Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

The financial data presents several notable trends and fluctuations in the company’s quarterly performance and cash flow activities over the observed periods.

Net Income

Net income exhibits significant volatility, with peaks reaching above $3 billion in mid-2021 and troughs near $800 million in several quarters, including early 2023 and 2025. Despite the fluctuations, the company maintains a generally positive net income each quarter, indicating consistent profitability.

Depreciation and Amortization

There is a steady upward trend in depreciation and amortization expenses over the periods, rising from approximately $56 million in early 2020 to around $137 million in late 2025. This upward movement suggests increasing capital asset base or intangible assets being amortized.

Stock-Based Compensation Expense

This expense shows a general increase from approximately $106 million in early 2020 to over $300 million in 2025, with fluctuations along the way. This could reflect growth in workforce incentives or changes in stock-based remuneration policies.

Gains/Losses on Marketable and Other Securities

The gains and losses on securities demonstrate a highly volatile pattern, including substantial impairments and gains affecting quarterly results. Significant losses occurred in some quarters, for example, mid-2023 and late 2025, while gains were recorded in other periods, indicating active portfolio management and varying market valuations.

Working Capital Changes (Accounts Receivable, Inventories, Prepaid Expenses, Deferred Revenue, and Accounts Payable)

Working capital components have experienced sharp swings. Accounts receivable show large negative changes in some quarters, particularly mid-2021 and early 2024, indicating collections or changes in sales timing. Inventories exhibit mostly decreases, suggesting efficient inventory management or sales growth. Prepaid expenses and other assets fluctuate considerably, reflecting variable operational prepayments. Deferred revenue changes vary with some quarters showing increases, indicative of prepaid customer receipts. Changes in accounts payable and accrued expenses reveal substantial variability, with sizeable increases in liabilities in certain periods, impacting cash flows.

Net Cash Provided by Operating Activities

Operating cash flow generally remains positive, ranging from negative in one instance early 2020 to peaks above $3 billion in late 2021. Despite volatility, the company consistently generates strong operating cash flow, supporting operational sustainability and investment capacity.

Investing Activities

Investing cash flows are predominantly negative, driven largely by significant purchases of marketable and other securities, and capital expenditures which remain substantial but relatively stable over time. Sales or maturities of securities partially offset purchases but do not fully compensate for outflows. Payments for intangible assets and acquisitions cause additional capital deployment, suggesting strategic investments in growth and innovation.

Financing Activities

Financing cash flows exhibit variability, with notable issuances of common stock in multiple quarters supporting capital needs. Repurchases of common stock occur regularly, often in large amounts, indicating active capital return strategies, although with some fluctuations in intensity. Occasional issuance of long-term debt and short-term bridge loan facilities appear in 2020, followed by repayments, reflecting tactical financing decisions. Dividend payments begin appearing in 2025, demonstrating a formalized shareholder return policy. Overall, financing activities fluctuate between cash inflows and outflows, balancing capital structure considerations.

Cash and Cash Equivalents

The net change in cash and cash equivalents shows periods of both increase and decrease, with sharp declines in some quarters (notably mid-2023) and significant increases in others (late 2021 and early 2023). This reflects the combined effects of the volatile investing and financing activities alongside a generally positive operating cash flow.

In summary, the company’s financials illustrate robust profitability with substantial and consistent operating cash generation. Investing outflows are high due to securities purchases, capital expenditures, and acquisitions, partially offset by securities sales. Financing activities alternate between capital raising through stock issuance and stock repurchases, with emerging dividend payments. The financial strategy appears focused on balancing growth investments with shareholder returns, amidst a dynamic environment of marketable securities valuations. Working capital components and non-cash charges also contribute to fluctuations in cash flow across quarters.