Underwriting profitability remains highly strained, with the 2026Q1 combined ratio of 113.8% highlighting the extreme sensitivity of GAAP margins to derivative valuation adjustments.
| Revenue | 5.86B | 6.68B | 3.09B | 3.17B | 9.72B | 5.5B | 4.64B | 3.49B | 13.69B |
| Revenue Growth % | -18.29% | 116.14% | -2.31% | -67.44% | 76.63% | 18.52% | 33.08% | -74.51% | - |
| Medical Costs & Claims | -173M | 971M | 702M | 698M | 812M | 511M | 5.84B | 3.2B | 10.15B |
| Medical Cost Ratio % | -2.95% | 14.53% | 22.7% | 22.05% | 8.35% | 9.29% | 125.82% | 91.6% | 74.14% |
| Gross Profit | 6.04B | 5.71B | 2.39B | 2.47B | 8.91B | 4.99B | -1.2B | 293M | 3.54B |
| Gross Margin % | 102.95% | 85.47% | 77.3% | 77.95% | 91.65% | 90.71% | -25.82% | 8.4% | 25.86% |
| Gross Profit Growth % | - | 139% | -3.12% | -72.31% | 78.45% | 516.35% | -509.22% | -91.72% | - |
| Operating Expenses | 6.53B | 5.83B | 1.37B | 1.51B | 1.17B | 647M | 1.29B | 1.1B | 1.15B |
| OpEx / Revenue % | 111.43% | 87.18% | 44.24% | 47.68% | 12.08% | 11.76% | 27.83% | 31.64% | 8.38% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 11M | 10.8M | 11M | 10.8M |
| Combined Ratio % | 108.48% | 101.71% | 66.95% | 69.73% | 20.43% | 21.04% | 153.65% | 123.24% | 82.52% |
| Operating Income | -497M | -114M | 1.02B | 958M | 7.73B | 4.34B | -2.49B | -811M | 2.39B |
| Operating Margin % | -8.48% | -1.71% | 33.05% | 30.27% | 79.57% | 78.96% | -53.65% | -23.24% | 17.48% |
| Operating Income Growth % | - | -111.15% | 6.68% | -87.61% | 78% | 274.43% | -207.15% | -133.9% | - |
| EBITDA | -422M | -14M | 1.12B | 1.07B | 7.83B | 4.36B | -2.48B | -800M | 2.4B |
| EBITDA Margin % | -7.2% | -0.21% | 36.32% | 33.71% | 80.58% | 79.16% | -53.42% | -22.93% | 17.56% |
| Interest Expense | 100M | 100M | 101M | 185M | 113M | 37M | 88M | 99M | 86.2M |
| Non-Operating Income | -75M | -100M | -101M | -109M | -98M | -37M | -88M | -99M | -86.2M |
| Pretax Income | -497M | -114M | 1.02B | 958M | 7.73B | 4.34B | -2.49B | -811M | 2.39B |
| Pretax Margin % | -8.48% | -1.71% | 33.05% | 30.27% | 79.57% | 78.96% | -53.65% | -23.24% | 17.48% |
| Income Tax | -167M | -186M | 46M | 4M | 1.5B | 666M | -854M | -369M | 338.3M |
| Effective Tax Rate % | 33.6% | 163.16% | 4.5% | 0.42% | 19.46% | 15.33% | 34.28% | 45.5% | 14.14% |
| Net Income | -373M | 27M | 946M | 934M | 6.19B | 3.42B | -1.63B | -497M | 1.99B |
| Net Margin % | -6.36% | 0.4% | 30.6% | 29.51% | 63.64% | 62.09% | -35.19% | -14.24% | 14.51% |
| Net Income Growth % | -393.7% | -97.15% | 1.28% | -84.9% | 81.04% | 309.12% | -228.77% | -125.03% | - |
| EPS (Diluted) | -5.35 | -0.24 | 11.74 | 10.76 | 69.75 | 35.89 | -17.29 | -5.26 | 21.02 |
| EPS Growth % | -595.08% | -102.04% | 9.11% | -84.57% | 94.34% | 307.58% | -228.71% | -125.02% | - |
| EPS (Basic) | - | -0.24 | 11.86 | 10.99 | 72.34 | 35.89 | -17.29 | -5.26 | 21.02 |
| Diluted Shares Outstanding | 69.71M | 70.28M | 74.42M | 83.58M | 88.69M | 88.69M | 94.46M | 94.46M | 94.46M |
Variable Annuity Hedging Volatility
As evidenced by the reported combined ratio of 113.8% in 2026Q1, Jackson Financial's underwriting profitability appears significantly strained, with historical data showing extreme fluctuations ranging from 3.2% to 140.5% over the last ten quarters, suggesting that GAAP-based margin analysis is heavily distorted by derivative mark-to-market accounting.
The wide variance in the combined ratio indicates that traditional insurance profitability metrics are insufficient for evaluating this business model. Investors should monitor the divergence between GAAP results and adjusted operating earnings, as the latter likely provides a more accurate view of the underlying fee-based revenue stability.
Based on the reported figures, revenue growth has exhibited extreme instability, with quarterly fluctuations ranging from a 178.4% increase in 2024Q2 to a 140.2% contraction in 2025Q2, reflecting the company's high sensitivity to equity market performance and the inherent volatility of its variable annuity fee-based revenue model.
The erratic top-line trajectory suggests that Jackson's revenue is less a function of traditional premium growth and more a reflection of asset-based fee income tied to separate account AUM. This dependency implies that sustained market downturns could lead to prolonged periods of revenue compression regardless of new business production.
According to the provided financial statements, the company's net income has swung from a $795 million profit in 2024Q1 to a $424 million loss in 2026Q1, which warrants further investigation into whether these GAAP figures accurately represent the firm's true economic capital generation and long-term solvency.
The extreme volatility in net income appears to be driven by the accounting treatment of hedging instruments rather than operational failure. Analysts should prioritize statutory capital metrics over GAAP net income to determine if the company's risk management framework is effectively protecting its balance sheet during periods of market stress.
As reported in recent filings, the company's operating income has frequently diverged from revenue trends, with a notable $903 million operating profit in 2024Q1 followed by a $2 billion operating loss in 2023Q4, suggesting that fixed-cost absorption is secondary to the impact of derivative valuation adjustments.
The high fixed-cost base required to maintain the hedging infrastructure creates significant operating leverage that works against the company during periods of high market volatility. Investors should monitor whether the shift toward RILA products will eventually lead to a more stable and predictable operating margin profile over the long term.
Quick answers to the most common questions about buying JXN stock.
For fiscal year 2025, Jackson Financial Inc. (JXN) reported total revenue of $6.68B. This represents a 51.2% decline compared to $13.69B in 2018.
Jackson Financial Inc. (JXN) is profitable, generating $27.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.4%.
Jackson Financial Inc. (JXN) reported an operating income of $-114.0M, resulting in an operating profit margin of -1.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Jackson Financial Inc. (JXN) generated $5.71B in gross profit for the year, representing a gross profit margin of 85.5%. This demonstrates the company's core pricing power and production efficiency.