Brighthouse Financial (BHF) AI Stock Analysis

• Market Cap: $3.54B
• Dividend Yield: N/A
• Average Volume (3M): 598.10K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.90
• Revenue Growth: 27.71%
• EPS Growth: N/A
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 3.93
• Shares Outstanding: 57,184,097
• 10 Day Avg. Volume: 553,236
• 30 Day Avg. Volume: 598,104
• PEG Ratio: 0.36
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -36.31
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $67.00
• Price Target Upside: 10.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 20.92
• Revenue Forecast (FY): $9.05B

• Rating: 54 Neutral
• Price Target: $63.00 ▲(3.69% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is held back primarily by weak cash-flow quality and recent bearish technical momentum. These are partially offset by improving leverage and the shareholder-approved all-cash acquisition, with valuation appearing moderate based on the P/E.

Positive Factors

Stable annuity and life-insurance franchise

Brighthouse’s business model centers on annuities and life insurance sold through third-party distribution, producing recurring premium, fee and spread income. That mix creates durable, contract-driven cash flows and long-duration liabilities where scale in product administration and distribution supports steady revenue over years.

Improving leverage and stronger equity base

Leverage reduction and a stronger equity base increase financial flexibility for an insurer, lowering solvency and regulatory strain. Improved debt ratios reduce refinancing and interest-rate vulnerability, enabling more predictable capital allocation and supporting long-term product guarantees and liability management.

Shareholder-approved all-cash acquisition provides clear strategic outcome

A near-certain, approved all-cash acquisition offers a definitive strategic resolution and value realization independent of market volatility. For the business, private ownership under a specialist buyer can enable longer-term optimization of product mix, capital deployment and liability management outside public quarterly pressures.

Negative Factors

Persistent negative operating cash flow

Sustained negative operating cash flow signals earnings quality and liquidity concerns for an insurer reliant on investment spread and policy flows. Weak cash generation constrains reinvestment, hedging liquidity, and dividend or liability management flexibility, increasing reliance on capital markets or parent support.

Volatile earnings and inconsistent margins

Large year-to-year swings in profitability reflect sensitivity to underwriting, market outcomes and timing items. Persistent volatility undermines predictability of returns, complicates capital planning and makes sustained margin improvement uncertain absent durable remediation of underwriting, expense or market-risk drivers.

Material exposure to market and policyholder behavior risks

Variable annuity guarantees and asset-liability mismatch create ongoing hedging and market-risk costs. Results depend on rates, equity levels and lapses; adverse shifts raise guarantee costs or reduce fee income. That structural exposure makes earnings and capital sensitive to macro market moves over the medium term.

Brighthouse Financial Business Overview & Revenue Model

Company Description

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment provides term, universal, whole, and variable life policies for policyholders' needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. The company was incorporated in 2016 and is based in Charlotte, North Carolina.

How the Company Makes Money

Brighthouse Financial generates revenue primarily through the sale of its insurance and annuity products. Key revenue streams include premiums collected from life insurance policies, fees from asset management on its annuity products, and investment income earned on the premiums and reserves held. The company also benefits from surrender charges when policyholders withdraw funds from their annuities before a specified period. Additionally, Brighthouse has established various distribution partnerships with financial advisors and institutions, which help expand its market reach and drive sales. Overall, its revenue model is supported by a diverse product portfolio aimed at meeting the financial needs of its customers.

Brighthouse Financial Financial Statement Overview

Summary

Mixed fundamentals: earnings recovered and leverage improved, but results have been highly volatile across years and operating/free cash flow has been persistently negative in 2022–2025, raising earnings-quality and liquidity-flexibility concerns.

Income Statement

Revenue improved in the last two annual periods (2024 and 2025) and the company returned to profitability after a large loss in 2023. However, results are notably volatile over the cycle (very strong profitability in 2021–2022, sharp losses in 2020 and 2023), and current margins in 2024–2025 are modest versus prior peak years—suggesting earnings power is less consistent than it appears in a single year.

Balance Sheet

Leverage looks moderate for the period shown, with debt-to-equity improving to ~0.47 in 2025 from ~0.64 in 2023–2024, and equity building meaningfully in 2025. That said, returns on equity have swung sharply (strongly positive in 2021–2022, negative in 2020 and 2023), which highlights sensitivity in reported earnings and potential balance-sheet/market risks typical for life insurers.

Cash Flow

Cash generation is the key weak spot: operating cash flow and free cash flow are negative in 2022–2025 (including -$102M in 2025 and -$290M in 2024), and free cash flow growth is highly unstable. While net income is positive in 2024–2025, the lack of operating cash inflow in those years raises questions about earnings quality and near-term cash flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.21B	4.37B	3.95B	6.63B	3.58B
Gross Profit	4.41B	2.01B	336.00M	6.57B	3.07B
EBITDA	626.00M	574.00M	-1.32B	4.88B	2.17B
Net Income	433.00M	388.00M	-1.11B	3.88B	1.64B
Balance Sheet
Total Assets	240.74B	239.27B	237.21B	226.01B	261.30B
Cash, Cash Equivalents and Short-Term Investments	5.39B	5.04B	3.85B	4.12B	4.47B
Total Debt	3.15B	3.15B	3.16B	3.16B	3.16B
Total Liabilities	233.91B	234.24B	232.20B	220.41B	245.09B
Stockholders Equity	6.77B	4.96B	4.94B	5.46B	16.14B
Cash Flow
Free Cash Flow	-102.00M	-290.00M	-137.00M	-1.23B	746.00M
Operating Cash Flow	-102.00M	-290.00M	-137.00M	-1.23B	746.00M
Investing Cash Flow	164.00M	-2.19B	-3.20B	-8.28B	-12.24B
Financing Cash Flow	-108.00M	3.68B	3.07B	9.14B	11.86B

Brighthouse Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 60.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHF, the sentiment is Neutral. The current price of 60.76 is below the 20-day moving average (MA) of 63.60, below the 50-day MA of 64.22, and above the 200-day MA of 56.45, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 20.46 is Positive, neither overbought nor oversold. The STOCH value of 19.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BHF.

Brighthouse Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	77 Outperform	$3.06B	12.11	6.05%	2.91%	-4.58%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GNW	63 Neutral	$3.41B	15.89	2.86%	―	1.41%	150.35%
LNC	63 Neutral	$6.77B	6.10	12.27%	3.93%	35.76%	636.97%
CNO	62 Neutral	$3.97B	18.12	11.12%	1.54%	-1.61%	15.79%
JXN	58 Neutral	$7.44B	-334.28	0.27%	2.98%	24.94%	―
BHF	54 Neutral	$3.54B	10.47	7.38%	―	27.71%	―

Brighthouse Financial Corporate Events

Brighthouse Financial Shareholders Approve Aquarian Capital Acquisition

On February 12, 2026, Brighthouse Financial stockholders held a virtual special meeting at which they approved a merger agreement under which an affiliate of Aquarian Capital LLC will acquire the insurer in an all-cash transaction valued at about $4.1 billion. Common stockholders will receive $70.00 in cash per share once the deal closes, with approximately 69.7% of outstanding shares represented at the meeting, and about 99.7% of votes cast in favor of the merger proposal.

Shareholders also passed an advisory proposal approving merger-related compensation for named executive officers and authorized potential adjournment of the meeting, though adjournment ultimately was not needed because sufficient votes were secured. The company said the transaction, which is expected to close in 2026 subject to customary conditions and regulatory approvals, marks a key step in its strategic transition under private ownership, with implications for investors who will be cashed out and for Aquarian Capital’s growing footprint in the U.S. life and annuity market.

The most recent analyst rating on (BHF) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Brighthouse Financial stock, see the BHF Stock Forecast page.