Humana (HUM) FY2025 10-K Annual Report
Humana (HUM) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Humana FY2025 10-K Analysis
Business Overview
- • Core business model: Integrated health insurance services primarily delivering Medicare Advantage and Medicaid plans with complementary healthcare services via CenterWell
- • New emphasis on Medicare Advantage individual plans covering 5.2 million members, including approx. 1.0 million in Florida generating $17.8B premiums (20% of individual MA revenue)
- • Strategic focus on transitioning providers from fee-for-service to value-based care, enhancing integrated care and member engagement through data analytics
- • Medicare Advantage premiums and services revenue $106.3B, comprising 82.6% of segment total; 83% of total revenue derived from federal contracts, CMS-partnered
- • Noteworthy: Renewed all Medicare Advantage contracts for 2026, including expanded Florida presence accounting for 14% of consolidated premiums and services revenue
Management Discussion & Analysis
- • Revenue $129.7B, up 10.1% YoY; premiums $122.8B (+9.6%), services $5.8B (+31.6%), investment income down 17.9% to $1.0B
- • Net income $1.2B, flat YoY (-0.9%); operating margin 2.1% (operating income $2.7B on $129.7B revenue) vs 2.2% in 2024
- • Best performing segment: Insurance income from operations $1.7B, up 29.1% on premiums $122.8B; worst: CenterWell flat at $1.3B income despite 12.7% revenue growth
- • Benefit ratio 90.2% vs 89.8%; Operating cost ratio increased to 12.0% from 11.8% driven by CenterWell segment; Insurance cost ratio fell slightly to 9.1%
- • Value creation charges $449M in 2025; impairments $253M; capital spending reduced (depreciation down 16.8% to $698M)
- • Cash flow: No specific CAPEX, dividend, or buyback $ disclosed; operating cash flow seasonally impacted by Medicare design changes
- • 2026 outlook: Anticipate Medicare Advantage membership growth (~25% individual, 150k group), PDP growth ~1M; risks from regulatory changes and pricing pressures noted
Risk Factors
- • CMS 2025 Medicare Advantage Star Ratings declined, risking lower 2026 quality bonus payments and revenues due to pending lawsuit outcome
- • Exposure to geopolitical climate risk from frequent/intense catastrophes including pandemics and hurricanes affecting medical cost trends
- • Dependency on third-party IT providers for critical data services risks service disruptions and contract adversities
- • Competitive pressure from larger insurers and emerging entrants intensifies premium price containment challenges
- • Lawsuit exposure under False Claims Act for Medicare risk-adjustment practices with potential for treble damages and insurance coverage gaps
Humana FY2025 Key Financial MetricsXBRL
Revenue
$129.7B
▲ +10.1% YoY
Net Income
$1.2B
▼ -1.6% YoY
Operating Margin
2.1%
▼ -9bp YoY
Net Margin
0.9%
▼ -11bp YoY
ROE
6.7%
▼ -64bp YoY
Total Assets
$48.9B
▲ +5.2% YoY
EPS (Diluted)
$9.84
▼ -1.4% YoY
Operating Cash Flow
$921M
▼ -68.9% YoY
Source: XBRL data from Humana FY2025 10-K filing on SEC EDGAR. All figures in USD.
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