Stewart (NYSE: STC) Q1 2026 profit surges on title, RES growth
Rhea-AI Filing Summary
Stewart Information Services reported sharply stronger results for the quarter ended March 31, 2026. Total revenues rose to $781.3 million, up from $612.0 million a year earlier, while net income attributable to Stewart increased to $17.0 million from $3.1 million. On an adjusted basis, net income was $24.1 million, compared with $7.0 million, and diluted EPS improved to $0.55 (adjusted $0.78) from $0.11 (adjusted $0.25).
The Title segment delivered operating revenues of $603.2 million, up 21%, with pretax income more than doubling to $25.0 million and adjusted pretax margin improving to 4.1%. Domestic commercial title revenues grew 35%, helped by larger transaction sizes, while loss ratios and cost ratios both improved.
The Real Estate Solutions segment posted operating revenues of $161.4 million, up 66%, with adjusted pretax income of $20.2 million and adjusted pretax margin of 12.5%. Operating cash outflow narrowed to $4.5 million from $29.9 million, and management highlighted momentum across businesses despite housing and macroeconomic volatility.
Positive
- Significant earnings acceleration: Revenue rose to $781.3 million (up 28%), while net income attributable to Stewart grew from $3.1 million to $17.0 million and adjusted net income increased to $24.1 million, driven by strong performance in both Title and Real Estate Solutions segments.
Negative
- None.
Insights
Stewart posted broad-based Q1 2026 strength with outsized profit growth.
Stewart Information Services delivered a strong quarter, with total revenues rising to $781.3 million, up 28% year over year. Net income attributable to Stewart increased from $3.1 million to $17.0 million, while adjusted net income reached $24.1 million. Both core title and real estate solutions operations contributed.
The Title segment grew operating revenues 21% to $603.2 million, and pretax income more than doubled to $25.0 million. Domestic commercial revenues rose 35%, with average commercial fee per file up from $15,800 to $21,100. Loss and expense ratios improved, indicating better operating leverage as volumes and ticket sizes increased.
Real Estate Solutions revenues climbed 66% to $161.4 million, aided by credit information services and the acquired MCS business. Adjusted pretax income more than doubled to $20.2 million, with adjusted pretax margin expanding to 12.5%. Net cash used by operations narrowed to $4.5 million versus $29.9 million in Q1 2025, reflecting higher earnings. Future filings will further clarify how sustained housing and macro volatility affect this growth trajectory.
8-K Event Classification
Key Figures
Key Terms
adjusted pretax margin financial
non-GAAP financial measures financial
Real Estate Solutions segment financial
net realized and unrealized gains financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST
EVENT REPORTED):
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
| (STATE OR OTHER JURISDICTION) |
(COMMISSION FILE NO.) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
(Address Of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number,
Including Area Code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth
company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
A press release issued by Stewart Information Services Corporation on April 22, 2026, regarding financial results for the three months ended March 31, 2026, is attached hereto as Exhibit 99.1, and is incorporated herein by reference. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference in any filing under the Securities Act of 1933, as amended.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) EXHIBITS
| Exhibit No. | Description | |
| 99.1 | Press release of Stewart Information Services Corporation dated April 22, 2026, reporting financial results for the three months ended March 31, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
STEWART INFORMATION SERVICES CORPORATION (Registrant) | ||
| By: | /s/ David C. Hisey | |
|
David C. Hisey, Chief Financial Officer and Treasurer |
||
Date: April 22, 2026
Exhibit 99.1
NEWS RELEASE
|
STEWART INFORMATION SERVICES CORP. P.O. Box 2029 Houston, Texas 77252-2029 www.stewart.com |
CONTACT Kathryn Bass Investor Relations (713) 625-8633 |
Stewart Reports First Quarter 2026 Results
| · | Total revenues of $781.3 million ($778.4 million on an adjusted basis) compared to $612.0 million ($608.9 million on an adjusted basis) in the prior year quarter | |
| · | Net income of $17.0 million ($24.1 million on an adjusted basis) compared to net income of $3.1 million ($7.0 million on an adjusted basis) in the prior year quarter | |
| · | Diluted EPS of $0.55 ($0.78 on an adjusted basis) compared to prior year quarter diluted EPS of $0.11 ($0.25 on an adjusted basis) |
HOUSTON, April 22, 2026 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $17.0 million ($0.55 per diluted share) for the first quarter 2026, compared to net income attributable to Stewart of $3.1 million ($0.11 per diluted share) for the first quarter 2025. On an adjusted basis, net income for the first quarter 2026 was $24.1 million ($0.78 per diluted share) compared to net income of $7.0 million ($0.25 per diluted share) in the first quarter 2025. Pretax income before noncontrolling interests for the first quarter 2026 was $23.6 million ($33.2 million on an adjusted basis) compared to $5.9 million ($11.2 million on an adjusted basis) for the first quarter 2025.
First quarter 2026 and 2025 results included $2.9 million and $3.1 million, respectively, of pretax net realized and unrealized gains, both primarily driven by net gains from fair value changes of equity securities investments recorded in the title segment.
“I am proud of our first quarter results as they reflect the momentum we have built in each of our businesses,” commented Fred Eppinger, chief executive officer. “We are pleased with our ability to deliver these solid results while confronting housing market and macroeconomic volatility. We remain focused on growth across all of our business lines and are dedicated to serving our customers with excellence.”
Selected Financial Information
Summary results of operations are as follows (dollars in millions, except per share amounts, pretax margin and adjusted pretax margin, and amounts may not add as presented due to rounding):
| Quarter Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Total revenues | 781.3 | 612.0 | ||||||
| Pretax income before noncontrolling interests | 23.6 | 5.9 | ||||||
| Income tax expense | (4.6 | ) | (0.5 | ) | ||||
| Net income attributable to noncontrolling interests | (2.1 | ) | (2.3 | ) | ||||
| Net income attributable to Stewart | 17.0 | 3.1 | ||||||
| Non-GAAP adjustments, after taxes* | 7.1 | 3.9 | ||||||
| Adjusted net income attributable to Stewart* | 24.1 | 7.0 | ||||||
| Pretax margin | 3.0 | % | 1.0 | % | ||||
| Adjusted pretax margin* | 4.3 | % | 1.8 | % | ||||
| Net income per diluted Stewart share | 0.55 | 0.11 | ||||||
| Adjusted net income per diluted Stewart share* | 0.78 | 0.25 | ||||||
*Adjusted net income, adjusted pretax margin and adjusted net income per diluted share are non-GAAP measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.
Title Segment
Summary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
| Quarter Ended March 31, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Operating revenues | 603.2 | 499.2 | 21 | % | ||||||||
| Investment income | 13.8 | 12.6 | 10 | % | ||||||||
| Net realized and unrealized gains | 3.1 | 3.1 | 1 | % | ||||||||
| Pretax income | 25.0 | 11.8 | 112 | % | ||||||||
| Non-GAAP adjustments to pretax income* | 0.2 | (0.3 | ) | 180 | % | |||||||
| Adjusted pretax income* | 25.2 | 11.5 | 119 | % | ||||||||
| Pretax margin | 4.0 | % | 2.3 | % | ||||||||
| Adjusted pretax margin* | 4.1 | % | 2.2 | % | ||||||||
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.
Title segment operating revenues increased $104.0 million (21 percent) in the first quarter 2026, driven by strong results across both our direct and agency title operations despite the current market environment. Direct title revenues improved $38.5 million (17 percent), primarily reflecting consistent strong performance in our domestic commercial business and improved domestic residential results. Gross agency revenues increased $65.5 million (25 percent), while revenues net of agency retention increased $10.7 million (23 percent) compared to the first quarter 2025. The title segment’s combined employee costs and other operating expenses increased $36.9 million (14 percent); however, as a percentage of operating revenues, these costs improved to 48 percent in the first quarter 2026 from 51 percent in the prior year quarter, primarily due to higher title operating revenues. Title loss expense, as a percentage of title operating revenues, improved to 3.1 percent in the first quarter 2026, compared to 3.5 percent in the prior year quarter, primarily due to our continued overall favorable claims experience.
-2-
Net realized and unrealized gains in the first quarters 2026 and 2025 were primarily related to net gains on fair value changes of equity securities investments. Investment income increased $1.2 million (10 percent) in the first quarter 2026, primarily driven by increased interest income resulting from increased cash balances compared to the first quarter 2025.
In addition to the above net realized and unrealized gains, the title segment’s adjusted pretax income for the first quarters 2026 and 2025 included total other non-GAAP adjustments of $3.3 million and $2.8 million, respectively, related to acquisition intangible asset amortization and severance expenses (refer to Appendix A for details).
Direct title revenues information is presented below (dollars in millions):
| Quarter Ended March 31, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Non-commercial: | ||||||||||||
| Domestic | 145.6 | 134.4 | 8 | % | ||||||||
| International | 24.1 | 22.2 | 9 | % | ||||||||
| 169.7 | 156.6 | 8 | % | |||||||||
| Commercial: | ||||||||||||
| Domestic | 93.9 | 69.3 | 35 | % | ||||||||
| International | 6.6 | 5.8 | 14 | % | ||||||||
| 100.5 | 75.1 | 34 | % | |||||||||
| Total direct title revenues | 270.2 | 231.7 | 17 | % | ||||||||
Domestic commercial revenues increased $24.6 million (35 percent) in the first quarter 2026, driven by higher commercial transaction size and volume, primarily across energy, industrial, site development, data center and retail asset classes. Average domestic commercial fee per file improved 33 percent to $21,100 in the first quarter 2026 compared to $15,800 in the first quarter 2025, while domestic commercial closed orders increased 2 percent. Domestic non-commercial revenues increased $11.2 million (8 percent) in the first quarter 2026, primarily due to higher closed transaction volumes, driven mainly by increased refinancing activity. Average domestic residential fee per file was $3,300 in the first quarter 2026, consistent with the prior year quarter. Total international revenues increased $2.7 million (10 percent) in the first quarter 2026, driven primarily by improved residential volumes compared to the prior year quarter.
-3-
Real Estate Solutions Segment
Summary results of the real estate solutions (RES) segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
| Quarter Ended March 31, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Operating revenues | 161.4 | 97.1 | 66 | % | ||||||||
| Pretax income | 11.0 | 4.1 | 172 | % | ||||||||
| Non-GAAP adjustments to pretax income* | 9.2 | 5.5 | 66 | % | ||||||||
| Adjusted pretax income* | 20.2 | 9.6 | 111 | % | ||||||||
| Pretax margin | 6.8 | % | 4.2 | % | ||||||||
| Adjusted pretax margin* | 12.5 | % | 9.9 | % | ||||||||
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments.
Segment operating revenues increased $64.3 million (66 percent) in the first quarter 2026 compared to the first quarter 2025, primarily driven by higher credit information services revenues and our recently-acquired MCS business. Combined employee costs and other operating expenses increased $55.3 million (64 percent) in the first quarter 2026, primarily due to increased costs of services associated with increased revenue levels. Non-GAAP adjustments to pretax income for both first quarters 2026 and 2025 were primarily related to acquisition intangible asset amortization expenses. The first quarter 2026 also included adjustments for MCS acquisition-related costs.
Corporate Segment
Net expenses attributable to corporate operations increased to $12.2 million for the first quarter 2026, compared to $9.9 million in the first quarter 2025, primarily driven by higher interest expense on increased debt balances.
Expenses
Consolidated employee costs increased $35.3 million (19 percent) in the first quarter 2026 compared to the prior year quarter, primarily driven by higher salaries and employee benefits expenses related to an increased average employee count, as well as higher incentive compensation consistent with improved operating results. As a percentage of total operating revenues, consolidated employee costs improved to 29 percent in the first quarter 2026, compared to 31 percent in the prior year quarter, primarily due to higher operating revenues.
Consolidated other operating expenses increased $56.6 million (35 percent) in the first quarter 2026 compared to the prior year quarter, primarily as a result of higher real estate solutions service expenses and increased title outside search and premium tax expenses associated with increased operating revenues. As a percentage of total operating revenues, first quarter 2026 consolidated other operating expenses were 28 percent, compared to 27 percent in the prior year quarter, primarily due to increased real estate solutions service expenses.
-4-
Other
Net cash used by operations improved to $4.5 million in the first quarter 2026, compared to net cash used by operations of $29.9 million in the first quarter 2025, primarily as a result of the higher net income in the first quarter 2026.
First Quarter Earnings Call
Stewart will hold a conference call to discuss the first quarter 2026 earnings at 8:30 a.m. Eastern Time on Thursday, April 23, 2026. To participate, dial 800-274-8461 (USA) or 203-518-9814 (International) – access code STCQ126. Additionally, participants can listen to the conference call through Stewart’s Investor Relations website at https://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on April 23, 2026 until midnight on April 30, 2026 by dialing (800) 925-9940 (USA) or (402) 220-5394 (International).
About Stewart
Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage and real estate industries, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we are dedicated to becoming the premier title services company and we are committed to doing so by partnering with our customers to create mutual success. Learn more at stewart.com.
Cautionary statement regarding forward-looking statements. Certain statements in this press release are "forward-looking statements", including statements related to Stewart’s future business plans and expectations, including our plans to achieve market growth and pretax margin improvements. Forward-looking statements, by their nature, are subject to various risks and uncertainties that could cause our actual results to differ materially. Such risks and uncertainties include the volatility of general economic conditions, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, and adverse changes in the level of real estate activity, as well as a number of other risks and uncertainties discussed in detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.
ST-IR
-5-
STEWART INFORMATION SERVICES CORPORATION
CONDENSED STATEMENTS OF INCOME
(In thousands of dollars, except per share amounts and except where noted)
| Quarter Ended March 31, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Revenues: | ||||||||||||||||
| Title revenues: | ||||||||||||||||
| Direct title | 270,177 | 231,680 | ||||||||||||||
| Agency title | 333,006 | 267,518 | ||||||||||||||
| Real estate solutions | 161,371 | 97,077 | ||||||||||||||
| Total operating revenues | 764,554 | 596,275 | ||||||||||||||
| Investment income | 13,851 | 12,656 | ||||||||||||||
| Net realized and unrealized gains | 2,902 | 3,053 | ||||||||||||||
| 781,307 | 611,984 | |||||||||||||||
| Expenses: | ||||||||||||||||
| Amounts retained by agencies | 276,142 | 221,377 | ||||||||||||||
| Employee costs | 221,098 | 185,811 | ||||||||||||||
| Other operating expenses | 217,517 | 160,911 | ||||||||||||||
| Title losses and related claims | 18,442 | 17,702 | ||||||||||||||
| Depreciation and amortization | 16,855 | 15,322 | ||||||||||||||
| Interest | 7,628 | 4,961 | ||||||||||||||
| 757,682 | 606,084 | |||||||||||||||
| Income before taxes and noncontrolling interests | 23,625 | 5,900 | ||||||||||||||
| Income tax expense | (4,556 | ) | (484 | ) | ||||||||||||
| Net income | 19,069 | 5,416 | ||||||||||||||
| Less net income attributable to noncontrolling interests | 2,105 | 2,339 | ||||||||||||||
| Net income attributable to Stewart | 16,964 | 3,077 | ||||||||||||||
| Net earnings per diluted share attributable to Stewart | 0.55 | 0.11 | ||||||||||||||
| Diluted average shares outstanding (000) | 30,809 | 28,341 | ||||||||||||||
| Selected financial information: | ||||||||||||||||
| Net cash used by operations | (4,490 | ) | (29,927 | ) | ||||||||||||
| Other comprehensive (loss) income | (5,451 | ) | 6,371 | |||||||||||||
First Quarter Domestic Order Counts:
| Opened Orders 2026: | Jan | Feb | Mar | Total | Closed Orders 2026: | Jan | Feb | Mar | Total | |||||||||||||||||
| Commercial | 1,730 | 1,732 | 1,888 | 5,350 | Commercial | 1,318 | 1,493 | 1,648 | 4,459 | |||||||||||||||||
| Purchase | 13,357 | 13,988 | 17,265 | 44,610 | Purchase | 7,319 | 8,452 | 10,262 | 26,033 | |||||||||||||||||
| Refinancing | 7,234 | 7,460 | 8,627 | 23,321 | Refinancing | 3,847 | 4,264 | 5,274 | 13,385 | |||||||||||||||||
| Other | 3,846 | 2,430 | 5,151 | 11,427 | Other | 1,475 | 1,471 | 1,804 | 4,750 | |||||||||||||||||
| Total | 26,167 | 25,610 | 32,931 | 84,708 | Total | 13,959 | 15,680 | 18,988 | 48,627 | |||||||||||||||||
| Opened Orders 2025: | Jan | Feb | Mar | Total | Closed Orders 2025: | Jan | Feb | Mar | Total | |||||||||||||||||
| Commercial | 1,336 | 1,364 | 1,628 | 4,328 | Commercial | 1,394 | 1,376 | 1,620 | 4,390 | |||||||||||||||||
| Purchase | 14,110 | 14,406 | 17,734 | 46,250 | Purchase | 7,784 | 8,562 | 10,434 | 26,780 | |||||||||||||||||
| Refinancing | 5,481 | 5,655 | 6,426 | 17,562 | Refinancing | 3,142 | 3,074 | 3,682 | 9,898 | |||||||||||||||||
| Other | 3,370 | 4,784 | 2,649 | 10,803 | Other | 1,413 | 1,507 | 1,685 | 4,605 | |||||||||||||||||
| Total | 24,297 | 26,209 | 28,437 | 78,943 | Total | 13,733 | 14,519 | 17,421 | 45,673 |
STEWART INFORMATION SERVICES CORPORATION
CONDENSED BALANCE SHEETS
(In thousands of dollars)
| March 31, 2026 | December 31, 2025 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | 271,235 | 321,775 | ||||||
| Short-term investments | 46,250 | 47,899 | ||||||
| Investments in debt and equity securities, at fair value | 602,485 | 606,170 | ||||||
| Receivables, net | 216,203 | 190,064 | ||||||
| Property and equipment, net | 91,892 | 85,330 | ||||||
| Operating lease assets, net | 107,988 | 106,034 | ||||||
| Title plants | 81,711 | 81,670 | ||||||
| Goodwill | 1,276,164 | 1,271,958 | ||||||
| Intangible assets, net of amortization | 316,097 | 325,135 | ||||||
| Deferred tax assets | 7,738 | 7,656 | ||||||
| Other assets | 220,224 | 209,114 | ||||||
| 3,237,987 | 3,252,805 | |||||||
| Liabilities: | ||||||||
| Notes payable | 646,748 | 646,606 | ||||||
| Accounts payable and accrued liabilities | 251,949 | 255,852 | ||||||
| Operating lease liabilities | 123,859 | 122,153 | ||||||
| Estimated title losses | 516,776 | 524,473 | ||||||
| Deferred tax liabilities | 52,991 | 53,323 | ||||||
| 1,592,323 | 1,602,407 | |||||||
| Stockholders’ equity: | ||||||||
| Common Stock and additional paid-in capital | 521,984 | 520,243 | ||||||
| Retained earnings | 1,146,038 | 1,145,415 | ||||||
| Accumulated other comprehensive loss | (27,359 | ) | (21,908 | ) | ||||
| Treasury stock | (2,666 | ) | (2,666 | ) | ||||
| Stockholders’ equity attributable to Stewart | 1,637,997 | 1,641,084 | ||||||
| Noncontrolling interests | 7,667 | 9,314 | ||||||
| Total stockholders’ equity | 1,645,664 | 1,650,398 | ||||||
| 3,237,987 | 3,252,805 | |||||||
| Number of shares outstanding (000) | 30,425 | 30,223 | ||||||
| Book value per share | 53.84 | 54.30 | ||||||
STEWART INFORMATION SERVICES CORPORATION
SEGMENT INFORMATION
(In thousands of dollars)
| Quarter Ended: | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Title | Real Estate Solutions | Corporate | Total | Title | Real Estate Solutions | Corporate | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Operating revenues | 603,183 | 161,371 | - | 764,554 | 499,198 | 97,077 | - | 596,275 | ||||||||||||||||
| Investment income | 13,822 | 29 | - | 13,851 | 12,621 | 35 | - | 12,656 | ||||||||||||||||
| Net realized and unrealized gains (losses) | 3,085 | - | (183 | ) | 2,902 | 3,055 | - | (2 | ) | 3,053 | ||||||||||||||
| 620,090 | 161,400 | (183 | ) | 781,307 | 514,874 | 97,112 | (2 | ) | 611,984 | |||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Amounts retained by agencies | 276,142 | - | - | 276,142 | 221,377 | - | - | 221,377 | ||||||||||||||||
| Employee costs | 195,366 | 22,360 | 3,372 | 221,098 | 168,487 | 13,736 | 3,588 | 185,811 | ||||||||||||||||
| Other operating expenses | 96,478 | 119,653 | 1,386 | 217,517 | 86,505 | 72,943 | 1,463 | 160,911 | ||||||||||||||||
| Title losses and related claims | 18,442 | - | - | 18,442 | 17,702 | - | - | 17,702 | ||||||||||||||||
| Depreciation and amortization | 8,239 | 8,358 | 258 | 16,855 | 8,614 | 6,372 | 336 | 15,322 | ||||||||||||||||
| Interest | 456 | 4 | 7,168 | 7,628 | 422 | 2 | 4,537 | 4,961 | ||||||||||||||||
| 595,123 | 150,375 | 12,184 | 757,682 | 503,107 | 93,053 | 9,924 | 606,084 | |||||||||||||||||
| Income (loss) before taxes | 24,967 | 11,025 | (12,367 | ) | 23,625 | 11,767 | 4,059 | (9,926 | ) | 5,900 | ||||||||||||||
Appendix A
Non-GAAP Adjustments
Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, acquired intangible asset amortization, acquisition-related expenses (in connection with our MCS acquisition), and severance expenses. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Adjusted pretax margin is calculated using adjusted pretax income divided by adjusted total revenues. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses.
Below are reconciliations of the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the quarter ended March 31, 2026 and 2025 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding).
| Quarter Ended March 31, | ||||||||||||
| 2026 | 2025 | % Chg | ||||||||||
| Total revenues | 781.3 | 612.0 | 28 | % | ||||||||
| Non-GAAP revenue adjustment: | ||||||||||||
| Net realized and unrealized gains | (2.9 | ) | (3.1 | ) | ||||||||
| Adjusted total revenues | 778.4 | 608.9 | 28 | % | ||||||||
| Net realized and unrealized gains: | ||||||||||||
| Net unrealized gains on equity securities fair value changes | 3.3 | 3.2 | ||||||||||
| Loss on disposal of a subsidiary | (0.3 | ) | - | |||||||||
| Net losses on sale of securities investments | - | (0.3 | ) | |||||||||
| Other items, net | (0.1 | ) | 0.2 | |||||||||
| Total | 2.9 | 3.1 | ||||||||||
| Pretax income | 23.6 | 5.9 | 300 | % | ||||||||
| Non-GAAP pretax adjustments: | ||||||||||||
| Net realized and unrealized gains | (2.9 | ) | (3.1 | ) | ||||||||
| Acquired intangible asset amortization | 9.4 | 8.3 | ||||||||||
| Acquisition-related expenses | 2.5 | - | ||||||||||
| Severance expenses | 0.6 | - | ||||||||||
| Adjusted pretax income | 33.2 | 11.2 | 198 | % | ||||||||
| GAAP pretax margin | 3.0 | % | 1.0 | % | ||||||||
| Adjusted pretax margin | 4.3 | % | 1.8 | % | ||||||||
| Net income attributable to Stewart | 17.0 | 3.1 | 451 | % | ||||||||
| Non-GAAP pretax adjustments: | ||||||||||||
| Net realized and unrealized gains | (2.9 | ) | (3.1 | ) | ||||||||
| Acquired intangible asset amortization | 9.4 | 8.3 | ||||||||||
| Acquisition-related expenses | 2.5 | - | ||||||||||
| Severance expenses | 0.6 | - | ||||||||||
| Net tax effects of non-GAAP adjustments | (2.5 | ) | (1.4 | ) | ||||||||
| Non-GAAP adjustments, after taxes | 7.1 | 3.9 | ||||||||||
| Adjusted net income attributable to Stewart | 24.1 | 7.0 | 245 | % | ||||||||
| Diluted average shares outstanding (000) | 30,809 | 28,341 | ||||||||||
| GAAP net income per share | 0.55 | 0.11 | ||||||||||
| Adjusted net income per share | 0.78 | 0.25 | ||||||||||
| Quarter Ended March 31, | ||||||||||||
| 2026 | 2025 | % Chg | ||||||||||
| Title Segment: | ||||||||||||
| Revenues | 620.1 | 514.9 | 20 | % | ||||||||
| Net realized and unrealized gains | (3.1 | ) | (3.1 | ) | ||||||||
| Adjusted revenues | 617.0 | 511.8 | 21 | % | ||||||||
| Pretax income | 25.0 | 11.8 | 112 | % | ||||||||
| Non-GAAP pretax adjustments: | ||||||||||||
| Net realized and unrealized gains | (3.1 | ) | (3.1 | ) | ||||||||
| Acquired intangible asset amortization | 2.7 | 2.8 | ||||||||||
| Severance expenses | 0.6 | - | ||||||||||
| Adjusted pretax income | 25.2 | 11.5 | 119 | % | ||||||||
| GAAP pretax margin | 4.0 | % | 2.3 | % | ||||||||
| Adjusted pretax margin | 4.1 | % | 2.2 | % | ||||||||
| Real Estate Solutions Segment: | ||||||||||||
| Revenues | 161.4 | 97.1 | 66 | % | ||||||||
| Pretax income | 11.0 | 4.1 | 172 | % | ||||||||
| Non-GAAP pretax adjustment: | ||||||||||||
| Acquired intangible asset amortization | 6.7 | 5.5 | ||||||||||
| Acquisition-related expenses | 2.5 | - | ||||||||||
| Adjusted pretax income | 20.2 | 9.6 | 111 | % | ||||||||
| GAAP pretax margin | 6.8 | % | 4.2 | % | ||||||||
| Adjusted pretax margin | 12.5 | % | 9.9 | % | ||||||||