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Sep 30
First American Q3 2025 Earnings Report
First American reported strong third quarter 2025 results, with significant revenue and net income growth.
Key Takeaways
First American Financial Corporation delivered a strong third quarter in 2025, with total revenue increasing by 41% year-over-year to $2.0 billion and net income reaching $190 million. The company's Title Insurance and Services segment and Home Warranty segment both showed robust performance, driven by growth in commercial business and effective cost management, despite challenges in the U.S. housing market.
Total revenue surged by 41% to $1,978.9 million compared to the third quarter of 2024.
Net income was $189.6 million, a significant improvement from a net loss of $104.0 million in the prior year.
Diluted EPS was $1.84, with adjusted diluted EPS at $1.70, demonstrating strong profitability.
The Title Insurance and Services segment achieved a pretax margin of 12.9%, and the Home Warranty segment posted a pretax margin of 14.1%.
First American
First American
First American Revenue by Segment
Revenue by Segment
Title Insurance and Services Revenue
CapyFin.comHome Warranty Revenue
CapyFin.comCorporate (incl. Elims.) Revenue
CapyFin.com Forward Guidance
First American is optimistic about its long-term outlook, anticipating outperformance as the real estate market strengthens, driven by strategic investments in data, technology, and AI.
Positive Outlook
- Industry-leading investments in data, technology, and AI are expected to drive future outperformance.
- Modernizing platforms and integrating AI across operations are projected to lead to significant productivity gains.
- AI integration is expected to reduce risk and unlock new revenue opportunities.
- The company believes it is in the early stages of the next real estate cycle, positioning it for growth.
- Continued strength in the commercial business and growth in investment income are expected to support future performance.
Challenges Ahead
- Continued challenges in the U.S. housing market may persist.
- A decline in the average revenue per direct title order was observed due to a shift in transaction mix.
- Lower interest income from operating cash due to a decline in balances and lower short-term interest rates could impact future investment income.
- Increased personnel costs due to incentive compensation and higher salary/benefit expenses may continue.
- Higher production and software expenses could impact overall operating costs.