Investors Title Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Key takeaways

Net income and diluted EPS rose: Net income was $14.6 million, or $7.73 per diluted share, against $12.3 million, or $6.48 per diluted share, a year earlier. Revenues rose 17.5% to $86.5 million. Source
Premiums and escrow fees drove revenue: Net premiums written and escrow and title-related fees rose $13.3 million, which management attributed to higher real estate activity and ongoing expansion initiatives. Source
Operating expenses rose 15.9%: Operating expenses rose 15.9% to $67.1 million, led by agent commissions, personnel expenses and the provision for claims. Other expense categories were generally consistent with the prior-year period. Source
Investment gains added to revenue: Net investment gains were $4.8 million against $2.1 million a year earlier, mainly from changes in fair value of equity security investments. Source
Adjusted pre-tax income excludes gains: Adjusted income before income taxes, excluding net investment gains, was $14.7 million against $13.7 million. The six-month adjusted figure was $21.8 million against $18.9 million. Source
Transaction activity increased modestly: Chairman said the quarter benefited from market expansion initiatives and modestly improving market conditions, which drove more transactions. Source
Investing in share and efficiency: Management said it has continued investing in initiatives to build market share and internal efforts to raise capabilities and efficiency. Source
Expansion initiatives credited for growth: Management credited the market expansion initiatives with part of the quarter's performance, alongside modest market improvement. Source

“We are pleased to report our strongest quarterly financial performance in several years, highlighted by title revenue growth across all of our key markets.”
Chairman J. Allen Fine

Results and growth drivers

Net income and diluted EPS rose: Net income was $14.6 million, or $7.73 per diluted share, against $12.3 million, or $6.48 per diluted share, a year earlier. Revenues rose 17.5% to $86.5 million. Source
Premiums and escrow fees drove revenue: Net premiums written and escrow and title-related fees rose $13.3 million, which management attributed to higher real estate activity and ongoing expansion initiatives. Source
Six-month results also rose: Year-to-date net income was $20.7 million, or $10.93 per diluted share, against $15.4 million, or $8.16 per diluted share. Year-to-date revenues rose 15.6% to $150.5 million. Source

Operating costs and claims

Operating expenses rose 15.9%: Operating expenses rose 15.9% to $67.1 million, led by agent commissions, personnel expenses and the provision for claims. Other expense categories were generally consistent with the prior-year period. Source
Agent commissions tracked agent premiums: Commissions to agents rose to $35.6 million from $29.1 million, which management said was in line with higher agent premium volume. Source
Personnel costs rose on staffing: Personnel expenses rose to $19.0 million from $17.5 million, driven by higher staffing levels and incentive compensation. Source
Claims provision increased: The provision for claims was $2.8 million, up from $2.1 million, which management linked to higher premium volume and changes in actuarially determined loss ratio estimates. Source

“Despite sluggish market conditions, we believe we are well positioned to create long-term shareholder value over the course of a slower phase of the real estate cycle.”
Chairman J. Allen Fine

Investment gains and other revenue

Investment gains added to revenue: Net investment gains were $4.8 million against $2.1 million a year earlier, mainly from changes in fair value of equity security investments. Source
Other revenue fell on prior gains: Other revenue was $0.2 million against $2.9 million, which the company attributed to non-recurring gains in the prior year. Source
Adjusted pre-tax income excludes gains: Adjusted income before income taxes, excluding net investment gains, was $14.7 million against $13.7 million. The six-month adjusted figure was $21.8 million against $18.9 million. Source

Premium channels

Agency share held near 71%: Agency premiums were $47.8 million, 70.8% of net premiums written, against $38.7 million, or 71.0%, a year earlier. Source
Direct premiums rose in dollars: Direct premiums were $19.8 million against $15.8 million, 29.2% of net premiums written against 29.0% a year earlier. Source
Total net premiums written grew: Total net premiums written were $67.5 million, up from $54.5 million. The six-month total was $118.5 million against $100.8 million. Source

Demand and market conditions

Transaction activity increased modestly: Chairman said the quarter benefited from market expansion initiatives and modestly improving market conditions, which drove more transactions. Source
Title revenue grew in key markets: The Chairman said title revenue growth was seen across all key markets this quarter. Source
Market described as sluggish: Management described market conditions as sluggish and a slower phase of the real estate cycle, and said it believes the company is well positioned. Source

Balance sheet and capital

Total assets and equity rose: Total assets were $380.1 million at June 30, 2026, against $363.1 million at December 31, 2025. Stockholders' equity rose to $286.6 million from $268.3 million. Source
Cash and investments reported: Cash and cash equivalents were $20.5 million and total investments were $263.4 million at June 30, 2026. Source
Diluted share count unchanged: Diluted weighted average shares were 1,894 thousand in both the quarter and the prior-year quarter, and in both six-month periods. Source

Strategy and investment

Investing in share and efficiency: Management said it has continued investing in initiatives to build market share and internal efforts to raise capabilities and efficiency. Source
Expansion initiatives credited for growth: Management credited the market expansion initiatives with part of the quarter's performance, alongside modest market improvement. Source
Positioned for slower cycle: Management said it believes the company is positioned to create long-term shareholder value during a slower phase of the real estate cycle. Source

Figures management reported

Figure	Reported
Net premiums written Source	$67.5 million in the second quarter 2026, against $54.5 million; $118.5 million for the six months, against $100.8 million
Investment income Source	Interest and dividends $2.3 million and other investment income $0.7 million in the second quarter 2026

Risks management discussed

Financial: Management said adjusted measures remove the effects of external market fluctuations, which affect net investment gains, reported at $4.8 million this quarter. Source
Demand: Management described market conditions as sluggish and a slower phase of the real estate cycle. 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

SECOND QUARTER 2026 RESULTS

Telephone: (919) 968-2200

Nasdaq Symbol: ITIC

FOR IMMEDIATE RELEASE:

Chapel Hill, NC - Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2026. The Company reported net income of $14.6 million, or $7.73 per diluted share, compared to $12.3 million, or $6.48 per diluted share, for the prior year period.

Revenues increased 17.5% to $86.5 million, compared to $73.6 million in the prior year period, primarily due to increases in net premiums written, escrow and other title-related fees, and net investment gains, partially offset by a decline in other revenue. Net premiums written and escrow and title-related fees increased by $13.3 million, resulting from higher real estate activity levels and ongoing expansion initiatives. Revenues were positively impacted by a $2.7 million increase in net investment gains, primarily driven by favorable changes in the estimated fair value of equity security investments compared to the same period last year. Other revenue decreased due primarily to non-recurring gains from the prior year.

Operating expenses increased 15.9% to $67.1 million, compared to $57.9 million in the prior year period. The increase in operating expenses was largely driven by increases in agent commissions, personnel expenses, and the provision for claims. Agent commissions increased commensurate with the increase in agent premium volume. Personnel expenses rose primarily as a result of increases in staffing levels and incentive compensation. The provision for claims was higher due to the impacts of increased premium volume and changes in actuarially determined loss ratio estimates. Other categories of operating expenses were generally consistent with the prior-year period.

Income before income taxes increased to $19.4 million for the current year quarter, versus $15.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $14.7 million for the current year quarter, versus $13.7 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 six months ended June 30, 2026, net income increased $5.3 million to $20.7 million, or $10.93 per diluted share, versus $15.4 million, or $8.16 per diluted share, for the prior year period. Revenues increased 15.6% to $150.5 million, up from $130.2 million for the prior year period. Operating expenses increased 11.8% to $123.4 million, compared to $110.4 million for the prior year period. Income before income taxes increased to $27.2 million for the current year, versus $19.9 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $21.8 million for the current year period, versus $18.9 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure). Overall results for the year-to-date period have been shaped predominantly by the same factors that affected the second quarter.

Chairman J. Allen Fine commented, "We are pleased to report our strongest quarterly financial performance in several years, highlighted by title revenue growth across all of our key markets. Performance during the quarter benefited from both the positive impact of our market expansion initiatives and modestly improving market conditions, which drove increased transaction activity and contributed to growth across our operations.

"Enabled by the strength of our balance sheet and financial position, we have continued investing in initiatives to build market share as well as internal efforts to increase capabilities and efficiency. Despite sluggish market conditions, we believe we are well positioned to create long-term shareholder value over the course of a slower phase of the real estate cycle."

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; shutdowns 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, 2025 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 Six Months Ended June 30, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenues:
Net premiums written	$67,542	$54,496	$118,488	$100,841
Escrow and other title-related fees	5,968	5,694	11,008	9,586
Non-title services	5,105	5,477	9,474	10,086
Interest and dividends	2,272	2,361	4,560	4,700
Other investment income	667	609	1,331	1,019
Net investment gains	4,795	2,104	5,319	925
Other	154	2,908	336	3,057
Total Revenues	86,503	73,649	150,516	130,214
Operating Expenses:
Commissions to agents	35,644	29,077	63,096	53,934
Provision for claims	2,783	2,080	3,255	2,403
Personnel expenses	19,043	17,460	38,069	35,794
Office and technology expenses	4,666	4,327	9,176	8,867
Other expenses	4,921	4,907	9,759	9,365
Total Operating Expenses	67,057	57,851	123,355	110,363
Income before Income Taxes	19,446	15,798	27,161	19,851
Provision for Income Taxes	4,813	3,520	6,461	4,402
Net Income	$14,633	$12,278	$20,700	$15,449
Basic Earnings per Common Share	$7.75	$6.51	$10.96	$8.19
Weighted Average Shares Outstanding - Basic	1,888	1,887	1,888	1,886
Diluted Earnings per Common Share	$7.73	$6.48	$10.93	$8.16
Weighted Average Shares Outstanding - Diluted	1,894	1,894	1,894	1,894

Investors Title Company and Subsidiaries

Consolidated Balance Sheets

As of June 30, 2026 and December 31, 2025

(in thousands)

(unaudited)

	June 30, 2026	December 31, 2025
Assets
Cash and cash equivalents	$20,464	$20,838
Investments:
Fixed maturity securities, available-for-sale, at fair value	130,515	118,116
Equity securities, at fair value	51,295	41,481
Short-term investments	51,726	68,763
Other investments	29,825	23,446
Total investments	263,361	251,806
Premiums and fees receivable	19,401	17,126
Accrued interest and dividends	1,634	1,476
Prepaid expenses and other receivables	9,482	9,387
Property, net	30,551	29,397
Goodwill and other intangible assets, net	21,358	20,940
Lease assets	8,355	7,784
Other assets	2,758	2,706
Current income taxes recoverable	2,761	1,678
Total Assets	$380,125	$363,138
Liabilities and Stockholders’ Equity
Liabilities:
Reserve for claims	$39,102	$38,092
Accounts payable and accrued liabilities	38,303	41,525
Lease liabilities	8,717	8,050
Deferred income taxes, net	7,432	7,171
Total liabilities	93,554	94,838
Stockholders’ Equity:
Common stock - no par value (10,000 authorized shares; 1,888 and 1,888 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)	-	-
Retained earnings	286,409	267,209
Accumulated other comprehensive income	162	1,091
Total stockholders’ equity	286,571	268,300
Total Liabilities and Stockholders’ Equity	$380,125	$363,138

Investors Title Company and Subsidiaries

Direct and Agency Net Premiums Written

For the Three and Six Months Ended June 30, 2026 and 2025

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2026%		2025%		2026%		2025%
Direct	$19,750	29.2	$15,823	29.0	$33,973	28.7	$29,357	29.1
Agency	47,792	70.8	38,673	71.0	84,515	71.3	71,484	70.9
Total	$67,542	100.0	$54,496	100.0	$118,488	100.0	$100,841	100.0

Investors Title Company and Subsidiaries

Appendix A

Non-GAAP Measures Reconciliation

For the Three and Six Months Ended June 30, 2026 and 2025

(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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenues
Total revenues (GAAP)	$86,503	$73,649	$150,516	$130,214
Subtract: Net investment gains	(4,795)	(2,104)	(5,319)	(925)
Adjusted revenues (non-GAAP)	$81,708	$71,545	$145,197	$129,289
Income before Income Taxes
Income before income taxes (GAAP)	$19,446	$15,798	$27,161	$19,851
Subtract: Net investment gains	(4,795)	(2,104)	(5,319)	(925)
Adjusted income before income taxes (non-GAAP)	$14,651	$13,694	$21,842	$18,926

Contacts
Elizabeth B. Lewter