HCA(HCA) - 2025 Q2 - Quarterly Report

Part I. Financial Information Item 1. Financial Statements (Unaudited) HCA Healthcare's unaudited consolidated financial statements detail performance and position for Q2 and 6M 2025 and 2024. Condensed Consolidated Income Statements HCA Healthcare's income statements detail Q2 and 6M 2025 financial performance, highlighting revenue, net income, and EPS growth. | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Revenues | $18,605 | $17,492 | $36,926 | $34,831 | | Net income attributable to HCA Healthcare, Inc. | $1,653 | $1,461 | $3,263 | $3,052 | | Diluted earnings per share | $6.83 | $5.53 | $13.28 | $11.47 | | Shares used in diluted EPS (millions) | 241.911 | 264.071 | 245.654 | 266.044 | - Revenues increased by $1.113 billion (6.4%) for Q2 2025 and $2.095 billion (6.0%) for the six months ended June 30, 2025, compared to the respective prior-year periods[9] - Net income attributable to HCA Healthcare, Inc. grew by $192 million (13.1%) in Q2 2025 and $211 million (6.9%) for the six months ended June 30, 2025, year-over-year[9] Condensed Consolidated Comprehensive Income Statements Comprehensive income statements detail total comprehensive income, including net income and other income/loss items. | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net income | $1,891 | $1,687 | $3,716 | $3,489 | | Other comprehensive income (loss) | $48 | $0 | $78 | $(8) | | Comprehensive income | $1,939 | $1,687 | $3,794 | $3,481 | | Comprehensive income attributable to HCA Healthcare, Inc. | $1,701 | $1,461 | $3,341 | $3,044 | - Other comprehensive income (loss) before taxes for Q2 2025 was $58 million, primarily driven by foreign currency translation gains of $55 million[11] - Comprehensive income attributable to HCA Healthcare, Inc. increased by $240 million (16.4%) in Q2 2025 and $297 million (9.8%) for the six months ended June 30, 2025, year-over-year[11] Condensed Consolidated Balance Sheets Balance sheets show stable total assets, decreased current assets, increased current liabilities, and negative working capital. | Item | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :-------------------------- | | Total Assets | $59,536 | $59,513 | | Current Assets | $15,563 | $16,414 | | Property and equipment, net | $30,123 | $29,414 | | Goodwill and other intangible assets | $10,273 | $10,093 | | Total Liabilities | $55,775 | $53,958 | | Current Liabilities | $15,939 | $15,177 | | Long-term debt, net | $39,379 | $38,333 | | Stockholders' deficit attributable to HCA Healthcare, Inc. | $(4,394) | $(2,499) | | Noncontrolling interests | $3,156 | $3,054 | - Cash and cash equivalents decreased significantly from $1,933 million at December 31, 2024, to $939 million at June 30, 2025[14] - The company moved from a positive working capital of $1,237 million at December 31, 2024, to a negative working capital of $376 million at June 30, 2025, primarily due to increased short-term borrowings and other accrued expenses, and a decline in cash[14][115] Condensed Consolidated Statements of Stockholders' Equity (Deficit) Stockholders' equity statements detail changes for Q2 and 6M 2025 and 2024, highlighting comprehensive income, share repurchases, and dividends. | Item | Balances, Dec 31, 2024 (Millions) | Balances, June 30, 2025 (Millions) | | :----------------------------------- | :------------------------------- | :------------------------------ | | Common Stock Par Value | $3 | $2 | | Accumulated Other Comprehensive Loss | $(387) | $(309) | | Retained Deficit | $(2,115) | $(4,087) | | Stockholders' Deficit Attributable to HCA Healthcare, Inc. | $(2,499) | $(4,394) | | Noncontrolling Interests | $3,054 | $3,156 | | Total Equity (Deficit) | $555 | $(1,238) | - During the six months ended June 30, 2025, the company repurchased 14.793 million shares of common stock for $5.011 billion[16][104][117] - Cash dividends declared were $0.72 per share for both quarters in 2025, totaling $351 million for the six months ended June 30, 2025[16][117] Condensed Consolidated Statements of Cash Flows Cash flow statements highlight cash sources and uses for 6M 2025 and 2024, showing increased operating cash and higher financing outflows. | Cash Flow Category | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $5,861 | $4,440 | | Net cash used in investing activities | $(2,283) | $(2,235) | | Net cash used in financing activities | $(4,584) | $(2,309) | | Change in cash and cash equivalents | $(994) | $(104) | | Cash and cash equivalents at end of period | $939 | $831 | - Net cash provided by operating activities increased by $1.421 billion, primarily due to a $392 million increase in net income (excluding non-cash impacts of facility sales) and an $853 million decline in income taxes paid due to an IRS deferral[18][115] - Net cash used in financing activities increased by $2.275 billion, driven by $5.011 billion in common stock repurchases and $5.660 billion in long-term debt repayments[18][117] Notes to Condensed Consolidated Financial Statements These notes provide essential disclosures for understanding the financial statements, covering accounting policies, acquisitions, debt, contingencies, and segment information. NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES This note outlines the company's reporting entity, interim financial statement preparation, and revenue recognition policies, including uncompensated care costs. - HCA Healthcare, Inc. operates 191 hospitals, 124 freestanding surgery centers, and 29 freestanding endoscopy centers across 20 states and England as of June 30, 2025[19] Revenues by Primary Third-Party Payer Classification (Q2 2025 vs Q2 2024) | Payer Classification | Q2 2025 Revenue (Millions) | Q2 2025 Ratio | Q2 2024 Revenue (Millions) | Q2 2024 Ratio | | :----------------------------------- | :------------------------ | :------------- | :------------------------ | :------------- | | Managed care and insurers | $9,124 | 49.1% | $8,