9ac724ae4a36ae5e3b9622270e0226e9c391982dfe35dec6b52957fb2dcf0037

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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2f46764128d410642bf911992ee22480f9304789c8666d652b933a31a5cc167b

4c8de4b73bee9d6fcf5d42cf4bcb4e4ab7ff53e67a26f57409f4cf371778212e

The sharp decline in **cash and cash equivalents** during **Q2 2024** was primarily due to substantial net cash outflows in both financing and investing activities. Specifically, the company experienced a **net cash outflow of $88.5 million** from financing activities, which included an **$89 million payment** for contingent consideration related to an earn-out payment to a former owner, and a **net cash outflow of $23.3 million** from investing activities. Although operating activities generated **$26.3 million** in cash, this was not enough to offset the outflows, compounded by an increase in restricted cash holdings. Overall, these factors led to a reduction in cash and cash equivalents from **$192.8 million** at the end of 2023 to **$101.3 million** in Q2 2024.  **[20240808PH79525:7]** **[0001628908-24-000090_evh-20240630.htm:60]** **[0001628908-24-000089_a2q24exhibit991.htm:6]** **[0001628908-24-000090_evh-20240630.htm:5]** **[0001628908-24-000090_evh-20240630.htm:11]** 

Why did cash and cash equivalents fall sharply in Q2 2024?

The decline in total assets in Q2 2024 was mainly driven by a **significant reduction in cash and cash equivalents** (a drop of **$91,575 thousand**), a **decrease in accounts receivable, net** (**$73,024 thousand** decline), an **amortization of intangible assets** (**$40,719 thousand** decrease), and a **reduction in prepaid expenses and other current assets** (down by **$4,388 thousand**).  **[0001628908-24-000089_a2q24exhibit991.htm:6]** **[0001628908-24-000090_evh-20240630.htm:5]** **[20240808PH79525:7]** 

What caused total assets to decline in Q2 2024?

The spike in restricted cash and investments in Q1 2024 was primarily triggered by a significant increase in **claims processing services**. The cash held for these services rose from **$12,263 thousand** to **$49,781 thousand** due to the timing of processing partner claims. There were also smaller changes in collateral for letters of credit and with financial institutions, but the primary driver was the fluctuation in claims processing services amounts.  **[0001628908-24-000053_evh-20240331.htm:11]** 

What triggered the spike in restricted cash and investments in Q1 2024?

The steep drop in right-of-use assets in Q4 2023 was primarily due to the impairment of the Chicago lease—which led to a **$24.1 million write-off** of the associated asset—and the termination of a portion of the Arlington lease, which further contributed to the reduction in asset value.  **[0001628908-24-000017_evh-20231231.htm:106]** **[0001628908-24-000017_evh-20231231.htm:130]** 

Why did right-of-use assets drop steeply in Q4 2023?

The jump in Q1 2024 was driven primarily by **two factors**. First, there was a **new investment of $3.0 million in future equity notes**. Second, the company recognized a **$0.3 million gain** from its equity method investees. Together, these actions increased the balance from **$4,895 thousand** at the end of Q4 2023 to **$8,197 thousand** in Q1 2024.  **[0001628908-24-000051_a1q24exhibit991.htm:5]** **[0001628908-24-000053_evh-20240331.htm:40]** 

What drove the jump in investments in Q1 2024?

594b0cd7202b5ace6a340715696b38a161f0c0ec2e30b1bcc0d0948f915430e4

Evolent Health Inc (EVH)

Financials