Free cash flow remains highly erratic, oscillating between a negative 7.6% margin in 2023Q4 and a 9.8% margin in 2026Q1, complicating the company's consistent capital allocation strategy.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 357M | -535M | 644M | 1.66B | 773M | 2.12B | 1.89B | 427M | -314M | 804M | 673M | 1.13B | 1.06B | 190.08M | 344.3M | 225.4M | 161.65M | 154.98M | 40.43M | 158.63M | 102.32M | 97.26M | 91.05M | 45.55M | 45.73M |
| Operating CF Margin % | - | -1.18% | 1.58% | 4.88% | 2.42% | 7.63% | 9.73% | 2.54% | -1.66% | 4.04% | 3.8% | 7.99% | 10.97% | 2.88% | 5.71% | 4.73% | 3.96% | 4.22% | 1.3% | 6.36% | 5.1% | 5.89% | 7.75% | 5.74% | 7.1% |
| Operating CF Growth % | 284.22% | -183.07% | -61.25% | 115.01% | -63.52% | 12.12% | 342.62% | 235.99% | -139.05% | 19.47% | -40.18% | 6.11% | 457.79% | -44.79% | 52.75% | 39.44% | 4.3% | 283.31% | -74.51% | 55.03% | 5.2% | 6.82% | 99.88% | -0.38% | - |
| Net Income | 188M | 472M | 1.18B | 1.09B | 792M | 659M | 673M | 737M | 707M | -512M | 8M | 143M | 62.22M | 52.93M | 9.79M | 20.82M | 54.97M | 30.87M | 62.4M | 58.33M | 45.73M | 27.6M | 55.77M | 42.52M | 30.51M |
| Depreciation & Amortization | 142M | 195M | 186M | 171M | 176M | 131M | 88M | 89M | 127M | 178M | 182M | 126M | 134.4M | 93.87M | 78.76M | 74.38M | 60.77M | 38.11M | 35.31M | 27.97M | 21.48M | 15.13M | 8.87M | 6.33M | 4.11M |
| Stock-Based Compensation | 33M | 47M | 116M | 115M | 103M | 72M | 57M | 39M | 27M | 46M | 26M | 23M | 21.73M | 28.69M | 20.02M | 17.05M | 9.53M | 7.49M | 7.81M | 7.19M | 5.5M | 1.28M | 179K | 1.24M | 0 |
| Deferred Taxes | -6M | 43M | 53M | -31M | -66M | -24M | -19M | 10M | -6M | -94M | 22M | -7M | -2.35M | -31.05M | -9.89M | 13.84M | -4.09M | -1K | -1.69M | -9.06M | -399K | 1.71M | 2.17M | -101K | -1.33M |
| Other Non-Cash Items | -183M | -3M | 8M | 2M | 216M | 58M | 27M | -15M | 80M | 597M | 47M | 49M | 33.6M | 40.55M | 15.42M | 77.76M | 5.56M | 4.08M | 465K | 1.04M | 885K | 2.89M | 4.48M | 525K | -20.62M |
| Working Capital Changes | 183M | -1.29B | -898M | 314M | -448M | 1.22B | 1.06B | -433M | -1.25B | 589M | 388M | 791M | 810.65M | 5.09M | 230.19M | 21.55M | 34.91M | 74.44M | -63.87M | 73.16M | 29.12M | 48.66M | 19.57M | -4.96M | 33.06M |
| Change in Receivables | 85M | -145M | -78M | -778M | -95M | -415M | -100M | -76M | -530M | 103M | -348M | 56M | -297.52M | -149.25M | 18.22M | -7.54M | -7.54M | -8.09M | -17.02M | 12.1M | -37.48M | -6.97M | 16.74M | -23.04M | -11.35M |
| Change in Inventory | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Change in Payables | 152M | -221M | 115M | 328M | 55M | 138M | 78M | 2M | 45M | -12M | -7M | 82M | 11.1M | 61M | 19.86M | 40.48M | 40.48M | -26.47M | -4.9M | 47.37M | 67.18M | 64.61M | 5.2M | 14.07M | 27.88M |
| Cash from Investing | 446M | 312M | -464M | -744M | -790M | -1.65B | -400M | -293M | 1.14B | -1.07B | -202M | -1.42B | -535.73M | -543.31M | -93.58M | -236.93M | -289.07M | -37.32M | -64.52M | -256.27M | 3.95M | -72.57M | -50.02M | -118.61M | -9.13M |
| Capital Expenditures | -106M | -101M | -100M | -84M | -91M | -77M | -74M | -57M | -30M | -86M | -176M | -132M | -114.93M | -98.05M | -78.14M | -60.58M | -48.54M | -35.87M | -34.69M | -22.3M | -20.3M | -13.96M | -10.77M | -8.35M | -6.21M |
| CapEx % of Revenue | 0.24% | 0.22% | 0.25% | 0.25% | 0.28% | 0.28% | 0.38% | 0.34% | 0.16% | 0.43% | 0.99% | 0.94% | 1.19% | 1.49% | 1.3% | 1.27% | 1.19% | 0.98% | 1.11% | 0.89% | 1.01% | 0.85% | 0.92% | 1.05% | 0.96% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -9M | 1M | 1M | 4M | -50M | -63M | 2M | -2M | -18M | -40M | -15M | -41M | -56.11M | -13.25M | -16.17M | -44.73M | -32.05M | -10.08M | -12.13M | 4.96M | -4.01M | -2.2M | 3.74M | -11.52M | -2.92M |
| Cash from Financing | -337M | -170M | -347M | -58M | -441M | -183M | 217M | -552M | -1.19B | 636M | 19M | 1.08B | 78.64M | 493.35M | 51.23M | 49.47M | 113.81M | -35.32M | -47.81M | 153.06M | 48.18M | -3.55M | 45.19M | 75.61M | -51K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -500M | -1B | -1B | -60M | -400M | -181M | -606M | -47M | 0 | 19M | 18M | 391M | 14M | -117.52M | 5.21M | 347K | 115.19M | -27.71M | -49.94M | 4.26M | 2.42M | 1.87M | 47.28M | 79.58M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -500M | -1B | -1B | -60M | -400M | -128M | -606M | -47M | 0 | 0 | 0 | 0 | 0 | -52.66M | -3M | -7M | 0 | -27.71M | -49.94M | 0 | 0 | 0 | 0 | -40M | 0 |
| Other Financing | -25M | -8M | -87M | 2M | -41M | -19M | -36M | -485M | -531M | -8M | 1M | 5M | -48M | 1.87M | 3.67M | 1.65M | 295K | 2.05M | 2.13M | 853K | 1.23M | 0 | 2.5M | -10.59M | 0 |
| Net Change in Cash | 469M | -393M | -167M | 860M | -458M | 283M | 1.72B | -418M | -364M | 367M | 490M | 790M | 603.17M | 140.13M | 301.94M | 37.94M | -13.62M | 82.34M | -71.9M | 55.41M | 154.45M | 21.13M | 86.22M | 2.55M | 36.55M |
| Free Cash Flow | 251M | -636M | 544M | 1.58B | 682M | 2.04B | 1.82B | 370M | -344M | 718M | 497M | 993M | 945.32M | 92.03M | 266.15M | 164.81M | 113.11M | 119.11M | 5.74M | 136.33M | 82.02M | 83.3M | 80.28M | 37.2M | 39.52M |
| FCF Margin % | 0.56% | -1.4% | 1.34% | 4.63% | 2.13% | 7.35% | 9.35% | 2.2% | -1.82% | 3.61% | 2.81% | 7.06% | 9.78% | 1.4% | 4.41% | 3.46% | 2.77% | 3.25% | 0.18% | 5.47% | 4.09% | 5.05% | 6.83% | 4.69% | 6.13% |
| FCF Growth % | -52.19% | -216.91% | -65.53% | 131.38% | -66.6% | 12.44% | 390.81% | 207.56% | -147.91% | 44.47% | -49.95% | 5.04% | 927.15% | -65.42% | 61.49% | 45.71% | -5.04% | 1974.67% | -95.79% | 66.21% | -1.53% | 3.75% | 115.82% | -5.87% | - |
| FCF per Share | 4.92 | -12.52 | 9.43 | 27.16 | 11.66 | 34.85 | 30.32 | 5.76 | -5.13 | 12.82 | 8.88 | 17.73 | 19.69 | 1.96 | 5.66 | 3.55 | 2.72 | 3.06 | 0.14 | 3.20 | 1.94 | 1.98 | 1.96 | 1.10 | 1.28 |
| FCF Conversion (FCF/Net Income) | 1.34x | -1.13x | 0.55x | 1.52x | 0.98x | 3.22x | 2.81x | 0.58x | -0.44x | -1.57x | 84.13x | 7.87x | 17.04x | 3.59x | 35.17x | 10.83x | 2.94x | 5.02x | 0.65x | 2.72x | 2.24x | 3.52x | 1.63x | 1.07x | 1.50x |
| Interest Paid | 0 | 181M | 121M | 108M | 108M | 127M | 112M | 78M | 93M | 78M | 66M | 38M | 29M | 35M | 10.1M | 11.4M | 10.95M | 0 | 7.8M | 9.42M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 275M | 379M | 405M | 340M | 235M | 321M | 239M | 240M | 7M | 153M | 197M | 30M | 95M | 4.63M | 54.66M | 18.3M | 0 | 50.13M | 27.73M | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in financial statements, Molina's operating cash flow frequently decouples from net income, evidenced by an OCF/NI ratio that swung from a negative 3.19 in 2023Q4 to a positive 77.29 in 2026Q1, suggesting that accounting earnings are poor proxies for actual cash generation.
The extreme variance in the conversion ratio indicates that net income is heavily influenced by non-cash reserve adjustments and timing differences in premium receipts. Investors should monitor whether this volatility reflects genuine operational shifts or merely the accounting noise inherent in medical claims estimation.
Based on recent quarterly data, Molina's free cash flow trajectory remains highly erratic, with margins oscillating between a peak of 9.8% in 2026Q1 and a trough of negative 7.6% in 2023Q4, reflecting the company's inability to maintain consistent cash conversion across varying medical utilization cycles.
The lack of a stable FCF trend suggests that the business model is highly sensitive to the timing of state payments and the settlement of medical liabilities. This inconsistency complicates valuation models that rely on normalized cash flow projections for long-term growth.
According to historical data, Molina's cash flow is dominated by massive working capital fluctuations, such as the $977 million outflow in 2023Q4 followed by an $823 million inflow in 2025Q3, which highlights the significant impact of state-level payment cycles on the company's immediate liquidity position.
These swings suggest that Molina acts as a pass-through entity for state funds, where cash availability is tethered to the administrative efficiency of government payors. Analysts should interpret these movements as structural features of the Medicaid business rather than indicators of operational success or failure.
As indicated by recent SEC filings, Molina has prioritized share repurchases, consistently deploying $500 million per quarter throughout 2024 and 2025, even during periods of negative free cash flow, which warrants further investigation into the sustainability of this capital return strategy given the thin margin profile.
The decision to fund buybacks while operating cash flow remains volatile suggests a management preference for supporting equity value over maintaining a conservative cash buffer. This approach may leave the company vulnerable if medical cost trends necessitate a sudden increase in capital reserves.
Quick answers to the most common questions about buying MOH stock.
Molina Healthcare, Inc. (MOH) generated $-535.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Molina Healthcare, Inc. (MOH) reported negative free cash flow of $636.0M in 2025, indicating capital requirements exceeded cash from operations.
Molina Healthcare, Inc. (MOH) spent $101.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Molina Healthcare, Inc. (MOH) spent $1.00B on share repurchases. This shows the company's commitment to returning capital to its equity investors.