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 across business units.

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

• Profitability was supported by lower policyholder benefits, claims, and reduced selling, general, and administrative expenses.

• 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

• Net earnings rose by 9.2% year-over-year to $7.0M, with EPS increasing to $0.28 basic and $0.27 diluted.

• Consolidated revenues declined 3.6% year-over-year to $79.7M, mainly due to lower insurance premiums, mortgage fee income, and net investment income.

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

• Book value per common share rose to $17.17 as of March 31, 2026, up from $16.54 at year-end 2025.

• Cash provided by operations rose to $32.9M from $9.6M year-over-year.

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 sales leadership, infrastructure, and reorganization of the Life Insurance segment are expected to support future premium and revenue growth.

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

• The company is monitoring macroeconomic and geopolitical risks, including interest rate volatility and global conflicts, for potential impacts on volume.