Equitable Holdings, Inc.

Equitable Holdings maintains a capital structure characterized by high leverage and low tangible equity, with total equity of $273 million against total liabilities of $308.1 billion. The debt-to-equity ratio stands at 14.05, driven by $3.84 billion in long-term debt and zero short-term debt. Liquidity is assessed as low, despite holding $9.9 billion in cash and equivalents, which is offset by the massive liability base typical of insurance carriers. The price-to-book ratio of 43.87 and price-to-tangible-book of 5.32 reflect the market's valuation of the firm's intangible assets and future cash flow potential relative to its minimal book equity.

Profitability metrics present a complex picture, with a reported net income of $621 million on revenue of $4.23 billion for Q1 2026. However, the return on equity is negative at -5.05%, and return on assets is -0.004%, indicating that the current equity base is insufficient to generate positive returns on a normalized basis, likely due to the specific accounting treatment of insurance reserves and deferred acquisition costs. The negative ROE contrasts with the positive net income, suggesting significant non-cash charges or equity adjustments that depress the denominator or numerator in the ROE calculation relative to the GAAP net income figure.

The company’s revenue mix is concentrated in insurance products, primarily Registered Indexed Linked Annuities (RILAs) and variable annuities, alongside an Asset Management segment. The Asset Management segment faces industry-wide headwinds from the shift from actively-managed to passive services, which impacts assets under management and fee income. Geographic exposure is primarily domestic, with risks tied to U.S. state insurance laws and federal legislation affecting financial institutions.

Growth trajectory is influenced by interest rate fluctuations and equity market volatility, which directly impact the performance of indexed annuity products and the value of investment assets. The company holds approximately $3.1 billion in investment assets in non-corporate legal entities, including CLOs and private equity funds, exposing it to credit and counterparty risks. Revenue stability is further subject to the amortization of deferred acquisition costs and the adequacy of reserves, which are sensitive to changes in actuarial assumptions.

Risk factors include medium dilution risk, with source documents mentioning potential offering risks and reliance on dividends from subsidiaries to support the holding company. Operational risks involve the protection of confidential customer information and potential failures by service providers. The company also faces legal and regulatory risks, including changes in tax reform and state insurance laws that limit the ability of subsidiaries to pay dividends.

Recent events include an allocator coverage boost, indicating increased institutional interest, and management signals regarding potential dividends and adjustments to face value. Analyst estimates show a mean price target of $57.69, with a mean recommendation of 1.71, suggesting a bullish outlook from the sell-side. The company continues to review its investment management agreements and consolidated entities to ensure compliance with accounting guidance.

Revenue grew 6.5% year-over-year to $12.4 billion in FY2025, indicating top-line expansion despite profitability challenges.

Management signals potential capital allocation adjustments, including dividends and face value changes, offering flexibility for shareholder returns.

Long-term debt remained stable at approximately $3.8 billion in FY2025, suggesting manageable leverage levels amidst revenue growth.

Return on equity of -5.05% ranks in the bottom quartile, signaling poor capital efficiency compared to peers.

Debt-to-equity ratio of 14.05 is in the bottom quartile, indicating significantly higher leverage than the cohort median of 0.23.

The company faces medium dilution risk, which could negatively impact existing shareholder value and earnings per share.

Cash conversion of -0.52 is in the bottom quartile, reflecting poor ability to generate cash from operations.

Revenue $4.23B; Net margin 14.7%.

• ▍Revenue $4.23B
• ▍Net margin 14.7%

Revenue $8.39B; Net margin -19.0%.

• ▍Revenue $8.39B
• ▍Net margin -19.0%

Revenue $6.94B; Net margin -4.1%.

• ▍Revenue $6.94B
• ▍Net margin -4.1%

Revenue $11.66B; Net margin -11.8%.

• ▍Revenue $11.66B
• ▍Net margin -11.8%

Revenue $12.44B; Net margin 10.5%.

• ▍Revenue $12.44B
• ▍Net margin 10.5%

Revenue $12.43B; Net margin 10.3%.

• ▍Revenue $12.43B
• ▍Net margin 10.3%

Revenue $10.53B; Net margin 12.4%.

• ▍Revenue $10.53B
• ▍Net margin 12.4%

Revenue $10.53B; Net margin 12.4%.

• ▍Revenue $10.53B
• ▍Net margin 12.4%