EQH-PA — Equitable Holdings, Inc.

Summary of Equitable Holdings, Inc. Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Non-GAAP Operating Earnings: $455 million or $1.48 per share, a 6% decrease year-over-year on a per-share basis; adjusted for notable items, EPS was $1.67, up 2% year-over-year.
• GAAP Net Loss: $1.3 billion primarily due to a one-time impact from asset transfers related to the life reinsurance transaction.
• Assets Under Management: Reached a record $1.1 trillion, up 4% sequentially and 7% year-over-year.
• Return of Capital: $757 million returned to shareholders, including $676 million in share repurchases.
• Adjusted Book Value: $33.59 per share, with a debt-to-capital ratio of 24.5%.

2. Strategic Updates and Business Highlights:

• Capital Allocation: $1.5 billion allocated to drive shareholder value and growth, including $200 million for Asset and Wealth Management growth.
• Wealth Management Growth: Strong performance with $2.2 billion in advisory net inflows and a 12% annualized growth rate; acquisition of Stifel Independent Advisors expected to add $10 million to earnings in 2027.
• Retirement Business: Generated $1.1 billion in net flows, driven by RILA sales, despite seasonal impacts.
• Asset Management: AllianceBernstein (AB) reported total net inflows of $1.7 billion, excluding $2.3 billion in outflows related to the reinsurance transaction.
• Private Markets: AB's private markets assets increased 17% year-over-year, on track to meet the $90 billion to $100 billion target by 2027.

3. Forward Guidance and Outlook:

• 2027 Financial Targets: Confident in achieving targets, including $2 billion in annual cash generation and 12% to 15% EPS CAGR.
• Wealth Management Earnings: Expected to continue growing at a double-digit rate, with margins anticipated to expand over time.
• Cash Flow Expectations: Anticipated upstream cash of $2.6 billion to $2.7 billion for the year, with continued strong organic cash generation.

4. Challenges and Points of Concern:

• GAAP Losses: Significant GAAP net loss due to one-time reinsurance transaction impacts.
• Mortality Experience: Unfavorable mortality experience in Q3, with a $10 million impact, although expected volatility to decrease moving forward.
• DAC Amortization: Increased by $10 million, driven by higher surrenders and growth in sales; potential future pressure from older blocks.
• Competitive Pressures: Increased competition in the RILA market, with concerns about aggressive features being offered by competitors.

5. Notable Q&A Insights:

• Private Credit Strategy: Management expressed confidence in private credit as an attractive asset class, emphasizing rigorous underwriting processes.
• RILA Market Dynamics: Differentiation through distribution channels and innovation; management remains cautious about overly generous terms from competitors.
• Future Capital Deployment: The remaining $300 million from the RGA deal will be used for growth investments or buybacks, with flexibility to balance both.
• Institutional Market Growth: Positive outlook on institutional sales, with expectations for a strong pipeline in 2026 despite no material sales expected in Q4.

Overall, Equitable Holdings demonstrated solid performance in Q3 2025, with strong growth in key segments, while also navigating challenges related to mortality experience and competitive pressures in the market. The company remains optimistic about its strategic initiatives and long-term financial targets.