Financial Data and Key Metrics Changes - The company reported a net income of $32 million or $1.13 per diluted share based on revenues of $722 million for Q2 2025, with adjusted net income of $38 million or $1.34 per diluted share compared to $25 million or $0.91 per diluted share last year [19][20] - Revenue grew by 20% and adjusted EPS increased by 48% compared to Q2 2024 [8][19] - The title segment's operating revenues improved by $96 million or 19%, resulting in a pretax income improvement of $16 million or 48% [20] Business Line Data and Key Metrics Changes - Direct operations grew by 6% overall, with a focus on growing market share in target MSAs and micro markets [8] - Small commercial operations delivered a 36% growth rate compared to the previous year [9] - Domestic commercial revenues increased by $24 million or 46%, driven by strength in various asset classes [11][20] - Agency service business grew by 25% compared to Q2 2024, indicating continued share gains [12] Market Data and Key Metrics Changes - Existing home sales were down roughly 1% compared to Q2 2024, with price appreciation cooling to around 1.5% for the quarter [7][8] - The title loss ratio improved to 3.6% compared to 4.2% last year, with expectations to average around 4% for the full year 2025 [21] Company Strategy and Development Direction - The company is focused on strategic growth initiatives, including acquisitions to drive growth in direct operations [8][10] - There is a strong emphasis on expanding small commercial operations and enhancing agency capabilities [9][12] - The company aims to deepen customer relationships and expand its geographic presence, particularly in Canada [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting some improvement relative to 2024 despite market uncertainties [7][8] - The company remains dedicated to strengthening its competitive position and is poised to capitalize on market improvements when they occur [16] Other Important Information - The company announced the acquisition of Batch Leads and Batch Dialer, enhancing its real estate data and analytics capabilities [14] - Total cash and investments were approximately $390 million, with a fully available $200 million line of credit [23] Q&A Session Summary Question: Discussion on commercial pipeline in July and expectations for the back half of the year - Management feels confident about the commercial pipeline, expecting growth but not at the same rate as previous quarters [27][28] Question: Agent premiums and timing issues - The increase in agency premiums is attributed to improved servicing and capabilities, with a focus on geographic growth [31][32] Question: Agent retention rate decline - The decline is primarily driven by geographic factors, particularly in Florida, where market share remains low compared to competitors [34] Question: Breakdown of domestic commercial business - Approximately $19 million of the total domestic commercial revenue is classified as small commercial, indicating a focus on this segment [40] Question: Premium relationship between purchase and refi deals - Retail deals average around $3,000, while refi deals range from $1,000 to $1,400, with margins varying based on capacity [42][43] Question: Investment income increase - The increase in investment income is attributed to higher yield environments and increased balances [56][58]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Stewart Company achieved strong financial results in Q2 2025, driven by significant growth in net income and EPS across business lines despite real estate market challenges [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Stewart Company achieved strong financial performance in Q2 2025 with significant growth in GAAP and adjusted net income and diluted EPS, driven by progress across business lines despite real estate market headwinds | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :---------------------------------------- | :------------------ | :------------------ | :----- | | Net Income Attributable to Stewart | 31.9 | 17.3 | +84% | | Diluted EPS Attributable to Stewart ($) | 1.13 | 0.62 | +82% | | Adjusted Net Income Attributable to Stewart | 38.0 | 25.4 | +50% | | Adjusted Diluted EPS Attributable to Stewart ($) | 1.34 | 0.91 | +47% | | Pretax Income | 46.8 | 29.0 | +61% | | Adjusted Pretax Income | 54.9 | 39.6 | +39% | - CEO Fred Eppinger expressed satisfaction with the quarter's results, noting revenue growth across business lines indicating company progress and sound operational management leading to robust profitability[4](index=4&type=chunk) [Key Financial Highlights (Consolidated)](index=1&type=section&id=Key%20Financial%20Highlights%20(Consolidated)) In Q2 2025, Stewart Company achieved significant year-over-year growth in total revenue, net income, and diluted EPS (GAAP and adjusted) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | | :---------------------------------------- | :------------------ | :------------------ | | Total Revenue | 722.2 | 602.2 | | Adjusted Total Revenue | 721.5 | 602.7 | | Net Income | 31.9 | 17.3 | | Adjusted Net Income | 38.0 | 25.4 | | Diluted EPS ($) | 1.13 | 0.62 | | Adjusted Diluted EPS ($) | 1.34 | 0.91 | [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) This section provides an overview of Stewart Company's consolidated financial results, including operating performance, expense analysis, and cash flow from operations [Summary Results of Operations (GAAP & Adjusted)](index=2&type=section&id=Summary%20Results%20of%20Operations%20(GAAP%20%26%20Adjusted)) Stewart Company achieved significant year-over-year growth in total revenue, pretax income, and net income for Q2 and H1 2025, alongside improved pretax margins Consolidated Summary Results of Operations | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | H1 2025 ($ million) | H1 2024 ($ million) | | :---------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total Revenue | 722.2 | 602.2 | 1,334.2 | 1,156.5 | | Pretax Income (before noncontrolling interests) | 46.8 | 29.0 | 52.7 | 36.2 | | Net Income Attributable to Stewart | 31.9 | 17.3 | 35.0 | 20.5 | | Adjusted Net Income Attributable to Stewart | 38.0 | 25.4 | 44.9 | 30.0 | | Pretax Margin | 6.5% | 4.8% | 3.9% | 3.1% | | Adjusted Pretax Margin | 7.6% | 6.6% | 5.0% | 4.2% | | Diluted EPS ($) | 1.13 | 0.62 | 1.24 | 0.73 | | Adjusted Diluted EPS ($) | 1.34 | 0.91 | 1.59 | 1.07 | [Consolidated Expenses Analysis](index=4&type=section&id=Consolidated%20Expenses%20Analysis) In Q2 2025, consolidated employee costs and other operating expenses increased due to revenue growth, higher incentive compensation, and increased headcount, yet improved as a percentage of total operating revenue - Consolidated employee costs increased by **16% ($28.5 million)** year-over-year in Q2 2025, primarily due to higher incentive compensation and a **5% increase** in average headcount[15](index=15&type=chunk) - Consolidated employee costs as a percentage of total operating revenue improved to **29.5%** in Q2 2025 from **30.5%** in the prior year quarter[15](index=15&type=chunk) - Consolidated other operating expenses increased by **14% ($21.2 million)** year-over-year in Q2 2025, driven by higher real estate solutions service fees and increased title external search and premium taxes[16](index=16&type=chunk) - Consolidated other operating expenses as a percentage of total operating revenue improved to **24.6%** in Q2 2025 from **25.9%** in the prior year quarter[16](index=16&type=chunk) [Cash Flow from Operations](index=5&type=section&id=Cash%20Flow%20from%20Operations) Net cash provided by operating activities significantly increased in Q2 2025, primarily driven by higher net income and reduced claims payments | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :---------------------------------------- | :------------------ | :------------------ | :----- | | Net Cash Provided by Operating Activities | 53.4 | 21.1 | +153% | - Cash flow improvement was primarily driven by **higher net income** and **lower claims payments**[18](index=18&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) This section analyzes the financial performance of Stewart Company's Title, Real Estate Solutions, and Corporate segments, highlighting key revenue and expense drivers [Title Segment](index=2&type=section&id=Title%20Segment) The Title segment demonstrated strong financial performance, with increased operating revenue and improved pretax income, driven by growth in direct and agency title operations [Title Segment Financial Results](index=2&type=section&id=Title%20Segment%20Financial%20Results) The Title segment achieved strong growth in Q2 2025, with a 19% increase in operating revenue and a 48% rise in pretax income, primarily due to improvements in direct and agency title operations and higher investment income Title Segment Performance Summary | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :---------------------------------------- | :------------------ | :------------------ | :----- | | Operating Revenue | 592.5 | 496.2 | +19% | | Investment Income | 16.2 | 14.3 | +14% | | Net Realized and Unrealized Gains (Losses) | 0.8 | (0.5) | +258% | | Pretax Income | 49.3 | 33.4 | +48% | | Adjusted Pretax Income | 51.9 | 38.4 | +35% | | Pretax Margin | 8.1% | 6.5% | +1.6pp | | Adjusted Pretax Margin | 8.5% | 7.5% | +1.0pp | [Title Segment Operating Revenues & Expenses](index=2&type=section&id=Title%20Segment%20Operating%20Revenues%20%26%20Expenses) Title segment operating revenue increased due to growth in direct and agency operations, with investment income also rising from higher interest and dividends, while expenses grew with revenue but employee costs, other operating expenses, and title loss expense as a percentage of revenue all improved - Title segment operating revenue increased by **$96.3 million (19%)**, and investment income grew by **$2.0 million (14%)**, primarily driven by higher interest and dividend income[8](index=8&type=chunk) - Total segment operating expenses increased by **$83.6 million (18%)**, with agency retention expenses rising **26%**, consistent with a **25% increase** in agency gross revenue[9](index=9&type=chunk) - Combined employee costs and other operating expenses increased by **$31.3 million (13%)**, primarily due to higher incentive compensation, increased external search and service fees, and higher headcount[9](index=9&type=chunk) - Title loss expense as a percentage of title operating revenue improved to **3.6%** in Q2 2025 from **4.2%** in the prior year quarter, primarily benefiting from continued favorable claims experience[10](index=10&type=chunk) [Direct Title Revenues Breakdown](index=3&type=section&id=Direct%20Title%20Revenues%20Breakdown) In Q2 2025, total direct title revenue grew by 14%, primarily driven by a 46% surge in domestic commercial revenue due to larger average transaction sizes and increased commercial volumes, while domestic non-commercial revenue rose 6% from higher residential refinancing and real estate investor transactions Direct Title Revenues Breakdown | Category | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :------------------------- | :------------------ | :------------------ | :----- | | **Non-Commercial:** | | | | | Domestic | 179.6 | 169.4 | +6% | | International | 29.7 | 28.1 | +6% | | **Commercial:** | | | | | Domestic | 74.6 | 51.0 | +46% | | International | 7.4 | 7.0 | +6% | | **Total Direct Title Revenues** | **291.3** | **255.5** | **+14%** | - Domestic commercial revenue increased by **$23.6 million (46%)**, driven by a **25% improvement** in average transaction size (**$16,900 vs $13,500**) and a **17% increase** in commercial transaction volumes[11](index=11&type=chunk) - Domestic non-commercial revenue increased by **$10.2 million (6%)**, primarily from higher residential refinancing and real estate investor transactions[11](index=11&type=chunk) [Real Estate Solutions Segment](index=4&type=section&id=Real%20Estate%20Solutions%20Segment) The Real Estate Solutions segment demonstrated strong growth in operating revenue and pretax income, primarily driven by robust performance in credit information and valuation services [Real Estate Solutions Segment Financial Results](index=4&type=section&id=Real%20Estate%20Solutions%20Segment%20Financial%20Results) The Real Estate Solutions segment achieved a 22% increase in operating revenue and a 32% rise in pretax income in Q2 2025, primarily driven by strong performance in credit information and valuation services Real Estate Solutions Segment Performance Summary | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :---------------------------------------- | :------------------ | :------------------ | :----- | | Operating Revenue | 112.7 | 92.2 | +22% | | Pretax Income | 6.7 | 5.1 | +32% | | Adjusted Pretax Income | 12.2 | 10.6 | +15% | | Pretax Margin | 6.0% | 5.5% | +0.5pp | | Adjusted Pretax Margin | 10.9% | 11.5% | -0.6pp | [Real Estate Solutions Operating Revenues & Expenses](index=4&type=section&id=Real%20Estate%20Solutions%20Operating%20Revenues%20%26%20Expenses) Real Estate Solutions segment operating revenue increased due to growth in credit information and valuation services, with corresponding rises in employee costs and other operating expenses to support this expansion - Segment operating revenue increased by **$20.5 million (22%)**, primarily driven by higher revenues from credit information and valuation services[13](index=13&type=chunk) - Combined employee costs and other operating expenses increased by **$18.7 million (23%)**, primarily due to higher service costs related to credit information and valuation services and increased employee costs to support revenue growth[13](index=13&type=chunk) [Corporate Segment](index=4&type=section&id=Corporate%20Segment) The Corporate segment's net expenses experienced a slight decrease in Q2 2025 | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change | | :---------------------------------------- | :------------------ | :------------------ | :----- | | Corporate Net Operating Expenses | 9.2 | 9.5 | -3.2% | [Domestic Order Counts](index=6&type=section&id=Domestic%20Order%20Counts) In Q2 2025, domestic commercial order opens and closes significantly increased, while purchase orders slightly decreased, and both refinancing order opens and closes grew Domestic Order Counts (Q2 2025 vs Q2 2024) | Order Type | Q2 2025 Opens | Q2 2024 Opens | Q2 2025 Closes | Q2 2024 Closes | | :--------- | :------------ | :------------ | :------------- | :------------- | | Commercial | 4,526 | 3,526 | 4,415 | 3,787 | | Purchase | 52,793 | 55,057 | 35,886 | 37,832 | | Refinance | 19,736 | 16,731 | 12,165 | 9,978 | | Other | 12,591 | 11,407 | 14,128 | 7,902 | | **Total** | **89,646** | **86,721** | **66,594** | **59,499** | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Stewart Company's condensed statements of income, balance sheets, and detailed segment information for the reported periods [Condensed Statements of Income](index=6&type=section&id=Condensed%20Statements%20of%20Income) This section provides detailed GAAP income statement data for the quarters and six months ended June 30, 2025, and 2024, including segment-wise revenues and various expenses Condensed Statements of Income (Selected) | Metric ($ thousand) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :------ | :------ | :-------- | :-------- | | Total Operating Revenue | 705,197 | 588,438 | 1,301,472 | 1,122,814 | | Investment Income | 16,257 | 14,306 | 28,913 | 27,207 | | Net Realized and Unrealized Gains (Losses) | 727 | (514) | 3,780 | 6,524 | | Pretax Income (before noncontrolling interests) | 46,776 | 29,005 | 52,676 | 36,151 | | Net Income Attributable to Stewart | 31,922 | 17,343 | 34,999 | 20,473 | | Net Cash Provided by (Used in) Operating Activities | 53,428 | 21,123 | 23,501 | (8,465) | [Condensed Balance Sheets](index=7&type=section&id=Condensed%20Balance%20Sheets) This section presents the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Balance Sheets (Selected) | Metric ($ thousand) | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Cash and Cash Equivalents | 178,101 | 216,298 | | Investments in Debt and Equity Securities | 689,743 | 669,098 | | Goodwill | 1,092,747 | 1,084,139 | | Total Assets | 2,781,157 | 2,730,145 | | Notes Payable | 446,000 | 445,841 | | Estimated Title Losses | 523,085 | 511,534 | | Total Liabilities | 1,334,875 | 1,319,056 | | Stockholders' Equity Attributable to Stewart | 1,437,751 | 1,402,142 | | Total Stockholders' Equity | 1,446,282 | 1,411,089 | | Book Value Per Share ($) | 51.46 | 50.50 | [Segment Information (Detailed)](index=8&type=section&id=Segment%20Information%20(Detailed)) This section provides detailed revenue and expense breakdowns by Title, Real Estate Solutions, and Corporate segments for the quarters and six months ended June 30, 2025, and 2024 Segment Information (Selected) | Metric ($ thousand) | Title Segment (Q2 2025) | Real Estate Solutions Segment (Q2 2025) | Corporate and Other (Q2 2025) | Total (Q2 2025) | | :---------------------------------------- | :------------------------ | :---------------------------- | :------------------------ | :-------------- | | Operating Revenue | 592,547 | 112,650 | - | 705,197 | | Investment Income | 16,233 | 24 | - | 16,257 | | Pretax Income (Loss) | 49,314 | 6,741 | (9,279) | 46,776 | | Operating Revenue (H1 2025) | 1,091,745 | 209,727 | - | 1,301,472 | | Pretax Income (Loss) (H1 2025) | 61,080 | 10,800 | (19,204) | 52,676 | [Non-GAAP Financial Measures Reconciliation (Appendix A)](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation%20(Appendix%20A)) This appendix provides explanations and reconciliations for Stewart Company's non-GAAP financial measures, offering additional insights into core operating performance [Explanation of Non-GAAP Adjustments](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Adjustments) This section explains the non-GAAP financial measures used by management, including adjusted revenue, adjusted pretax income, adjusted net income, adjusted diluted EPS, and adjusted pretax margin, along with the rationale for their use - Adjusted revenue is reported revenue less net realized and unrealized gains and losses[27](index=27&type=chunk) - Adjusted pretax income and adjusted net income are reported pretax income and net income (less noncontrolling interests' earnings) adjusted for net realized and unrealized gains and losses, amortization of acquired intangible assets, and office closing and severance costs[27](index=27&type=chunk) - Management considers these metrics important performance indicators of its core earnings power and believes investors benefit from their presentation[27](index=27&type=chunk) [Reconciliation of Consolidated Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Consolidated%20Non-GAAP%20Measures) This section provides reconciliation tables for consolidated GAAP financial measures to their non-GAAP counterparts for the quarters and six months ended June 30, 2025, and 2024, detailing adjustments for realized/unrealized gains/losses, intangible asset amortization, and office closing/severance costs Reconciliation of Consolidated Non-GAAP Measures (Selected) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | H1 2025 ($ million) | H1 2024 ($ million) | | :---------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total Revenue | 722.2 | 602.2 | 1,334.2 | 1,156.5 | | Adjusted Total Revenue | 721.5 | 602.7 | 1,330.4 | 1,150.0 | | Pretax Income | 46.8 | 29.0 | 52.7 | 36.2 | | Adjusted Pretax Income | 54.9 | 39.6 | 66.1 | 48.7 | | Net Income Attributable to Stewart | 31.9 | 17.3 | 35.0 | 20.5 | | Adjusted Net Income Attributable to Stewart | 38.0 | 25.4 | 44.9 | 30.0 | [Reconciliation of Segment Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Segment%20Non-GAAP%20Measures) This section provides reconciliation tables for GAAP financial measures to their non-GAAP counterparts for the Title and Real Estate Solutions segments for the quarters and six months ended June 30, 2025, and 2024 Reconciliation of Segment Non-GAAP Measures (Selected) | Metric | Title Segment (Q2 2025, $ million) | Title Segment (Q2 2024, $ million) | Real Estate Solutions Segment (Q2 2025, $ million) | Real Estate Solutions Segment (Q2 2024, $ million) | | :---------------------------------------- | :------------------------- | :------------------------- | :----------------------------- | :----------------------------- | | Revenue | 609.5 | 510.0 | 112.7 | 92.2 | | Adjusted Revenue | 608.8 | 510.5 | 112.7 | 92.2 | | Pretax Income | 49.3 | 33.4 | 6.7 | 5.1 | | Adjusted Pretax Income | 51.9 | 38.4 | 12.2 | 10.6 | | GAAP Pretax Margin | 8.1% | 6.5% | 6.0% | 5.5% | | Adjusted Pretax Margin | 8.5% | 7.5% | 10.9% | 11.5% | [Company Information](index=5&type=section&id=Company%20Information) This section provides essential company information, including details for the Q2 earnings call, an overview of Stewart's services, and cautionary statements regarding forward-looking information [Second Quarter Earnings Call Details](index=5&type=section&id=Second%20Quarter%20Earnings%20Call%20Details) Stewart Company will host a conference call on July 24, 2025, to discuss its Q2 2025 financial results, with details provided for participation and replay access - The conference call will be held on **July 24, 2025, at 8:30 AM ET**[19](index=19&type=chunk) - Participants can join by dialing **800-245-3047 (US)** or **203-518-9765 (International)**, using access code **STCQ225**[19](index=19&type=chunk) - A replay of the call will be available from **11:00 AM ET on July 24, 2025, until midnight on July 31**[19](index=19&type=chunk) [About Stewart](index=5&type=section&id=About%20Stewart) Stewart is a global real estate services company offering products and services through its direct operations, Stewart Trusted Providers™ network, and family of companies, striving to be the premier title services company - Stewart (NYSE-STC) is a **global real estate services company**[20](index=20&type=chunk) - It provides **residential and commercial title insurance, closing and settlement services, and specialized services** for the mortgage and real estate industries[20](index=20&type=chunk) - The company is committed to being the **premier title services company** by partnering with customers for mutual success[20](index=20&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Certain statements in this press release are forward-looking and subject to various risks and uncertainties that could cause actual results to differ materially, with no obligation for the company to update these statements - Certain statements in the press release, including those regarding Stewart's future business plans and expectations, are **"forward-looking statements"**[21](index=21&type=chunk) - Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially, including fluctuating economic conditions, tariffs, trade restrictions, geopolitical tensions, and adverse changes in real estate activity levels[21](index=21&type=chunk) - The company expressly disclaims any obligation to update, amend, or clarify any forward-looking statements in this press release unless required by applicable law[21](index=21&type=chunk)

Core Viewpoint - Stewart Information Services Corporation reported significant growth in net income and revenues for the second quarter of 2025, indicating strong operational performance despite challenges in the housing market [1][3][7]. Financial Performance - Net income attributable to Stewart for Q2 2025 was $31.9 million ($1.13 per diluted share), up from $17.3 million ($0.62 per diluted share) in Q2 2024, representing an 84% increase [1][7][31]. - Adjusted net income for Q2 2025 was $38.0 million ($1.34 per diluted share), compared to $25.4 million ($0.91 per diluted share) in Q2 2024, reflecting a 50% increase [1][31]. - Total revenues for Q2 2025 reached $722.2 million, a 20% increase from $602.2 million in Q2 2024 [5][31]. Segment Performance Title Segment - Operating revenues in the title segment increased by $96.3 million (19%) to $592.5 million in Q2 2025, driven by growth in both direct and agency title operations [6][9]. - Investment income in the title segment rose by $2.0 million (14%) to $16.2 million, primarily due to higher interest and dividend income [6][9]. - Pretax income for the title segment was $49.3 million, up 48% from $33.4 million in Q2 2024 [6][31]. Real Estate Solutions Segment - Operating revenues in the real estate solutions segment increased by $20.5 million (22%) to $112.7 million in Q2 2025, driven by higher revenues from credit information and valuation services [13][15]. - Pretax income for this segment rose by 32% to $6.7 million [13][31]. Expense Management - Total operating expenses increased by $83.6 million (18%) in Q2 2025, with employee costs rising by $28.5 million (16%) due to higher incentive compensation and increased salaries [10][17]. - The title loss expense was $21.5 million, slightly higher than $21.1 million in Q2 2024, but as a percentage of title operating revenues, it improved to 3.6% from 4.2% [11][31]. Cash Flow and Operational Efficiency - Net cash provided by operations improved significantly to $53.4 million in Q2 2025, compared to $21.1 million in Q2 2024, driven by higher net income and lower claims payments [19][31]. - Consolidated employee costs as a percentage of total operating revenues improved to 29.5% in Q2 2025 from 30.5% in the prior year quarter [17][18].

Group 1 - Stewart Information Services Corporation declared a cash dividend of $0.50 per share for the second quarter of 2025 [1] - The dividend is payable on June 30, 2025, to common stockholders of record on June 16, 2025 [1] Group 2 - Stewart Information Services Corporation is a global real estate services company [2] - The company offers a range of products and services including residential and commercial title insurance, closing and settlement services, and specialized offerings for the mortgage industry [2] - Stewart provides comprehensive services and deep expertise for real estate transactions through its direct operations and network of Stewart Trusted Providers™ [2]

Part I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported total revenues of $612.0 million for Q1 2025, an increase from $554.3 million in Q1 2024, with net income attributable to Stewart consistent at $3.1 million, while total assets slightly decreased to $2.71 billion and operating cash flow used $29.9 million [Condensed Consolidated Statements of Income and Comprehensive Income (Loss)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Q1 2025 ($'000) | Q1 2024 ($'000) | Change | | :--- | :--- | :--- | :--- | | **Operating Revenues** | 596,275 | 534,376 | +11.6% | | Total Revenues | 611,984 | 554,315 | +10.4% | | Income before taxes | 5,900 | 7,146 | -17.4% | | **Net Income Attributable to Stewart** | 3,077 | 3,130 | -1.7% | | **Diluted EPS Attributable to Stewart** | $0.11 | $0.11 | No Change | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Balance Sheet Highlights (as of March 31, 2025) | Metric | March 31, 2025 ($'000) | Dec 31, 2024 ($'000) | | :--- | :--- | :--- | | Cash and cash equivalents | 148,510 | 216,298 | | Total Investments | 674,842 | 669,099 | | Goodwill | 1,092,747 | 1,084,139 | | **Total Assets** | **2,707,096** | **2,730,145** | | Notes payable | 445,860 | 445,841 | | Estimated title losses | 510,790 | 511,534 | | **Total Liabilities** | **1,299,233** | **1,319,056** | | **Total Stockholders' Equity** | **1,407,863** | **1,411,089** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Q1 2025 vs Q1 2024 Cash Flow Summary | Activity | Q1 2025 ($'000) | Q1 2024 ($'000) | | :--- | :--- | :--- | | Cash used by operating activities | (29,927) | (29,588) | | Cash used by investing activities | (20,007) | (47,377) | | Cash used by financing activities | (18,645) | (16,771) | | **Change in cash and cash equivalents** | **(67,788)** | **(95,014)** | [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue composition, investment portfolio structure, goodwill changes from acquisitions, title loss reserve activity, and segment performance, with statutory reserve funds for title insurance at approximately $539.2 million in investments and $10.3 million in cash, goodwill increasing by $8.6 million due to title segment acquisitions, and the title segment's pretax income rising to $11.8 million while the real estate solutions segment's pretax income fell to $4.1 million - The company maintains statutory reserve funds for its underwriters, which are not available for current claim payments; as of March 31, 2025, these funds included approximately **$539.2 million in investments** and **$10.3 million in cash**[21](index=21&type=chunk) Operating Revenues by Type (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 ($'000) | Q1 2024 ($'000) | | :--- | :--- | :--- | | Direct Title Insurance Premiums | 162,824 | 141,699 | | Agency Title Insurance Premiums | 267,518 | 240,772 | | Escrow fees | 34,478 | 33,543 | | Real estate solutions and abstract fees | 113,466 | 97,374 | | Other revenues | 17,989 | 20,988 | | **Total Operating Revenues** | **596,275** | **534,376** | - Goodwill increased by **$8.6 million** in Q1 2025 due to acquisitions of title offices within the title segment[31](index=31&type=chunk) Segment Pretax Income (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Pretax Income ($'000) | Q1 2024 Pretax Income ($'000) | | :--- | :--- | :--- | | Title | 11,767 | 10,181 | | Real estate solutions | 4,059 | 6,732 | | Corporate | (9,926) | (9,767) | | **Consolidated Pretax Income** | **5,900** | **7,146** | [Management's Discussion and Analysis (MD&A)](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported net income of $3.1 million ($0.11 per diluted share) for Q1 2025, flat with Q1 2024, with the title segment seeing an 11% increase in operating revenues and a 16% rise in pretax income to $11.8 million, while the real estate solutions segment's revenues grew 17% but higher costs led to a 40% drop in pretax income to $4.1 million, highlighting a challenging market with high mortgage rates but noting improved commercial revenues and a focus on cost management and technology investment [Management's Overview](index=17&type=section&id=MANAGEMENT'S%20OVERVIEW) Net income attributable to Stewart was $3.1 million ($0.11 per diluted share) in Q1 2025, unchanged from Q1 2024, with the title segment's pretax income growing 16% to $11.8 million driven by an 11% revenue increase, while the real estate solutions segment's pretax income fell 40% to $4.1 million despite a 17% revenue increase due to higher operating costs Q1 2025 Financial Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income Attributable to Stewart | $3.1 million | $3.1 million | | Diluted EPS | $0.11 | $0.11 | | Pretax Income | $5.9 million | $7.1 million | Title Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $499.2 M | $451.4 M | +11% | | Pretax Income | $11.8 M | $10.2 M | +16% | | Pretax Margin | 2.3% | 2.2% | +0.1 ppt | Real Estate Solutions Segment Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $97.1 M | $83.0 M | +17% | | Pretax Income | $4.1 M | $6.7 M | -40% | | Pretax Margin | 4.2% | 8.1% | -3.9 ppt | [Results of Operations](index=19&type=section&id=RESULTS%20OF%20OPERATIONS) Operating revenues grew due to a 10% increase in direct title revenues, led by a 39% surge in domestic commercial business, and an 11% rise in agency revenues, with real estate solutions revenues increasing 17% driven by credit information services, though overall expenses also rose, with other operating expenses up 18% due to higher service costs, and the title loss ratio improved to 3.5% from 3.9% due to favorable claims experience - The operating environment in Q1 2025 was characterized by **high mortgage rates (averaging 6.8%)** and rising home prices, which challenged affordability and led to a **2% year-over-year decline in existing home sales**[63](index=63&type=chunk)[64](index=64&type=chunk) Direct Title Revenue Breakdown (Q1 2025 vs Q1 2024) | Category | Q1 2025 ($M) | Q1 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Domestic Non-commercial | 134.4 | 135.3 | -1% | | Domestic Commercial | 69.3 | 49.7 | +39% | | International | 28.0 | 25.6 | +9% | | **Total Direct Title Revenues** | **231.7** | **210.6** | **+10%** | Direct Operations Order Count (Q1 2025 vs Q1 2024) | Order Type | Q1 2025 Closed Orders | Q1 2024 Closed Orders | % Change | | :--- | :--- | :--- | :--- | | Commercial | 4,390 | 3,568 | +23% | | Purchase | 26,780 | 29,744 | -10% | | Refinance | 9,898 | 9,353 | +6% | | **Total Closed Orders** | **45,673** | **50,459** | **-9%** | - The title loss ratio improved to **3.5%** of title operating revenues in Q1 2025 from **3.9%** in Q1 2024, attributed to overall favorable claim experience[80](index=80&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of March 31, 2025, the company held $869.1 million in total cash and investments, with a significant portion held by its regulated subsidiary, Guaranty, subject to regulatory restrictions, and statutory reserve funds totaling approximately $549.5 million, while the parent company held $19.2 million in cash, and the debt-to-equity ratio was approximately 32%, with the company believing its liquidity is sufficient for ongoing operations, claims, and strategic goals - As of March 31, 2025, total cash and investments were **$869.1 million**; of this, **$471.9 million** was held in the U.S. and the rest internationally, primarily in Canada[88](index=88&type=chunk) - The parent holding company's available cash was **$19.2 million** at quarter-end; a substantial majority of consolidated cash is held by the regulated underwriter, Guaranty, and its use is subject to legal and regulatory restrictions[89](index=89&type=chunk)[90](index=90&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | Activity | Q1 2025 ($M) | Q1 2024 ($M) | | :--- | :--- | :--- | | Net cash used in operating activities | (29.9) | (29.6) | | Net cash used by investing activities | (20.0) | (47.4) | | Net cash used by financing activities | (18.6) | (16.8) | - The company's debt-to-equity ratio was approximately **32%** and its debt-to-capitalization ratio was **24%** as of March 31, 2025; the line of credit facility was fully available[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its investment strategies, types of financial instruments held, or associated market risks during the first quarter of 2025 compared to what was disclosed in its 2024 Form 10-K - No material changes to market risk disclosures occurred in Q1 2025[108](index=108&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2025, and concluded they were effective, with no material changes to the company's internal control over financial reporting during the quarter - The principal executive and financial officers concluded that as of March 31, 2025, the company's disclosure controls and procedures were adequate and effective[109](index=109&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal controls[110](index=110&type=chunk) Part II – Other Information [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to claims and lawsuits in the ordinary course of business, and management believes it has adequate reserves and does not expect these proceedings to have a material adverse effect on its financial condition or results of operations - The company does not expect any ordinary course legal proceedings to have a material adverse effect on its financial condition or operations, and believes reserves are adequate[39](index=39&type=chunk)[113](index=113&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since the filing of its 2024 Form 10-K - No material changes to the company's risk factors were reported for the period[114](index=114&type=chunk) [Use of Proceeds and Stock Repurchases](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company did not make any open market repurchases of its Common Stock, but did repurchase approximately 48,300 shares for about $3.4 million to cover statutory income tax withholding on vested restricted stock units for employees - In Q1 2025, the company repurchased approximately **48,300 shares** for **$3.4 million**, solely related to tax withholding on vested employee restricted stock units[115](index=115&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) The company's book value per share was $50.16 as of March 31, 2025, a slight decrease from $50.50 at the end of 2024, and no directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading plans during the quarter - Book value per share decreased to **$50.16** at March 31, 2025, from **$50.50** at December 31, 2024[116](index=116&type=chunk) - No directors or Section 16 officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025[117](index=117&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net income of $3 million or $0.11 per diluted share on total revenues of $612 million, with adjusted net income of $7 million or $0.25 per diluted share compared to $5 million or $0.17 in Q1 2024 [22][23] - The title segment's operating revenues included $48 million or 11% growth driven by domestic, commercial, and agency title operations, resulting in a $2 million increase in title pre-tax income [23] - The title loss ratio improved to 3.5% compared to 3.9% in the prior year quarter, with expectations for title losses to average in the low 4% range for the full year 2025 [27] Business Line Data and Key Metrics Changes - The title segment grew by 11%, while real estate solutions grew by 17% in Q1 2025 [8][12] - Domestic commercial revenues improved by $20 million or 39%, driven by higher transaction size and volume, with average fee per file increasing 13% to $15,800 [25] - The real estate solutions segment's operating revenues increased by $14 million or 7%, primarily from credit information services, although pre-tax income decreased due to higher costs [28] Market Data and Key Metrics Changes - Existing home sales remained low, with pending home sales for February down 3.6% from last year, indicating a weaker market [6] - The company noted improved housing inventories and market activity trends in early April, suggesting potential recovery in the second half of the year [7] - International revenue grew by 16% compared to the previous year, with a focus on expanding geographical presence in Canada [15] Company Strategy and Development Direction - The company aims to grow through acquisitions and is maintaining a warm pipeline of targets, expecting increased activity with market improvements [10] - Focus on expanding agency services and targeting shared growth in 15 important states, with gross agency revenue improving by 11% year-over-year [11] - The company is dedicated to growing share across all business lines and positioning itself for long-term growth and sustainability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on an improving market in the second half of 2025 and into 2026, despite current challenges [20] - The CEO highlighted a strong team focused on executing the strategic plan and improving the company's performance [18] - Management acknowledged the volatility in the market but noted that they have not seen a material change in orders yet [35] Other Important Information - The company reported total cash and investments of approximately $320 million in excess of statutory premium reserve requirements, with a fully available $200 million line of credit [29] - Total stockholder's equity was approximately $1.4 billion with a book value of $50 per share [30] Q&A Session Summary Question: Inquiry about commercial activity and potential slowdown - Management indicated that commercial activity remains robust, with expectations for double-digit growth despite some market volatility [34][35] Question: Clarification on investment income decline - The decline was primarily due to lower escrow balances [37] Question: Commentary on loss provision rate and potential volatility - Management noted that the mix of international business contributes to higher claim rates and volatility, maintaining a cautious approach to loss provisions [46][48] Question: Fee per file growth specifics - The residential fee per file increased by 13%, driven by a higher percentage of purchase transactions [50][52] Question: Impact of Texas Department of Insurance fee cut - Management is challenging the fee cut and believes it could impact agents' existence, but they have plans to manage through it [56][57]

Financial Data and Key Metrics Changes - The company reported a net income of $3 million or $0.11 per diluted share on total revenues of $612 million for Q1 2025, with adjusted net income of $7 million or $0.25 per diluted share compared to $5 million or $0.17 in Q1 2024 [16][18] - The title segment's operating revenues increased by $48 million or 11%, leading to a $2 million increase in title pretax income, with adjusted pretax income improving to $12 million, up $5 million from last year [18][19] - The title loss ratio improved to 3.5% compared to 3.9% in the prior year quarter, with expectations for title losses to average in the low 4% range for the full year 2025 [20][22] Business Line Data and Key Metrics Changes - The Title segment grew by 11%, with domestic commercial business growing 39% year-over-year, driven by strong performance in retail, mixed-use, and energy asset classes [7][19] - Real Estate Solutions segment revenues increased by $14 million or 7%, but pretax income decreased due to higher credit information costs and employee expenses [21] - Agency Services saw gross agency revenues improve by $27 million or 11%, with net agency revenues increasing by $5 million or 13% [20] Market Data and Key Metrics Changes - Existing home sales remained low, with pending home sales for February down 3.6% from last year, indicating a challenging market environment [6] - The company noted improved housing inventories and market activity trends in early April, suggesting potential for recovery in the second half of the year [7] - International revenue grew by 16% compared to the previous year, with a focus on expanding geographical presence in Canada [11] Company Strategy and Development Direction - The company is focused on growth through acquisitions and expanding its market share in targeted metropolitan statistical areas (MSAs) [8][9] - There is a commitment to enhancing service offerings for agent partners and pursuing growth across existing markets, particularly in 15 key states [9][10] - The management emphasized the importance of positioning for long-term growth and sustainability despite current market challenges [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on an improving market in the second half of 2025 and into 2026 [14] - The CEO highlighted the robust nature of the commercial market, expecting double-digit growth despite some volatility [26] - Management acknowledged the challenges posed by the Texas Department of Insurance fee cuts but indicated plans to manage through these changes [41][43] Other Important Information - The company has a solid financial position with total cash and investments of approximately $320 million in excess of statutory premium reserve requirements [22] - The employee cost ratio improved to 31% from 32% year-over-year, while other operating expense ratios increased to 27% due to higher costs in real estate solutions and commercial operations [22] Q&A Session Summary Question: Inquiry about commercial activity and potential slowdown - Management indicated that commercial activity remains robust, with expectations for double-digit growth despite some market volatility [26] Question: Clarification on investment income decline - The decline in investment income was primarily due to lower escrow balances [28] Question: Commentary on loss provision rate and potential volatility - Management noted that the loss provision rate is closely monitored, with potential volatility due to the mix of business, particularly in international operations [35][36] Question: Growth in residential purchase fee per file - The residential fee per file increased by 13%, driven by a higher percentage of purchase transactions [39] Question: Impact of Texas Department of Insurance fee cuts - Management is challenging the fee cuts and believes adjustments can be made to manage through the changes [42][43]

Financial Performance - Total revenues for Q1 2025 were $612.0 million, an increase of 10.4% from $554.3 million in Q1 2024[5] - Adjusted net income for Q1 2025 was $7.0 million ($0.25 per diluted share), up from $4.6 million ($0.17 per diluted share) in Q1 2024, representing a 52.2% increase[2][5] - Total revenues for the quarter ended March 31, 2025, were $612.0 million, representing a 10% increase from $554.3 million in the same quarter of 2024[29] - Adjusted net income attributable to Stewart for Q1 2025 was $7.0 million, a 51% increase compared to $4.6 million in Q1 2024[30] - The Title Segment reported total revenues of $514.9 million, up 9% from $471.4 million in the previous year[30] - The Real Estate Solutions Segment achieved total revenues of $97.1 million, reflecting a 17% increase from $83.0 million in Q1 2024[30] - Adjusted total revenues for Q1 2025 were $608.9 million, an 11% increase from $547.3 million in Q1 2024[29] Segment Performance - Title segment operating revenues increased by $47.8 million (11%) to $499.2 million in Q1 2025 compared to Q1 2024[7][8] - Direct title revenues rose by 10% to $231.7 million in Q1 2025, driven by a 39% increase in domestic commercial revenues[11] - Real estate solutions segment operating revenues improved by $14.1 million (17%) to $97.1 million in Q1 2025[12][13] - Adjusted pretax income for the Title Segment rose by 77% to $11.5 million, compared to $6.5 million in Q1 2024[30] Operational Metrics - Total opened orders for Q1 2025 reached 78,943, a 6.5% increase compared to 79,335 in Q1 2024[24] - Closed orders for Q1 2025 totaled 45,673, reflecting a 9.7% decrease from 50,459 in Q1 2024[24] - Commercial opened orders in Q1 2025 were 4,328, up from 3,693 in Q1 2024, indicating an 17.3% increase[24] - Purchase opened orders in Q1 2025 amounted to 46,250, compared to 48,024 in Q1 2024, showing a decrease of 3.7%[24] - Refinancing opened orders for Q1 2025 were 17,562, which is a 7.3% increase from 16,371 in Q1 2024[24] - Other opened orders in Q1 2025 totaled 10,803, down from 11,247 in Q1 2024, representing a decrease of 4.0%[24] - Closed commercial orders in Q1 2025 were 4,390, slightly higher than 3,568 in Q1 2024, marking a 23.1% increase[24] - Closed purchase orders in Q1 2025 totaled 26,780, down from 29,744 in Q1 2024, reflecting a decrease of 10.0%[24] - Closed refinancing orders in Q1 2025 were 9,898, compared to 9,353 in Q1 2024, indicating a 5.8% increase[24] - Closed other orders in Q1 2025 reached 4,605, a decrease from 7,794 in Q1 2024, showing a decline of 41.0%[24] Financial Position - Total assets as of March 31, 2025, were $1,485,510,021, compared to $1,298,000,000 as of December 31, 2024, reflecting a significant increase[25] - Cash and cash equivalents amounted to $674,842,669 as of March 31, 2025, up from $609,800,000 as of December 31, 2024[25] - The company reported receivables from premiums of $359,984,336 as of March 31, 2025, compared to $375,753,000 as of December 31, 2024, indicating a decrease[25] - Total liabilities were $1,145,323,111 as of March 31, 2025, compared to $1,183,511,000 as of December 31, 2024, showing a reduction in liabilities[25] - The estimated title losses were $510,790,511 as of March 31, 2025, compared to $534,000,000 as of December 31, 2024, indicating a decrease in estimated losses[25] - The company's total stockholders' equity was $1,407,863,000 as of March 31, 2025, compared to $1,411,089,000 as of December 31, 2024, showing a slight decline[25] - The number of shares outstanding was 27,919,927 as of March 31, 2025, compared to 27,764,000 as of December 31, 2024, indicating an increase in shares[25] - The company reported retained earnings of $1,078,378,000 as of March 31, 2025, compared to $1,089,484,000 as of December 31, 2024, reflecting a decrease[25] - Goodwill was reported at $1,092,747,000 as of March 31, 2025, compared to $1,084,139,000 as of December 31, 2024, indicating an increase[25] - The company has short-term investments of $457,164,000 as of March 31, 2025, compared to $419,000,000 as of December 31, 2024, showing growth in investments[25] Cost and Margin Analysis - Consolidated employee costs increased by $13.4 million (8%) in Q1 2025, but as a percentage of total operating revenues, they improved to 31.2% from 32.3% in the prior year[15] - Employee costs increased to $185.8 million in Q1 2025 from $172.4 million in Q1 2024, reflecting a rise in operational expenses[26] - The company's GAAP pretax margin for Q1 2025 was 1.0%, down from 1.3% in Q1 2024[29] - The adjusted pretax margin improved to 1.8% in Q1 2025, compared to 1.7% in the same quarter of 2024[29] Gains and Losses - Total net realized and unrealized gains in Q1 2025 were $3.1 million, down 57% from $7.1 million in Q1 2024[3][7] - Net realized and unrealized gains for Q1 2025 were $(3.1) million, compared to $(7.0) million in Q1 2024[30] - Title loss expense for Q1 2025 was $17.7 million, representing 3.5% of title operating revenues, an improvement from 3.9% in Q1 2024[10] Future Outlook - The company plans to focus on market growth and pretax margin improvements in the future[21]

Core Viewpoint - Stewart Information Services Corporation reported stable net income for Q1 2025, with total revenues increasing by 10% compared to Q1 2024, reflecting strong performance across all segments despite a challenging macro environment [3][6][27]. Financial Performance - Net income attributable to Stewart for Q1 2025 was $3.1 million ($0.11 per diluted share), unchanged from Q1 2024, while adjusted net income increased to $7.0 million ($0.25 per diluted share) from $4.6 million ($0.17 per diluted share) in the prior year [1][6][27]. - Total revenues for Q1 2025 were $612.0 million, compared to $554.3 million in Q1 2024, marking a 10% increase [4][6][27]. - Adjusted pretax income for Q1 2025 was $11.2 million, up 22% from $9.1 million in Q1 2024, with an adjusted pretax margin of 1.8% compared to 1.7% in the prior year [27][28]. Segment Performance - The title segment's operating revenues increased by 11% to $499.2 million in Q1 2025 from $451.4 million in Q1 2024, driven by improvements in both direct and agency title operations [5][8]. - The real estate solutions segment saw a 17% increase in operating revenues to $97.1 million in Q1 2025, although pretax income decreased by 40% to $4.1 million [12][13]. - Direct title revenues rose by 10% to $231.7 million, with domestic commercial revenues increasing by 39% due to higher average transaction sizes and closed transactions [11][12]. Expense Management - Consolidated employee costs increased by 8% to $185.8 million in Q1 2025, primarily due to higher incentive compensation and salaries [15][16]. - Other operating expenses rose by 18% to $160.9 million, driven by increased service expenses in real estate solutions and commercial title operations [16][15]. Cash Flow and Balance Sheet - Net cash used by operations in Q1 2025 was $29.9 million, comparable to $29.6 million in Q1 2024 [17]. - As of March 31, 2025, total assets were $2.7 billion, with stockholders' equity attributable to Stewart at $1.4 billion [23][24].

Group 1 - Stewart Information Services Corporation declared a cash dividend of $0.50 per share for the first quarter of 2025 [1] - The dividend is payable on March 31, 2025, to common stockholders of record on March 17, 2025 [1] Group 2 - Stewart Information Services Corporation is a global real estate services company [2] - The company offers a range of products and services including residential and commercial title insurance, closing and settlement services, and specialized offerings for the mortgage industry [2] - Stewart provides comprehensive services and deep expertise for real estate transactions through its direct operations and network of Stewart Trusted Providers™ [2]