AI Takeaway
Humana's FY2025 10-K shows revenue grew 10.1% to $129.7B, but net income declined 1.6% to $1.19B as surging medical costs and a 12.8% jump in SG&A compressed margins and caused operating cash flow to plunge 68.9% to $921M.
Revenue
$129.66B
++10.11% YoY
EPS (Basic)
$9.87
-1.40% YoY
Operating Income
$2.7B
++5.54% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue increased $11.9B (+10.1%) year-over-year to $129.7B, reflecting continued growth in Humana's government-sponsored health plan membership, particularly in Medicare Advantage, which remains the company's core growth engine.
Source: Source: 10-K Income Statement / Revenue Data
Despite revenue growth, operating margin contracted from 2.18% to 2.09%, and net income fell 1.6% to $1.19B, indicating that medical cost trends—likely driven by higher utilization and acuity—outpaced premium revenue growth and squeezed profitability.
Source: Source: 10-K Income Statement / Operating & Net Income Data
Selling, General & Administrative expenses rose 12.8% to $15.45B, growing faster than revenue, which signals rising administrative costs, potential investments in technology or compliance, and headcount-related expenses that are weighing on the bottom line.
Source: Source: 10-K Income Statement / SG&A Expense Data
2 more insights available
Upgrade to unlockHumana's profitability is highly sensitive to medical cost trends. The gap between revenue growth (10.1%) and net income decline (-1.6%) in FY2025 suggests medical costs are rising faster than premiums, a trend that could worsen if utilization rates or acuity levels continue to increase in Medicare Advantage populations.
Source: Source: 10-K Income Statement / Net Income & Operating Margin Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-3.96 versus the $-4.05 analyst consensus — a +2.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $129.66B | $117.76B | +10.11% |
Operating Income | $2.7B | $2.56B | +5.54% |
Net Income | $1.19B | $1.21B | -1.57% |
EPS (Basic) | $9.87 | $10.01 | -1.40% |
EPS (Diluted) | $9.84 | $9.98 | -1.40% |
SG&A Expense | $15.45B | $13.7B | +12.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $48.91B | $46.48B | +5.23% |
Current Assets | $32.73B | $29.82B | +9.79% |
Total Liabilities | $31.17B | $30.03B | +3.79% |
Current Liabilities | $16.35B | $16.94B | -3.50% |
Stockholders' Equity | $17.66B | $16.38B | +7.83% |
Cash & Equivalents | $4.2B | $2.22B | +89.10% |
Long-Term Debt | $12.37B | $11.14B | +10.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $921M | $2.97B | -68.95% |
Investing Cash Flow | $2.27B | $-2.95B | +177.00% |
Financing Cash Flow | $-1.22B | $-2.49B | +51.15% |
Dividends Paid | $430M | $431M | -0.23% |
Share Buybacks | $151M | $817M | -81.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 2.1% | 2.2% | -0.09% |
Net Margin | 0.9% | — | — |
ROE | 6.7% | — | — |
ROA | 2.4% | — | — |
Current Ratio | $2.003 | — | — |
Debt to Equity | $1.765 | — | — |
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Humana reported FY2025 revenue of $129.7B, up 10.1% year-over-year, but net income declined 1.6% to $1.19B and diluted EPS fell to $9.84. The revenue growth was offset by rising medical costs and a 12.8% surge in SG&A expenses, resulting in margin compression.
Humana's operating cash flow plunged 68.9% from $2.97B to $921M in FY2025, a dramatic decline that suggests higher medical claims payments and working capital pressures significantly reduced cash generation despite strong revenue growth. This is a key concern for investors monitoring the company's financial health.
Based on the financial data, the most significant risks include deteriorating medical cost ratios squeezing profitability, the sustainability of operating cash flow given the 68.9% decline, and rising leverage with long-term debt up 11.0% to $12.37B. Regulatory risk around Medicare Advantage reimbursement rates from CMS also remains a critical company-specific concern.
Humana paid $430M in dividends in FY2025, but with operating cash flow of only $921M—down sharply from $2.97B the prior year—the dividend coverage has thinned considerably. Share buybacks were also cut 81.5% to $151M, suggesting management is conserving cash, though the dividend was maintained at roughly the same level as FY2024.
Humana's revenue grew 10.1% to $129.7B in FY2025, primarily driven by membership growth in Medicare Advantage and other government-sponsored health plans, which are the company's core business segments. However, this top-line growth did not translate into proportional profit growth due to elevated medical costs and higher administrative expenses.