Royal Bank of Canada filed a free writing prospectus on November 4, 2026, disclosing terms for Capped Return Dual Directional Buffer Notes linked to the Nasdaq-100 Index, due December 5, 2028, with a CUSIP of 78018DQL4.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), filing under Registration Statement No. 333-275898.
  • Underlier: The Nasdaq-100 Index (Bloomberg symbol "NDX"), with a Trade Date of November 30, 2026, and a Maturity Date of December 5, 2028.
  • Maximum Upside Return: At least 26%, to be determined on the Trade Date, with a 100% Participation Rate.
  • Buffer Percentage: 15%, meaning the Buffer Value is set at 85% of the Initial Underlier Value.
  • Absolute Value Return: If the Final Underlier Value is at or below the Initial Underlier Value but at or above the Buffer Value, investors receive a positive return equal to the absolute value of the Underlier Return, capped at 15%.
  • Initial Estimated Value: Expected to be between $921.50 and $971.50 per $1,000 principal amount, which the filing states will be less than the public offering price.
  • Principal at Risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% the Final Underlier Value is below the Initial Underlier Value in excess of the Buffer Percentage.

Terms and Structure of RBC's Dual Directional Buffer Notes Linked to the Nasdaq-100

According to the filing, the Notes are structured to offer three distinct payoff scenarios at maturity per $1,000 principal amount. If the Final Underlier Value is greater than the Initial Underlier Value, investors receive $1,000 plus the lesser of the Underlier Return (at a 100% Participation Rate) and the Maximum Upside Return of at least 26%. If the Final Underlier Value is at or below the Initial Underlier Value but at or above the Buffer Value (85% of the Initial Underlier Value), investors receive $1,000 plus a positive return equal to the absolute value of the Underlier Return, with that return capped at 15%.

The filing discloses that if the Final Underlier Value falls below the Buffer Value, investors receive $1,000 plus the product of $1,000 and the sum of the Underlier Return and the Buffer Percentage. In this scenario, the filing states, "you will lose some or a substantial portion of your principal amount at maturity." The Notes do not pay interest, and the Initial Underlier Value will be set as the closing value of the Underlier on the Trade Date of November 30, 2026, with the Final Underlier Value determined on the Valuation Date of November 30, 2028.

The filing identifies multiple risk factors, including that the initial estimated value will be less than the public offering price, that payments are subject to RBC's credit risk, that there may not be an active secondary trading market, and that the U.S. federal income tax consequences are described as uncertain. The filing also notes that RBC Capital Markets, LLC ("RBCCM") serves as Calculation Agent and that this role "may create conflicts of interest," according to the disclosure.

What Was Disclosed

Royal Bank of Canada disclosed the preliminary terms of structured notes linked to the Nasdaq-100 Index, maturing December 5, 2028, with a 15% buffer, a maximum upside return of at least 26%, an estimated initial value of $921.50 to $971.50 per $1,000, and principal at risk below the buffer threshold.