HUMHIGH SIGNALOPERATIONAL10-K

Humana experienced a dramatic 69% decline in operating cash flow to $921M alongside a significant membership drop from 16M to 15M medical benefit plan members, while maintaining revenue growth through higher premiums.

The massive operating cash flow decline combined with membership losses suggests deteriorating operational efficiency and potential margin compression despite revenue growth. The company appears to be generating less cash per dollar of revenue, which could indicate rising medical costs or other operational challenges that investors should monitor closely.

Comparing 2026-02-19 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

Revenue grew a healthy 10.1% to $129.7B, but this was overshadowed by a severe 68.9% collapse in operating cash flow from $3.0B to $921M, forcing management to dramatically reduce share buybacks by 81.5% and build cash reserves (which nearly doubled to $4.2B). Rising interest expense (+22.9%) and SG&A costs (+12.8%) suggest margin pressure, with the overall picture indicating that while Humana is growing its top line, the business is generating significantly less cash and facing operational headwinds that required defensive cash positioning.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+89.1%
$2.2B→$4.2B

Cash position surged 89.1% — strong cash generation or capital raise providing significant financial cushion.

Share Buybacks
Cash Flow
-81.5%
$817.0M→$151.0M

Buyback activity reduced 81.5% — capital being redeployed elsewhere or cash conservation underway.

Operating Cash Flow
Cash Flow
-68.9%
$3.0B→$921.0M

Operating cash flow fell 68.9% — earnings quality concerns; investigate working capital changes and non-cash items.

Interest Expense
P&L
+22.9%
$401.0M→$493.0M

Interest costs rose 22.9% — monitor debt levels and coverage ratio in rising rate environment.

SG&A Expense
P&L
+12.8%
$13.7B→$15.4B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Revenue
P&L
+10.1%
$117.8B→$129.7B

Revenue growing 10.1% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-20
ADDED
These efforts are leading to a better quality of life for Medicare and Medicaid participants, families, individuals, military service personnel, and communities at large.
As of December 31, 2025, we had approximately 15 million members in our medical benefit plans, as well as approximately 4.7 million members in our specialty products.
During 2025, 83% of our total premiums and services revenue were derived from contracts with the federal government, including 14% derived from our individual Medicare Advantage contracts in Florida with the Centers for Medicare and Medicaid Services, or CMS, under which we provided health insurance coverage to approximately 1.0 million members as of December 31, 2025.
At December 31, 2025, we provided health insurance coverage under CMS contracts to approximately 5.2 million individual Medicare Advantage members, including approximately 1.0 million members in Florida.
These 7 Florida contracts accounted for premiums revenue of approximately $17.8 billion, which represented approximately 20% of our individual Medicare Advantage premiums revenue, or 14% of our consolidated premiums and services revenue for the year ended December 31, 2025.
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REMOVED
These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large.
As of December 31, 2024, we had approximately 16 million members in our medical benefit plans, as well as approximately 5 million members in our specialty products.
During 2024, 85% of our total premiums and services revenue were derived from contracts with the federal government, including 14% derived from our individual Medicare Advantage contracts in Florida with the Centers for Medicare and Medicaid Services, or CMS, under which we provide health insurance coverage to approximately 924,800 members as of December 31, 2024.
At December 31, 2024, we provided health insurance coverage under CMS contracts to approximately 5,661,800 individual Medicare Advantage members, including approximately 924,800 members in Florida.
These 7 Florida contracts accounted for premiums revenue of approximately $16.4 billion, which represented approximately 19% of our individual Medicare Advantage premiums revenue, or 14% of our consolidated premiums and services revenue for the year ended December 31, 2024.
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