Investors Title Co.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 17 February 2026: press release. The quarter’s numbers.

Key takeaways

Quarter net income declined: Fourth-quarter net income was $7.5 million, or $3.97 per diluted share, against $8.4 million, or $4.41, a year earlier. Source
Full-year net income rose: Net income for 2025 was $35.2 million, or $18.57 per diluted share, up from $31.1 million, or $16.43, in 2024. Source
Quarter revenue fell 1.6%: Revenues were $69.5 million, down 1.6% from $70.6 million. Non-title services revenue partly offset the decline in net premiums written. Source
Full-year revenue rose 5.6%: Full-year revenues were $272.8 million, up from $258.3 million in the prior year. Source
Quarter premiums fell on accrual: Net premiums written fell $2.4 million to $55.4 million in the quarter. Management attributed the decline to market-driven factors affecting the prior-year accrual for unreported premiums. Source
Quarter operating expenses rose 0.2%: Operating expenses were $59.9 million, up 0.2%. Higher personnel and other expenses were partly offset by lower agent commissions. Source

“We are pleased to report strong results for 2025, with the highest level of profits since 2021.”
Chairman J. Allen Fine

What changed from last quarter

New: The fourth quarter release refers to agency acquisitions and related professional services charges. The third quarter release did not mention agency acquisitions. Source

Results and growth drivers

Quarter net income declined: Fourth-quarter net income was $7.5 million, or $3.97 per diluted share, against $8.4 million, or $4.41, a year earlier. Source
Full-year net income rose: Net income for 2025 was $35.2 million, or $18.57 per diluted share, up from $31.1 million, or $16.43, in 2024. Source
Quarter revenue fell 1.6%: Revenues were $69.5 million, down 1.6% from $70.6 million. Non-title services revenue partly offset the decline in net premiums written. Source
Full-year revenue rose 5.6%: Full-year revenues were $272.8 million, up from $258.3 million in the prior year. Source

Title premiums and demand

Quarter premiums fell on accrual: Net premiums written fell $2.4 million to $55.4 million in the quarter. Management attributed the decline to market-driven factors affecting the prior-year accrual for unreported premiums. Source
Agency share of premiums eased: Agency premiums were 70.8% of quarterly net premiums written, against 73.2% a year earlier. Direct premiums were $16.2 million, against $15.5 million. Source
Full-year premiums and fees rose: Full-year net premiums written reached $212.6 million from $204.3 million. Escrow and other title-related fees reached $19.3 million from $18.0 million. Source
Activity levels rose year over year: Management said activity levels increased over the prior year in the quarter, even as reported net premiums written declined. Source
Title volumes up in key markets: Chairman Fine said title volumes rose in most key markets, with modest refinance increases tied to a slight improvement in mortgage rates. Source

“Beyond their impact on 2025 results, we believe these investments will enhance profitability in years to come.”
Chairman J. Allen Fine

Non-title services

Quarter non-title revenue rose $975K: Non-title services revenue increased $975 thousand in the quarter, mainly from like-kind exchanges and title agency management services. Source
Full-year non-title revenue grew: Non-title services revenue for 2025 was $21.6 million, against $17.2 million for 2024. Source
Recurring management revenue added: Chairman Fine said non-title businesses performed well, citing more like-kind exchange business and recurring management services revenue streams. Source

Investment gains and income

Investment gains were smaller: Net investment gains were $195 thousand in the quarter, against $43 thousand a year earlier, and $3.2 million for the year, against $4.7 million. Source
Joint venture gain in second quarter: Revenues for 2025 included a gain on assets contributed to a joint venture in the second quarter, and variations in year-to-date investment earnings. Source
Interest and dividends lower for year: Interest and dividends were $2.9 million in the quarter, flat year over year, and $10.0 million for 2025, against $10.7 million. Other investment income was $716 thousand, against $604 thousand. Source

Operating expenses

Quarter operating expenses rose 0.2%: Operating expenses were $59.9 million, up 0.2%. Higher personnel and other expenses were partly offset by lower agent commissions. Source
Personnel costs rose on incentives: Personnel expenses were $19.0 million in the quarter, against $17.7 million, mainly from higher incentive compensation and contract services costs. Source
Other expenses rose in quarter: Other expenses were $6.3 million in the quarter, against $4.9 million a year earlier, and $20.5 million for 2025, against $16.9 million. Source
Agent commissions fell with premiums: Commissions to agents were $29.5 million in the quarter, against $31.8 million. Management tied the decline to lower agent premium volume. Source
Full-year expenses rose 4.3%: Full-year operating expenses rose 4.3% to $228.2 million, mainly from commissions and other expenses tied to transaction volume. Management also cited managed personnel and office costs. Source

Pre-tax income and margins

Quarter pre-tax income declined: Income before income taxes was $9.6 million in the quarter, against $10.8 million. The income tax provision was $2.1 million, against $2.4 million. Source
Adjusted quarter pre-tax income lower: Excluding net investment gains, adjusted income before income taxes (non-GAAP) was $9.4 million, against $10.8 million. Source
Adjusted full-year pre-tax income up: For 2025, income before income taxes was $44.5 million, against $39.5 million. Adjusted (non-GAAP) was $41.4 million, against $34.8 million. Source

Balance sheet and capital

Cash fell, investments rose: Cash and cash equivalents were $20.8 million at December 31, 2025, against $24.7 million. Total investments were $251.8 million, against $232.5 million. Source
Goodwill and intangibles increased: Goodwill and other intangible assets were $20.9 million, against $15.1 million at December 31, 2024, and $10.5 million at September 30, 2025 in the third quarter release. Source
Equity rose to $268.3 million: Total stockholders’ equity was $268.3 million, against $251.8 million, with retained earnings of $267.2 million. Source
Claims reserve edged higher: Reserve for claims was $38.1 million, against $37.1 million. Provision for claims was $1.0 million in the quarter and $4.6 million for the year. Source

Strategy and investment

Efficiency investments made in 2025: During 2025 the company invested in long-term operational efficiency and controlled total expenses by managing personnel and office costs. Source
Market share expansion efforts: Management cited ongoing efforts to expand its presence and grow market share as a source of revenue benefit. Source
Agency acquisitions in quarter: Other expenses included professional services charges tied to agency acquisitions and several projects in the quarter. Source

Figures management reported

Figure	Reported
Net premiums written Source	$55,399 thousand in the quarter; $212,642 thousand for the year
Investment income Source	Interest and dividends $2,861 thousand in the quarter; $9,965 thousand for the year; other investment income $716 thousand in the quarter

Risks management discussed

Financial: Premium comparisons were affected by a prior-year accrual for unreported premiums, which lowered reported net premiums written this quarter. Source
Operational: Professional services charges tied to agency acquisitions and projects raised other expenses this quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

INVESTORS TITLE COMPANY ANNOUNCES

FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS

Telephone: (919) 968-2200

Nasdaq Symbol: ITIC

FOR IMMEDIATE RELEASE:

Chapel Hill, NC - Investors Title Company (Nasdaq: ITIC) today announced results for the fourth quarter ended December 31, 2025. The Company reported net income of $7.5 million, or $3.97 per diluted share, compared to $8.4 million, or $4.41 per diluted share, for the prior year period.

Revenues decreased 1.6% to $69.5 million, compared to $70.6 million in the prior year period, primarily due to a decline in net premiums written, partially offset by an increase in non-title services revenue. Although activity levels increased over the prior year, reported net premiums written decreased by $2.4 million, largely due to market-driven factors that favorably impacted the prior year accrual for unreported premiums. Non-title services revenue increased $975 thousand, mostly due to higher revenues from like-kind exchanges and title agency management services.

Operating expenses increased 0.2% to $59.9 million, compared to $59.8 million in the prior year period, primarily due to higher personnel costs and other expenses, partially offset by a decline in agent commissions. Personnel expenses rose primarily as a result of increased incentive compensation and contract services costs. Other expenses increased due to professional services charges associated with agency acquisitions and several projects in the current year quarter. Agent commissions decreased commensurate with the decline in agent premium volume. Other categories of operating expenses were generally consistent with the prior-year period.

Income before income taxes decreased to $9.6 million for the current year quarter, versus $10.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) decreased to $9.4 million for the current year quarter, versus $10.8 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).

For the twelve months ended December 31, 2025, net income increased $4.1 million to $35.2 million, or $18.57 per diluted share, versus $31.1 million, or $16.43 per diluted share, for the prior year period. Revenues increased 5.6% to $272.8 million, up from $258.3 million for the prior year period. Operating expenses increased 4.3% to $228.2 million, compared to $218.8 million for the prior year period. Income before income taxes increased to $44.5 million for the current year, versus $39.5 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $41.4 million for the current year period, versus $34.8 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).

The increase in revenues for the twelve months ended December 31, 2025 was primarily attributable to higher net premiums written and increased escrow and title-related fees, driven by elevated real estate activity levels, as well as growth in non-title services revenue from like-kind exchanges and management services. Revenues were also positively impacted by a gain recognized on assets contributed to a joint venture in the second quarter of 2025, and by year-to-date variations in investment earnings.

The increase in operating expenses for the twelve months ended December 31, 2025 was largely driven by agent commissions and other expenses which correspond to a higher level of transaction volume, as well as increased professional services fees. These changes were partially offset by effective management of personnel, office, and technology expenses in connection with ongoing cost-management initiatives.

Chairman J. Allen Fine commented, "We are pleased to report strong results for 2025, with the highest level of profits since 2021. Title insurance volumes increased in most of our key markets over the prior year, with a slight improvement in mortgage rates providing modest increases in refinance activity. Additionally, revenues benefitted from ongoing efforts to expand our presence and grow market share.

"Our non-title businesses also performed well. We benefitted from a higher level of like-kind exchange business, as well as the addition of recurring management services revenue streams.

"During the year, we continued to make investments to strengthen our long-term operational efficiency, while controlling total expenses by managing personnel and office expenses. Beyond their impact on 2025 results, we believe these investments will enhance profitability in years to come."

Investors Title Company’s subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services and services in connection with tax-deferred exchanges of like-kind property.

Cautionary Statements Regarding Forward-Looking Statements

Forward-looking statements notice

Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as “plan,” expect,” “aim,” “believe,” “project,” “anticipate,” “intend,” “estimate,” “should,” “could,” “would,” and other expressions that indicate future events and trends. Such statements include, among others, any statements regarding the Company’s expected performance for future periods and the full year, the impact of order volumes on results in future quarters, future home price fluctuations, changes in home purchase or refinance demand, activity and the mix thereof, interest rate changes, expansion of the Company’s market presence, enhancement of competitive strengths, execution on expense management strategies, development in housing affordability, wages, unemployment or overall economic conditions or statements regarding our actuarial assumptions and the application of recent historical claims experience to future periods. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: the cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience; declines in the performance of the Company’s investments; changes in government regulations and policy, including as a result of the Trump administration such as policies related to tariffs and taxes and their impact on the macroeconomic environment; changes in the economy; the impact of inflation and responses by government regulators, including the Federal Reserve, such as changes in interest rates; a shutdown of the federal government; loss of agency relationships, or significant reductions in agent-originated business; difficulties managing growth, whether organic or through acquisitions and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries

Consolidated Statements of Operations

For the Three and Twelve Months Ended December 31, 2025 and 2024

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2025	2024	2025	2024
Revenues:
Net premiums written	$55,399	$57,813	$212,642	$204,264
Escrow and other title-related fees	4,914	4,856	19,311	17,954
Non-title services	5,255	4,280	21,599	17,193
Interest and dividends	2,861	2,833	9,965	10,657
Other investment income	716	604	2,720	2,600
Net investment gains	195	43	3,177	4,683
Other	178	199	3,341	947
Total Revenues	69,518	70,628	272,755	258,298
Operating Expenses:
Commissions to agents	29,514	31,834	113,669	107,343
Provision for claims	995	1,047	4,607	4,530
Personnel expenses	18,986	17,720	72,215	72,513
Office and technology expenses	4,159	4,344	17,204	17,505
Other expenses	6,257	4,872	20,511	16,944
Total Operating Expenses	59,911	59,817	228,206	218,835
Income before Income Taxes	9,607	10,811	44,549	39,463
Provision for Income Taxes	2,090	2,449	9,369	8,390
Net Income	$7,517	$8,362	$35,180	$31,073
Basic Earnings per Common Share	$3.98	$4.44	$18.64	$16.48
Weighted Average Shares Outstanding - Basic	1,888	1,885	1,887	1,885
Diluted Earnings per Common Share	$3.97	$4.41	$18.57	$16.43
Weighted Average Shares Outstanding - Diluted	1,895	1,896	1,895	1,892

Investors Title Company and Subsidiaries

Consolidated Balance Sheets

As of December 31, 2025 and 2024

(in thousands)

(unaudited)

	December 31, 2025	December 31, 2024
Assets
Cash and cash equivalents	$20,838	$24,654
Investments:
Fixed maturity securities, available-for-sale, at fair value	118,116	112,972
Equity securities, at fair value	41,481	39,893
Short-term investments	68,763	59,101
Other investments	23,446	20,578
Total investments	251,806	232,544
Premiums and fees receivable	17,126	16,054
Accrued interest and dividends	1,476	1,469
Prepaid expenses and other receivables	9,387	7,033
Property, net	29,397	27,935
Goodwill and other intangible assets, net	20,940	15,071
Lease assets	7,784	6,156
Other assets	2,706	2,655
Current income taxes recoverable	1,678	-
Total Assets	$363,138	$333,571
Liabilities and Stockholders’ Equity
Liabilities:
Reserve for claims	$38,092	$37,060
Accounts payable and accrued liabilities	41,525	34,011
Lease liabilities	8,050	6,356
Current income taxes payable	-	276
Deferred income taxes, net	7,171	4,095
Total liabilities	94,838	81,798
Stockholders’ Equity:
Common stock - no par value (10,000 authorized shares; 1,888 and 1,886 shares issued and outstanding as of December 31, 2025 and 2024, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)	-	-
Retained earnings	267,209	251,418
Accumulated other comprehensive income	1,091	355
Total stockholders’ equity	268,300	251,773
Total Liabilities and Stockholders’ Equity	$363,138	$333,571

Investors Title Company and Subsidiaries

Direct and Agency Net Premiums Written

For the Three and Twelve Months Ended December 31, 2025 and 2024

(in thousands)

(unaudited)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2025%		2024%		2025%		2024%
Direct	$16,177	29.2	$15,507	26.8	$61,864	29.1	$60,626	29.7
Agency	39,222	70.8	42,306	73.2	150,778	70.9	143,638	70.3
Total	$55,399	100.0	$57,813	100.0	$212,642	100.0	$204,264	100.0

Investors Title Company and Subsidiaries

Appendix A

Non-GAAP Measures Reconciliation

For the Three and Twelve Months Ended December 31, 2025 and 2024

(in thousands)

(unaudited)

Management uses various financial and operational measurements, including financial information not prepared in accordance with generally accepted accounting principles ("GAAP"), to analyze Company performance. This includes adjusting revenues to remove the impact of net investment gains and losses, which are recognized in net income under GAAP. Net investment gains and losses include realized gains and losses on sales of investment securities and changes in the estimated fair value of equity security investments. Management believes that these measures are useful to evaluate the Company's internal operational performance from period to period because they eliminate the effects of external market fluctuations. The Company also believes users of the financial results would benefit from having access to such information, and that certain of the Company’s peers make available similar information. This information should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies.

The following tables reconcile non-GAAP financial measurements used by Company management to the comparable measurements using GAAP:

	Three Months Ended December 31,		Twelve Months Ended December 31,
	2025	2024	2025	2024
Revenues
Total revenues (GAAP)	$69,518	$70,628	$272,755	$258,298
Subtract: Net investment gains	(195)	(43)	(3,177)	(4,683)
Adjusted revenues (non-GAAP)	$69,323	$70,585	$269,578	$253,615
Income before Income Taxes
Income before income taxes (GAAP)	$9,607	$10,811	$44,549	$39,463
Subtract: Net investment gains	(195)	(43)	(3,177)	(4,683)
Adjusted income before income taxes (non-GAAP)	$9,412	$10,768	$41,372	$34,780

Contacts
Elizabeth B. Lewter