BHF Nasdaq Russell 1000 Earnings call
Brighthouse Financial (BHF) · Q2 2025 results and valuation
Share price: $45.33 · 2026-11-11
Results Q2 2025 vs Q1 2025 · previous quarter · published 8 Aug 2025 and 9 May 2025
Net income turned to a profit from a loss last quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2025
Outlook given
Net income 85.0M vs -266.0M
Revenue −63.6%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Holding company liquid assets were over $900 million at June 30, which reflects the total asset requirement for the business.
Valuation
Is Brighthouse Financial undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.5% growth a year (3-year revenue growth), the model's fair value is $63.28 a share — the stock trades 28% below it. Today's price assumes −5.3% growth a year.
Current price
$45.33
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-5.3% for 10 yrs
Fair value / share
$63.28
Buy below
$47.46
Price vs fair value
Undervalued 28%
Price vs buy-below price
Undervalued 4%
Read between the lines
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Guidance
As a reminder, over the long term, Brighthouse Financial expects a yield on this portfolio of 9% to 11% annually.
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Figure
Total annuity sales reached $2.6 billion, representing a 16% sequential increase and an 8% increase compared with the second quarter.
Source quote
“Total annuity sales were $2.6 billion, a 16% increase sequentially and an 8% increase compared with the second quarter...”
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Fading
BHF ended the quarter with holding company liquid assets of approximately $1 billion and a risk-based capital ratio between 420% and 440% within the target range.
Source quote
“We ended the quarter with holding company liquid assets of approximately $1 billion, maintaining a robust cash position. We also made additional progress against the capital-focused strategic initiatives that we announced last year and that we continue to execute. We also ended the quarter with an estimated combined risk-based capital or RBC ratio between 420% and 440%, which is within our target RBC ratio range of 400% to 450% in normal markets.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2025. Ring: Q1 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The second quarter adjusted earnings of $198 million were approximately $60 million below our quarterly average run rate expectations, driven by lower alternative investment income and a lower underwriting margin.”
“And so we want to continue to grow and we're pleased with the profitability of the business that we write.”
“As I have said previously, we expect our involvement with this product to enable Brighthouse to reach new customers through the worksite channel, and we remain extremely excited about its...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2025-06-30)
| Metric | Q2 2025period end 2025-06-30 | Q1 2025period end 2025-03-31 | Change | Q2 2024 | YoY |
|---|---|---|---|---|---|
| Revenue | 871.0M | 2.39B | −63.6% | 1.43B | −39.0% |
| Operating income | 93.0M | -354.0M | Turned profit | 14.0M | +564.3% |
| Net income | 85.0M | -266.0M | Turned profit | 34.0M | +150.0% |
| EPS | 1.02 | -5.04 | Turned profit | 0.12 | +750.0% |
| P/E today 4.0 | 6.1 | 7.4 | −1.3 | 12-mo loss | — |
Topics
Most discussed now
- As Brighthouse Financial has said previously, it is important to note that its focus on protecting its statutory balance sheet under...
- A normalized statutory loss associated with the VA and Shield business had a muted impact on the RBC ratio because...
- A cornerstone of Brighthouse Financial's financial and risk management strategy is maintaining a strong capital position at its insurance…
- Yesterday evening, Brighthouse Financial reported second quarter financial results including preliminary statutory metrics.
- Brighthouse Financial is in the process of the VA, Shield separation work here, which is going to have an impact on its...
Faded since Q1 2025
- Fading Brighthouse Financial reported solid results in the first quarter of 2025.
- Fading Brighthouse Financial continues to develop a separate hedging strategy for its variable annuity and first generation Shield annuity block…
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K