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Indirect Cash Flow | 3 Months Ended
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Mar. 31, 2026
Supplemental Cash Flow Elements [Abstract] |
Indirect Cash Flow | Indirect Cash Flow Adjustments to reconcile consolidated net income to net cash provided by operating activities are summarized below (in thousands):
| For the Three Months Ended March 31,
| 2026 |  | 2025
Cash flow from operating activities: |  |  |
Consolidated net income(1) | $ | 468,256 |  |  | $ | 434,433 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: |  |  |
Income from financial royalty assets | (594,992) |  |  | (539,490) |
Provision for changes in expected cash flows from financial royalty assets | (197,485) |  |  | (127,140) |
Provision for credit losses on unfunded commitments | (3,700) |  |  | — |
Share-based compensation | 121,992 |  |  | 515 |
Amortization of debt discount and issuance costs | 5,712 |  |  | 5,281 |
Losses on equity securities | 20,166 |  |  | 45,878 |
Equity in earnings of equity method investees | (21,758) |  |  | (6,443) |
Distributions from equity method investees | 3,722 |  |  | 13,396 |
Amortization of prepaid expenses | 1,958 |  |  | — |
Losses on available for sale debt securities | 6,680 |  |  | 3,281 |
Depreciation | 1,171 |  |  | — |
Financial royalty asset impairment | 69,443 |  |  | — |
Other | 1,889 |  |  | 1,104 |
Changes in operating assets and liabilities: |  |  |
Cash collected on financial royalty assets | 915,598 |  |  | 829,737 |
Other royalty income receivable | 1,805 |  |  | 3,171 |
Other current assets | (5,226) |  |  | 1,108 |
Other assets | 319 |  |  | — |
Accounts payable and accrued liabilities | (5,079) |  |  | 10,086 |
Interest payable | (85,516) |  |  | (78,841) |
Other current liabilities | 14,289 |  |  | — |
Other liabilities | (1,011) |  |  | — |
Net cash provided by operating activities | $ | 718,233 |  |  | $ | 596,076 |
(1)Consolidated net income for 2025 has been recast as a result of the adoption of ASU 2025-07. See Note 2–Summary of Significant Accounting Policies for further details.

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- Definition The entire disclosure for supplemental cash flow activities, including cash, noncash, and part noncash transactions, for the period. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 230 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/230/tableOfContent + Details
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- References No definition available. + Details
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