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Encompass Health cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$128M in Q3 2026 · $457M over twelve months

Operating cash flow$362M
Capital spending−$234M
Free cash flow+$128M
Cash / net income1.8×

Analysis

In Q3 2026, Encompass Health generated $362M of operating cash flow and spent $234M on capital projects, leaving free cash flow of $128M. That is $43.8M more than in Q3 2025 ($83.7M).

Over the twelve months to Sep 30, 2026, operating cash flow was $1.3B; the largest uses were capital spending ($846M), net borrowing (+) / repaid (−) ($447M), buybacks ($280M); besides operations, cash came from other financing ($589M); the cash balance rose by $6.5M.

Operating cash flow was $362M against net income of $204M — 1.8× profit, cash ran ahead of reported earnings. The largest differences: depreciation & amortization +$95.7M, other liabilities +$35.5M, receivables −$26.1M.

Free cash flow

Encompass Health: free cash flow by quarterEncompass Health: free cash flow by quarter$80.1MQ4 2024$126MQ1 2025$113MQ2 2025$83.7MQ3 2025$117MQ4 2025$151MQ1 2026$62.3MQ2 2026$128MQ3 2026
Operating cash flow less capital spending.
Encompass Health: operating cash flow against capital spendingEncompass Health: operating cash flow against capital spendingOperating cash flowCapital spending$279M$199MQ4 2024$289M$163MQ1 2025$270M$157MQ2 2025$271M$187MQ3 2025$346M$229MQ4 2025$313M$162MQ1 2026$283M$220MQ2 2026$362M$234MQ3 2026
Latest (Q3 2026): Operating cash flow $362M, Capital spending $234M.

Capital allocation, year by year

Encompass Health: where the cash came from (up) and went (down), by fiscal yearEncompass Health: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingCapital spendingAcquisitionsBuybacksDividendsFY2021: Operating cash flow $716MFY2021: Net borrowing −$59.1MFY2021: Capital spending −$546MFY2021: Acquisitions −$1.1MFY2021: Dividends −$112M$716MFY2021FY2022: Operating cash flow $706MFY2022: Net borrowing −$510MFY2022: Capital spending −$584MFY2022: Dividends −$99.0M$706MFY2022FY2023: Operating cash flow $851MFY2023: Net borrowing −$83.3MFY2023: Capital spending −$583MFY2023: Dividends −$60.4M$851MFY2023FY2024: Operating cash flow $1.0BFY2024: Net borrowing −$242MFY2024: Capital spending −$642MFY2024: Buybacks −$31.1MFY2024: Dividends −$62.8M$1.0BFY2024FY2025: Operating cash flow $1.2BFY2025: Net borrowing −$29.0MFY2025: Capital spending −$736MFY2025: Buybacks −$158MFY2025: Dividends −$71.1M$1.2BFY2025
Over these 5 years operating cash flow totalled $4.5B; the largest uses were capital spending ($3.1B) and net borrowing ($923M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$76.2M
Debt$2.6B
Net debt$2.5B
Due within a year$47.8M

Encompass Health funds itself: free cash flow was $457M over the last twelve months, and $76.2M of cash and investments stands against $2.6B of debt ($47.8M due within a year, 1.6× covered by cash).

Where the cash came from and went

Encompass Health: sources (+) and uses (−) of cash, Q3 2026Encompass Health: sources (+) and uses (−) of cash, Q3 2026Operating cash flow$362MCapital spending−$234MBuybacks−$57.9MPartners−$43.7MNet borrowing (+) / repaid (−)−$35.7MCash drawn (+) / kept (−)$33.3MDividends−$18.7MOther investing−$7.1MOther financing$2.3M
Encompass Health: sources (+) and uses (−) of cash, TTM to Q3 2026Encompass Health: sources (+) and uses (−) of cash, TTM to Q3 2026Operating cash flow$1.3BCapital spending−$846MOther financing$589MNet borrowing (+) / repaid (−)−$447MBuybacks−$280MPartners−$184MDividends−$76.9MTaxes on employees’ shares−$31.0MOther investing−$20.2MCash drawn (+) / kept (−)−$6.5M

From profit to cash

Encompass Health: net income to operating cash flow, Q3 2026Encompass Health: net income to operating cash flow, Q3 2026Net income$204MDepreciation & amortization$95.7MStock-based pay$15.0MDeferred taxes−$3.8MGains on investments$800KOther non-cash$2.9MReceivables−$26.1MPayables$23.2MPrepaid and other assets$7.6MOther liabilities$35.5MOperating cash flow$362M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingBuybacksDividendsNet borrowing (+) / repaid (−)Cash drawn (+) / kept (−)Free cash flow
Q3 2026$362M−$234M−$57.9M−$18.7M−$35.7M$33.3M$128M
Q2 2026$283M−$220M−$74.2M−$18.9M−$20.0M$29.9M$62.3M
Q1 2026$313M−$162M−$71.6M−$20.3M$90.0M−$60.5M$151M
Q4 2025$346M−$229M−$76.3M−$19.0M$43.8M−$9.2M$117M
Q3 2025$271M−$187M−$24.9M−$17.0M−$28.6M$43.7M$83.7M
Q2 2025$270M−$157M−$24.7M−$17.1M—−$14.6M$113M
Q1 2025$289M−$163M−$32.1M−$18.0M−$20.0M$300K$126M
Q4 2024$279M−$199M−$7.5M−$17.0M−$87.4M$75.8M$80.1M

Encompass Health: income statement and cash flow

Encompass Health, Q3 2026: revenue $1.6B (+9% year over year), operating margin 17.9%. The chart follows the revenue to costs, profit and cash.

Encompass Health: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.