Equitable Holdings’ second quarter results missed Wall Street’s estimates, with management attributing the shortfall primarily to elevated mortality claims within its Individual Life insurance block and softer fee-based earnings due to lower average equity market levels. CEO Mark Pearson described the quarter as impacted by “elevated individual life mortality claims,” while also noting progress on organic growth and strategic initiatives. The company pointed to robust net inflows in retirement and wealth management, as well as resilience in its asset management business, even as AllianceBernstein faced challenging industry conditions.
Is now the time to buy EQH? Find out in our full research report (it’s free).
Equitable Holdings (EQH) Q2 CY2025 Highlights:
- Revenue: $3.80 billion vs analyst estimates of $3.98 billion (5.1% year-on-year growth, 4.5% miss)
- Adjusted EPS: $1.10 vs analyst expectations of $1.30 (15.4% miss)
- Adjusted Operating Income: $529 million vs analyst estimates of $633 million (13.9% margin, 16.4% miss)
- Adjusted EBITDA Margin: 9.3%
- Market Capitalization: $16.02 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Equitable Holdings’s Q2 Earnings Call
- Ryan Krueger (KBW) pressed for clarity on how legacy RILA product runoff and the shift in product mix will affect future retirement segment earnings. CFO Robin Raju explained that the mix shift should stabilize over the next few quarters, with higher-margin legacy products comprising about 15% of the book.
- Suneet Kamath (Capri) asked about the sensitivity of RILA profitability to interest rate changes and differences in economics between proprietary and third-party wealth channels. Raju noted RILA returns are more sensitive to longer-term rates and corporate spreads, while Lane highlighted better persistency and margins from affiliated distribution.
- Tom Gallagher (Evercore ISI) questioned management’s strategy for deploying excess capital post-reinsurance, particularly the split between share repurchases, debt paydown, and potential acquisitions. Raju indicated that the company will prioritize buybacks and debt reduction, with any further acquisitions evaluated against shareholder value creation benchmarks.
- Elyse Greenspan (Wells Fargo) asked whether EPS growth targets for the second half and 2026 remain achievable given execution timelines for share repurchases and business growth. Raju confirmed expectations for EPS acceleration in H2 2025 and a return to target growth rates in 2026.
- Michael Ward (UBS) inquired about the sustainability of RILA sales growth and the company’s product innovation pipeline. President Nick Lane stated that core retirement demand is robust, supported by demographic trends, and that Equitable’s innovation will focus on both core business extensions and new market opportunities.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the impact of the Individual Life reinsurance transaction on earnings volatility and cash flow, (2) the pace and effectiveness of share repurchases and capital deployment, and (3) continued organic growth in retirement and wealth management flows. Progress on expense management and execution of new product initiatives will also be key areas to watch.
Equitable Holdings currently trades at $53.08, up from $50.92 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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