Stewart Information Services Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 22 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Total revenues rose 19 percent: Total revenues were $796.9 million, against $667.9 million a year earlier. Adjusted total revenues, excluding net realized and unrealized gains, were $791.3 million. Source
• Net income and diluted EPS rose: Net income attributable to Stewart was $44.3 million, or $1.55 per diluted share, against $30.1 million, or $1.07, a year earlier. Nine-month diluted EPS was $2.79. Source
• Title operating revenues rose 19 percent: Title operating revenues were $659.9 million, against $553.3 million. Agency title revenue rose 28 percent and direct title revenue rose 11 percent. Source
• Segment costs rose 24 percent: Combined employee costs and other operating expenses for the segment rose $19.8 million. Pretax income was $7.3 million, against $7.4 million, with a pretax margin of 6.2 percent against 7.7 percent. Source
• Employee cost ratio improved to 27.2 percent: Consolidated employee costs were 27.2 percent of total operating revenues, against 29.8 percent a year earlier, as operating revenues were higher. Source
• Closed orders flat year on year: Total domestic closed orders were 59,312, against 59,375 a year earlier. Opened orders were 87,403, against 87,464. Source
• Operating cash flow rose to $92.6 million: Net cash provided by operations was $92.6 million, against $76.1 million, mainly because net income was higher. Source

“I am proud of our third quarter results as they demonstrate our momentum,”

Fred Eppinger, chief executive officer

What changed from last quarter

• New: Segment revenue growth cited a recently acquired real estate information services provider. The second quarter release did not mention it. Source

Results and growth drivers

• Total revenues rose 19 percent: Total revenues were $796.9 million, against $667.9 million a year earlier. Adjusted total revenues, excluding net realized and unrealized gains, were $791.3 million. Source
• Net income and diluted EPS rose: Net income attributable to Stewart was $44.3 million, or $1.55 per diluted share, against $30.1 million, or $1.07, a year earlier. Nine-month diluted EPS was $2.79. Source
• Adjusted diluted EPS rose to $1.64: Adjusted net income was $46.7 million, or $1.64 per diluted share, against $33.1 million, or $1.17. Adjustments exclude realized and unrealized gains, acquired intangible amortization and office closure costs. Source
• Pretax income rose to $61.2 million: Pretax income before noncontrolling interests was $61.2 million, against $42.8 million. The GAAP pretax margin was 7.7 percent against 6.4 percent. The nine-month pretax margin was 5.3 percent. Source

Title segment revenue and costs

• Title operating revenues rose 19 percent: Title operating revenues were $659.9 million, against $553.3 million. Agency title revenue rose 28 percent and direct title revenue rose 11 percent. Source
• Agency retention costs rose with revenue: Amounts retained by agencies were $299.5 million, against $234.0 million, consistent with the gross agency revenue increase. Title segment operating expenses rose 17 percent. Source
• Title loss expense fell 8 percent: Title loss expense was $19.5 million, against $21.3 million. As a share of title operating revenues it was 3.0 percent, against 3.8 percent, attributed to claims experience. Source
• Title investment income rose 9 percent: Title investment income was $14.8 million, against $13.6 million, mainly from higher earned interest on eligible escrow balances. Net realized and unrealized gains were $4.2 million. Source
• Title cost ratio improved to 44 percent: Employee costs and other operating expenses for the title segment were 44 percent of operating revenues, against 47 percent a year earlier, as title revenues grew. Source

“We are committed to growth across all business lines and are thoughtful in our operational management.”

Fred Eppinger, chief executive officer

Direct title revenues and fees

• Domestic commercial revenue up 17 percent: Domestic commercial direct revenue was $79.1 million, against $67.4 million, on more commercial closed transactions. Commercial direct revenue overall rose 23 percent to $90.4 million. Source
• International revenue up 25 percent: Total international revenues improved by $8.7 million. International commercial direct revenue was $11.3 million, up 85 percent, on larger commercial transactions and higher volumes. Source
• Residential fee per file rose 6 percent: Average domestic residential fee per file was $3,200, or 6 percent higher than a year earlier. Source
• Commercial fee per file held steady: Average domestic commercial fee per file was $17,700, comparable with the prior year quarter. Source
• Non-commercial domestic revenue up 5 percent: Domestic non-commercial direct revenue was $176.8 million, against $168.2 million, on improved purchase and refinancing closed transactions. Total direct title revenues rose 11 percent to $299.7 million. Source

Real estate solutions segment

• Segment revenue rose 21 percent: Segment revenue was $116.6 million, against $96.4 million, led by credit information and valuation services. Source
• Segment costs rose 24 percent: Combined employee costs and other operating expenses for the segment rose $19.8 million. Pretax income was $7.3 million, against $7.4 million, with a pretax margin of 6.2 percent against 7.7 percent. Source
• Segment adjusted margin fell to 11.3 percent: Adjusted pretax income was $13.2 million, against $12.9 million, with an adjusted pretax margin of 11.3 percent against 13.4 percent. The adjustments are acquisition intangible amortization. Source

Employee and other operating costs

• Employee costs rose 9 percent: Consolidated employee costs were $211.2 million, against $193.9 million. The average employee count was 9 percent higher. Source
• Employee cost ratio improved to 27.2 percent: Consolidated employee costs were 27.2 percent of total operating revenues, against 29.8 percent a year earlier, as operating revenues were higher. Source
• Other operating expenses rose 19 percent: Consolidated other operating expenses were $185.2 million, against $155.6 million, or 23.8 percent of operating revenues against 24.0 percent. Source

Gains, adjustments and corporate costs

• Realized and unrealized gains of $5.6 million: Gains of $4.3 million were unrealized fair value changes on equity securities. A $1.2 million realized gain came from a sale of real property. Source
• Adjusted pretax margin 8.1 percent: Adjusted pretax margin was 8.1 percent against 7.1 percent. Adjusted pretax income was $64.5 million against $46.8 million. Source
• Corporate expenses flat at $9.5 million: Corporate net expenses were $9.5 million in both years. The corporate segment also recorded $1.4 million of net realized gains, mainly from a sale of real property. Source

Orders and closed transactions

• Closed orders flat year on year: Total domestic closed orders were 59,312, against 59,375 a year earlier. Opened orders were 87,403, against 87,464. Source
• Commercial closed orders rose: Commercial closed orders were 4,478, against 3,794. Commercial opened orders were 4,520, against 3,665. Source
• Purchase closed orders rose: Purchase closed orders were 36,209, against 35,590. Purchase opened orders were 50,661, against 49,458. Source
• Refinancing closed orders rose: Refinancing closed orders were 12,778, against 11,766. Refinancing opened orders were 22,399, against 20,920. Source
• Other closed orders fell: Other closed orders were 5,847, against 8,225 a year earlier. Other opened orders were 9,823, against 13,421. Source

Cash, balance sheet and book value

• Operating cash flow rose to $92.6 million: Net cash provided by operations was $92.6 million, against $76.1 million, mainly because net income was higher. Source
• Book value per share rose to $52.58: Book value per share was $52.58 at September 30, against $50.50 at December 31, 2024. Equity attributable to Stewart was $1,473.4 million, against $1,402.1 million. Source
• Cash balance lower than year-end: Cash and cash equivalents were $188.5 million at September 30, against $216.3 million at December 31, 2024. Short-term investments were $44.6 million. Source
• Notes payable held near $446 million: Notes payable were $446.1 million at September 30, against $445.8 million at December 31, 2024. Estimated title losses were $520.4 million. Source

Figures management reported

Risks management discussed

• Demand: Management said the broad housing environment remains subdued relative to historic norms. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

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.