Elanco added roughly $300 million of revenue from the comparable three-month period. Its accounts receivable balance added roughly $200 million, reaching $1.1 billion from $894 million a year earlier. The animal-health company is growing, but the invoices are arriving with it.
The latest 10-Q shows revenue rising to $1.4 billion from $1.1 billion, gross profit climbing 29.3%, and net income swinging from a $34 million loss to $57 million of profit. Gross margin improved by 3.9 percentage points to 57.3%.
Management points to products and volume. The filing credits Zenrelia and AdTab, along with higher parasiticide sales and purchases from two new corporate retail customers.
"Higher volumes were primarily driven by new products, led by Zenrelia and AdTab, and higher parasiticide sales, including increased purchases by a couple new corporate retail customers."
Elanco, Form 10-Q, May 6, 2026
That makes the sales increase legible: newer products and additional retail demand supplied the lift. It also leaves a practical question in the numbers. Receivables grew slightly faster than revenue, and Elanco does not say why.
Cash moved in the opposite direction, falling to $428 million. Free cash flow margin was negative 2.8%, down 9.4 percentage points from the comparable period, even as capital spending fell 76.2% year over year. The company ended the latest period with more reported profit, but less cash on the balance sheet.
Elanco says operating cash flow increased because non-cash expenses rose relative to net income, with working-capital changes partly offsetting that increase.
"The increase in cash provided by operating activities was primarily driven by an increase in non-cash expenses relative to net income, partially offset by changes in working capital."
Elanco, Form 10-Q, May 6, 2026
That distinction matters. Operating cash flow improved on the company’s stated measure, while the cash balance and free-cash-flow margin moved lower. The filing gives a reason for the direction of operating cash flow, but not a full explanation for the working-capital drag.
The latest result also sits against a quieter annual pattern. Elanco’s own results show revenue of $4.7 billion in 2025, up 6.2% from the prior year, while net margin was negative 4.9%. The three-month period is therefore a sharper burst of growth and profitability than the recent full-year record, with cash conversion not moving in the same direction.
Elanco’s next quarterly report will put one factual comparison on the table: whether accounts receivable and free cash flow margin continue to move differently from the product-led sales growth described here.
Elanco sold more, earned more, and kept less cash.