Diversified Royalty (DIV) Q4 2025 earnings summary

Executive summary

• Revenue grew 11.9% in Q4 2025 and 8.9% for the year, reaching $19.1M and $70.8M, respectively, compared to 2024.

• Adjusted revenue rose 11.2% in Q4 and 8.4% for the year, driven by new royalty streams and positive SSSG at key partners.

• Distributable cash increased 7.9% in Q4 and 12.7% for the year, totaling $13.6M and $50.5M, respectively.

• Net income for Q4 2025 was $11.0M and $36.7M for the year, up from $4.0M and $26.6M in 2024.

Financial highlights

• Weighted average organic royalty growth was 3.0% in Q4 2025 and 4.1% for the year, down from 5.2% and 4.6% in 2024.

• Payout ratio was 87.1% in Q4 and 88.1% for the year, compared to 82.3% and 90.0% in 2024.

• Distributable cash per share increased to $0.0799 in Q4 and $0.2989 for the year.

Outlook and guidance

• BarBurrito royalty pool expanded by nine locations in March 2026, expected to increase future royalty payments.

• AIR MILES® agreement amended to a 10-year, fixed annual royalty of $3.9M, growing at 2.42% per year, effective February 2026.

• Sutton receives 33% royalty relief through 2026 to support business development.