CNC · 10-Q · 2026Q1 · Full report
Liquidity and cash position
CENTENE CORP · 2026-04-28 · Importance 83 · Surprise 82
Operating activities provided cash of $4.4 billion in the three months ended March 31, 2026, compared to $1.5 billion in the prior year period, driven by net earnings, the partial sale of 2025 CMS PDP receivables, and timing of payments. As of March 31, 2026 Centene reported unregulated cash and investments of $1.5 billion (including $593 million cash and $940 million investments) with $437 million available for general corporate use, and stated its operating plan expects available cash, operations and Revolving Credit Facility access will be sufficient to fund operations and capex for at least 12 months from filing. Investing activities provided cash in the quarter (driven by reductions to regulated subsidiaries' investment portfolios) and Centene expects to receive approximately $1.4 billion of net dividends from insurance subsidiaries during the remainder of 2026 and to spend approximately $600 million of additional capital expenditures. Management notes potential actions including increased borrowings on the Revolving Credit Facility or other capital markets activity if appropriate.
Key facts
- Company expects net dividends of approximately $1.4 billion from its insurance subsidiaries during the remainder of 2026.
- Working capital at March 31, 2026: $4.9 billion, compared to $3.7 billion at December 31, 2025.
- Company expects to spend approximately $600 million in additional capital expenditures during the remainder of 2026, primarily for system enhancements and computer hardware and software.
- Centene expects available cash, cash equivalents and investments, cash from operations and cash available under the Revolving Credit Facility to be sufficient to finance operations and capital expenditures for at least 12 months from the date of the filing.
- Debt-to-capital ratio at March 31, 2026: 43.2%, compared to 46.5% at December 31, 2025.
- The company may elect to increase borrowings on the Revolving Credit Facility which matures in March 2030.
- As of March 31, 2026, no borrowing outstanding under Revolving Credit Facility and $2.0 billion borrowings under the Term Loan Facility.
- Unregulated cash and investments at March 31, 2026: $1.5 billion, including $593 million of cash and cash equivalents and $940 million of investments.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +1.5% | Working capital at March 31, 2026: $4.9 billion, compared to $3.7 billion at December 31, 2025. |
| cash | positive | committed | +1.5% | Company expects net dividends of approximately $1.4 billion from its insurance subsidiaries during the remainder of 2026. |
| cash | negative | committed | -0.6% | Company expects to spend approximately $600 million in additional capital expenditures during the remainder of 2026, primarily for system… |
| assets | positive | committed | +0.6% | Company expects to spend approximately $600 million in additional capital expenditures during the remainder of 2026, primarily for system… |
| liability | positive | realized | — | Debt-to-capital ratio at March 31, 2026: 43.2%, compared to 46.5% at December 31, 2025. |