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INDV, Indivior Pharmaceuticals Inc.

Indivior Pharmaceuticals, Inc. is the market leader in long-acting injectable medications for opioid use disorder.

For more than 25 years, Indivior has led innovation in addiction medicine, developing differentiated therapeutic solutions that support long-term patient recovery, expand access to care, and drive sustainable value for patients, healthcare systems and stockholders.

Headquartered in the U.S. in Richmond, Virginia, Indivior and its portfolio of products is available primarily in the U.S. with additional products available in Canada, Australia, France, and Germany.

Latest annual: FY2025 10-K

INDV · Indivior Pharmaceuticals Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.2B

+4.3% YoY · 11% 3-yr CAGR

Vital signs · TTM, with 4-yr average

Revenue $1.3B 4-yr avg $1.1B

Gross margin 81% 4-yr avg 82%

Operating margin 25.8% 4-yr avg 0.4%

ROIC 170%

Owner-earnings margin −9% 4-yr avg −8%

Free cash flow margin −15% 4-yr avg −9%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Operating margin has reached 21% at its best but run negative through the cycle (median −9.0%) on a 81% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Inventory runs near 12% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2022–2025

realized figures from each filing · older years to the left

2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
					Income statement
$901M	$1.1B	$1.2B	$1.2B	$1.3B	RevenueRevenue
83%	84%	81%	80%	81%	Gross marginGross mgn
52%	52%	52%	51%	48%	SG&A / revenueSG&A/rev
8%	11%	9%	8%	7%	R&D / revenueR&D/rev
($81M)	($152M)	$38M	$262M	$333M	Operating incomeOp. inc.
−9.0%	−13.9%	3.2%	21.1%	25.8%	Operating marginOp. mgn
($44M)	($126M)	$7M	$210M	$252M	Net incomeNet inc.
—	—	—	12%	15%	Effective tax rateTax rate
					Cash flow & returns
($4M)	($300M)	$36M	($27M)	($111M)	Operating cash flowOp. cash
$16M	$15M	$16M	$10M	$9M	DepreciationDeprec.
$8M	($210M)	($11M)	($273M)	($401M)	Working capital & otherWC & other
$5M	$8M	$29M	$66M	$81M	CapexCapex
0.6%	0.7%	2.4%	5.3%	6.3%	Capex / revenueCapex/rev
($9M)	($308M)	$20M	($37M)	($120M)	Owner earningsOwner earn.
−1.0%	−28.2%	1.7%	−3.0%	−9.3%	Owner earnings marginOE mgn
($9M)	($308M)	$7M	($93M)	($192M)	Free cash flowFCF
−1.0%	−28.2%	0.6%	−7.5%	−14.9%	Free cash flow marginFCF mgn
$0	$129M	$0	$0	$0	AcquisitionsAcquis.
$90M	$33M	$173M	$11M	—	BuybacksBuybacks
					Balance sheet
$774M	$410M	$320M	$195M	$175M	Cash & investmentsCash+inv
—	$254M	$254M	$253M	$273M	ReceivablesReceiv.
—	$126M	$167M	$153M	$152M	InventoryInvent.
—	$39M	$63M	$48M	$35M	Accounts payablePayables
—	$341M	$358M	$358M	$390M	Operating working capitalOper. WC
—	$1.3B	$827M	$652M	$667M	Current assetsCur. assets
—	$1.3B	$924M	$914M	$779M	Current liabilitiesCur. liab.
—	1.0×	0.9×	0.7×	0.9×	Current ratioCurr. ratio
—	$5M	$2M	$2M	$2M	GoodwillGoodwill
—	$1.8B	$1.3B	$1.2B	$1.2B	Total assetsAssets
—	$240M	$333M	$319M	$486M	Total debtDebt
—	($170M)	$13M	$124M	$311M	Net debt / (cash)Net debt
-3.0×	-4.3×	0.9×	5.8×	8.3×	Interest coverageInt. cov.
($15M)	($184M)	($337M)	($98M)	($144M)	Shareholders’ equityEquity
1.8%	1.9%	2.0%	2.1%	2.2%	Stock comp / revenueSBC/rev
					Per share
139M	137M	133M	128M	129M	Shares out (diluted)Shares
$6.48	$7.98	$8.93	$9.68	$10.00	Revenue / shareRev/sh
$-0.32	$-0.92	$0.05	$1.64	$1.95	EPS (diluted)EPS
$-0.06	$-2.25	$0.15	$-0.29	$-0.93	Owner earnings / shareOE/sh
$-0.06	$-2.25	$0.05	$-0.73	$-1.49	Free cash flow / shareFCF/sh
$0.04	$0.06	$0.22	$0.52	$0.63	Cap. spending / shareCapex/sh
$-0.11	$-1.34	$-2.53	$-0.77	$-1.12	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	3-yr	5-yr
Revenue / share	+14.3%/yr	+14.3%/yr (3-yr)
Capital spending / share	+142.9%/yr	+142.9%/yr (3-yr)

The record, charted

FY2022–2025

Each measure over its full record; the current point and the worst year marked.

Share count

128Mpeak FY2022

Gross margin

80%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($37M)owner earningsvs.$210Mnet incomelow FY2023

Owner-earnings bridge

FY2022–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned ($37M) of owner earnings, the operating cash left after the $10M it takes just to hold its position. It put $56M more into growth; free cash flow, after that spending, was ($93M).

	FY2025	FY2024	FY2023	FY2022
Reported net income	$210M	$7M	($126M)	($44M)
Depreciation & amortizationnon-cash charge added back	+$10M	+$16M	+$15M	+$16M
Stock-based compensationreal costnon-cash, but a real cost	+$26M	+$24M	+$21M	+$16M
Working capital & othertiming of cash in and out, other non-cash items	−$273M	−$11M	−$210M	+$8M
Cash from operations	($27M)	$36M	($300M)	($4M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$10M	−$16M	−$8M	−$5M
Owner earnings	($37M)	$20M	($308M)	($9M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$56M	−$13M	—	—
Free cash flow	($93M)	$7M	($308M)	($9M)
Owner-earnings marginowner earnings ÷ revenue	-3%	2%	-28%	-1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $10M, roughly its depreciation, the rate its assets wear out). The other $56M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $26M), owner earnings is nearer ($63M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 5.8×

Comfortable

Operating income $262M ÷ interest expense $45M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $124M · 0.5× operating profit

Modest net debt

Cash $195M − debt $319M

What this means
Netting $195M of cash and short-term investments against $319M of debt leaves $124M owed, about 0.5× a year's operating profit (1.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 230d

Long (60+ days)

DSO 75 + DIO 227 − DPO 71 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median -7%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin -3%

Consumes cash through the cycle

4-yr median margin, range -28%–2%; latest ($37M) = operating cash ($27M) − maintenance capex $10M

Industry peers: median 3%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -3% of revenue this year, a -3% median across 4 years. It chose to put $56M more into growth, so free cash flow this year was ($93M) — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $26M of SBC) leaves ($63M).
Are earnings backed by cash? -0.13×

Thinly cash-backed

Cash from ops ($27M) ÷ net income $210M

In the filing’s words Read against the cash, reported earnings have run ahead of the operating cash the business generated over the record — about 10% of assets a year, among the widest gaps in the catalogue, and a manipulation screen of eight balance-sheet ratios trips here too. For an inventory- or content-heavy grower that can be cash tied up in real assets as it expands; elsewhere it can mean the earnings lean on accounting estimates — the cash-flow statement against the income statement is where to tell which.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 6.60×

Expanding

Capex $66M ÷ depreciation $10M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.2B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.71×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $319M vs ($262M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.25/share (latest year $1.72), the averaged base the calculator's gate runs on, and book value is $-0.80/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2022–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 4

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Operating margin −11% → 12% (2-yr avg ends)

What this means
Through the cycle the operating margin widened — about −11% early to 12% lately, median −9% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2023 · −13.9% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
Share count −2.7%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$667M

Cash & short-term investments$175M
Receivables$273M
Inventory$152M
Other current assets$67M

Current liabilities$779M

Accounts payable$35M
Other current liabilities$744M

Current ratio0.86×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.66×stricter: inventory excluded

Cash ratio0.22×strictest: cash alone against what's due

Working capital($112M)the cushion left after near-term bills

Cash runway0.9 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Revenue, latest quarter vs. a year ago+19.2%the freshest read on whether the business is still growing

Current ratio, recent quarters0.9× → 0.9×

Deeper floors

Tangible book value($146M)equity stripped of goodwill & intangibles

Net current asset value($674M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$509M$23M of it operating leases

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2023	Mark Crossley	$4.4M	−$5.5M	($308M)
2024	Mark Crossley	$3.9M	$1.2M	$20M
2025	Joe Ciaffoni	$18.5M	$63.3M	($37M)
2025	Mark Crossley	$3.2M	$19.3M	($37M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Stock-based compensation$26M
The slice of the business handed to employees in shares this year, 2% of revenue, equal to 10% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Indivior Pharmaceuticals Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2022–2025.

1 of the 3 tests turned up something to look into; the other 2 came back clean.

Look hereDid reported profit become cash?-6.28×
Across the record the business reported $47M of net income but generated ($295M) of operating cash, a -6.28-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.

And these came back clean

Is it less profitable than it was?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$658M · 51% of revenue on the largest customers (TTM)
“Our three largest customers (which are wholesale pharmaceutical companies in the U.S.) accounted for 51%, 55%, and 54% of global net revenues in 2025, 2024, and 2023, respectively.”verify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ALKSAlkermes	$1.5B	84%	-4.8%	-7%	3%
PAHCPhibro Animal Health Corporation	$1.3B	32%	8.8%	16%	3%
INDVIndivior Pharmaceuticals Inc.	$1.2B	82%	-2.9%	—	-2%
PBHPrestige Consumer Healthcare	$1.1B	56%	29.0%	8%	21%
ACADACADIA Pharmaceuticals Inc.	$1.1B	94%	-54.1%	-48%	-29%
MDGLMadrigal Pharmaceuticals Inc.	$958M	99%	-276.4%	-61%	-254%
IONSIonis Pharmaceuticals	$944M	99%	-16.9%	-11%	-14%
ANIPANI Pharmaceuticals Inc.	$883M	62%	8.8%	4%	17%
Group median	—	83%	-3.8%	—	0%

The price

What a price has to assume.

What the price implies

reverse-DCF

Indivior Pharmaceuticals Inc. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0%

Revenue, delivered11%/yr’22→’25

Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−15%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh INDV against another business →

The owners of INDV: the meeting and the votes →

Cite: Owner Scorecard, "Indivior Pharmaceuticals Inc. (INDV), the owner's record," https://ownerscorecard.com/c/INDV, data as of 2026-07-09.

Manual order: ← INDI its page in the Manual INGM →

Industry order: ← INCR the Pharmaceuticals chapter INSM →