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Humana 8-K Report, Financial Results (Feb 11, 2025)

Reports
Earnings & Results·Regulation FD
Filing Date
Filed February 11, 2025
Period End
February 11, 2025
Security
HUM
In the record · 2016–202610-K1110-Q328-K199

HUM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 199 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’18Aug ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.

Humana Inc. reported fourth-quarter 2024 results on February 11, 2025, posting a GAAP net loss per share of $5.76a (Adjusted net loss per share of $2.16) and full-year 2024 GAAP EPS of $9.98 (Adjusted EPS of $16.21).

Consolidated revenues for FY 2024 were $117.76 billionb on a GAAP basis, and the Insurance segment's Adjusted benefit ratio for 4Q24 was 91.9 percent, which includes a 20-basis-point increase tied to incremental Star Ratings investments. Pretax results were a GAAP loss of $862 million in 4Q24, with impairment charges of $200 million and value creation initiative charges of $130 million among the adjustments. For 2025, Humana guided to GAAP EPS of approximately $15.88 and Adjusted EPS of approximately $16.25, reaffirming its prior commentary that 2025 would be at least in line with 2024 results.

The company expects individual Medicare Advantage membership to decline by approximately 550,000 (about 10 percent) from 2024, including exits from unprofitable plans and counties, and projects consolidated revenues of $126 billion to $128 billionc. Management stated that 2025 is a critical step in its margin expansion journey, and that its outlook does not include share repurchases. The company also noted the Star Ratings decline for 2025 and a pending lawsuit seeking to vacate those ratings, which it says poses risk to 2026 quality bonus payments.

The filing also indicates that management expects first-quarter 2025 earnings to be approximately 60%d to 65% of full-year Adjusted earnings, and that the Insurance segment benefit ratio for 2025 is projected at 90.1% to 90.5%. Medicaid expansion to 13 awarded states and CenterWell Primary Care growth plans (20 to 30 new centers) are cited as longer-term earnings drivers.

02—Key points

Key Highlights

  1. 4Q24 GAAP net loss per share of $5.76; Adjusted net loss per share of $2.16, compared with a 4Q23 Adjusted net loss per share of $0.11.
  2. FY 2024 GAAP EPS of $9.98 and Adjusted EPS of $16.21, versus FY 2023 GAAP EPS of $20.00 and Adjusted EPS of $26.09.
  3. FY 2025 guidance: GAAP EPS of approximately $15.88 and Adjusted EPS of approximately $16.25, consistent with prior commentary of 'at least in line with 2024 results.'
  4. Individual Medicare Advantage membership expected to decline by approximately 550,000 in 2025, including about 560,000 members affected by plan and county exits.
  5. Insurance segment 4Q24 Adjusted benefit ratio of 91.9%, including a 20-basis-point increase from incremental Star Ratings investments.
  6. 2025 consolidated revenue projected at $126 billion to $128 billion; Insurance segment benefit ratio projected at 90.1% to 90.5%.
  7. No share repurchase activity assumed in the 2025 outlook; dividend to be held flat per share throughout 2025.

03—Questions

Frequently Asked Questions

  1. Why did Humana report a fourth-quarter net loss?

    The GAAP net loss per share of $5.76 in 4Q24 reflected a GAAP pretax loss of $862 million. Adjusted figures, which exclude items such as impairment charges of $200 million and value creation initiative charges of $130 million, showed an Adjusted net loss per share of $2.16. Management said the quarter was consistent with its expectations.

  2. What is Humana's 2025 earnings outlook?

    Humana guided to GAAP EPS of approximately $15.88 and Adjusted EPS of approximately $16.25 for 2025. The company said this is consistent with its prior commentary that 2025 would be at least in line with 2024 results, and that it includes incremental investments to support operational excellence.

  3. How will membership change in 2025?

    Individual Medicare Advantage membership is expected to fall by approximately 550,000 in 2025, driven in part by exits from unprofitable plans and counties that affected about 560,000 members. Group Medicare Advantage is expected to be relatively flat, stand-alone PDP membership is expected to grow by about 200,000, and state-based contract membership is expected to grow by 175,000 to 250,000.

  4. What risks does the filing identify related to Star Ratings?

    The filing states that the number of Medicare Advantage plans rated 4-star or higher will significantly decline in 2025. Humana has filed a lawsuit seeking to set aside and vacate the 2025 Star Ratings, but there is no assurance it will prevail. If unsuccessful, the decline could reduce 2026 quality bonus payments from CMS and adversely affect revenues, operating results and cash flows.

04—Continue

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