Gold Royalty Q2 2026 earnings: Revenue rises 76% as net income turns positive

Gold Royalty (NYSE American: GROY) reported Q2 2026 revenue of $6.7 million, up about 76% from $3.8 million a year earlier, while diluted EPS was $0.01 versus $(0.00). Net income turned positive at $1.8 million, adjusted EBITDA rose 137% to $5.6 million, and operating cash flow increased to $3.7 million as royalty revenue expanded.

Core performance data

Royalty revenue was the main source of growth, rising to $6.1 million from $2.0 million. Streaming revenue also increased, while advance minimum and pre-production royalty revenue declined sharply.

Gold Royalty’s broader non-IFRS measure of Total Revenue, Land Agreement Proceeds and Interest increased 80% to $7.9 million. GEOs rose by a slower 31% because the average gold price used in the company’s GEO calculation was higher than a year earlier.

*Total Revenue, Land Agreement Proceeds and Interest, adjusted EBITDA, adjusted net income and GEOs are non-IFRS measures without standardized definitions under IFRS.

Business and portfolio performance

The revenue mix shifted toward royalty payments during the quarter. Royalty revenue more than tripled, more than offsetting lower advance minimum and pre-production royalties and reduced land agreement proceeds.

These components form part of the reconciliation to the company’s $7.9 million non-IFRS total, rather than reported IFRS revenue alone.

Major portfolio developments

At Borborema, the operator reported Q2 production of 14,251 GEOs, down 17% sequentially because planned mine sequencing resulted in lower grades. The operator nevertheless maintained its full-year guidance.

Vareš produced approximately 35,000 GEOs, including 1.3 million pounds of copper. Payable metals sold were lower at approximately 26,000 GEOs because of delivery timing, while the operator continued to target a full-production run rate of 850,000 tonnes per year by the end of 2026.

At Odyssey, the first shaft-sinking phase reached a depth of 1,586 metres, with first production through Shaft #1 still scheduled for Q2 2027. Separately, mining at the Barnat open pit is expected to resume in Q4 2026 following remediation work.

Côté’s measured and indicated mineral resources increased 13% to 12.7 million ounces, and inferred resources rose 63% to 2.0 million ounces. An updated technical report and mine plan are expected in Q4 2026. Meanwhile, the Granite Creek feasibility study was moved from Q2 to Q3 2026.

Profitability, cash flow and balance sheet

The move from a net loss to positive earnings reflected both higher revenue and lower finance costs. Quarterly finance costs fell to $0.2 million from $2.2 million, although higher depletion and an $0.9 million deferred tax expense partly offset the improvement.

Operating cash flow increased to $3.7 million from $1.1 million. Gold Royalty ended the quarter with more than $11.3 million in cash, no debt and a fully undrawn $150 million credit facility that includes a $25 million accordion feature.

The company also paid $6.25 million for an additional 0.875% NSR royalty on the Ren project. After quarter-end, it spent another $0.8 million on NSR royalties covering the Sterling project and part of the Granite Creek mine.

Higher gold prices widened the gap between dollar and GEO growth

Gold Royalty calculates GEOs by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold price for the period. The average price used in Q2 2026 was $4,516 per ounce, approximately 38% above $3,279 in Q2 2025.

As a result, the company’s non-IFRS dollar total increased 80%, but the corresponding GEO figure rose only 31%. This distinction matters because GEO growth reflects both the amount of revenue generated and the commodity-price denominator used for conversion; it is not a direct production measure for Gold Royalty’s underlying portfolio.

2026 guidance

Gold Royalty maintained its previously announced annual GEO range. The outlook includes approximately 684 GEOs related to land agreement proceeds credited against other mineral interests and interest payments.

The outlook assumes gold at $5,150 per ounce and copper at $5.75 per pound. Changes in commodity prices will affect the conversion of copper royalties, streams and other contractual payments into GEOs.

Management identified Ren’s expected first production, South Railroad’s potential construction start, the Vareš ramp-up and technical studies at several portfolio projects as possible second-half catalysts. These milestones remain dependent on the underlying operators’ execution and, in some cases, permitting.

Risks investors should watch

• Commodity-price sensitivity: The 2026 GEO outlook uses specified gold and copper prices. Different prices can change reported GEOs even if underlying royalty or stream volumes do not change.
• Operator and development execution: Gold Royalty depends on third-party mine operators to complete construction, ramp production and meet development schedules at projects including Ren, South Railroad, Vareš and Odyssey.
• Permitting and project delays: South Railroad still requires final permitting, while the Granite Creek feasibility study has already shifted to Q3 2026.
• Production and delivery timing: Lower grades reduced Borborema’s sequential production, and the timing of deliveries caused payable Vareš metals to trail production during Q2.
• Reliance on third-party information: The company generally has limited access to underlying properties and relies substantially on disclosures from project owners and operators.

Conclusion

Gold Royalty’s Q2 2026 results showed a clear improvement in revenue, profitability and operating cash flow, led by higher royalty revenue and lower finance costs. The company maintained its annual GEO outlook and retained a debt-free balance sheet with an undrawn credit facility, while future progress will depend on commodity prices and the timing of production, permitting and construction milestones across its royalty portfolio.