AI Takeaway
KeyCorp (KEY) delivered a dramatic FY2025 turnaround, swinging from a net loss of $161M to net income of $1.83B on revenue that surged 62.7% to $7.51B, driven by improved net interest income and a strengthened balance sheet.
Revenue
$7.51B
++62.65% YoY
EPS (Basic)
$1.53
++578.13% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue jumped from $4.62B in the prior year to $7.51B in FY2025, representing a 62.7% year-over-year increase. This dramatic improvement reflects a recovery in net interest income as the interest rate environment stabilized and KeyCorp repositioned its balance sheet.
Source: Source: 10-K Income Statement (XBRL Financial Data)
KeyCorp swung from a net loss of $161M in the prior year to net income of $1.83B in FY2025, a turnaround of over $1.99B. This recovery reflects improved revenue generation, disciplined expense management, and reduced credit loss provisions compared to the prior challenging year.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow surged 232.5% from $664M to $2.21B, demonstrating that the earnings recovery translated into real cash generation. This provides KeyCorp with meaningful financial flexibility for capital returns and balance sheet management.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockKeyCorp carries a debt-to-equity ratio of approximately 8.05x, which is characteristic of large regional banks but reflects significant financial leverage. In a rising credit loss or economic downturn scenario, this leverage could amplify losses and pressure capital ratios. Regulatory capital requirements add an additional layer of constraint on balance sheet flexibility.
Source: Source: 10-K Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $0.41 versus the $0.39 analyst consensus — a +4.9% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.51B | $4.62B | +62.65% |
Net Income | $1.83B | $-161M | +1236.02% |
EPS (Basic) | $1.53 | $-0.32 | +578.13% |
EPS (Diluted) | $1.52 | $-0.32 | +575.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $184.38B | $187.17B | -1.49% |
Total Liabilities | $164B | $168.99B | -2.95% |
Stockholders' Equity | $20.38B | $18.18B | +12.13% |
Long-Term Debt | $9.92B | $12.11B | -18.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.21B | $664M | +232.53% |
Investing Cash Flow | $3.22B | $2.5B | +28.91% |
Financing Cash Flow | $-5.88B | $-2.36B | -149.39% |
Dividends Paid | $1.05B | $927M | +13.70% |
D&A | $87M | $91M | -4.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 24.3% | — | — |
ROE | 9.0% | — | — |
ROA | 1.0% | — | — |
Debt to Equity | $8.047 | — | — |
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KeyCorp reported net income of $1.83B and basic EPS of $1.53 in FY2025, a dramatic turnaround from a net loss of $161M and EPS of -$0.32 in the prior year. While specific analyst consensus estimates are not included in the filing, the scale of the earnings recovery — over $1.99B improvement in net income — represents a significant positive outcome for shareholders.
The headline story for KeyCorp's FY2025 was a full return to profitability, with revenue surging 62.7% to $7.51B and net income reaching $1.83B versus a prior-year loss. Operating cash flow also recovered strongly to $2.21B, and the bank reduced long-term debt by 18.1% to $9.92B while growing stockholders' equity 12.1% to $20.38B.
KeyCorp's revenue grew 62.7% year-over-year from $4.62B to $7.51B in FY2025, a recovery driven primarily by improved net interest income as the interest rate environment stabilized and the bank repositioned its balance sheet. This revenue growth was the primary catalyst for the bank's return to strong profitability.
Based on the financial data, key risks for KeyCorp include its high leverage with a debt-to-equity ratio of approximately 8.05x, sensitivity of net interest income to interest rate changes, and potential credit quality deterioration if economic conditions worsen. The bank's total assets of $184.4B and significant financing outflows of $5.88B also highlight the importance of sustained earnings to maintain capital adequacy.
KeyCorp's financial health improved materially in FY2025, with net income of $1.83B, operating cash flow of $2.21B, and stockholders' equity growing to $20.38B. Long-term debt was reduced by 18.1% to $9.92B, and the bank maintained its dividend at $1.05B paid to shareholders, reflecting management's confidence in the sustainability of the recovery.