) — ( 29,634 ) Balance at March 31, 2025 65,735,304 $ 657 $ 2,228,497 $ — $ 973,853 $ 12,139 $ 3,215,146 The accompanying notes are an integral part of these consolidated financial statements. 5 ROYAL GOLD, INC. Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Three Months Ended March 31, 2026 March 31, 2025 Cash flows from operating activities: Net income $ 281,708 $ 113,578 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 90,875 32,995 Non-cash employee stock compensation expense 3,592 3,198 Fair value changes in equity securities ( 5,950 ) 37 Gain on sale of marketable securities ( 14,115 ) — Deferred tax benefit ( 27,764 ) ( 8,828 ) Other 1,527 224 Changes in assets and liabilities: Royalty receivables ( 31,958 ) 5,731 Stream inventory ( 4,981 ) ( 1,583 ) Income tax receivable 1,999 ( 231 ) Prepaid expenses and other assets 966 345 Accounts payable ( 2,790 ) 135 Income tax payable ( 834 ) ( 7,832 ) Other liabilities 1,287 ( 1,400 ) Net cash provided by operating activities $ 293,562 $ 136,369 Cash flows from investing activities: Acquisition of stream and royalty interests — ( 58,246 ) Proceeds from the sale of marketable securities 48,973 — Cash calls for Hod Maden equity method investment ( 14,700 ) — Other ( 166 ) ( 49 ) Net cash provided by (used in) investing activities $ 34,107 $ ( 58,295 ) Cash flows from financing activities: Repayment of debt ( 300,000 ) — Net payments from issuance of common stock ( 5,576 ) ( 3,011 ) Net proceeds from Sandstorm option exercises 20,173 — Common stock dividends ( 40,186 ) ( 29,611 ) Distributions to non-controlling interests ( 1,657 ) ( 190 ) Net cash used in financing activities $ ( 327,246 ) $ ( 32,812 ) Net increase in cash and equivalents 423 45,262 Cash and equivalents at beginning of period 233,719 195,498 Cash and equivalents at end of period $ 234,142 $ 240,760 The accompanying notes are an integral part of these consolidated financial statements. 6 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold, Inc., together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in the production, development or exploration stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more metals in an amount determined by reference to production at a mining operation, at a price determined for the life of the transaction by the purchase agreement. A royalty is a non-operating interest in a mining project that provides the right to revenue or metals produced from the project after deducting contractually specified costs, if any. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2026. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 19, 2026 (“2025 10-K”). Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. 2. ACQUISITION OF SANDSTORM GOLD AND HORIZON COPPER On October 20, 2025, we acquired all of the issued and outstanding common shares of Sandstorm Gold Ltd. (“Sandstorm”) and Horizon Copper Corp. (“Horizon”), collectively referred to as “the Transaction.” Sandstorm and Horizon were global resource-based companies based in Vancouver, British Columbia, that held interests in mining assets, including royalty and stream interests, on mining projects across various stages of development. For more detail on the Transaction, refer to the Company's 2025 10-K. We are in the process of finalizing our assessment of the fair value of the stream and royalty interests, deferred income taxes, the equity method investment and certain other tax matters as part of the Transaction. The total purchase price of $ 4.148 billion has been allocated to the net assets acquired based on their respective fair values as follows: 7 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) (in thousands) Cash $ 60,024 Royalty receivables 35,374 Income tax receivable 1,232 Prepaid expenses and other 1,170 Stream and royalty interests 4,561,177 Equity method investment 292,089 Marketable securities 380,269 Other assets 57,125 Accounts payable ( 51,913 ) Other current liabilities ( 28,932 ) Deferred tax liabilities ( 1,076,909 ) Other liabilities ( 43,754 ) Non-controlling interests ( 38,797 ) Total allocated purchase price $ 4,148,155 There were no changes made to the purchase price allocation during the three months ended March 31, 2026 when compared to the purchase price allocation as of December 31, 2025, which is included in the Company's 2025 10-K. 3. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of March 31, 2026 and December 31, 2025. As of March 31, 2026 (amounts in thousands): Cost Accumulated Depletion Net Production stage interests: Streams $ 4,211,315 $ ( 1,410,237 ) $ 2,801,078 Royalties 2,334,644 ( 797,136 ) 1,537,508 Total production stage interests 6,545,959 ( 2,207,373 ) 4,338,586 Development stage interests: Streams 936,721 — 936,721 Royalties 624,551 — 624,551 Total development stage interests 1,561,272 — 1,561,272 Exploration stage interests: Streams 741,591 — 741,591 Royalties 1,897,837 — 1,897,837 Total exploration stage interests 2,639,428 — 2,639,428 Total stream and royalty interests, net $ 10,746,659 $ ( 2,207,373 ) $ 8,539,286 8 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) As of December 31, 2025 (amounts in thousands): Cost Accumulated Depletion Net Production stage interests: Streams $ 4,190,864 $ ( 1,359,206 ) $ 2,831,658 Royalties 2,319,553 ( 760,108 ) 1,559,445 Total production stage interests 6,510,417 ( 2,119,314 ) 4,391,103 Development stage interests: Streams 936,726 — 936,726 Royalties 581,746 — 581,746 Total development stage interests 1,518,472 — 1,518,472 Exploration stage interests: Streams 776,358 — 776,358 Royalties 1,897,942 — 1,897,942 Total exploration stage interests 2,674,300 — 2,674,300 Total stream and royalty interests, net $ 10,703,189 $ ( 2,119,314 ) $ 8,583,875 4. EQUITY METHOD INVESTMENT Hod Maden Interest The Company has a 30 % equity interest in Artmin Madencilik Sanayi ve Ticaret A.Ş. (“Artmin”), a privately held company incorporated in Türkiye which owns the Hod Maden project. The carrying value of the Hod Maden equity investment at March 31, 2026 and December 31, 2025, was $ 248.2 million and $ 249.5 million, respectively, and is included in Equity method investment on the consolidated balance sheets. The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company's share of the investee's losses is included in Interest and other expense in the consolidated statement of operations. Loan to Associate As of March 31, 2026 and December 31, 2025, the Company advance d $ 66.1 million and $ 51.4 million, respectively, of shareholder loans to Artmin to fund the Company's share of cash calls for ongoing development costs at Hod Maden. The loans bear interest at 4 % plus the credit default swap rate of Türkiye at the start of each quarterly period and have five-year terms. The loans are included in Equity method investment on the consolidated balance sheets. 9 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 5. MARKETABLE SECURITIES The Company's marketable securities consist of the following (amounts in thousands): Fair Value March 31, 2026 December 31, 2025 Available-for-sale equity securities (1) $ 97,114 $ 120,814 Available-for-sale debt securities (2) — 52,066 Total marketable securities $ 97,114 $ 172,880 _______________________________________________ (1) Fair value adjustment recorded within net income. (2) Fair value adjustment recorded within other comprehensive income. Available-for-sale Equity Securities Entrée Resources Ltd. The Company holds 50,297,717 Entrée Resources Ltd. (“Entrée”) common shares, representing approximately 24 % of the issued and outstanding Entrée common shares on an undiluted basis. Entrée is a public Canadian mining company with a carried joint venture interest in the Hugo North Extension and Heruga deposits located in Mongolia. At March 31, 2026 and December 31, 2025, the carrying value of the Entrée shares was $ 83.4 million and $ 76.7 million, respectively, and is included in available-for-sale equity securities. Highlander Silver Corp. On February 26, 2026, as part of the previously announced agreement with Bear Creek Mining Corporation (“Bear Creek”) to restructure equity, debt and other interests in Bear Creek (the “Bear Creek Transaction”), our shares of Bear Creek converted to shares of Highlander Silver Corp. (“Highlander”) at a conversion of 0.1175 Highlander shares per one Bear Creek share. On March 27, 2026, we sold our shares in Highlander for a net realized gain of $ 9.9 million. This amount is recorded within Gain on sale of marketable securities on our consolidated statements of operations and comprehensive income. Available-for-sale Debt Securities Bear Creek Convertible Debt Securities Upon closing of the Bear Creek Transaction, we settled outstanding debt obligations owed by Bear Creek of $ 49.5 million and terminated the gold and silver stream obligations between Bear Creek and Royal Gold in connection with the Mercedes Mine. In consideration for the debt settlement, we received $ 6.2 million cash, an incremental 1.75 % NSR royalty on the Corani Project in Peru (bringing the Company's total royalty interest to 2.75 %), and a 2.0 % NSR royalty on the Mercedes Mine. The royalties have been accounted for as asset acquisitions and are recorded as development stage royalty interests (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The impact of the debt settlement with Bear Creek in the consolidated statements of operations and comprehensive income was not material. 6. DEBT The Company's debt as of March 31, 2026 and December 31, 2025 consists of the following (amounts in thousands): As of March 31, 2026 As of December 31, 2025 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total Revolving credit facility $ 600,000 $ ( 4,311 ) $ 595,689 $ 900,000 $ ( 4,564 ) $ 895,436 Total debt $ 600,000 $ ( 4,311 ) $ 595,689 $ 900,000 $ ( 4,564 ) $ 895,436 10 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Revolving credit facility During the three months ended March 31, 2026, we repaid $ 300 million of outstanding borrowings on our revolving credit facility leaving $ 600 million outstanding and $ 800 million available under our revolving credit facility as of March 31, 2026. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of March 31, 2026. On May 5, 2026, we entered into a seventh amendment to the revolving credit facility that added a new $ 600 million uncommitted accordion feature to the revolving credit facility. The new accordion feature permits the Company to request additional commitments from the credit facility bank syndicate that would increase aggregate commitments under the revolving credit facility to up to $ 2.0 billion, subject to customary conditions, including the consent of each lender providing an additional commitment. Interest expense, which includes interest on outstanding borrowings and amortization of the debt issuance costs, was $ 9.6 million and $ 0.2 million for the three months ended March 31, 2026 and March 31, 2025, respectively. The interest rate on borrowings under our credit facility as of March 31, 2026 , was SOFR plus 1.2 % for an all-in rate of 5.0 %. On April 13, 2026, we repaid $ 75 million of outstanding borrowings on our revolving credit facility leaving $ 525 million outstanding and $ 875 million available as of the date of this report. We may repay borrowings under our revolving credit facility at any time without premium or penalty . On May 6, 2026, we notified the lenders of our intent to repay $ 100 million of outstanding borrowings on May 13, 2026. 7. MOUNT MILLIGAN DEFERRED LIABILITY On February 13, 2024, we entered into a Cost Support Agreement with Centerra Gold Inc. (“Centerra”) with respect to the Mount Milligan mine for cash consideration of $ 24.5 million, 50,000 ounces of gold to be delivered in the future (“Deferred Gold Consideration”) and a free cash flow interest. The value of the cash consideration and free cash flow interest received from Centerra, and proceeds from the sale of the Deferred Gold Consideration, is recorded as a deferred liability in our consolidated balance sheets. As of March 31, 2026, the balance of the deferred liability was $ 69.2 million and 38,889 ounces of Deferred Gold Consideration remain outstanding. 8. REVENUE Revenue Recognition A performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. Stream Interests A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more of the metals in an amount determined by reference to production at a mining operation, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily at cash average or spot market prices. The sales price for the averaging contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive period between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time), commencing shortly after receipt and purchase of the metal. We settle both averaging and spot sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this 11 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser. Royalty Interests A royalty is a non-operating interest in a mining project that provides the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to its ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time when the mine operator of the property over which the royalty interest is held delivers the commodity to the customer. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable costs. Royalty Revenue Estimates For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, we will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our 2025 10-K. For the three months ended March 31, 2026, royalty revenue that was estimated or was attributable to metal production for a period prior to the three months ended March 31, 2026, was not material. Disaggregation of Revenue We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 12. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended March 31, 2026 March 31, 2025 Stream revenue: Gold $ 236,446 $ 94,562 Silver 52,734 18,699 Copper 21,699 9,221 Other 1,898 — Total stream revenue $ 312,777 $ 122,482 Royalty revenue: Gold $ 97,462 $ 51,164 Silver 20,279 4,901 Copper 24,971 7,591 Other 13,636 7,298 Total royalty revenue $ 156,348 $ 70,954 Total revenue $ 469,125 $ 193,436 12 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Metal(s) March 31, 2026 March 31, 2025 Stream revenue: Mount Milligan Gold & Copper $ 57,322 $ 42,808 Pueblo Viejo Gold & Silver 55,869 28,751 Andacollo Gold 27,151 12,744 Kansanshi Gold 25,511 — Other (1) Various 146,924 38,179 Total stream revenue $ 312,777 $ 122,482 Royalty revenue: Cortez Legacy Zone Gold $ 16,426 $ 11,143 Cortez CC Zone Gold 8,793 3,554 Other (1) Various 131,129 56,257 Total royalty revenue $ 156,348 $ 70,954 Total revenue $ 469,125 $ 193,436 __________________________________________ (1) Individually, no stream or royalty included within the “ Other ” category contributed greater than 10% of our total revenue for either period. Please refer to Note 12 for the geographical distribution of our revenue by reportable segment. 9. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended March 31, 2026 March 31, 2025 Restricted stock $ 2,185 $ 2,012 Performance stock 1,407 1,186 Total stock-based compensation expense $ 3,592 $ 3,198 Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income. We granted the following stock-based compensation awards: Three Months Ended March 31, 2026 March 31, 2025 (Number of shares) Performance stock (at maximum 200 % attainment) 39,034 72,120 Restricted stock 32,578 50,264 Total equity awards granted 71,612 122,384 13 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) As of March 31, 2026, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows: Unrecognized compensation expense Weighted- average vesting period (years) Restricted stock $ 13,493 2.3 Performance stock 10,801 2.3 10. EARNINGS PER SHARE (“EPS”) Basic EPS was computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic EPS are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted EPS. The following table summarizes the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data): Three Months Ended March 31, 2026 March 31, 2025 Net income attributable to Royal Gold common stockholders $ 281,130 $ 113,498 Weighted-average shares for basic EPS 84,720,260 65,705,157 Effect of other dilutive securities 297,375 86,394 Weighted-average shares for diluted EPS 85,017,635 65,791,551 Basic EPS $ 3.31 $ 1.72 Diluted EPS $ 3.30 $ 1.72 11. INCOME TAXES The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated: Three Months Ended March 31, 2026 March 31, 2025 Income tax expense $ 25,398 $ 10,389 Effective tax rate 8.3 % 8.4 % The effective tax rate for the three months ended March 31, 2026, included a $ 33.7 million discrete benefit for a change in a foreign tax rate. The effective tax rate for the three months ended March 31, 2025, included a $ 12.0 million discrete benefit, net of valuation allowance, for additional recoverable basis in foreign jurisdictions and a $ 1.7 million discrete benefit related to a withholding tax refund on a foreign royalty. 12. SEGMENT INFORMATION We manage our business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”) and is responsible for reviewing segment performance and making decisions regarding resource allocation. In addition to revenue, our CODM regularly reviews cost of sales, production taxes and 14 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) depletion for each of our reportable segments. Royal Gold's long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands): As of March 31, 2026 As of December 31, 2025 Stream interest Royalty interest Total stream and royalty interests, net Stream interest Royalty interest Total stream and royalty interests, net North America $ 1,180,681 $ 1,821,667 $ 3,002,348 $ 1,214,810 $ 1,834,921 $ 3,049,731 South and Central America 1,034,797 1,883,234 2,918,031 1,045,620 1,846,211 2,891,831 EMEA 2,251,381 306,601 2,557,982 2,270,717 309,467 2,580,184 Australia Pacific 12,531 48,394 60,925 13,595 48,534 62,129 Total $ 4,479,390 $ 4,059,896 $ 8,539,286 $ 4,544,742 $ 4,039,133 $ 8,583,875 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended March 31, 2026 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 312,777 $ 60,337 $ — $ 53,575 $ 198,865 Royalty interests 156,348 — 3,291 37,028 116,029 Total $ 469,125 $ 60,337 $ 3,291 $ 90,603 $ 314,894 Three Months Ended March 31, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 122,482 $ 24,506 $ — $ 20,353 $ 77,623 Royalty interests 70,954 — 1,761 12,562 56,631 Total $ 193,436 $ 24,506 $ 1,761 $ 32,915 $ 134,254 _______________________________________________ (1) Excludes depreciation, depletion and amortization. (2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income. A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands): Three Months Ended March 31, 2026 March 31, 2025 Total segment gross profit $ 314,894 $ 134,254 Costs and expenses General and administrative expenses 17,531 11,063 Depreciation and amortization 272 80 Operating income 297,091 123,111 Fair value changes in equity securities 5,950 ( 37 ) Gain on sale of marketable securities 14,115 — Interest and other income 3,192 2,049 Interest and other expense ( 13,242 ) ( 1,156 ) Income before income taxes $ 307,106 $ 123,967 15 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Our revenue by reportable segment for the three months ended March 31, 2026 and 2025, is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended March 31, 2026 March 31, 2025 Stream interests: North America $ 163,263 $ 81,981 EMEA 79,496 22,380 South and Central America 68,954 18,121 Australia Pacific 1,064 — Total stream revenue $ 312,777 $ 122,482 Royalty interests: North America $ 94,733 $ 58,790 South and Central America 41,279 4,208 Australia Pacific 15,057 7,956 EMEA 5,279 — Total royalty revenue 156,348 70,954 Total revenue $ 469,125 $ 193,436 13. FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices for identical instruments in active markets; Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. 16 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Fair Value at March 31, 2026 Total Level 1 Level 2 Level 3 (in thousands) Assets (1) : Available-for-sale equity securities $ 97,114 $ 97,114 $ — $ — Fair Value at December 31, 2025 Total Level 1 Level 2 Level 3 (in thousands) Assets (1) : Available-for-sale equity securities $ 120,814 $ 120,814 $ — $ — Available-for-sale debt securities 52,066 — 52,066 — ______________________________________________ (1) Included in Marketable securities on our consolidated balance sheets. The carrying value of our revolving credit facility (Note 6) approximates fair value as of March 31, 2026 and December 31, 2025 and is measured using Level 2 inputs. The fair value of the convertible debt securities due from Bear Creek at December 31, 2025 was determined using binomial lattice models based on the contractual terms and relevant inputs including the risk free interest rate, the USD to CAD currency swap rate, expected dividend yield, expected volatility and the discount yield which are observable in active markets. The use of reasonably possible alternative assumptions would not significantly impact our results. As of March 31, 2026, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, equity method investments and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs. 14. COMMITMENTS AND CONTINGENCIES Warintza Project Conditional Funding As of March 31, 2026 , our conditional funding schedule of $ 100.0 million related to the acquisition of the Warintza Gold Stream and Royalty Agreements made on May 21, 2025 remains subject to certain conditions. On April 14, 2026, after the technical approval of the environmental impact assessment and publication of a pre-feasibility study for the Warintza project, we paid Solaris Resources, Inc. ( “ Solaris ” ) $ 50 million of the $ 100 million outstanding conditional funding. The remaining $ 50 million payable is due to Solaris one year after closing, and is subject to certain conditions including the registration of security in Ecuador. Ilovica Gold Stream Acquisition As of March 31, 2026, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions. 15. SUBSEQUENT EVENTS Share Repurchase Program On May 4, 2026, the Board of Directors approved a $ 500 million share repurchase program under which we may repurchase shares from time to time through open market purchases or by other means. The manner, timing, pricing and amount of any repurchases will be subject to management's discretion and may be based upon market conditions and 17 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) alternative opportunities for the use or investment of capital. Although the Board of Directors has authorized the share repurchase program, we are not obligated to repurchase any specific dollar amount or to acquire any specific number of shares under the program. The share repurchase program is intended to be used in those circumstances when we believe there is a significant difference between the market value of Royal Gold shares and what we believe is the intrinsic value and outlook for the Company. 18