Tiptree (US:TIPT)2025-10-31 12:33Financial Performance - Total revenues for Q3 2025 were $540.3 million, representing a 9.3% increase from $494.4 million in Q3 2024[7] - Net income attributable to common stockholders for Q3 2025 was $6.4 million, down from $11.9 million in Q3 2024, with year-to-date net income at $31.0 million compared to $33.8 million in the prior year[7] - Adjusted net income for Q3 2025 was $28.8 million, an increase of 3.2% from $27.9 million in Q3 2024, with an annualized adjusted return on average equity of 22.9%[7] - The company reported a 1.8% increase in total revenues for the nine months ended September 30, 2025, compared to the same period in 2024[7] - Adjusted net income for the three months ended September 30, 2025, was $39.067 million, compared to $31.728 million for the same period in 2024, reflecting a year-over-year increase of 23.1%[15] - Total income before taxes for the three months ended September 30, 2025, was $38.27 million, up from $36.78 million in the prior year, representing a growth of 4.0%[15] - Total income before taxes for the nine months ended September 30, 2025, was $116,300,000, compared to $107,100,000 for the same period in 2024, representing an increase of approximately 8.3%[17] - Adjusted net income for the nine months ended September 30, 2025, was $106,794,000, up from $90,744,000 in 2024, reflecting a year-over-year growth of about 17.7%[17] - The adjusted net income before non-controlling interests for the nine months ended September 30, 2025, was $135,190,000, compared to $114,491,000 in 2024, marking an increase of approximately 18.1%[17] Assets and Liabilities - Total assets as of September 30, 2025, were $6.42 billion, up from $5.69 billion as of December 31, 2024[12] - Total liabilities increased to $5.67 billion as of September 30, 2025, compared to $5.04 billion at the end of 2024[12] - Cash and cash equivalents rose to $366.1 million as of September 30, 2025, from $320.1 million at the end of 2024[12] Corporate Actions - The company agreed to sell its mortgage business, Reliance First Capital, for approximately $51 million, expected to close in Q1 2026[6] - Tiptree's pro-forma book value as of September 30, 2025, is estimated to be $930 million after taxes and transaction expenses from the upcoming sales[6] - The company declared a dividend of $0.06 per share, with a record date of November 17, 2025, and a payment date of November 24, 2025[6] Equity and Returns - Adjusted return on average equity for Tiptree Inc. was 26.3% for the three months ended September 30, 2025, compared to 27.7% for the same period in 2024, indicating a slight decrease[15][16] - The average stockholders' equity for the three months ended September 30, 2025, was $732.394 million, compared to $637.1 million for the same period in 2024, showing an increase of 14.9%[15][16] - The adjusted return on average equity for the nine months ended September 30, 2025, was 20.5%, compared to 20.9% for the same period in 2024[17] - Average stockholders' equity increased to $700,867,000 for the nine months ended September 30, 2025, from $616,300,000 in 2024, indicating a growth of approximately 13.7%[17] Expenses and Losses - The company reported net realized and unrealized losses of $24.506 million for the three months ended September 30, 2025, compared to losses of $2.423 million in the same period of 2024, indicating increased volatility in investment performance[15] - Stock-based compensation expense for the three months ended September 30, 2025, was $5.627 million, compared to $5.957 million in the prior year, reflecting a decrease of 5.5%[15] - Non-recurring expenses for the three months ended September 30, 2025, totaled $12.501 million, while the previous year reported $119, indicating a significant increase in one-time costs[15] - The company reported a non-recurring expense of $18,050,000 for the nine months ended September 30, 2025, which included legal and other expenses related to the Fortegra IPO[19] - Non-cash fair value adjustments for the nine months ended September 30, 2025, amounted to $17,560,000, reflecting changes in the fair value of the Fortegra Additional Warrant liability[20] Tax Impacts - The impact of tax deconsolidation of Fortegra contributed $5.943 million to adjusted net income for the three months ended September 30, 2025[15] - The impact of tax deconsolidation of Fortegra contributed $18,603,000 to the adjusted net income for the nine months ended September 30, 2025[17] - The company incurred a tax expense of $2,728,000 on adjustments for the nine months ended September 30, 2025[17] Segment Performance - The company’s corporate segment reported a loss of $11.707 million for the three months ended September 30, 2025, compared to a loss of $5.257 million in the same period of 2024, indicating a worsening performance in this segment[15]