Equitable Holdings, Inc. (EQH)·Q3 2025 Earnings Summary

Executive Summary

• Non-GAAP operating EPS was $1.48; adjusting for notable items, EPS was $1.67, up 2% YoY. GAAP diluted EPS was $(4.47) driven by a one-time impact from the life reinsurance transaction with RGA; Non-GAAP operating earnings were $455M .
• Retirement net inflows were $1.1B and Wealth Management advisory net inflows were $2.2B; AB reported net outflows of $2.3B or net inflows of $1.7B excluding the RGA transaction .
• Record AUM/A reached $1.1T (+7% YoY). EQH deployed $1.5B of capital in Q3 (including $676M buybacks) and announced the acquisition of Stifel Independent Advisors (~$9B AUM) to scale Wealth Management .
• Versus S&P Global consensus: reported non-GAAP EPS ($1.48) was below $1.61 (miss), but EPS excluding notable items ($1.67) would have been a beat; revenues ($1.45B) were well below consensus ($3.61B) given accounting impacts from reinsurance and investment/derivative results (see Estimates Context) . Values retrieved from S&P Global.*

What Went Well and What Went Wrong

• What Went Well

  • Organic growth flywheel remained strong: Retirement net inflows of $1.1B and Wealth Management advisory net inflows of $2.2B; AB net inflows of $1.7B excluding RGA .
  • AB’s adjusted operating margin expanded to 34.2% YoY, supported by higher base fees and increased EQH ownership (to ~69%) .
  • Record AUM/A of $1.1T (+7% YoY) and continued capital deployment ($757M returned in Q3, $500M debt repaid, ~$200M growth investments) .
  • Management quote: “Our underlying organic growth momentum, in combination with favorable market conditions, drove assets under management to a record $1.1 trillion” — Mark Pearson, CEO .

• What Went Wrong

  • GAAP net loss of $(1.309)B and diluted EPS of $(4.47) due to one-time reinsurance transaction impacts; reported revenues fell sharply QoQ amid investment/derivative volatility .
  • Corporate & Other operating loss widened to $(159)M; adjusted loss $(98)M driven by less favorable mortality in July and one-time expenses .
  • Retirement operating earnings declined YoY to $401M on lower net interest margin and higher DAC/commissions; net inflows were below prior-year quarter (1.1B vs 1.7B) .
  • AB reported net outflows of $2.3B (retail and institutional), driven largely by the one-time RGA transaction impact .

Financial Results

Actual vs S&P Global consensus (Q3 2025):

Segment breakdown – Operating earnings:

Key KPIs trajectory:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are deploying $1.5 billion of capital... incremental share repurchases, debt repayment and strategic growth investments.” — Mark Pearson .
• “Adjusted for notable items... Non-GAAP operating EPS was $1.67, up 2% year over year.” — Mark Pearson .
• “We now project full-year performance fees of $130–$155 million, up from our prior forecast of $110–$130 million.” — Robin Raju (CFO) .
• “We expect to end the quarter above $1 billion in HoldCo cash... remain at higher end of 60–70% payout.” — Robin Raju .
• “Sidecars leverage the flywheel; we’ll do more where risk-adjusted IRRs are attractive.” — Seth Bernstein (AB) & Robin Raju .

Q&A Highlights

• Private credit risk: Management emphasized investment-grade focus, strong underwriting, and minimal reliance on non-top-tier ratings; private credit matches sticky liabilities and captures liquidity premium .
• RILA competition: EQH highlighted durable edge via yields from AB, privileged distribution, and prudent innovation (e.g., SES Premier); pricing “teaser” behavior by new entrants not sustainable .
• Mortality volatility: July mortality notables ($36M) and modest retained experience in Aug/Sep ($10M worse than expected); RGA reinsurance reduces future volatility materially .
• Capital & buybacks: ~$800M HoldCo cash; completed most of $500M incremental buybacks; potential debt tender up to $500M to manage leverage; opportunistic additional buybacks possible .
• Bermuda: provides consistent cash-flow alignment with economic hedging; flow reinsurance and third-party options under consideration post-2027 .

Estimates Context

• EPS: Reported non-GAAP EPS of $1.48 versus S&P consensus $1.61 was a miss; however, EPS excluding notable items was $1.67, a would-be beat against consensus ($1.61). Values retrieved from S&P Global.*
• Revenue: Reported revenues of $1.45B versus consensus $3.61B reflect the reinsurance transaction accounting and significant investment/derivative volatility embedded in GAAP “total revenues” for EQH’s model. Values retrieved from S&P Global.*
• Implication: Street may need to re-anchor on adjusted operating metrics rather than GAAP revenue prints; AB performance fee guidance raised, tax rate guided lower, and capital deployment supports EPS trajectory .

Key Takeaways for Investors

• The quarter’s headline GAAP loss was driven by one-time reinsurance accounting; operating performance showed resilience with adjusted EPS up YoY and record AUM/A .
• Wealth Management and Retirement continued to deliver strong net inflows; AB margins improved and performance fee guidance was raised, supporting forward earnings quality .
• Capital deployment is a catalyst: most of $500M incremental buybacks completed; $500M debt repayment executed; acquisition of Stifel Independent Advisors enhances WM scale .
• Reduced mortality exposure post-RGA should dampen volatility in Corporate & Other and improve visibility on cash generation and EPS trajectory .
• Near-term tax rate tailwind (high teens for 2025) and ongoing expense/productivity initiatives offer incremental EPS support into 2026 .
• Watch for continued AB private markets growth, sidecar activity, and FABN issuance as multi-year value creators tied to EQH’s flywheel .
• Trading lens: headline revenue/EPS misses versus consensus reflect GAAP mechanics; the adjusted EPS beat, stronger AB margin and capital actions are the more relevant stock drivers (particularly if Street shifts to adjusted frameworks). Values retrieved from S&P Global.*

Citations:

• Q3 2025 8-K and press release:
• Q3 2025 call transcript:
• Q2 2025 press/8-K/call:
• Q1 2025 press/8-K/call:

S&P Global disclaimer: *Values retrieved from S&P Global.