Indirect Cash Flow

Adjustments to reconcile consolidated net income to net cash provided by operating activities are summarized below (in thousands):


	For the Six Months Ended June 30,
	2025		2024
Cash flow from operating activities:
Consolidated net income	$	524,068	$	190,104
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Income from financial royalty assets	(1,089,908)		(1,054,411)

Provision for changes in expected cash flows from financial royalty assets	(331,078)		796,029

Provision for credit losses on unfunded commitments	92,535		—
Share-based compensation	91,284		1,293
Amortization of debt discount and issuance costs	10,586		8,908

Losses on derivative financial instruments	3,000		—
Losses/(gains) on equity securities	76,431		(30,606)
Equity in (earnings)/losses of equity method investees	(9,136)		12,446


Distributions from equity method investees	13,396		13,396




Amortization of prepaid expenses	2,665		—


Losses/(gains) on available for sale debt securities	30,701		(46,220)


Depreciation	1,379		—

Other	2,658		(3,004)
Changes in operating assets and liabilities:
Cash collected on financial royalty assets	1,556,262		1,414,324



Other royalty income receivable	(787)		(1,175)
Other current assets	(1,467)		15,772
Other assets	381		—
Accounts payable and accrued liabilities	3,697		(3,620)
Interest payable	(16,275)		4,570

Other liabilities	(332)		5,041
Net cash provided by operating activities	$	960,060	$	1,322,847

Non-cash investing and financing activities are summarized below (in thousands):


	For the Six Months Ended June 30,
	2025		2024
Accrued purchase obligation - frexalimab(1)	$	—	$	97,493

(1)Related to transaction costs from the acquisition of frexalimab that were unpaid as of June 30, 2024.