Fourth-Quarter & Full Year 2025 Earnings Webcast February 26th, 2026 1 Today's Presenters Chairman & Chief Executive Officer Bill Cobb Matt Davis Jason Bailey Senior Vice President & Chief Financial Officer Vice President, Investor Relations and Treasurer 2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, pr ...

Core Insights - First American Financial Corporation (FAF) reported fourth-quarter 2025 operating earnings of $1.99 per share, exceeding the Zacks Consensus Estimate by 33.6% and increasing 47.4% year over year [1][8] - Operating revenues rose 22% to $2 billion, surpassing the consensus estimate by 10% [1][8] Financial Performance - The quarterly results were bolstered by higher premiums, stronger net investment income, expanded pretax margin, and a lower claim loss rate, although elevated operating expenses partially offset these gains [2] - Direct premiums and escrow fees reached $789.4 million, a 17.3% increase from the prior year, exceeding the Zacks Consensus Estimate by 11.4% [5] - Investment income totaled $161.8 million, up 3.1% year over year, beating estimates [6] - Total revenues for the Title Insurance and Services segment rose 21% year over year to $1.9 billion, surpassing the Zacks Consensus Estimate of $1.7 billion [7] Segment Analysis - Title segment revenues grew 21%, with an adjusted pretax margin expanding 220 basis points to 14% [8][9] - Home Warranty segment revenues increased 7.3% to $110.3 million, with pretax income climbing 25.3% year over year [10] - The Corporate segment reported a net pretax loss of $24 million, an improvement from a $45 million loss in the previous year [11] Full-Year Highlights - Full-year 2025 adjusted income of $6.05 per share increased 37.5% year over year, beating the Zacks Consensus Estimate by 8.8% [12] - Total revenues for the year increased 21.6% year over year to $7.5 billion, also surpassing estimates [12] Financial Position - At the end of 2025, cash and cash equivalents were $1.4 billion, down 19.3% year over year, while stockholders' equity rose 12% to $5.5 billion [13] - Cash flow from operations was $951 million, up 6% year over year [13] Capital Deployment - The board raised the dividend by 2% to an annual rate of $2.20 per share and repurchased 2.1 million shares for $122 million [14]

Q4 2025 Earnings Presentation February 11, 2026 Copyright 2026 Porch Group, Inc. All rights reserved Disclaimers Financial Targets Porch is providing guidance and targets for future periods in this presentation, based on current market conditions, assumptions, and expectations as of the date of this presentation. Actual results may vary due to a number of factors, and there is no guarantee that we will be able to achieve these results. Please refer to the below for important disclaimers and a description of ...

Core Viewpoint - Frontdoor, Inc. emphasizes the importance of home warranties as a means to protect homeowners' investments from costly repairs and unexpected breakdowns, coinciding with National Home Warranty Day on February 10 [1] Company Summary - Frontdoor, Inc. is recognized as the nation's leader in home warranties, highlighting its role in providing peace of mind to homeowners [1] Industry Summary - The home warranty industry is positioned to remind homeowners of the value of safeguarding their properties, particularly during occasions like Valentine's Day, which traditionally focuses on gifts for loved ones [1]

Core Insights - First American Financial Corporation (FAF) reported strong third-quarter earnings, with operating income per share of $1.70, exceeding estimates by 19.7% and reflecting a year-over-year increase of 26.8% [3] - The company experienced a significant rise in operating revenues, which reached $1.9 billion, marking a 40.7% increase year-over-year, driven by higher direct premiums and improved net investment income [4] - The board of directors raised the dividend by 2 cents to $2.20 per share, indicating confidence in the company's financial health [10] Financial Performance - Operating income per share for Q3 2025 was $1.70, surpassing the Zacks Consensus Estimate by 19.7% [3] - Total revenues increased to $1.9 billion, up 40.7% year-over-year, driven by higher direct premiums and escrow fees [4] - Investment income rose to $163.8 million, an 11.7% increase year-over-year [4] - Expenses increased by 11.7% to $1.7 billion, slightly above estimates [4] Segment Analysis - Title Insurance and Services segment revenues grew by 42% year-over-year to $1.8 billion, driven by higher direct premiums and improved net investment income [5] - Home Warranty segment revenues increased by 3.3% to $114.6 million, with a significant pretax income increase of 80% year-over-year [7] - Corporate segment reported a pretax loss of $25 million, an increase of $6 million compared to the previous year [8] Financial Position - Cash and cash equivalents stood at $2.91 billion, a 69.4% increase from the end of 2024 [9] - Stockholders' equity rose to $5.3 billion, an 8% increase from the previous year [9] - The debt-to-capital ratio was reported at 33% [9] Market Outlook - Analysts have noted an upward trend in estimates for FAF, with a consensus estimate shift of 8.94% [11] - The stock has a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [13] - The overall VGM Score for FAF is B, with a strong value score placing it in the top 20% for value investors [12]

Summary of Frontdoor FY Conference Call (November 18, 2025) Company Overview - **Company**: Frontdoor (NasdaqGS:FTDR) - **Industry**: Home Warranty Services - **Business Model**: Frontdoor operates a recurring revenue model through home warranties, covering 29 systems and appliances with over 2 million members and 17,000 contractors. The service is initiated via a call or app, with a trade service fee charged for repairs or replacements [9][10]. Key Points Market Dynamics - **Total Addressable Market (TAM)**: The home services market is approximately $500 billion, with an addressable market for home warranties estimated at 15 million homes in the U.S. Currently, about 5 million home warranties are sold, with Frontdoor holding a 40% market share [11][12]. - **Impact of COVID-19**: The pandemic shifted the market dynamics, affecting the traditional real estate channel, which has seen a decline in transactions [11][12]. Real Estate Channel - **Current Trends**: Existing home sales are at a cyclical trough, with inventory increasing but still low. Frontdoor targets about 200,000-210,000 units this year, down from nearly 500,000 six years ago [13][15]. - **Growth Strategy**: The company is enhancing its sales force and introducing promotional pricing to attract real estate agents and customers [16][17]. Direct-to-Consumer (DTC) Channel - **Performance**: The DTC business has shown strong growth, particularly among millennials and Hispanic demographics. The advertising campaign has improved brand relevance and customer engagement [19][20]. - **Future Outlook**: The company anticipates positive growth in customer accounts by 2026, driven by both DTC and real estate channels [23][25]. Retention and Renewal Rates - **Improvement in Retention**: Retention rates have improved by 300 basis points due to better contractor performance and initiatives like autopay and auto-renewal [31][34]. - **Operational Execution**: Focus on member experience and operational discipline has been key to maintaining retention rates and managing cancellations [35][36]. Revenue Growth and Margins - **Revenue Projections**: The company expects 3% organic revenue growth this year, with further expansion anticipated in 2026 and 2027 [40][41]. - **Margin Management**: Frontdoor has achieved record margins through dynamic pricing strategies and strong contractor relationships, managing inflation effectively [65][66]. Non-Warranty Business Expansion - **New Offerings**: The company is expanding into non-warranty services, starting with HVAC and planning to include appliances, roofs, and water heaters by 2026. This strategy aims to increase share of wallet among existing members [45][50]. - **Contractor Relationships**: Strong relationships with contractors allow for competitive pricing and improved customer satisfaction [58][59]. Capital Allocation and M&A Strategy - **Focus on Growth**: The company aims to maintain a strong balance sheet while considering share repurchases and potential M&A opportunities, particularly focusing on integrating the recently acquired 2-10 business [83][89]. AI and Technology Integration - **AI Utilization**: Frontdoor is leveraging AI to enhance service request processing and sales interactions, improving efficiency and customer experience [95][106]. Additional Insights - **Market Recovery**: A recovery in the real estate market could positively impact revenue but may also introduce inflationary pressures [73][74]. - **Long-term Strategy**: The company is focused on sustainable growth through operational excellence, customer retention, and strategic pricing [72][71].

Financial Data and Key Metrics Changes - Revenue increased by 14% year-over-year to $618 million, driven by higher volume and pricing [4][18] - Gross profit margin improved by 60 basis points to 57% [4][18] - Net income grew by 5% to $106 million, while adjusted EBITDA increased by 18% to $195 million [4][19] - Free cash flow rose by 64% to $296 million, with total cash position reaching $563 million [21] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) member count grew by 8%, marking five consecutive quarters of organic growth [4][9] - Real estate revenue increased by 21%, primarily due to contributions from the 2-10 acquisition [18] - Non-warranty revenue surged by 73% year-over-year, driven by new HVAC and mowing programs [18][16] Market Data and Key Metrics Changes - The real estate channel saw sequential member count growth for the first time since 2020, indicating a shift towards a buyer's market [12][13] - Existing home sales increased by 4.1% in September, although overall sales remain at a 30-year low [12] - Total housing inventory rose by 14% year-over-year, reaching a five-year high [12] Company Strategy and Development Direction - The company is focused on operational excellence, leveraging pricing actions and operational efficiencies to improve margins [5][8] - Plans to expand non-warranty offerings into other trades, with significant growth potential identified in appliance replacement and other categories [16] - The company is committed to enhancing member experience through technology and continuous innovation [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record financial results for 2025, with a strong outlook for revenue and adjusted EBITDA [4][25] - The macro environment is improving, which is expected to support the company's strategic initiatives [33] - Management highlighted the importance of member retention and the effectiveness of marketing strategies targeting younger demographics [10][34] Other Important Information - Jessica Ross, the CFO, announced her resignation, effective November 10, with Jason Bailey set to succeed her [25][26] - The company is increasing its marketing spend in Q4 to drive growth, particularly in the DTC channel [22][34] Q&A Session Summary Question: What drove the increase in cost inflation? - Management clarified that inflation was closer to 4%, primarily due to rising appliance costs, but they are managing through it with dynamic pricing strategies [28][29] Question: What promotional strategies were implemented in the real estate channel? - The company ran specific promotions, including a $100 discount, which helped them outpace the real estate market [30] Question: What are the early observations from the non-warranty pilot program? - The company plans to expand the program nationwide in 2026, with initial feedback being positive [31] Question: What is driving the expected decline in DTC revenue? - The decline is attributed to pricing strategies and seasonal adjustments, but retention rates remain strong [32] Question: How much of the real estate channel's success is due to market conditions versus company initiatives? - Management noted that both the improving macro environment and their promotional strategies contributed to the success [33] Question: What is the outlook for long-term margin targets? - Management indicated that they are reevaluating long-term margin targets due to improved execution and pricing capabilities [36][38]

Core Insights - First American Financial Corporation (FAF) reported a third-quarter 2025 operating income per share of $1.70, exceeding the Zacks Consensus Estimate by 19.7% and reflecting a year-over-year increase of 26.8% [1][8] - The quarterly results were driven by higher premiums, improved net investment income, expanded pretax margin, and a declining claim loss rate [1][8] Financial Performance - Operating revenues reached $1.9 billion, marking a 40.7% year-over-year increase, attributed to higher direct premiums, escrow fees, and improved net investment income, surpassing the Zacks Consensus Estimate by 6.8% [2][8] - Investment income for the quarter was $163.8 million, up 11.7% year over year, exceeding the estimate of $146.6 million [2] - Total expenses rose 11.7% to $1.7 billion, compared to the estimate of $1.6 billion [2] Segment Results - Title Insurance and Services segment saw total revenues increase by 42% year over year to $1.8 billion, driven by higher direct premiums and escrow fees [3] - Investment income in this segment was $153.1 million, reflecting a 12.1% year-over-year increase, primarily due to higher interest income from the investment portfolio [3] - Home Warranty segment revenues increased by 3.3% to $114.6 million, with pretax income rising 80% year over year [5] Operational Metrics - Adjusted pretax margin expanded by 130 basis points to 12.9% [4] - Title open orders increased by 15.2% to 191,300, while title closed orders rose by 16.6% to 141,800 [4] - Average revenue per direct title order increased by 22% to $16,100 [4] Corporate Financials - The company ended the quarter with cash and cash equivalents of $2.91 billion, a 69.4% increase from the end of 2024 [7] - Stockholders' equity rose by 8% to $5.3 billion, with a debt-to-capital ratio of 33% [7] - Cash flow from operations was $273 million, up 15.2% year over year [7] Dividend Announcement - The board of directors raised the dividend by 2 cents to $2.20 per share, declaring a dividend of 55 cents for the third quarter [9]

Core Viewpoint - First American Financial (FAF) has shown a positive performance with an 8.5% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - FAF reported Q2 2025 operating income per share of $1.53, exceeding the Zacks Consensus Estimate by 9.3%, and reflecting a year-over-year increase of 20.5% [2] - Operating revenues reached $1.8 billion, a 14.2% increase year over year, driven by higher direct premiums, escrow fees, and net investment income, surpassing the Zacks Consensus Estimate by 5% [3] - Investment income for Q2 was $160 million, up 23% year over year, exceeding the estimate of $157.3 million [3] Segment Results - Title Insurance and Services segment revenues increased 13.2% year over year to $1.7 billion, with investment income rising 17% to $147 million, primarily due to higher interest income [4] - The average revenue per direct title order increased 7.7% year over year to $4,112, influenced by higher commercial transaction revenues [5] - Home Warranty segment revenues grew 3.1% to $110.2 million, with a pretax income increase of 35% year over year [6] Corporate and Financial Update - Corporate pretax loss was $40 million, up $17 million from the previous year, largely due to a one-time executive separation expense [7] - FAF ended the quarter with cash and cash equivalents of $2 billion, an 18.2% increase from the end of 2024, and stockholders' equity rose 4.4% to $5.1 billion [8] - Cash flow from operations was $355 million, reflecting a 33.4% year-over-year increase [9] Market Outlook - Since the earnings release, there has been an upward trend in estimates revisions for FAF, indicating positive market sentiment [10] - FAF holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12] Industry Comparison - FAF operates within the Zacks Insurance - Property and Casualty industry, where another player, Travelers, reported a 6.7% year-over-year revenue increase to $12.11 billion [13]

Financial Data and Key Metrics Changes - Revenue increased 14% year over year to $617 million, with net income growing 21% to $111 million and adjusted EBITDA rising 26% to $199 million [4][22][26] - For the full year, revenues grew 13% to over $1 billion, net income increased 17% to $148 million, and adjusted EBITDA grew 31% to $300 million [22] Business Line Data and Key Metrics Changes - Direct to consumer (DTC) revenue grew 12%, supported by organic volume growth and the addition of the two ten acquisition [22] - Real estate revenue increased 21%, primarily due to the two ten acquisition [22] - Other revenue grew 63%, driven by success in the new HVAC and Moen programs, as well as the addition of two ten's new home structural business [22] Market Data and Key Metrics Changes - The real estate market remains challenging, with home sales slipping 2.7% month over month to a seasonally adjusted annual rate of 3.93 million, among the lowest in thirty years [8] - The inventory of unsold existing homes rose 18% year over year to 1.53 million homes, indicating a potential transition to a buyer's market [9] Company Strategy and Development Direction - The company focuses on three strategic priorities: growing and retaining home warranty members, scaling revenue from non-warranty business, and optimizing the integration of the two ten Homebuyers Warranty [5][6][18] - The new HVAC program is expected to generate nearly 40% higher revenue than last year, with an increased full-year outlook of $120 million [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has improved, leading to better-than-expected results in various areas, including gross profit margin and revenue conversion [26][50] - The company is optimistic about the potential for increased home warranty attach rates as the real estate market shows signs of improvement [64] Other Important Information - The company repurchased $150 million worth of shares year to date through July 31, with an increased full-year share repurchase target of approximately $250 million [29][31] - Free cash flow for the first half of the year was $237 million, a 44% increase versus the prior year period [30] Q&A Session Summary Question: What drove the increase in two ten cost synergies from $10 million to $15 million for 2025? - Management indicated that efficiencies were found across all functions, leading to the increase, and confirmed expectations of $30 million in run rate synergies by 2028 [40] Question: Is your guidance all for HVAC or does that include water heaters? - The guidance is currently focused solely on HVAC, with ongoing tests for potential future offerings [41] Question: What contributed to the strong performance in the real estate channel this quarter? - Management attributed the performance to seasonal investments and effective integration of the two ten acquisition [46][48] Question: Are you still expecting $50 million in headwinds for the back half of the year? - Management noted that the macro environment has improved, leading to better-than-anticipated results, and adjusted expectations for the back half of the year [49][50] Question: How is the two ten structural warranty sales process performing? - Management expressed satisfaction with the sales process and noted that the transition has gone smoothly, with good momentum in sales [59][60]