U.S. Healthcare Solutions

- Human Health

- Animal Health

International Healthcare Solutions

- Alliance Healthcare

- Other Healthcare Solutions

Pharmaceutical Distribution Services

Other Segments

- MWI Animal Health

- Global Commercialization Services

Intersegment Eliminations

Total Revenue

2d967509e78511e4704672b9d5209b0f940e7b5a798b29b244883ea938c9b150

e9f0f5db1520e0d8f4b321f94f8d431add413f6cfe2219713ca8fdba7abbd28e

Operating cash flow turned negative in Q2 2024 primarily because of a combination of factors that significantly diminished cash inflows from operations. **Accounts receivable increased substantially**, partly due to delayed collections following a cybersecurity incident, which reduced cash collections. At the same time, the company experienced a **decrease in accrued expenses** as it made large payments, including **$250.1 million in opioid litigation settlements**—an amount much higher than in the prior period. Additionally, changes in the timing of **accounts payable** and less favorable adjustments in **inventory levels** further contributed to the negative cash flow outcome in Q2 2024.  **[0001140859-24-000072_cor-20240331.htm:34]** **[0001140859-24-000072_cor-20240331.htm:33]** 

Why did operating cash flow turn negative in Q2 2024?

The sharp surge in Q3 2024 was driven by several factors. **Higher net income** increased cash inflows from operations, while adjustments in operating assets and liabilities also played a significant role. In particular, a **smaller negative impact from inventories** and a **substantial increase in accounts payable** boosted cash flows. Additionally, non-cash adjustments—such as increased **amortization, depreciation**, and **share-based compensation**—further improved the operating cash flow. Lastly, unique items like a **$237.7 million prepayment** under opioid settlement agreements added to the overall change in cash flows.  **[0001140859-24-000119_cor-20240630.htm:8]** **[0001140859-24-000117_exhibit991-q32024.htm:13]** **[0001140859-24-000117_exhibit991-q32024.htm:16]** 

What factors contributed to the sharp surge in operating cash flow in Q3 2024?

The dramatic decline in operating cash flow in Q1 2025 was driven by significant changes in working capital components. **Accounts receivable** saw a substantial increase, resulting in a cash outflow of **$(974,256) thousand**; **inventories** increased sharply, contributing a cash outflow of **$(1,655,165) thousand**; and a decline in **accounts payable** turned a previous cash inflow into a cash outflow of **$(654,165) thousand**. Together, these factors transformed the operating cash flow from positive to a large negative value in Q1 2025.  **[0001140859-25-000032_exhibit991-q12025.htm:10]** **[0001140859-25-000034_cor-20241231.htm:7]** 

What drove the dramatic decline in operating cash flow in Q1 2025?

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In Q4 2024, operating income was significantly low due to a sharp increase in operating expenses that outweighed the boost in gross profit. Specifically, the quarter experienced a **$418 million goodwill impairment charge** related to PharmaLex, along with increased distribution, selling, and administrative expenses, as well as higher litigation and opioid-related expenses. These factors contributed to a **73.4% decrease** in operating income, resulting in a figure of roughly **$126.6 million** for the period.  **[0001140859-24-000148_exhibit991-q42024.htm:1]** 

Why was Operating income so low in Q4 2024?

The drastic drop in **Net Income** in Q4 2024 was primarily driven by a **$418 million goodwill impairment charge** related to PharmaLex, which dramatically increased operating expenses and pushed the effective tax rate to **94.0%** (up from 21.8% in the prior year quarter) because the impairment was largely non-deductible (documents  **[0001140859-24-000148_exhibit991-q42024.htm:1]** **[COR_3406038_5]** ). In addition, operating expenses increased by **33.2%**—including higher distribution, selling, and administrative costs, as well as elevated litigation and opioid-related expenses—and there was a decline in gross profit margins due to increased sales of lower-margin GLP-1 products and loss of higher-margin COVID-19 therapy sales. Collectively, these factors led to a steep reduction in net income (documents  **[0001140859-24-000148_exhibit991-q42024.htm:0]** **[0001140859-24-000148_exhibit991-q42024.htm:1]** ).

What drove the drastic drop in Net income in Q4 2024?

The sharp decline in **Basic EPS** for **Q4 2024** was primarily due to a **$418 million goodwill impairment** charge related to PharmaLex, which significantly increased operating expenses. Additionally, operating expenses increased by **33.2%** year-over-year to **$2.4 billion**, leading to a **73.4%** decrease in operating income. The effective tax rate also spiked to **94.0%**—a stark contrast to the prior year—further reducing net income. Moreover, the decline in **gross profit margin** due to increased sales of lower-margin products and the absence of higher-margin COVID-19 therapy sales compounded the drop in EPS.  **[0001140859-24-000148_exhibit991-q42024.htm:1]** 

Why did Basic EPS fall sharply in Q4 2024?

fbb01ddb153a470b36916ed6263d632598d9430a5da121bf71cc0bbf14e39c7b

The drop in cash, cash equivalents, and restricted cash in Q2 2024, amounting to **$467,743 thousand**, was primarily caused by a combination of factors. **Operating activities** contributed significantly due to a **$1,682,145 thousand** increase in accounts receivable—stemming from extended payment terms during the Change Healthcare outage—and a **$119,023 thousand** increase in inventories. In addition, **investing activities** used **$232,287 thousand** of net cash driven by **$186,970 thousand** in capital expenditures and **$50,000 thousand** for a non-customer note receivable. **Financing activities** further contributed to the cash decline, with **$436,378 thousand** spent on share repurchases and **$212,692 thousand** paid for cash dividends on common stock. Lastly, adverse effects from exchange rate changes reduced cash by **$13,671 thousand**.  **[0001140859-24-000070_exhibit991-q22024.htm:14]** **[0001140859-24-000072_cor-20240331.htm:8]** 

What caused the drop in cash in Q2 2024?

The **short-term debt spike in Q1 2025** occurred because it increased from **$576,331 thousand** to **$2,213,226 thousand**. This was primarily due to **borrowings under the Commercial Paper Program**, where **$1,665.9 million** became outstanding by December 31, 2024, compared to none previously, as well as **seasonal working capital needs** that resulted in **$2.0 billion** of net borrowings.  **[0001140859-25-000034_cor-20241231.htm:11]** **[0001140859-25-000032_exhibit991-q12025.htm:10]** **[0001140859-25-000034_cor-20241231.htm:35]** 

Why did short-term debt spike in Q1 2025?

The significant increase in long-term debt in Q1 2025 was primarily driven by the **issuance of Senior Notes** worth **$1.8 billion** to help finance the acquisition of Retina Consultants of America, along with additional **borrowings under the Multi-Currency Revolving Credit Facility** that totaled **$1,665.9 million** as of December 31, 2024.  **[0001140859-25-000034_cor-20241231.htm:11]** **[0001140859-25-000032_exhibit991-q12025.htm:10]** **[0001140859-25-000034_cor-20241231.htm:35]** 

What drove the significant increase in long-term debt in Q1 2025?

The sharp drop in stockholders' equity in Q1 2025 was driven primarily by a **significant increase in Treasury Stock** (from **$(9,815,835) thousand** to **$(10,277,909) thousand**) due to share repurchases and an **increase in the Accumulated Other Comprehensive Loss** (from **$(989,118) thousand** to **$(1,399,624) thousand**), which more than offset the positive effect of the **$488,600 thousand net income** generated during the quarter.  **[0001140859-25-000034_cor-20241231.htm:6]** **[0001140859-25-000034_cor-20241231.htm:4]** 

Why did stockholders' equity drop sharply in Q1 2025?

16a3dc137f057b3cba41f8720e56987bfcb28b20c87086df8b10193084ae3377

Cash and cash equivalents (USD, thousands)

Accounts receivable, less allowances for returns and credit losses (USD, thousands)

Inventories (USD, thousands)

Right to recover assets (USD, thousands)

Prepaid expenses and other (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Deferred income taxes (USD, thousands)

Other assets (USD, thousands)

TOTAL ASSETS (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses and other (USD, thousands)

Short-term debt (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Accrued income taxes (USD, thousands)

Accrued litigation liability (USD, thousands)

Other liabilities (USD, thousands)

Total stockholders' equity (USD, thousands)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (USD, thousands)

9bd15558b9186559ac13d1ca480a43df921a9aaa4a6ba74c95b18bf883608267

Revenue (USD, thousands)

Cost of goods sold (USD, thousands)

Gross profit (USD, thousands)

Distribution, selling, and administrative expenses (USD, thousands)

Litigation and opioid-related expenses (credit), net (USD, thousands)

Acquisition-related deal and integration expenses (USD, thousands)

Restructuring and other expenses (USD, thousands)

Operating income (USD, thousands)

Other loss (income), net (USD, thousands)

Interest expense, net (USD, thousands)

Income before income taxes (USD, thousands)

Income tax expense (USD, thousands)

Net income (USD, thousands)

Net income attributable to noncontrolling interests (USD, thousands)

Net income attributable to Cencora, Inc. (USD, thousands)

Basic earnings per share (USD)

Diluted earnings per share (USD)

Basic weighted average common shares outstanding (thousands)

Diluted weighted average common shares outstanding (thousands)

775bbe4db33f775259c68e64402551c1faabe512e045b244eb9e8c0e5dcef4e7

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (USD, thousands)

Capital expenditures (USD, thousands)

Cost of acquired companies, net of cash acquired (USD, thousands)

Cost of equity investments (USD, thousands)

Other, net (Investing Activities) (USD, thousands)

NET CASH USED IN INVESTING ACTIVITIES (USD, thousands)

Purchases of common stock (USD, thousands)

Exercises of stock options (USD, thousands)

Cash dividends on common stock (USD, thousands)

Employee tax withholdings related to restricted share vesting (USD, thousands)

Other, net (Financing Activities) (USD, thousands)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (USD, thousands)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (USD, thousands)

Non-customer note receivable (USD, thousands)

Cash, cash equivalents, and restricted cash at beginning of period (USD, thousands)

Cash, cash equivalents, and restricted cash at end of period (USD, thousands)

1eda04b2ffa688833e0e987f3c70883048cf4ef9c525dc7874b49c4e03eb1903

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

Selling, General, and Administrative Expenses (SG&A) [USD, Thousands]

Research and Development (R&D) [USD, Thousands]

Depreciation and Amortization (D&A) [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

2b854f2250208f84ee6a8afcd89d09c2af26ff10ee896a681cf85a08e4576717

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

18d786f6393d49d1104d4b5909e95cf3802350abfb39fe670ae940a4454d5644

52d0d81ef8a233fc784e881e65d117bdb05e7e225195497b8c1916af01e2e530

Days Sales Outstanding (Days)

Days Inventory On Hand (Days)

Days Payable Outstanding (Days)

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f9af30fd3e467dfbb42ef7842a0ef792d546c37cd32eabda144cc62eba94930a

8abe146596e993f31c9f6651139bc01aee1e8a6eb49a8d6cd611517e320a3721

Cencora (COR)

Financials