First American Financial (FAF) Q3 2025 earnings summary

Executive summary

• Q3 2025 total revenue reached $2.0 billion, up 41% year-over-year, with adjusted revenue up 14% and strong operational resilience.

• Net income was $190 million ($1.84 per diluted share), reversing a net loss of $104 million ($1.00 loss per share) in Q3 2024.

• Adjusted EPS for Q3 was $1.70, up 27% year-over-year.

• Commercial and refinance transactions led gains, while residential purchase activity declined due to affordability and high mortgage rates.

• Home warranty segment delivered strong earnings, with pre-tax income up 80% and improved claims ratios.

Financial highlights

• Title Insurance and Services segment revenue rose 42% to $1.8 billion; adjusted revenue up 14%.

• Commercial revenue was $246 million, up 29%; closed orders increased 6%, and average revenue per order rose 22%.

• Net investment gains of $26 million in Q3 2025, compared to losses of $312 million in Q3 2024.

• Investment income was $153 million, up 12% year-over-year.

• Home Warranty segment revenue grew 3% to $115 million, with pretax margin at 14.1%.

Outlook and guidance

• Management expects continued positive cash flow and sufficient liquidity for at least the next twelve months.

• Commercial market momentum expected to continue into Q4, with optimism for further ARPO growth.

• Investment income anticipated to be modestly down sequentially in Q4 due to rate headwinds; 2026 may see further decline if rate cuts persist.

• Positioned for growth as purchase volumes normalize, leveraging operating scale and technology investments.

• Ongoing quarterly dividends at or above current level, following a 2% increase in September 2025.