Royal Gold's (RGLD) Profits Doubled: Why Is the Market Still Buying?

Royal Gold (NASDAQ:RGLD) reported a 79% increase in net income to $236 million for Q2 2026, alongside record revenue of $451 million and operating cash flow of $335 million. Management continues share buybacks of $30 million, arguing the market undervalues the portfolio.

■No single royalty or stream exceeded 13% of revenue.

■Management highlighted the 2025 acquisitions' success in diversifying risk.

■The company paid $40 million in dividends and repaid $200 million of debt.

■High costs, including depreciation, amortization, and interest expense, rose sharply.

■Winter disruptions at Andacollo and Caserones caused temporary production delays.

While Royal Gold's liquidity remains strong, rising costs and debt repayments raise questions about long-term sustainability. Markets may still be underestimating the company's value.