Indirect Cash Flow

3 Months Ended

Mar. 31, 2026

Supplemental Cash Flow Elements [Abstract]

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.