Walgreens Boots Alliance, Inc. has recently released its 10-Q report, providing an in-depth look into the company's financial condition and operations. The company operates as a healthcare, pharmacy, and retail business in the United States, Germany, the United Kingdom, and internationally, with three segments: U.S. Retail Pharmacy, International, and U.S. Healthcare. The U.S. Retail Pharmacy segment offers health and wellness services, specialty, and home delivery pharmacy services, while the International segment operates pharmacy-led health and beauty retail businesses under various brand stores.
In the latest 10-Q report, Walgreens Boots Alliance highlighted various financial factors, trends, and uncertainties affecting its results and comparability. As of May 31, 2025, the company's cash, cash equivalents, and restricted cash amounted to $939 million, a significant decrease from the $3.2 billion reported as of August 31, 2024. The company's short-term investment objectives primarily focus on minimizing risk and maintaining liquidity, with investments mainly in U.S. Treasury money market funds. Walgreens Boots Alliance continues to explore strategic monetization of non-core assets and other investments to provide additional liquidity.
The report also detailed the company's outstanding total debt of $7.4 billion as of May 31, 2025, with a portion classified as current. Additionally, the company entered into an accounts receivable securitization facility with an initial borrowing capacity of $2.5 billion on April 24, 2025. The company had an aggregate borrowing capacity under the Accounts Receivable Facility and other committed revolving credit facilities of $7.0 billion, and as of May 31, 2025, it was in compliance with all applicable financial covenants.
The 10-Q report also addressed the company's operating lease obligations, with outstanding total operating lease obligations of $21.7 billion as of May 31, 2025. It was noted that the company announced the end of the sale-leaseback program beginning in fiscal 2025, focusing on managing and reducing its outstanding lease obligations through initiatives such as the Footprint Optimization Program.
Furthermore, the report delved into the company's liabilities associated with the Multistate Agreement and other opioid-related claims and litigation settlements, amounting to a total of $6.2 billion as of May 31, 2025. The company's financial commitments and settlements related to various litigations and agreements were detailed, including settlements with the Department of Justice and Everly Health Solutions, formerly known as PWNHealth LLC.
The report also provided insights into the company's cash flows from operating, investing, and financing activities, capital expenditure, stock repurchase program, and credit ratings. It highlighted the company's net cash provided by operating activities, cash dividends paid, and stock repurchase program, including the suspension of the company's cash dividend to refine its capital allocation policy and improve free cash flow.
As a result of these announcements, the company's shares have moved -0.35% on the market, and are now trading at a price of $11.31. Check out the company's full 10-Q submission here.
