Indivior (INDV) Financials

INDIVIOR PLC (NASDAQ: INDV) reported its Q1 2025 financial results showing several key trends across its income statement, cash flow, and balance sheet that retail investors should consider.

• Strong operating revenue of $266 million with a robust gross profit margin, as total gross profit stood at $221 million indicating efficient cost management of direct costs.
• Net income from continuing operations was $47 million, yielding basic and diluted EPS of $0.38, reflecting profitable operations for the quarter.
• Net cash from operating activities was $75 million, a strong cash generation indicating healthy operational cash flows supporting business sustainability.
• Positive working capital management reflected in current assets totaling $883 million, which exceeds current liabilities at $1,005 million by a moderate margin providing liquidity buffer.
• Research & Development expense was $22 million, consistent with ongoing investment in innovation required for sustainability in the pharmaceutical sector.
• Interest expense was $12 million against interest & investment income of $4 million, resulting in a net interest cost pressure but manageable at current levels.
• Property, Plant & Equipment net book value is $104 million, indicating continued investments in fixed assets to support production capacity.
• Total liabilities ($1.66 billion) significantly exceed total assets ($1.38 billion), resulting in negative shareholders’ equity of approximately -$285 million, which may raise concerns about the company's leverage and balance sheet solvency.
• High accrued expenses of $675 million dominate current liabilities, representing a large portion of the company's short-term obligations that warrant monitoring for cash flow impacts.
• Net cash used in financing activities was $17 million, including $11 million spent on repurchase of common equity and $4 million repayment of debt, suggesting capital return to shareholders but also repayment pressures.

Overall, INDIVIOR shows solid profitability and strong operational cash flow for Q1 2025, which supports day-to-day operations and growth investment. However, the significant negative equity position and high liabilities highlight a potential risk that investors should keep under review relative to the company’s future financing and strategic plans.