| Indirect Cash Flow |
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, | | 2026 | | 2025 | | Cash flow from operating activities: | | | | Consolidated net income(1) | $ | 549,741 | | | $ | 527,068 | | | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | Income from financial royalty assets | (1,233,019) | | | (1,089,908) | | | Provision for changes in expected cash flows from financial royalty assets | 70,732 | | | (331,078) | | | | | | | Provision for credit losses on unfunded commitments | 9,368 | | | 92,535 | | | Share-based compensation | 229,059 | | | 91,284 | | | Amortization of debt discount and issuance costs | 11,519 | | | 10,586 | | | | | | (Gains)/losses on equity securities | (48,990) | | | 76,431 | | | Equity in earnings of equity method investees | (25,835) | | | (9,136) | | | | | | | | | | | Distributions from equity method investees | 24,738 | | | 13,396 | | | | | | | | | | | | | | | Amortization of prepaid expenses | 3,882 | | | 2,665 | | | Losses on available for sale debt securities | 41,560 | | | 30,701 | | | | | | | | | | | Depreciation | 2,465 | | | 1,379 | | | Financial royalty asset impairment | 69,443 | | | — | | | Other | 5,307 | | | 2,658 | | | Changes in operating assets and liabilities: | | | | | Cash collected on financial royalty assets | 1,730,450 | | | 1,556,262 | | | | | | | | | | | | | | | Other royalty income receivable | (2,158) | | | (787) | | | Other current assets | (3,602) | | | (1,467) | | | Other assets | (294) | | | 381 | | | Accounts payable and accrued liabilities | 3,056 | | | 3,697 | | | Interest payable | (3,052) | | | (16,275) | | | Other current liabilities | 14,258 | | | — | | | Other liabilities | (1,934) | | | (332) | | | Net cash provided by operating activities | $ | 1,446,694 | | | $ | 960,060 | |
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