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Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets
 3 Months Ended
Mar. 31, 2026
Credit Loss [Abstract]  
Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets
The cumulative allowance for changes in expected cash flows from financial royalty assets is presented net within the non-current portion of financial royalty assets on the condensed consolidated balance sheets and includes the following:

•the movement in the cumulative allowance related to changes in forecasted royalty payments to be received based on royalty bearing products’ projected sales which are primarily derived from sell-side equity research analysts’ consensus sales forecasts,
•the write-off of cumulative allowance at the end of a royalty asset’s life which only impacts the condensed consolidated balance sheets, and
•the movement in the cumulative allowance for current expected credit losses, primarily associated with new financial royalty assets with limited protective rights and changes in the underlying cash flow forecasts of financial royalty assets with limited protective rights.

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)
$(3,397,481)
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets(96,221)
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets286,656 
Write-off of cumulative allowance(2)
478,777 
Current period provision for credit losses, net7,050 
Balance at March 31, 2026$(2,721,219)
(1)Includes $212.0 million related to cumulative allowance for credit losses.
(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.