Tiptree (TIPT) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Forward-Looking Statements Forward-looking statements are not guarantees of future performance and are subject to risks causing actual results to differ - Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors beyond the company's control[6] - Actual results could differ materially due to factors described in the 'Risk Factors' section of the Annual Report on Form 10-K and this 10-Q[6] - The company undertakes no obligation to update any forward-looking statements, except as required by applicable law[7] Market and Industry Data Market and industry data are from third-party sources, believed reliable but not independently verified - Market and industry data are sourced from governmental agencies and industry publications[8] - The company believes third-party data to be reliable based on management's industry knowledge but has not independently verified it[8] Note to Reader This section defines key terms and acronyms used in the Quarterly Report on Form 10-Q for reader clarity - Key terms such as '2017 Notes', '2024 Notes', 'Fortegra', 'GAAP', and 'Tiptree' are defined for clarity[9][10][11][12][13] Item 1. Financial Statements (Unaudited) Unaudited condensed consolidated financial statements for Tiptree Inc. and subsidiaries for Q2 2025, covering balance sheets, operations, comprehensive income, equity, and cash flows Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Total assets | $6,147,892 | $5,694,789 | $453,103 | 7.96% | | Total liabilities | $5,424,524 | $5,038,018 | $386,506 | 7.67% | | Total stockholders' equity | $723,368 | $656,771 | $66,597 | 10.14% | - Investments increased by $89.6 million, primarily in available for sale securities and equity securities[17] - Cash and cash equivalents increased by $63.8 million, while restricted cash slightly decreased[17] Condensed Consolidated Statements of Operations | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Total revenues | $528,750 | $546,673 | $(17,923) | -3.28% | | Total expenses | $476,038 | $506,027 | $(29,989) | -5.93% | | Net income (loss) attributable to common stockholders | $18,960 | $12,851 | $6,109 | 47.54% | | Basic earnings per share | $0.50 | $0.35 | $0.15 | 42.86% | | Diluted earnings per share | $0.37 | $0.31 | $0.06 | 19.35% | | Dividends declared per common share | $0.06 | $0.06 | $0.00 | 0.00% | | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Total revenues | $1,026,176 | $1,044,894 | $(18,718) | -1.79% | | Total expenses | $948,114 | $974,549 | $(26,435) | -2.71% | | Net income (loss) attributable to common stockholders | $24,595 | $21,901 | $2,694 | 12.30% | | Basic earnings per share | $0.65 | $0.59 | $0.06 | 10.17% | | Diluted earnings per share | $0.53 | $0.54 | $(0.01) | -1.85% | | Dividends declared per common share | $0.12 | $0.12 | $0.00 | 0.00% | Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Net income (loss) | $31,104 | $21,973 | $9,131 | | Other comprehensive income (loss), net of tax | $10,853 | $(1,818) | $12,671 | | Comprehensive income (loss) attributable to common stockholders | $26,894 | $11,563 | $15,331 | | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---|\ | Net income (loss) | $44,072 | $37,854 | $6,218 | | Other comprehensive income (loss), net of tax | $22,057 | $(4,358) | $26,415 | | Comprehensive income (loss) attributable to common stockholders | $40,722 | $18,758 | $21,964 | - Other comprehensive income (loss) significantly improved, primarily due to positive changes in unrealized gains on available-for-sale securities and currency translation adjustments[22] Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric | Balance at Dec 31, 2024 (in thousands) | Balance at June 30, 2025 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Total Tiptree Inc. stockholders' equity | $457,698 | $499,838 | $42,140 | | Total non-controlling interests | $199,073 | $223,530 | $24,457 | | Total stockholders' equity | $656,771 | $723,368 | $66,597 | - Increases in stockholders' equity were driven by amortization of share-based incentive compensation, other comprehensive income, and net income, partially offset by common stock and subsidiary preferred dividends[24][25] - Common shares outstanding increased from 37,255,838 at December 31, 2024, to 37,496,977 at June 30, 2025, due to vesting of share-based incentive compensation[24] Condensed Consolidated Statements of Cash Flows | Activity | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---|\ | Net cash provided by (used in) operating activities | $(12,068) | $109,582 | $(121,650) | | Net cash provided by (used in) investing activities | $10,068 | $18,564 | $(8,496) | | Net cash provided by (used in) financing activities