Voya Financial (VOYA +1.75%), a leading provider of retirement, investment, and employee benefit solutions, reported its Q2 2025 earnings on August 5, 2025. The standout result was non-GAAP earnings per share (EPS) of $2.46, easily surpassing analyst forecasts of $2.05 in non-GAAP EPS. Voya reported non-GAAP net revenue of $4.16 billion for the twelve months ended June 30, 2025. Adjusted operating performance strengthened, while GAAP net income and EPS both declined due to non-operating factors—mainly investment losses and severance costs. Overall, the quarter showed positive momentum in key business areas but highlighted challenges in employee benefits, where adjusted operating margin dropped to 3.7% for the trailing twelve months ended Q2 2025 from 19.1% in the prior-year period, and net revenues declined 13.8%.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $2.46 | $2.05 | $2.18 | 12.8% |
| Revenue (Non-GAAP) | N/A | $1.95 billion | N/A | N/A |
| Net Income Available to Common Shareholders (GAAP) | $162 million | $201 million | (19.4%) | |
| EPS (GAAP) | $1.66 | $1.96 | (15.3%) | |
| Adjusted Operating Margin – Retirement (Non-GAAP) | 39.3% | 37.1% | 2.2 pp |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Focus Areas
Voya Financial operates three main segments: Retirement, Investment Management, and Employee Benefits. Its core business centers on helping employers and individuals plan, invest, and protect their financial futures through workplace retirement plans, asset management, and a suite of insurance products.
The recent business strategy centers on expanding assets under management, integrating acquisitions such as the OneAmerica retirement business, and sharpening operational discipline. Success for Voya depends on strong asset gathering, delivering investment results, maintaining competitive offerings, and adapting to regulatory changes while managing operational risks and capital efficiently.
Quarterly Highlights: Results and Developments
In Q2 2025, Voya exceeded both internal and external expectations, as evidenced by after-tax adjusted operating earnings (non-GAAP) of $2.46 per diluted share, surpassing the analyst estimate of $2.05. After-tax adjusted operating earnings per share rose 12.8% compared to Q2 2024, reaching $2.46 per diluted share of after-tax adjusted operating earnings (non-GAAP), which was $0.41 above analyst estimates for non-GAAP EPS. Net income available to common shareholders was $162 million for Q2 2025, reflecting a 19.4% slide due to one-time investment losses and higher severance costs, marking a decrease in GAAP-based profitability.
The Retirement business, formerly called Wealth Solutions, was a standout performer. Pre-tax adjusted operating earnings rose from $214 million in Q2 2024 to $235 million in Q2 2025. This 12.1% lift in net revenues for the trailing twelve months ended Q2 2025 was largely due to the successful integration of OneAmerica's retirement plan business, which contributed a significant boost in total client assets and revenue. Adjusted operating margin in Retirement improved to 39.3% for the trailing twelve months ended Q2 2025, up 2.2 percentage points year-over-year. Total client assets in this segment reached $757 billion as of June 30, 2025—a 30% increase year-over-year.
Pre-tax adjusted operating earnings for Investment Management were $51 million in Q2 2025, compared to $50 million in the prior-year period. Net inflows totaled $1.8 billion in Q2 2025, helping the company surpass $1 trillion in assets managed and administered across Retirement and Investment Management as of Q2 2025. The adjusted operating margin for the trailing twelve months ended Q2 2025 was 28.0%, 2.2 percentage points better than last year for adjusted operating margin (non-GAAP).
The Employee Benefits business posted mixed results. Pre-tax adjusted operating earnings climbed 15% to $69 million in Q2 2025 compared to the prior-year period, driven by improvements in stop loss insurance, which covers employers for large health claims, and better underwriting in group life policies. Still, the unit's trailing 12-month net revenues dropped 13.8% for the twelve months ended June 30, 2025, and its adjusted operating margin plummeted from 19.1% to 3.7% for the trailing twelve months ended Q2 2025. Declines in annualized in-force premiums and fees—down 6% to $3.6 billion in Q2 2025—reflect ongoing pricing discipline and risk selection but Management cited continued pressure from negative claims trends in the prior periods.
On the corporate side, pre-tax adjusted operating losses, excluding noncontrolling interest, were $67 million in Q2 2025, mainly due to increased incentive compensation aligning with stronger business performance. Operating expenses rose to $857 million in Q2 2025, up 14% compared to Q2 2024, partially driven by severance investments tied to continued integration and restructuring.
A major operational achievement in Q2 2025 was surpassing $1 trillion in total assets managed and administered across Retirement and Investment Management. This milestone was powered both by successful asset gathering, notably from OneAmerica, and favorable market conditions. Management highlighted strong client retention, with an emphasis on growing the recordkeeping business (keeping track of client assets).
Other product developments include the ongoing allocation of $50 million toward building out leave management solutions, as discussed by management in Q1 2025. This investment targets bundled workplace benefit products, aiming to capture growth as customer needs evolve. The company continued to add to reserves in voluntary benefits to account for possible increases in utilization in Q1 2025, a prudent move as economic conditions remain uncertain.
Voya returned $44 million to shareholders through dividend payments in Q2 2025. The company continues to prioritize its capital-light, high free cash flow approach.
Looking Forward
Management remains focused on integrating the OneAmerica business, improving margins in Employee Benefits, and driving organic growth. It did not provide explicit forward guidance for revenue or profit, but The recent milestone of surpassing $1 trillion in total assets across Retirement and Investment Management as of Q2 2025 marks a notable step as the company builds scale in its core businesses.
No new or updated quantitative guidance was issued for the rest of fiscal 2025. Management reiterated its commitment to disciplined expense management and capital deployment. Based on the most recent results and the composition of current profits, investors should pay close attention to continued progress in Employee Benefits, integration costs, and expense levels in the coming quarters. The company’s stated priorities include maintaining high cash conversion, stabilizing margins in the challenged benefits segment, and leveraging recent acquisitions to expand market reach.
VOYA does pay a dividend. There was no declared change to the dividend this quarter.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
