- Effective fee rate remained stable at 59 basis points.
- Effective tax rate was 25.3%.
- Ending AUM rose to $88.9 billion from $87.6 billion, positively impacted by market appreciation.
- Liquidity improved to $323 million from $295 million in the prior quarter.
- Net inflows into open-end funds were offset by institutional net outflows.
- Operating margin decreased slightly to 33.6% from 34.7%.
- Q2 revenue increased 1.1% to $135 million, driven by higher average AUM and day count.
- Reported earnings of $0.73 per share, slightly down from $0.75 sequentially.
- Total expenses increased 2.9% due to higher compensation, distribution fees, G&A, and talent acquisition costs.
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- Deposits grew by $194 million, outpacing loan growth of $29 million for the quarter.
- Efficiency ratio improved to 56.5%, reflecting strong expense discipline.
- Net charge-offs declined to 18 basis points; non-performing assets improved to 0.63% of total assets.
- Net interest margin increased 10 basis points to 3.57%, with loan yields rising to 5.93%.
- Non-interest income was $70.4 million, representing 21% of total revenue, supported by wealth and consumer businesses.
- Operating earnings of $101.3 million or $0.55 per share for Q3 2025.
- Operating ROA was 1.29% and operating ROTCE was 15.79%, indicating strong profitability.
- Total revenue reached an all-time high driven by net interest income growth and increased fee income.
- Agency business revenue was $717 million, up 16%, reflecting first quarter economic activity due to reporting lag.
- Closed orders increased 2%, with average revenue per order up 30% due to broad-based strength across asset classes and transaction sizes.
- Commercial revenue increased 33%, setting an all-time record in the National Commercial Services division for fee per file in a quarter.
- Debt-to-capital ratio was 32.1%, or 23.1% excluding secured financings payable.
- Effective tax rate was 24.6%, slightly above the normalized rate of 24%.
- First American reported second quarter adjusted earnings per share of $1.53, including $0.12 per share related to executive separation costs.
- GAAP earnings were $1.41 per diluted share; adjusted earnings excluded net investment losses and purchase-related intangible amortization.
- Home Warranty pretax income rose 35%, driven by a lower loss rate and revenue growth through the direct-to-consumer channel.
- Home Warranty revenue was $110 million, up 3%, with a loss ratio improvement from 46% to 41%.
- Information and other revenues rose 10%, primarily from Canadian operations with higher refinance activity.
- Investment income grew 17%, driven by escrow deposits and higher interest income from the investment portfolio.
- Pretax margin in the title segment was 12.6% (13.2% adjusted); Home Warranty pretax margin was 20.2% (20.7% adjusted).
- Provision for policy losses was $39 million or 3.0% of title premiums and escrow fees, unchanged from prior year.
- Residential purchase revenue declined 3% due to lower demand for new homes, while refinance revenue increased 54% but remains only 5% of direct revenue.
- Share repurchases totaled 1 million shares for $61 million in Q2, with an additional 577,000 shares repurchased in July.
- Title segment revenue was $1.7 billion, up 13%, with commercial revenue at $234 million, a 33% increase.
- Adjusted EBITDA was $11.2 million, positive but down year-over-year, impacted by lower gross margin and strategic investments including severance costs.
- Agent count was 82,704, down 5% year-over-year but up 1% sequentially quarter-over-quarter, with increased transactions per agent indicating higher productivity.
- eXp World Holdings generated $1.3 billion in revenue in Q2 2025, with real estate sales volume up 1% year-over-year despite a 2% decrease in sales transactions.
- International segment revenue grew 59% year-over-year, driven by increased productive agents and new market launches, though adjusted EBITDA loss increased due to expansion and events.
- Non-GAAP gross margin was 12%, while GAAP gross margin was 7.1%, down 40 basis points from Q2 2024 due to more agents reaching their cap.
- North America Realty segment remains the largest revenue and profit generator with $1.3 billion revenue and $19.8 million adjusted EBITDA in Q2.
- Other affiliated services contributed modest revenue but had an adjusted EBITDA loss of $2.3 million.
- The company ended Q2 with $94.6 million in cash, after paying $17 million of a $34 million antitrust litigation settlement.
- Adjusted EPS increased 166% year over year to $1.15 per share in Q3 2025.
- Adjusted net revenue was $2.2 billion, up 3% year over year; 9% growth excluding credit card sale.
- CET1 ratio stood at 10.1%, representing $4.5 billion excess capital above regulatory minimum.
- Core ROTCE was 15% headline, approximately 12% excluding AOCI impact.
- Net interest margin (NIM) excluding core OID expanded 10 basis points quarter over quarter to 3.55%.
- Noninterest expense was $1.2 billion, slightly up year over year but down sequentially by $22 million.
- Provision expense declined 36% year over year to $415 million, driven by credit normalization.
- Retail auto net charge-off rate improved 36 basis points year over year to 1.88%, despite a 13 basis point sequential increase due to seasonality.
Dafinchi