Short answer
Humana (HUM) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $129.7B (+10.1% year over year) and net income of $1.2B.
- Top risk flagged: CMS 2025 Medicare Advantage Star Ratings declined, risking lower 2026 quality bonus payments and revenues due to pending lawsuit outcome
FY2025 key financial metrics · XBRL
- Revenue
- $129.7B
- +10.1% YoY
- Net income
- $1.2B
- −1.6% YoY
- Operating margin
- 2.1%
- −0.1 pp YoY
- EPS (diluted)
- $9.84
- −1.4% YoY
- ROE
- 6.7%
- −0.6 pp YoY
- Operating cash flow
- $921M
- −68.9% YoY
Source: XBRL data from the Humana (HUM) FY2025 10-K on SEC EDGAR. USD.
Humana FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
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