Core Viewpoint - Equitable Holdings (EQH) has shown modest performance over the past year, with a gain of approximately 4% [1] Group 1: Company Performance - The company is actively repurchasing stock and has undergone significant business transformation through a large reinsurance transaction [1] - Mixed results have been observed throughout the year, indicating variability in performance metrics [1] Group 2: Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]

Core Viewpoint - Equitable Holdings (EQH) has shown modest performance over the past year, with a gain of approximately 4% [1] Group 1: Company Performance - The company is actively repurchasing stock and has undergone a significant reinsurance transaction to transform its business [1] - Mixed results have been observed throughout the year, indicating variability in performance metrics [1] Group 2: Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1] - The focus is on achieving outsized returns with a favorable risk/reward profile [1]

Financial Performance - The company reported a pre-tax net income loss of $499 million due to the novation of certain legacy variable annuity policies, resulting in a total impact loss of $236 million[444]. - The company recorded a net income loss impact of $63 million due to economic assumption updates in Q3 2025, compared to a net income increase of $16 million in Q3 2024[478][480]. - The impact of assumption updates on income from continuing operations before income taxes was a decrease of $80 million in 2025, while it was an increase of $20 million in 2024[477][480]. - Non-GAAP Operating Earnings for 2025 showed a favorable impact of $1 million before tax adjustments, while in 2024, it was favorable by $4 million[485][487]. - Non-GAAP Operating Earnings decreased by $62 million to $455 million for the three months ended September 30, 2025, from $517 million in the same period of 2024[517]. - Non-GAAP Operating Earnings decreased by $261 million to $1.2 billion for the nine months ended September 30, 2025, from $1.5 billion in the same period of 2024[523]. - Net income attributable to Holdings decreased by $1.2 billion to a net loss of $1.3 billion for the three months ended September 30, 2025, compared to a net loss of $132 million for the same period in 2024[516]. - Net income attributable to Holdings decreased by $2.0 billion to a net loss of $1.6 billion during the nine months ended September 30, 2025, from net income of $388 million in the same period of 2024[519]. Investment and Asset Management - The company’s revenues are derived from fee income, premiums from life insurance and annuity products, and investment income from the General Account investment portfolio[464][467]. - The company’s investment income is affected by the yield on its General Account investment portfolio and prevailing interest rates[464]. - Investment gains for Q3 2025 were $1,170 million, significantly higher than $46 million in Q3 2024, and totaled $1,255 million for the nine months ended September 30, 2025, compared to $101 million in 2024[496]. - The company’s total Assets Under Management (AUM) includes investment assets managed by subsidiaries, reflecting the overall performance of the investment portfolio[505]. - Total AUM as of September 30, 2025, was $860.1 billion, up $31.0 billion or 3.7% compared to June 30, 2025, driven by market appreciation of $33.3 billion[542]. - The balance of the General Account asset value at the end of the period was $171.7 billion, up from $151.8 billion in the previous year[532]. - The total investment income for the three months ended September 30, 2025, was $1,399 million, with a yield of 4.51%[569]. - The total investment income for the nine months ended September 30, 2025, was $4,137 million, with a yield of 4.54%[571]. Market Conditions and Risks - The company faces potential market volatility due to various macroeconomic factors, which could pressure sales and reduce demand for its products[450]. - The company continues to monitor customer behavior, including mortality and morbidity rates, to ensure product attractiveness and profitability[451]. - The NAIC adopted an amendment to enhance capital requirements for CLO investments, effective January 1, 2024, impacting the company's investment strategy[453]. - The company is preparing to comply with the new actuarial guideline AG 55, which requires enhanced asset adequacy testing for certain reinsurance transactions, with reporting required by December 31, 2025[458]. - The company utilizes dynamic and static hedging strategies to mitigate risks associated with variable annuity products, which may lead to net income volatility[469][472]. - Hedging activities are in place to mitigate risks from equity market and interest rate movements, utilizing derivatives as part of the risk management program[630]. Reinsurance and Liability Management - The company ceded a 75% quota share of its in-force individual life insurance block to RGA as part of the RGA Reinsurance Transaction, effective April 1, 2025[441]. - The investment advisory agreement with RGA involves managing approximately 70% of assets supporting reserves associated with the ceded policies[442]. - The company recorded a reduction of the purchased MRB asset of $2.0 billion and a reduction of liability for MRBs of $1.6 billion due to the novation[444]. - The company reinsured net retained general account liabilities to Equitable Bermuda, securing obligations through asset retention[593]. - Fee-type revenue decreased by $211 million primarily due to a reinsurance transaction with RGA[560]. - Net investment income decreased by $61 million, also primarily due to the reinsurance transaction with RGA[560]. - Policyholders' benefits decreased by $142 million, mainly due to the reinsurance transaction with RGA, partially offset by higher net mortality in the Life business[560]. Shareholder and Capital Management - The AB Tender Offer commenced to purchase up to 46 million AB Holding Units at a price of $38.50 per unit, with an aggregate purchase price of $1.8 billion, and 19.7 million units were purchased for $758 million, representing approximately 17.9% of outstanding units[445]. - The company had authorized capacity of approximately $1.3 billion remaining in its share repurchase program as of September 30, 2025, with an additional $1.5 billion approved for repurchases[596]. - The total business capital activity for the nine months ended September 30, 2025, was $1.127 billion, with significant cash outflows for share repurchases and dividends[599]. - Future dividends are subject to the discretion of the Board and depend on financial condition, results of operations, and regulatory restrictions[621]. - The principal sources of liquidity for the insurance subsidiaries include premiums, investment income, and cash from operations, while uses include claims, dividends, and administrative expenses[625]. - The company manages its capital position to maintain financial strength and credit ratings, supported by cash flows from subsidiaries and effective risk management[619]. Segment Performance - Operating earnings for the Retirement segment decreased by $15 million to $401 million for the three months ended September 30, 2025, compared to $416 million for the same period in 2024[533]. - Total segment revenues for the Retirement segment increased to $4.53 billion for the nine months ended September 30, 2025, compared to $4.06 billion for the same period in 2024[530]. - Operating earnings for the Asset Management segment increased by $43 million to $154 million during the three months ended September 30, 2025, compared to $111 million in the same period of 2024[541]. - Wealth Management segment operating earnings increased by $10 million to $59 million during the three months ended September 30, 2025, compared to $49 million in the same period of 2024[552]. - Total Wealth Management Assets at the end of September 2025 were $118.2 billion, up from $101.5 billion in September 2024[551]. - Advisory net inflows of $2.2 billion in the three months ended September 30, 2025, were $146 million higher than in the same period of 2024, driven by increased sales[553].

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite the overall market rally, with the Russell 3000 Index gaining 8% and calendar-year returns exceeding 14% [1][2] Company Overview - Equitable Holdings, Inc. (NYSE:EQH) is highlighted as a leading diversified financial services company, with a one-month return of -4.28% and a 52-week loss of 9.67%, closing at $45.22 per share on November 5, 2025, and a market capitalization of $14.584 billion [2][3] Investment Strategy - The fund initiated four new positions in Q3 2025, including Equitable Holdings, indicating a belief that its stock price does not reflect its long-term growth potential [3] Hedge Fund Interest - Equitable Holdings, Inc. was held by 42 hedge fund portfolios at the end of Q2 2025, a decrease from 49 in the previous quarter, suggesting a decline in popularity among hedge funds [4] Comparative Analysis - While acknowledging the potential of Equitable Holdings, the company believes that certain AI stocks present greater upside potential and lower downside risk, indicating a shift in investment focus [4]

Financial Data and Key Metrics Changes - Non-GAAP operating earnings were $455 million, or $1.48 per share, down 6% year over year on a per-share basis [4][14] - Adjusted for notable items, non-GAAP operating EPS was $1.67, up 2% compared to the prior year [5][14] - Total assets under management reached a record $1.1 trillion, up 4% sequentially and 7% year over year [5][14][16] - The consolidated GAAP net loss was $1.3 billion, primarily due to a one-time impact from asset transfers related to the life reinsurance transaction [14] Business Line Data and Key Metrics Changes - Retirement businesses generated $1.1 billion of net flows during the quarter, driven by growth in umbrella sales [5] - Wealth management had $2.2 billion of advisory net inflows, reflecting a 12% annualized growth rate [5] - Asset management reported total net outflows of $2.3 billion, but excluding low-fee assets transferred to RGA, net inflows were $1.7 billion [5][18] Market Data and Key Metrics Changes - The retirement segment saw a 7% increase in RILA sales, achieving record sales in nine of the last ten quarters [31][44] - Private markets assets increased 17% year over year to $80 billion, on track to meet the $90-$100 billion target by 2027 [5][13] Company Strategy and Development Direction - The company focuses on three core growth businesses: retirement, asset management, and wealth management, which provide synergies and flywheel benefits [8][9] - Key strategic pillars include defending and growing existing businesses, scaling high-growth wealth management, and investing in high-potential opportunities [8][9] - The acquisition of Stifel Independent Advisors aims to enhance the wealth management business, expected to close in the first half of 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, supported by strong organic growth momentum and increased assets under management [4][23] - The company anticipates continued double-digit growth in wealth management earnings, driven by asset growth and improved advisor productivity [11][18] - Management expects to see less volatility in life results going forward due to the benefits of the life reinsurance transaction [14][35] Other Important Information - The company returned $757 million to shareholders, including $676 million in share repurchases, and reduced outstanding debt by $500 million [7][21] - The adjusted debt to capital ratio was reported at 24.5% [16] - The consolidated tax rate for the quarter was 17%, below the normal expectation of 20% [20][21] Q&A Session Summary Question: Perspectives on the private credit environment and underwriting process - Management views private credit as a good asset class and emphasizes the importance of underwriting capabilities [25][28] Question: Differentiation in the RILA market amidst increased competition - The company maintains a sustainable edge through attractive yields, privileged distribution, and a track record of innovation [31][32] Question: Comments on unfavorable mortality experience and expectations for normalization - Management noted that retained experience was only about $10 million worse than expected, indicating modest impact from mortality [35] Question: Strategy for capital deployment from the RGA deal - The company plans to balance capital returns and acquisitions, emphasizing the ability to do both due to excess capital [58][59] Question: Growth opportunities in the spread lending business - The company has significant capacity to grow the FABN business, having issued about $4.5 billion year to date [61]

Equitable Holdings Third Quarter 2025 Earnings Results November 4, 2025 Growth in assets driving increased earnings power Equitable Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "intends," "seeks," "aims," "plans," "assumes," "estimates," "projects," "should," "would," "could," "may," "will," "shall" ...

Core Insights - Equitable Holdings, Inc. reported a revenue of $3.74 billion for the quarter ended September 2025, reflecting a 1% decrease year-over-year and a surprise of -6.01% compared to the Zacks Consensus Estimate of $3.98 billion [1] - The earnings per share (EPS) for the quarter was $1.48, down from $1.53 in the same quarter last year, with an EPS surprise of -6.92% against the consensus estimate of $1.59 [1] Financial Performance Metrics - Retirement net flows were reported at $1.22 billion, below the two-analyst average estimate of $1.52 billion [4] - Wealth Management advisory net new assets reached $2.21 billion, exceeding the average estimate of $1.75 billion [4] - Asset Management's assets under management (AUM) at the end of the period were $860.10 billion, slightly below the average estimate of $866.77 billion [4] - Net long-term inflows in Asset Management were reported at -$2.30 billion, better than the average estimate of -$2.44 billion [4] - Revenue from Retirement policy charges, fee income, and premiums was $296 million, compared to the average estimate of $311.81 million [4] - Revenue from investment management, service fees, and other income was $1.68 billion, below the average estimate of $1.79 billion [4] - Net derivative gains (losses) reported were -$17 million, worse than the average estimate of -$3.07 million [4] - Net investment income was $1.35 billion, slightly above the average estimate of $1.31 billion [4] - Policy charges, fee income, and premiums revenue was $729 million, compared to the average estimate of $782.48 million [4] - Corporate and Other revenue was $741 million, below the average estimate of $1 billion [4] - Wealth Management revenue was $499 million, in line with the average estimate of $498.14 million [4] - Retirement net derivative gains (losses) were reported at -$2 million, better than the average estimate of -$5.4 million [4] Stock Performance - Equitable Holdings' shares have returned -4.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Equitable Holdings, Inc. (EQH) reported quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.59 per share, and showing a decrease from $1.53 per share a year ago, resulting in an earnings surprise of -6.92% [1] - The company posted revenues of $3.74 billion for the quarter ended September 2025, which was 6.01% below the Zacks Consensus Estimate and a decline from $3.78 billion year-over-year [2] - Equitable Holdings has only surpassed consensus EPS estimates once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] Company Performance - Equitable Holdings shares have increased by approximately 3.4% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.77 on revenues of $3.79 billion, and for the current fiscal year, it is $5.78 on revenues of $14.88 billion [7] Industry Context - The Zacks Industry Rank for Insurance - Multi line, to which Equitable Holdings belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Equitable Holdings' stock performance [5]

Financial Performance - Net income attributable to Holdings decreased significantly to $(1,309) million for the nine months ended September 30, 2025, compared to $388 million for the same period in 2024, representing a decline of 511.1%[6] - Non-GAAP Operating Earnings for the three months ended September 30, 2025, were $455 million, down 12.0% from $517 million in the same period of 2024[6] - Total revenues for the three months ended September 30, 2025, decreased by 52.8% to $1,450 million compared to $3,073 million for the same period in 2024[9] - Net income attributable to Holdings for the three months ended September 30, 2025, was a loss of $1,309 million, a decrease of 891.7% from $892 million in the same period in 2024[9] - For the nine months ended September 30, 2025, consolidated operating earnings were $1,228 million, compared to $1,489 million for the same period in 2024, reflecting a decrease of 17.5%[17] Equity and Capital - Total equity attributable to Holdings' common shareholders fell to $148 million as of September 30, 2025, a decrease of 95.4% from $3,201 million a year earlier[6] - The company reported a return on equity (ex. AOCI) of (10.4)% for the trailing twelve months, compared to 14.0% in the previous year[6] - Book value per common share (ex. AOCI) decreased by 30.2% to $18.23 as of September 30, 2025, from $26.12 a year prior[6] - Total capital returned to common shareholders was $1,410 million for the nine months ended September 30, 2025, compared to $757 million for the same period in 2024[6] - The company’s debt to capital ratio (ex. AOCI) increased to 37.7% as of September 30, 2025, from 28.1% a year earlier[6] Assets and Liabilities - Total assets as of September 30, 2025, increased to $314,515 million from $298,841 million as of September 30, 2024, reflecting a growth of 5.2%[13] - Total liabilities as of September 30, 2025, were $312,567 million, up from $292,662 million as of September 30, 2024, representing a 6.8% increase[13] - Total long-term debt as of September 30, 2025, is $4,330 million, showing an increase from $3,831 million on September 30, 2024[14] Investment Income - Net investment income for the nine months ended September 30, 2025, increased by 7.1% to $3,946 million compared to $3,685 million for the same period in 2024[9] - The company reported net investment income of $1,350 million for the three months ended September 30, 2025, compared to $1,256 million for the same period in 2024, representing an increase of 7.5%[16] - Net investment income for the nine months ended September 30, 2025, was $3,972 million, compared to $3,622 million in 2024, reflecting an increase of 9.7%[17] Premiums and Policyholder Benefits - Policyholders' benefits for the nine months ended September 30, 2025, were $1,998 million, a slight decrease of 0.4% from $2,007 million for the same period in 2024[9] - The company experienced a 17.3% decline in premiums for the three months ended September 30, 2025, totaling $258 million compared to $312 million for the same period in 2024[9] - Policyholders' benefits for the three months ended September 30, 2025, decreased by 12.0% to $73 million from $83 million in the same period of 2024[25] Market Performance - The S&P 500 index value increased from 5,762 on September 30, 2024, to 6,688 on September 30, 2025, reflecting a growth of 16.1%[18] - The company's third-party AUM increased to $724.4 billion as of September 30, 2025, compared to $672.6 billion a year earlier, marking a growth of 7.7%[18] Shareholder Actions - Common stock dividends paid were $81 million for the three months ended September 30, 2025, compared to $76 million in the same period of 2024[6] - The company repurchased 10.9 million shares during the three months ended September 30, 2025[14] Non-GAAP Measures - The company emphasizes the use of Non-GAAP financial measures to provide a clearer picture of operating performance and underlying profitability trends[52] - The company reported a Non-GAAP Operating ROE for the previous twelve months, which is calculated by dividing Non-GAAP Operating Earnings by consolidated average equity attributable to Holdings' common shareholders[59] Derivative and Other Financial Metrics - The company recorded a net derivative loss of $1,117 million for the three months ended September 30, 2025, a 56.4% decrease from a loss of $714 million in the same period in 2024[9] - The net derivative losses for the three months ended September 30, 2025, were $(4) million, a 75% improvement from $(16) million in the previous quarter[29]

Core Insights - The London Company reported a 6.3% return for its Large Cap Strategy in Q3 2025, underperforming the Russell 1000 Index which gained 8.0% [1] - The US economy maintained momentum despite mixed economic data, driven by a Fed rate cut, strong corporate earnings, and enthusiasm for AI [1] Company Overview: Equitable Holdings, Inc. (NYSE:EQH) - Equitable Holdings is a diversified financial services company focused on retirement and wealth management, managing over $1 trillion in client assets [3] - The stock experienced a one-month return of -4.28% but gained 9.67% over the past 52 weeks, closing at $48.79 with a market cap of $14.614 billion on November 3, 2025 [2] - The company operates with an asset-light model, generating strong free cash flow used for share repurchases and dividend growth, with an annual share count decline of about 8% and a dividend growth rate of 7% [3] Recent Developments - A recent reinsurance transaction with Venerable released nearly $2 billion in excess capital, reducing risk and validating reserves for Equitable Holdings [3] - The company is shifting towards higher-quality, fee-based retirement and asset management businesses, which is expected to enhance its market valuation [3] Market Position - Equitable Holdings is not among the top 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding the stock at the end of Q2 2025, down from 49 in the previous quarter [4] - While the company shows potential, certain AI stocks are viewed as having greater upside potential and lower downside risk [4]