Stewart Information Q3 net income falls 32%
Real estate solutions revenue rose 68%, while net cash provided by operations was $46.6 million versus $92.6 million a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Stewart Information Services Corporation reported third-quarter 2026 total revenues of $900.7 million, up 13% from $796.9 million a year earlier. Net income attributable to Stewart was $30.3 million, compared with $44.3 million, and diluted EPS was $0.98 versus $1.55. On an adjusted basis, net income was $41.2 million versus $46.7 million, and diluted EPS was $1.33 versus $1.64.
Title segment operating revenues increased 5% to $690.5 million, while real estate solutions revenue increased 68% to $196.5 million, primarily due to the recent MCS acquisition and higher credit information and valuation services revenue. Domestic commercial closed orders improved 18%, while the average domestic commercial fee per file decreased 8% to $16,300. Pretax income before noncontrolling interests was $45.6 million versus $61.2 million. Net cash provided by operations was $46.6 million versus $92.6 million, primarily reflecting lower net income and the timing of operating-liability payments. CEO Fred Eppinger said increased industry headwinds are anticipated to continue into next year.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter total revenues rose 13% to $900.7 million from $796.9 million.
- Moderate pointReal estate solutions revenue increased 68% to $196.5 million.
Negative
- Moderate pointNet income attributable to Stewart fell 32% to $30.3 million.
- Moderate pointNet cash provided by operations was $46.6 million, versus $92.6 million.
- Minor pointAdjusted net income declined 12% to $41.2 million.
Filing Explained
Stewart reported 30,526 thousand shares outstanding at
8-K Event Classification
Key Figures
Key Terms
non-GAAP financial measures financial
adjusted pretax margin financial
pretax margin financial
title loss ratio financial
agency retention financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did STC report in Q3 2026?
What were STC's Q3 2026 net income and diluted EPS?
What drove STC's title segment revenue growth in Q3 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 October 21, 2026, regarding financial results for the three months ended September 30, 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 October 21, 2026, reporting financial results for the three months ended September 30, 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: October 21, 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 Third Quarter 2026 Results
| · | Total revenues of $900.7 million (GAAP and adjusted basis) compared to $796.9 million ($791.3 million on an adjusted basis) in the prior year quarter | |
| · | Net income of $30.3 million ($41.2 million on an adjusted basis) compared to net income of $44.3 million ($46.7 million on an adjusted basis) in the prior year quarter | |
| · | Diluted EPS of $0.98 ($1.33 on an adjusted basis) compared to prior year quarter diluted EPS of $1.55 ($1.64 on an adjusted basis) |
HOUSTON, October 21, 2026 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $30.3 million ($0.98 per diluted share) for the third quarter 2026, compared to net income attributable to Stewart of $44.3 million ($1.55 per diluted share) for the third quarter 2025. On an adjusted basis, net income for the third quarter 2026 was $41.2 million ($1.33 per diluted share) compared to net income of $46.7 million ($1.64 per diluted share) in the third quarter 2025. Pretax income before noncontrolling interests for the third quarter 2026 was $45.6 million ($60.3 million on an adjusted basis) compared to $61.2 million ($64.5 million on an adjusted basis) for the third quarter 2025.
Third quarter 2025 results included $5.6 million of pretax net realized and unrealized gains, primarily driven by $4.3 million of net unrealized gains on fair value changes of equity securities investments in the title segment and a $1.2 million realized gain on a sale of real property in the corporate segment.
“This quarter, we faced increased industry headwinds that we anticipate will continue into next year,” commented Fred Eppinger, chief executive officer. “We remain focused on growing market share across our businesses while maintaining disciplined operational execution in this challenging market environment.”
-1-
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Total revenues | 900.7 | 796.9 | 2,581.2 | 2,131.1 | ||||||||||||
| Pretax income before noncontrolling interests | 45.6 | 61.2 | 124.3 | 113.8 | ||||||||||||
| Income tax expense | (11.6 | ) | (13.0 | ) | (29.5 | ) | (24.6 | ) | ||||||||
| Net income attributable to noncontrolling interests | (3.6 | ) | (3.9 | ) | (10.2 | ) | (10.0 | ) | ||||||||
| Net income attributable to Stewart | 30.3 | 44.3 | 84.5 | 79.3 | ||||||||||||
| Non-GAAP adjustments, after taxes* | 10.9 | 2.4 | 23.7 | 12.4 | ||||||||||||
| Adjusted net income attributable to Stewart* | 41.2 | 46.7 | 108.2 | 91.6 | ||||||||||||
| Pretax margin | 5.1 | % | 7.7 | % | 4.8 | % | 5.3 | % | ||||||||
| Adjusted pretax margin* | 6.7 | % | 8.1 | % | 6.1 | % | 6.2 | % | ||||||||
| Net income per diluted Stewart share | 0.98 | 1.55 | 2.74 | 2.79 | ||||||||||||
| Adjusted net income per diluted Stewart share* | 1.33 | 1.64 | 3.50 | 3.23 | ||||||||||||
*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 September 30, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Operating revenues | 690.5 | 659.9 | 5 | % | ||||||||
| Investment income | 13.7 | 14.8 | (8 | )% | ||||||||
| Net realized and unrealized gains | - | 4.2 | (100 | )% | ||||||||
| Pretax income | 47.5 | 62.0 | (23 | )% | ||||||||
| Non-GAAP adjustments to pretax income* | 4.4 | (1.2 | ) | 473 | % | |||||||
| Adjusted pretax income* | 51.9 | 60.8 | (15 | )% | ||||||||
| Pretax margin | 6.7 | % | 9.1 | % | ||||||||
| Adjusted pretax margin* | 7.4 | % | 9.0 | % | ||||||||
| * 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 $30.6 million (5 percent) in the third quarter 2026 compared to the third quarter 2025, primarily driven by growth in agency title revenues. Agency gross title revenues increased $24.6 million (7 percent), while direct title revenues increased $6.1 million (2 percent) primarily due to higher domestic commercial activity during the third quarter 2026. Net of agency retention, agency title revenues increased $5.0 million (8 percent), consistent with the increase in gross agency revenues.
-2-
Combined employee costs and other operating expenses increased $16.5 million (6 percent) in the third quarter 2026 compared to the prior year quarter, primarily driven by higher title revenues, which resulted in increased salaries and employee benefits and higher title search and third-party service fees. As a percentage of title operating revenues, these expenses were approximately 44 percent, which is comparable to the third quarter 2025. Title loss expense increased $4.0 million (20 percent) compared with the prior year quarter, primarily due to higher title revenues. The title loss ratio, as a percentage of title operating revenues, remained comparable to the prior year quarter.
Investment income decreased $1.1 million (8 percent) in the third quarter 2026, primarily due to lower interest income resulting from reduced eligible escrow balances compared to the prior year quarter. Net realized and unrealized gains in the third quarter 2025 were primarily related to net unrealized gains on fair value changes of equity securities investments. In addition to net realized and unrealized gains, adjusted title pretax income included total non-GAAP expense adjustments of $4.4 million and $3.0 million, in the third quarters 2026 and 2025, respectively, primarily related to acquisition-related intangible asset amortization, third-party acquisition consulting fees and severance expenses (refer to Appendix A for details).
Direct title revenues information is presented below (dollars in millions):
| Quarter Ended September 30, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Non-commercial: | ||||||||||||
| Domestic | 179.8 | 176.8 | 2 | % | ||||||||
| International | 32.3 | 32.5 | (1 | )% | ||||||||
| 212.2 | 209.3 | 1 | % | |||||||||
| Commercial: | ||||||||||||
| Domestic | 86.4 | 79.1 | 9 | % | ||||||||
| International | 7.3 | 11.3 | (35 | )% | ||||||||
| 93.7 | 90.4 | 4 | % | |||||||||
| Total direct title revenues | 305.8 | 299.7 | 2 | % | ||||||||
Domestic commercial revenues increased $7.3 million (9 percent) in the third quarter 2026, primarily due to higher commercial transaction activity. Domestic commercial closed orders improved 18 percent, while the average domestic commercial fee per file decreased 8 percent to $16,300 compared to $17,700 from the prior year quarter, primarily due to reduced data center and energy transaction size and volume. Domestic non-commercial revenues increased $3.0 million (2 percent) in the third quarter 2026. Average domestic residential fee per file in the third quarter 2026 was $3,200, which was comparable to the prior year quarter. Total international revenues decreased $4.2 million (10 percent) in the third quarter 2026, primarily due to a large commercial transaction that closed in 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 September 30, | ||||||||||||
| 2026 | 2025 | % Change | ||||||||||
| Total revenues | 196.5 | 116.6 | 68 | % | ||||||||
| Pretax income | 10.3 | 7.3 | 41 | % | ||||||||
| Non-GAAP adjustments to pretax income* | 10.3 | 5.9 | 75 | % | ||||||||
| Adjusted pretax income* | 20.6 | 13.2 | 56 | % | ||||||||
| Pretax margin | 5.2 | % | 6.2 | % | ||||||||
| Adjusted pretax margin* | 10.5 | % | 11.3 | % | ||||||||
| * 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 revenues increased $79.9 million (68 percent) in the third quarter 2026 compared to the prior year quarter, primarily driven by the recent MCS acquisition and higher revenues from credit information and valuation services. Combined employee costs and other operating expenses increased $72.7 million (71 percent), primarily due to higher costs of services associated with increased revenues and increased employee count from acquisitions. Non-GAAP adjustments to pretax income in both third quarters 2026 and 2025 were primarily related to acquisition-related intangible asset amortization. Additionally, third quarter 2026 adjustments included MCS integration costs.
Corporate Segment
Expenses attributable to corporate operations for the third quarter 2026 increased to $12.2 million compared to $9.5 million in the third quarter 2025, primarily due to higher interest expense on increased debt balances.
Expenses
Consolidated employee costs increased $19.7 million (9 percent) in the third quarter 2026 compared to the prior year quarter, primarily due to higher salaries and employee benefit expenses resulting from a 12 percent higher average employee count. As a percentage of total operating revenues, consolidated employee costs improved to 26.0 percent in the third quarter 2026, compared to 27.2 percent in the prior year quarter, primarily due to higher operating revenues.
Consolidated other operating expenses increased $69.6 million (38 percent) in the third quarter 2026 compared to the prior year quarter, primarily due to increased real estate solutions service expenses and higher title search and third-party services fees associated with higher operating revenues. As a percentage of total operating revenues, consolidated other operating expenses increased to 28.7 percent compared to 23.8 percent in the prior year quarter primarily due to higher costs of services from real estate solutions.
-4-
Other
Net cash provided by operations was $46.6 million in the third quarter 2026, compared to $92.6 million in the third quarter 2025, primarily due to lower net income and the timing of payments related to operating liabilities during the quarter.
Third Quarter Earnings Call
Stewart will hold a conference call to discuss the third quarter 2026 earnings at 8:30 a.m. Eastern Time on Thursday, October 22, 2026. To participate, dial 833-419-0865 (USA) or 785-838-9333 (International) – access code STCQ326. 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 October 22, 2026 until midnight on October 29, 2026 by dialing (800) 839-5241 (USA) or (402) 220-2698 (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 our expectations regarding challenging industry conditions. 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues: | ||||||||||||||||
| Title revenues: | ||||||||||||||||
| Direct title | 305,770 | 299,690 | 882,537 | 822,631 | ||||||||||||
| Agency title | 384,739 | 360,186 | 1,094,781 | 928,989 | ||||||||||||
| Real estate solutions | 196,446 | 116,607 | 555,164 | 326,334 | ||||||||||||
| Total operating revenues | 886,955 | 776,483 | 2,532,482 | 2,077,954 | ||||||||||||
| Investment income | 13,700 | 14,819 | 42,390 | 43,733 | ||||||||||||
| Net realized and unrealized gains | 24 | 5,614 | 6,352 | 9,394 | ||||||||||||
| 900,679 | 796,916 | 2,581,224 | 2,131,081 | |||||||||||||
| Expenses: | ||||||||||||||||
| Amounts retained by agencies | 319,050 | 299,523 | 910,082 | 773,012 | ||||||||||||
| Employee costs | 230,921 | 211,221 | 693,080 | 605,240 | ||||||||||||
| Other operating expenses | 254,729 | 185,165 | 713,297 | 519,605 | ||||||||||||
| Title losses and related claims | 23,514 | 19,546 | 64,022 | 58,701 | ||||||||||||
| Depreciation and amortization | 19,290 | 15,391 | 53,778 | 45,863 | ||||||||||||
| Interest | 7,618 | 4,898 | 22,685 | 14,812 | ||||||||||||
| 855,122 | 735,744 | 2,456,944 | 2,017,233 | |||||||||||||
| Income before taxes and noncontrolling interests | 45,557 | 61,172 | 124,280 | 113,848 | ||||||||||||
| Income tax expense | (11,630 | ) | (12,975 | ) | (29,533 | ) | (24,600 | ) | ||||||||
| Net income | 33,927 | 48,197 | 94,747 | 89,248 | ||||||||||||
| Less net income attributable to noncontrolling interests | 3,606 | 3,938 | 10,245 | 9,990 | ||||||||||||
| Net income attributable to Stewart | 30,321 | 44,259 | 84,502 | 79,258 | ||||||||||||
| Net earnings per diluted share attributable to Stewart | 0.98 | 1.55 | 2.74 | 2.79 | ||||||||||||
| Diluted average shares outstanding (000) | 30,976 | 28,491 | 30,875 | 28,386 | ||||||||||||
| Selected financial information: | ||||||||||||||||
| Net cash provided by operations | 46,610 | 92,645 | 102,619 | 116,146 | ||||||||||||
| Other comprehensive (loss) income | (11,339 | ) | (1,922 | ) | (17,984 | ) | 18,903 | |||||||||
Third Quarter Domestic Order Counts: | ||||||||||||||||||||||||||||||||||
| Opened Orders 2026: | July | August | Sept | Total | Closed Orders 2026: | July | August | Sept | Total | |||||||||||||||||||||||||
| Commercial | 1,830 | 1,583 | 2,135 | 5,548 | Commercial | 1,788 | 1,586 | 1,928 | 5,302 | |||||||||||||||||||||||||
| Purchase | 16,976 | 16,295 | 15,307 | 48,578 | Purchase | 12,324 | 11,112 | 10,893 | 34,329 | |||||||||||||||||||||||||
| Refinancing | 6,347 | 5,995 | 5,879 | 18,221 | Refinancing | 3,913 | 3,702 | 3,824 | 11,439 | |||||||||||||||||||||||||
| Other | 3,764 | 3,534 | 6,362 | 13,660 | Other | 1,985 | 4,603 | 4,106 | 10,694 | |||||||||||||||||||||||||
| Total | 28,917 | 27,407 | 29,683 | 86,007 | Total | 20,010 | 21,003 | 20,751 | 61,764 | |||||||||||||||||||||||||
| Opened Orders 2025: | July | August | Sept | Total | Closed Orders 2025: | July | August | Sept | Total | |||||||||||||||||||||||||
| Commercial | 1,391 | 1,565 | 1,564 | 4,520 | Commercial | 1,443 | 1,514 | 1,521 | 4,478 | |||||||||||||||||||||||||
| Purchase | 18,255 | 16,378 | 16,028 | 50,661 | Purchase | 12,601 | 12,016 | 11,592 | 36,209 | |||||||||||||||||||||||||
| Refinancing | 6,620 | 6,961 | 8,818 | 22,399 | Refinancing | 4,113 | 4,096 | 4,569 | 12,778 | |||||||||||||||||||||||||
| Other | 2,971 | 4,277 | 2,575 | 9,823 | Other | 2,060 | 1,834 | 1,953 | 5,847 | |||||||||||||||||||||||||
| Total | 29,237 | 29,181 | 28,985 | 87,403 | Total | 20,217 | 19,460 | 19,635 | 59,312 | |||||||||||||||||||||||||
STEWART INFORMATION SERVICES CORPORATION
CONDENSED BALANCE SHEETS
(In thousands of dollars)
| September 30, 2026 | December 31, 2025 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | 152,313 | 321,775 | ||||||
| Short-term investments | 53,661 | 47,899 | ||||||
| Investments in debt and equity securities, at fair value | 596,168 | 606,170 | ||||||
| Receivables – premiums from agencies | 38,731 | 38,286 | ||||||
| Receivables – other | 202,639 | 159,583 | ||||||
| Allowance for uncollectible amounts | (8,889 | ) | (7,805 | ) | ||||
| Property and equipment, net | 104,711 | 85,330 | ||||||
| Operating lease assets, net | 117,608 | 106,034 | ||||||
| Title plants | 84,108 | 81,670 | ||||||
| Goodwill | 1,418,014 | 1,271,958 | ||||||
| Intangible assets, net of amortization | 291,377 | 325,135 | ||||||
| Deferred tax assets | 8,139 | 7,656 | ||||||
| Other assets | 238,261 | 209,114 | ||||||
| 3,296,841 | 3,252,805 | |||||||
| Liabilities: | ||||||||
| Notes payable | 654,911 | 646,606 | ||||||
| Accounts payable and accrued liabilities | 236,784 | 255,852 | ||||||
| Operating lease liabilities | 133,420 | 122,153 | ||||||
| Estimated title losses | 521,498 | 524,473 | ||||||
| Deferred tax liabilities | 66,951 | 53,323 | ||||||
| 1,613,564 | 1,602,407 | |||||||
| Stockholders’ equity: | ||||||||
| Common Stock and additional paid-in capital | 535,941 | 520,243 | ||||||
| Retained earnings | 1,180,234 | 1,145,415 | ||||||
| Accumulated other comprehensive loss | (39,892 | ) | (21,908 | ) | ||||
| Treasury stock | (2,666 | ) | (2,666 | ) | ||||
| Stockholders’ equity attributable to Stewart | 1,673,617 | 1,641,084 | ||||||
| Noncontrolling interests | 9,660 | 9,314 | ||||||
| Total stockholders’ equity | 1,683,277 | 1,650,398 | ||||||
| 3,296,841 | 3,252,805 | |||||||
| Number of shares outstanding (000) | 30,526 | 30,223 | ||||||
| Book value per share | 54.82 | 54.30 | ||||||
STEWART INFORMATION SERVICES CORPORATION
SEGMENT INFORMATION
(In thousands of dollars)
| Quarter Ended: | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||
| Title | Real Estate Solutions | Corporate | Total | Title | Real Estate Solutions | Corporate | Total | |||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Operating revenues | 690,509 | 196,446 | - | 886,955 | 659,876 | 116,607 | - | 776,483 | ||||||||||||||||||||||||
| Investment income | 13,664 | 36 | - | 13,700 | 14,787 | 32 | - | 14,819 | ||||||||||||||||||||||||
| Net realized and unrealized gains | 24 | - | - | 24 | 4,236 | - | 1,378 | 5,614 | ||||||||||||||||||||||||
| 704,197 | 196,482 | - | 900,679 | 678,899 | 116,639 | 1,378 | 796,916 | |||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||
| Amounts retained by agencies | 319,050 | - | - | 319,050 | 299,523 | - | - | 299,523 | ||||||||||||||||||||||||
| Employee costs | 203,066 | 25,109 | 2,746 | 230,921 | 191,598 | 16,094 | 3,529 | 211,221 | ||||||||||||||||||||||||
| Other operating expenses | 102,516 | 150,202 | 2,011 | 254,729 | 97,482 | 86,479 | 1,204 | 185,165 | ||||||||||||||||||||||||
| Title losses and related claims | 23,514 | - | - | 23,514 | 19,546 | - | - | 19,546 | ||||||||||||||||||||||||
| Depreciation and amortization | 8,145 | 10,855 | 290 | 19,290 | 8,356 | 6,777 | 258 | 15,391 | ||||||||||||||||||||||||
| Interest | 455 | 3 | 7,160 | 7,618 | 419 | - | 4,479 | 4,898 | ||||||||||||||||||||||||
| 656,746 | 186,169 | 12,207 | 855,122 | 616,924 | 109,350 | 9,470 | 735,744 | |||||||||||||||||||||||||
| Income (loss) before taxes | 47,451 | 10,313 | (12,207 | ) | 45,557 | 61,975 | 7,289 | (8,092 | ) | 61,172 | ||||||||||||||||||||||
| Nine Months Ended: | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||
| Title | Real Estate Solutions | Corporate | Total | Title | Real Estate Solutions | Corporate | Total | |||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Operating revenues | 1,977,318 | 555,164 | - | 2,532,482 | 1,751,620 | 326,334 | - | 2,077,954 | ||||||||||||||||||||||||
| Investment income | 42,280 | 110 | - | 42,390 | 43,643 | 90 | - | 43,733 | ||||||||||||||||||||||||
| Net realized and unrealized gains (losses) | 6,552 | - | (200 | ) | 6,352 | 8,059 | - | 1,335 | 9,394 | |||||||||||||||||||||||
| 2,026,150 | 555,274 | (200 | ) | 2,581,224 | 1,803,322 | 326,424 | 1,335 | 2,131,081 | ||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||
| Amounts retained by agencies | 910,082 | - | - | 910,082 | 773,012 | - | - | 773,012 | ||||||||||||||||||||||||
| Employee costs | 610,760 | 72,852 | 9,468 | 693,080 | 549,634 | 45,266 | 10,340 | 605,240 | ||||||||||||||||||||||||
| Other operating expenses | 294,102 | 414,405 | 4,790 | 713,297 | 272,241 | 243,494 | 3,870 | 519,605 | ||||||||||||||||||||||||
| Title losses and related claims | 64,022 | - | - | 64,022 | 58,701 | - | - | 58,701 | ||||||||||||||||||||||||
| Depreciation and amortization | 24,828 | 28,160 | 790 | 53,778 | 25,413 | 19,574 | 876 | 45,863 | ||||||||||||||||||||||||
| Interest | 1,367 | 11 | 21,307 | 22,685 | 1,265 | 2 | 13,545 | 14,812 | ||||||||||||||||||||||||
| 1,905,161 | 515,428 | 36,355 | 2,456,944 | 1,680,266 | 308,336 | 28,631 | 2,017,233 | |||||||||||||||||||||||||
| Income (loss) before taxes | 120,989 | 39,846 | (36,555 | ) | 124,280 | 123,056 | 18,088 | (27,296 | ) | 113,848 | ||||||||||||||||||||||
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, acquisition-related intangible asset amortization, acquisition and integration expenses (related to third-party acquisition consulting fees and integration of the recent MCS acquisition), and severance and office closure 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 and nine months ended September 30, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | % Chg | 2026 | 2025 | % Chg | |||||||||||||||||||
| Total revenues | 900.7 | 796.9 | 13 | % | 2,581.2 | 2,131.1 | 21 | % | ||||||||||||||||
| Non-GAAP revenue adjustment: | ||||||||||||||||||||||||
| Net realized and unrealized gains | - | (5.6 | ) | (6.4 | ) | (9.4 | ) | |||||||||||||||||
| Adjusted total revenues | 900.7 | 791.3 | 14 | % | 2,574.9 | 2,121.7 | 21 | % | ||||||||||||||||
| Net realized and unrealized gains: | ||||||||||||||||||||||||
| Net unrealized gains on equity securities fair value changes | - | 4.3 | 6.5 | 9.9 | ||||||||||||||||||||
| Net gains (losses) from fixed asset disposals | - | 1.2 | (0.2 | ) | 0.8 | |||||||||||||||||||
| Net (losses) gains on sale of securities investments | - | (0.1 | ) | 0.4 | (0.4 | ) | ||||||||||||||||||
| Net losses from acquisition liability adjustments | - | - | - | (1.0 | ) | |||||||||||||||||||
| Other items, net | - | 0.2 | (0.3 | ) | 0.1 | |||||||||||||||||||
| Total | - | 5.6 | (100 | )% | 6.4 | 9.4 | (32 | )% | ||||||||||||||||
| Pretax income | 45.6 | 61.2 | (26 | )% | 124.3 | 113.8 | 9 | % | ||||||||||||||||
| Non-GAAP pretax adjustments: | ||||||||||||||||||||||||
| Net realized and unrealized gains | - | (5.6 | ) | (6.4 | ) | (9.4 | ) | |||||||||||||||||
| Intangible asset amortization | 11.4 | 8.5 | 30.7 | 25.2 | ||||||||||||||||||||
| Acquisition and integration expenses | 2.4 | - | 6.1 | - | ||||||||||||||||||||
| Severance and office closure expenses | 0.9 | 0.4 | 1.5 | 1.0 | ||||||||||||||||||||
| Adjusted pretax income | 60.3 | 64.5 | (7 | )% | 156.3 | 130.6 | 20 | % | ||||||||||||||||
| GAAP pretax margin | 5.1 | % | 7.7 | % | 4.8 | % | 5.3 | % | ||||||||||||||||
| Adjusted pretax margin | 6.7 | % | 8.1 | % | 6.1 | % | 6.2 | % | ||||||||||||||||
| Net income attributable to Stewart | 30.3 | 44.3 | (32 | )% | 84.5 | 79.3 | 7 | % | ||||||||||||||||
| Non-GAAP pretax adjustments: | ||||||||||||||||||||||||
| Net realized and unrealized gains | - | (5.6 | ) | (6.4 | ) | (9.4 | ) | |||||||||||||||||
| Intangible asset amortization | 11.4 | 8.5 | 30.7 | 25.2 | ||||||||||||||||||||
| Acquisition and integration expenses | 2.4 | - | 6.1 | - | ||||||||||||||||||||
| Severance and office closure expenses | 0.9 | 0.4 | 1.5 | 1.0 | ||||||||||||||||||||
| Net tax effects of non-GAAP adjustments | (3.8 | ) | (0.9 | ) | (8.3 | ) | (4.3 | ) | ||||||||||||||||
| Non-GAAP adjustments, after taxes | 10.9 | 2.4 | 23.7 | 12.4 | ||||||||||||||||||||
| Adjusted net income attributable to Stewart | 41.2 | 46.7 | (12 | )% | 108.2 | 91.6 | 18 | % | ||||||||||||||||
| Diluted average shares outstanding (000) | 30,976 | 28,491 | 30,875 | 28,386 | ||||||||||||||||||||
| GAAP net income per share | 0.98 | 1.55 | 2.74 | 2.79 | ||||||||||||||||||||
| Adjusted net income per share | 1.33 | 1.64 | 3.50 | 3.23 | ||||||||||||||||||||
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | % Chg | 2026 | 2025 | % Chg | |||||||||||||||||||
| Title Segment: | ||||||||||||||||||||||||
| Revenues | 704.2 | 678.9 | 4 | % | 2,026.2 | 1,803.3 | 12 | % | ||||||||||||||||
| Net realized and unrealized gains | - | (4.2 | ) | (6.6 | ) | (8.1 | ) | |||||||||||||||||
| Adjusted revenues | 704.2 | 674.7 | 4 | % | 2,019.6 | 1,795.3 | 12 | % | ||||||||||||||||
| Pretax income | 47.5 | 62.0 | (23 | )% | 121.0 | 123.1 | (2 | )% | ||||||||||||||||
| Non-GAAP pretax adjustments: | ||||||||||||||||||||||||
| Net realized and unrealized gains | - | (4.2 | ) | (6.6 | ) | (8.1 | ) | |||||||||||||||||
| Intangible asset amortization | 2.1 | 2.8 | 7.5 | 8.4 | ||||||||||||||||||||
| Acquisition expenses | 1.5 | - | 1.5 | - | ||||||||||||||||||||
| Severance and office closure expenses | 0.9 | 0.3 | 1.5 | 0.9 | ||||||||||||||||||||
| Adjusted pretax income | 51.9 | 60.8 | (15 | )% | 125.0 | 124.2 | 1 | % | ||||||||||||||||
| GAAP pretax margin | 6.7 | % | 9.1 | % | 6.0 | % | 6.8 | % | ||||||||||||||||
| Adjusted pretax margin | 7.4 | % | 9.0 | % | 6.2 | % | 6.9 | % | ||||||||||||||||
| Real Estate Solutions Segment: | ||||||||||||||||||||||||
| Revenues | 196.5 | 116.6 | 68 | % | 555.3 | 326.4 | 70 | % | ||||||||||||||||
| Pretax income | 10.3 | 7.3 | 41 | % | 39.8 | 18.1 | 120 | % | ||||||||||||||||
| Non-GAAP pretax adjustment: | ||||||||||||||||||||||||
| Intangible asset amortization | 9.3 | 5.8 | 23.2 | 16.8 | ||||||||||||||||||||
| MCS integration expenses | 0.9 | - | 4.6 | - | ||||||||||||||||||||
| Severance expenses | - | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||
| Adjusted pretax income | 20.6 | 13.2 | 56 | % | 67.7 | 35.0 | 93 | % | ||||||||||||||||
| GAAP pretax margin | 5.2 | % | 6.2 | % | 7.2 | % | 5.5 | % | ||||||||||||||||
| Adjusted pretax margin | 10.5 | % | 11.3 | % | 12.2 | % | 10.7 | % | ||||||||||||||||