Wed, Apr 30, 1:31 PM (19 days ago)
**Humana Inc. (HUM) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $32.1 billion, up 8.4% YoY, driven by higher Medicare premiums and state-based contracts. - **Net Income:** $1.2 billion, up 68.1% YoY, impacted by put/call valuation adjustments and value creation initiatives. - **Earnings per Share (EPS):** $10.30, up 68.6% YoY. - **Operating Expenses:** $30.1 billion, up 6.1% YoY, with benefits expense increasing by 5.6%. - **Cash Flow:** $2.0 billion increase in cash and cash equivalents, with operating cash flow at $331 million. **Segment Performance:** - **Insurance Segment:** Income from operations up 75.3% YoY to $1.6 billion, driven by Medicare Advantage pricing and benefit design changes. - **CenterWell Segment:** Income from operations up 39.0% YoY to $392 million, with services revenue increasing by 37.5%. **Key Metrics:** - **Benefit Ratio:** 87.0%, down 1.9% YoY, indicating improved underwriting profitability. - **Operating Cost Ratio:** 10.6%, up 0.2% YoY, reflecting administrative cost efficiencies. - **Effective Tax Rate:** 24.6%, down 0.7% YoY, due to reduced state tax expense. **Trends & Uncertainties:** - **Medicare Part D Changes:** Elimination of the coverage gap and introduction of the Manufacturer Discount Program impact plan liabilities. - **Regulatory Environment:** Ongoing legal proceedings and regulatory changes may affect future operations and financial performance. - **Value Creation Initiatives:** Cost-saving and productivity initiatives continue, with charges recorded in operating costs. **Future Operations & Impact:** - **Liquidity:** Adequate resources to fund operations, acquisitions, and capital expenditures. - **Debt:** Issued $1.5 billion in senior notes, with proceeds used for general corporate purposes. - **Stock Repurchases:** No shares repurchased in Q1 2025, with $2.9 billion remaining in authorization. **Conclusion:** Humana's Q1 2025 performance shows strong revenue growth and improved profitability, driven by strategic initiatives and regulatory changes. However, ongoing regulatory uncertainties and legal proceedings may impact future operations. The company maintains a solid liquidity position and is well-positioned for future growth and investment.