Revenue growth remains highly erratic, evidenced by a 39.7% contraction in 2026Q1 following a 44.5% expansion in 2025Q4, largely due to non-operating derivative adjustments.
| Revenue | 5.45B | 6.21B | 4.37B | 3.95B | 6.63B | 3.58B | 8.27B | 6.33B | 8.67B | 6.84B | 3.06B | 8.89B | 9.45B |
| Revenue Growth % | -18.49% | 42.16% | 10.61% | -40.42% | 84.94% | -56.63% | 30.65% | -27% | 26.67% | 123.67% | -65.59% | -5.9% | - |
| Medical Costs & Claims | 2.55B | 1.8B | 2.36B | 3.61B | 56M | 518M | 7.57B | 5.12B | 5.4B | 4.97B | 5.44B | 4.93B | 5.72B |
| Medical Cost Ratio % | 46.7% | 29.06% | 53.93% | 91.49% | 0.84% | 14.45% | 91.57% | 80.84% | 62.32% | 72.7% | 177.8% | 55.42% | 60.55% |
| Gross Profit | 2.91B | 4.41B | 2.01B | 336M | 6.57B | 3.07B | 697M | 1.21B | 3.27B | 1.87B | -2.38B | 3.96B | 3.73B |
| Gross Margin % | 53.3% | 70.94% | 46.07% | 8.51% | 99.16% | 85.55% | 8.43% | 19.16% | 37.68% | 27.3% | -77.8% | 44.58% | 39.45% |
| Gross Profit Growth % | - | 118.88% | 499.11% | -94.89% | 114.35% | 340.03% | -42.49% | -62.89% | 74.84% | 178.49% | -160.04% | 6.36% | - |
| Operating Expenses | 3.06B | 3.93B | 1.59B | 1.81B | 1.84B | 1.06B | 2.12B | 2.26B | 2.28B | 2.48B | 2.33B | 2.5B | 2.2B |
| OpEx / Revenue % | 56.2% | 63.31% | 36.42% | 45.82% | 27.78% | 29.51% | 25.6% | 35.78% | 26.27% | 36.29% | 76.01% | 28.14% | 23.27% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18M | 17M | 17M | 26M | 32M |
| Combined Ratio % | 102.9% | 92.37% | 90.34% | 137.32% | 28.63% | 43.96% | 117.17% | 116.63% | 88.59% | 108.99% | 253.81% | 83.56% | 83.83% |
| Operating Income | -158M | 474M | 422M | -1.47B | 4.73B | 2.01B | -1.42B | -1.05B | 989M | -615M | -4.71B | 1.46B | 1.53B |
| Operating Margin % | -2.9% | 7.63% | 9.66% | -37.32% | 71.37% | 56.04% | -17.17% | -16.63% | 11.41% | -8.99% | -153.81% | 16.44% | 16.17% |
| Operating Income Growth % | - | 12.32% | 128.63% | -131.15% | 135.54% | 241.58% | -34.89% | -206.37% | 260.81% | 86.93% | -421.82% | -4.32% | - |
| EBITDA | -6M | 626M | 574M | -1.32B | 4.88B | 2.17B | -1.24B | -861M | 1.01B | -598M | -4.69B | 1.49B | 1.56B |
| EBITDA Margin % | -0.11% | 10.08% | 13.14% | -33.44% | 73.68% | 60.59% | -14.94% | -13.61% | 11.62% | -8.74% | -153.25% | 16.74% | 16.51% |
| Interest Expense | 152M | 152M | 152M | 153M | 153M | 163M | 184M | 191M | 158M | 153M | 175M | 170M | 0 |
| Non-Operating Income | -152M | -152M | -152M | -153M | -153M | -163M | -184M | -191M | -158M | -153M | -175M | -170M | 0 |
| Pretax Income | -158M | 474M | 422M | -1.47B | 4.73B | 2.01B | -1.42B | -1.05B | 989M | -615M | -4.71B | 1.46B | 1.53B |
| Pretax Margin % | -2.9% | 7.63% | 9.66% | -37.32% | 71.37% | 56.04% | -17.17% | -16.63% | 11.41% | -8.99% | -153.81% | 16.44% | 16.17% |
| Income Tax | -98M | 36M | 29M | -367M | 848M | 361M | -363M | -317M | 119M | -237M | -1.77B | 343M | 369M |
| Effective Tax Rate % | 62.03% | 7.59% | 6.87% | 24.9% | 17.92% | 17.97% | 25.58% | 30.13% | 12.03% | 38.54% | 37.53% | 23.46% | 24.15% |
| Net Income | -65M | 433M | 388M | -1.11B | 3.88B | 1.64B | -1.06B | -740M | 865M | -378M | -2.94B | 1.12B | 1.16B |
| Net Margin % | -1.19% | 6.97% | 8.88% | -28.15% | 58.51% | 45.83% | -12.84% | -11.7% | 9.98% | -5.52% | -96.08% | 12.59% | 12.27% |
| Net Income Growth % | -110.6% | 11.6% | 134.89% | -128.67% | 136.09% | 254.85% | -43.38% | -185.55% | 328.84% | 87.14% | -362.65% | -3.45% | - |
| EPS (Diluted) | -1.13 | 5.79 | 4.64 | -18.39 | 51.30 | 18.39 | -11.59 | -6.53 | 7.36 | -3.16 | -23.95 | 9.12 | 9.44 |
| EPS Growth % | -134.33% | 24.78% | 125.23% | -135.85% | 178.96% | 258.67% | -77.49% | -188.72% | 332.91% | 86.81% | -362.61% | -3.39% | - |
| EPS (Basic) | - | 5.79 | 4.67 | -18.65 | 51.73 | 18.55 | -11.59 | -6.53 | 7.36 | -3.16 | -24.54 | 9.12 | 9.44 |
| Diluted Shares Outstanding | 57.74M | 57.17M | 61.6M | 66.01M | 73.58M | 84.47M | 95.35M | 112.51M | 117.53M | 119.77M | 122.72M | 122.72M | 122.72M |
Accounting volatility from derivatives
As reported in recent financial filings, Brighthouse Financial experienced significant revenue volatility, including a 39.7% contraction in 2026Q1 following a 44.5% expansion in 2025Q4, suggesting that top-line figures are heavily influenced by non-operating derivative adjustments rather than consistent organic growth in the core annuity business.
The extreme quarter-over-quarter fluctuations in revenue indicate that investors should look past headline figures to assess underlying policy sales. This instability appears to be a byproduct of the company's complex hedging program, which creates accounting noise that obscures the true trajectory of new business premiums.
Based on the provided income statement data, the combined ratio has fluctuated wildly, ranging from a highly profitable 9.3% in 2024Q1 to a loss-making 186.2% in 2023Q4, highlighting the extreme sensitivity of underwriting margins to actuarial assumption updates and market-driven fair value changes in policyholder benefits.
The lack of a stable combined ratio suggests that Brighthouse Financial's core underwriting profitability is currently difficult to forecast. Investors should monitor whether the company can achieve a consistent sub-100% combined ratio as it continues its strategic pivot toward capital-light Shield products.
According to historical data, the implementation of LDTI accounting standards appears to have fundamentally altered the company's earnings profile, as evidenced by the massive 2025Q1 loss of $268 million and the subsequent erratic swings in net income that complicate traditional fundamental analysis of the firm.
The transition to new accounting standards has introduced significant non-cash volatility that may not reflect the actual economic health of the insurance book. This warrants further investigation into whether the current earnings profile is a permanent feature of the new reporting regime or a temporary transition effect.
Financial statements indicate that Brighthouse Financial's net income is frequently disconnected from operating reality, with EPS swinging from a negative $13.72 in 2026Q1 to a positive $10.79 in 2024Q4, suggesting that the company's reliance on complex derivatives creates substantial risk for equity holders.
The persistent gap between operating income and net income suggests that the hedging program, while intended to protect the balance sheet, may be introducing excessive earnings volatility. Analysts should remain cautious regarding the sustainability of earnings until the company demonstrates a period of stability in its derivative-linked accounting results.
Quick answers to the most common questions about buying BHF stock.
For fiscal year 2025, Brighthouse Financial, Inc. (BHF) reported total revenue of $6.21B. This represents a 34.3% decline compared to $9.45B in 2014.
Brighthouse Financial, Inc. (BHF) is profitable, generating $433.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.0%.
Brighthouse Financial, Inc. (BHF) reported an operating income of $474.0M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Brighthouse Financial, Inc. (BHF) generated $4.41B in gross profit for the year, representing a gross profit margin of 70.9%. This demonstrates the company's core pricing power and production efficiency.