Investors Title pany(ITIC) - 2025 Q4 - Annual Results

Financial Performance - For Q4 2025, Investors Title Company reported net income of $7.5 million, or $3.97 per diluted share, down from $8.4 million, or $4.41 per diluted share in Q4 2024[1][2] - Revenues for Q4 2025 decreased by 1.6% to $69.5 million, compared to $70.6 million in Q4 2024, primarily due to a decline in net premiums written[2] - For the full year 2025, net income rose to $35.2 million, or $18.57 per diluted share, compared to $31.1 million, or $16.43 per diluted share in 2024, marking a 13.3% increase[5] - Total revenues for the full year 2025 increased by 5.6% to $272.8 million, up from $258.3 million in 2024, attributed to higher net premiums written and increased escrow and title-related fees[5][6] Revenue Breakdown - Net premiums written for Q4 2025 were $55.4 million, a decrease of $2.4 million from the prior year, while non-title services revenue increased by $975 thousand to $5.3 million[2][16] - The company experienced a significant increase in non-title services revenue, contributing to overall revenue growth, particularly from like-kind exchanges and management services[9] - Total revenues for Q4 2025 (GAAP) were $69,518 million, a decrease from $70,628 million in Q4 2024[20] - Adjusted revenues (non-GAAP) for Q4 2025 were $69,323 million, compared to $70,585 million in Q4 2024[20] - Total revenues for the twelve months ended December 31, 2025 (GAAP) were $272,755 million, an increase from $258,298 million in 2024[20] - Adjusted revenues (non-GAAP) for the twelve months ended December 31, 2025 were $269,578 million, up from $253,615 million in 2024[20] Operating Expenses - Operating expenses for Q4 2025 increased by 0.2% to $59.9 million, driven by higher personnel costs and other expenses, partially offset by a decline in agent commissions[3] - Operating expenses for the full year 2025 increased by 4.3% to $228.2 million, primarily due to higher agent commissions and professional services fees[7] Income Before Taxes - Income before income taxes (GAAP) for Q4 2025 was $9,607 million, down from $10,811 million in Q4 2024[20] - Adjusted income before income taxes (non-GAAP) for Q4 2025 was $9,412 million, compared to $10,768 million in Q4 2024[20] - Income before income taxes (GAAP) for the twelve months ended December 31, 2025 was $44,549 million, compared to $39,463 million in 2024[20] - Adjusted income before income taxes (non-GAAP) for the twelve months ended December 31, 2025 was $41,372 million, an increase from $34,780 million in 2024[20] Investment Gains - Net investment gains for Q4 2025 were $(195) million, compared to $(43) million in Q4 2024[20] - Net investment gains for the twelve months ended December 31, 2025 were $(3,177) million, down from $(4,683) million in 2024[20] Market Insights and Future Plans - Chairman J. Allen Fine noted that title insurance volumes increased in key markets, supported by a slight improvement in mortgage rates, which positively impacted refinance activity[8] - The company plans to continue investing in operational efficiency and market expansion to enhance profitability in the future[9]