NYSE:MOH
MOLINA HEALTHCARE, INC.
A premier U.S. managed care organization specializing in Medicaid and Medicare Advantage plans with over $45B in annual revenue and a dominant market presence.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Molina due to its entrenched market leadership in the essential Medicaid sector which offers defensive characteristics against economic downturns, coupled with a proven track record of revenue expansion through organic growth and strategic acquisitions totaling $245M recently. The company's massive cash position of $4.25B and ability to generate substantial operating profits provide a solid foundation for shareholder returns via share repurchases exceeding $1B.
Bear Case
The sharp decline in net income to $472M from $1.18B the previous year highlights significant earnings instability that could deter growth-oriented investors seeking consistent profitability. High levels of current liabilities relative to assets and negative operating cash flow raise questions about liquidity management and the sustainability of current reimbursement models under increasing regulatory scrutiny.
About MOLINA HEALTHCARE, INC.
Molina Healthcare Inc. is a leading healthcare management company providing managed care services to millions of members across the United States, primarily serving Medicaid and Medicare Advantage populations. The company operates through distinct business segments including Medicaid Health Plans, Medicare Health Plans, and Commercial Health Plans, delivering comprehensive medical, pharmacy, and behavioral health benefits. With a massive revenue base exceeding $45 billion in 2025, Molina leverages advanced data analytics and a vast provider network to manage costs and improve patient outcomes.
Analysis
Management Discussion
While the company demonstrated robust top-line growth with revenue rising from $31.97B in 2022 to $45.43B in 2025, net income volatility remains a concern as profit dropped sharply to $472M in 2025 from over $1B in prior years. Operating cash flow turned negative at -$535M despite strong operating profits, largely driven by significant non-cash adjustments and working capital changes, suggesting aggressive balance sheet management or timing differences in claims payments.
Industry Overview
The U.S. managed care industry is characterized by intense competition among large health plans while navigating strict government oversight for Medicaid and Medicare programs. Consolidation trends continue as smaller plans struggle with rising medical costs, creating opportunities for larger players like Molina to expand market share through economies of scale and specialized service offerings.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $31.97B | $34.07B | $40.65B | $45.43B |
| Cost of Revenue | $27.18B | $28.67B | $34.43B | $39.49B |
| Gross Profit | $4.80B | $5.40B | $6.22B | $5.94B |
| Operating Expenses | $3.63B | $3.83B | $4.51B | $5.16B |
| Operating Income | $1.17B | $1.57B | $1.71B | $781.0M |
| G&A | $2.31B | $2.46B | $2.74B | $3.01B |
| Stock-Based Comp | $103.0M | $115.0M | $116.0M | $47.0M |
| D&A | $176.0M | $171.0M | $186.0M | $195.0M |
| Depreciation | $17.0M | $10.0M | $16.0M | $7.0M |
| Amortization | $77.0M | $85.0M | $82.0M | $91.0M |
| Other OpEx | $1.31B | $1.37B | $1.77B | $2.15B |
| Non-Operating Income | $-110.0M | $-109.0M | $-118.0M | $-192.0M |
| Interest Expense | $110.0M | $109.0M | — | — |
| Pre-Tax Income | $1.06B | $1.46B | $1.59B | $589.0M |
| Income Tax | $271.0M | $373.0M | $410.0M | $117.0M |
| Continuing Ops | $792.0M | $1.09B | $1.18B | $472.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $792.0M | $1.09B | $1.18B | $472.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $792.0M | $1.09B | $1.18B | $472.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $10.08B | $12.54B | $12.77B | $12.44B |
| Cash & Equivalents | $4.01B | $4.85B | $4.66B | $4.25B |
| Marketable Securities | $3.50B | $4.26B | $4.33B | $4.01B |
| Prepaid Expenses | $277.0M | $331.0M | $487.0M | $655.0M |
| Other Current Assets | $2.30B | $3.10B | $3.30B | $3.53B |
| Long-Term Assets | $2.23B | $2.35B | $2.86B | $3.12B |
| Goodwill | $1.11B | $1.24B | $1.67B | $1.96B |
| Operating Leases | — | — | — | $30.0M |
| Other LT Assets | $1.11B | $1.11B | $1.19B | $1.13B |
| Total Assets | $12.31B | $14.89B | $15.63B | $15.56B |
| Current Liabilities | $6.86B | $8.17B | $7.90B | $7.37B |
| Current Leases | $41.0M | $20.0M | $15.0M | $15.0M |
| Deferred Revenue | $359.0M | $418.0M | $51.0M | $66.0M |
| Other Current Liab | $6.46B | $7.73B | $7.83B | $7.29B |
| Long-Term Liabilities | $2.50B | $2.51B | $3.24B | $4.12B |
| Long-Term Debt | $2.18B | $2.18B | $2.92B | $3.77B |
| LT Operating Leases | $77.0M | $85.0M | $68.0M | $56.0M |
| Other LT Liab | $242.0M | $244.0M | $247.0M | $301.0M |
| Total Liabilities | $9.35B | $10.68B | $11.13B | $11.49B |
| Shareholders' Equity | $2.96B | $4.21B | $4.50B | $4.07B |
| Retained Earnings | $2.80B | $3.89B | $4.09B | $3.60B |
| AOCI | $-160.0M | $-82.0M | $-57.0M | $15.0M |
| Total L&E | $12.31B | $14.89B | $15.63B | $15.56B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $792.0M | $1.09B | $1.18B | $472.0M |
| Non-Cash Adjustments | $-503.0M | $-1.27B | $-307.0M | $-452.0M |
| Working Capital Changes | $484.0M | $1.84B | $-228.0M | $-555.0M |
| Cash from Operations | $773.0M | $1.66B | $644.0M | $-535.0M |
| Capital Expenditures | $91.0M | $84.0M | $100.0M | $101.0M |
| Cash from Investing | $-790.0M | $-744.0M | $-464.0M | $312.0M |
| Share Buybacks | $400.0M | $0 | $1.00B | $1.00B |
| Cash from Financing | $-441.0M | $-58.0M | $-347.0M | $-170.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-458.0M | $860.0M | $-167.0M | $-393.0M |
| Beginning Cash | $4.51B | $4.05B | $4.91B | $4.74B |
| Ending Cash | $4.05B | $4.91B | $4.74B | $4.35B |
Frequently Asked Questions
How does MOLINA HEALTHCARE, INC. make money?
Medicaid Health Plans serving low-income populations, Medicare Advantage plans for seniors, Commercial Health Plans for employer groups, and specialized behavioral health services including the Molina Behavioral Health segment which addresses high-cost care needs.
What are the main risks for MOH?
Heightened regulatory risk from federal and state changes to Medicaid funding and reimbursement rates which could impact margins, potential increases in medical inflation affecting cost of revenue significantly, exposure to litigation regarding network adequacy and care quality standards, and macroeconomic pressures potentially reducing commercial plan enrollment or premium growth.
What is MOH's competitive advantage?
Proprietary data analytics platforms that optimize clinical outcomes and operational efficiency across a massive member base, an extensive network of independent healthcare providers ensuring access to care, and deep expertise in navigating complex government reimbursement regulations for Medicaid and Medicare.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.