Molina Healthcare experienced a dramatic deterioration in profitability and cash generation despite revenue growth, with net income falling 60% and operating cash flow swinging from positive $644M to negative $535M.
The massive cash flow swing of over $1.1 billion combined with a 60% decline in profitability suggests serious operational challenges or one-time events that investors need to understand immediately. The company also reduced its share count by 4 million shares while financial performance deteriorated, indicating potential capital allocation issues during a period of operational stress.
While revenue grew a healthy 11.7% to $45.4B, all profitability metrics collapsed with net income dropping 60% to $472M and operating income falling 54% to $781M. Most alarming is the complete reversal in operating cash flow from positive $644M to negative $535M, representing a $1.2B adverse swing that signals either major working capital issues, significant one-time payments, or fundamental operational problems. This combination of revenue growth with collapsing profitability and cash generation is a major red flag requiring immediate investor attention.
Operating cash flow fell 183.1% — earnings quality concerns; investigate working capital changes and non-cash items.
Net income declined 60% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Revenue growing 11.7% — solid top-line momentum, watch margins for quality of growth.
See what changed in your portfolio's filings
500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.
Try Tracenotes free →