Theravance Biopharma Inc

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 4.8× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 4.8× operating cash profit, lifted by income outside the core business.

  Theravance Biopharma's reported profit is 4.8× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Theravance Biopharma's reported profit is 4.8× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Stock-based pay is a large cost. Stock pay was 17% of revenue in 2025.

  Theravance Biopharma paid employees $18M in stock in 2025, 17% of its $107M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

• Operating loss narrowing. Operating margin -3.4% in 2025, the smallest loss relative to revenue of the last 6 years.

  Theravance Biopharma still lost money on operations in 2025 (margin -3.4%), but that was its smallest operating loss relative to revenue in the 6 years of filings we have.

• Valuation signals disagree. Cheaper than 83% of peers on earnings, but only 40% on operating cash profit (EBITDA).Cheaper than 83% of peers on earnings, but only 40% on operating cash profit.

  Relative to its earnings, Theravance Biopharma looks cheaper than 83% of peers; relative to its operating cash profit (EBITDA), cheaper than only 40%. The valuation score blends the two, so look at which measure fits this business best.Relative to its earnings, Theravance Biopharma looks cheaper than 83% of peers; relative to its operating cash profit, cheaper than only 40%. The valuation score blends the two, so look at which measure fits this business best.