Security National Financial (SNFCA) investor relations material

Executive summary

• Net earnings increased over 9% year-over-year to $7.0M for Q1 2026, despite a 3.6% decrease in total revenue to $79.7M, reflecting strong operational efficiencies and cost rationalization.

• All major segments faced revenue or net income headwinds, but profitability improved due to disciplined expense management and strategic focus on higher-margin products.

• All business segments remained profitable except the mortgage segment, which reported a reduced net loss.

• Operational efficiencies drove improved profitability, even as top line growth remains a key objective.

Financial highlights

• Consolidated revenues declined 3.6% year-over-year to $79.7M, with decreases in insurance premiums, mortgage fee income, and net investment income.

• Net earnings rose by 9.2% year-over-year to $7.0M, driven by a 5.6% reduction in total expenses.

• Net investment income fell 3.7% to $18.5M.

• EPS was $0.28 basic and $0.27 diluted, up from $0.26 and $0.25, respectively.

• Equity increased by $15 million (3.7%) compared to year-end, aided by LDTI adoption and changes in reserves.

Outlook and guidance

• Management remains focused on top-line growth as a primary objective, while continuing to prioritize profitability and operational efficiency.

• Ongoing investments in talent, sales infrastructure, and land holdings are expected to support future growth, though near-term headwinds persist.

• Management expects continued focus on niche insurance products, funeral home/cemetery business, and mortgage loan origination.

• Ongoing reorganization and improvement of sales forces in the Life Insurance segment are expected to support future growth.

• The company anticipates sufficient liquidity and capital resources to fund operations and meet obligations.