- Total revenues of $900.7 million (GAAP and adjusted basis) compared to $796.9 million ($791.3 million on an adjusted basis) in the prior year quarter
- Net income of $30.3 million ($41.2 million on an adjusted basis) compared to net income of $44.3 million ($46.7 million on an adjusted basis) in the prior year quarter
- Diluted EPS of $0.98 ($1.33 on an adjusted basis) compared to prior year quarter diluted EPS of $1.55 ($1.64 on an adjusted basis)
HOUSTON, Oct. 21, 2026 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $30.3 million ($0.98 per diluted share) for the third quarter 2026, compared to net income attributable to Stewart of $44.3 million ($1.55 per diluted share) for the third quarter 2025. On an adjusted basis, net income for the third quarter 2026 was $41.2 million ($1.33 per diluted share) compared to net income of $46.7 million ($1.64 per diluted share) in the third quarter 2025. Pretax income before noncontrolling interests for the third quarter 2026 was $45.6 million ($60.3 million on an adjusted basis) compared to $61.2 million ($64.5 million on an adjusted basis) for the third quarter 2025.
Third quarter 2025 results included $5.6 million of pretax net realized and unrealized gains, primarily driven by $4.3 million of net unrealized gains on fair value changes of equity securities investments in the title segment and a $1.2 million realized gain on a sale of real property in the corporate segment.
"This quarter, we faced increased industry headwinds that we anticipate will continue into next year," commented Fred Eppinger, chief executive officer. "We remain focused on growing market share across our businesses while maintaining disciplined operational execution in this challenging market environment."
Selected Financial Information
Summary results of operations are as follows (dollars in millions, except per share amounts, pretax margin and adjusted pretax margin, and amounts may not add as presented due to rounding):
Quarter Ended Nine Months Ended
September 30, September 30,
2026 2025 2026 2025
Total revenues 900.7 796.9 2,581.2 2,131.1
Pretax income before noncontrolling interests 45.6 61.2 124.3 113.8
Income tax expense (11.6) (13.0) (29.5) (24.6)
Net income attributable to noncontrolling interests (3.6) (3.9) (10.2) (10.0)
Net income attributable to Stewart 30.3 44.3 84.5 79.3
Non-GAAP adjustments, after taxes* 10.9 2.4 23.7 12.4
Adjusted net income attributable to Stewart* 41.2 46.7 108.2 91.6
Pretax margin 5.1 % 7.7 % 4.8 % 5.3 %
Adjusted pretax margin* 6.7 % 8.1 % 6.1 % 6.2 %
Net income per diluted Stewart share 0.98 1.55 2.74 2.79
Adjusted net income per diluted Stewart share* 1.33 1.64 3.50 3.23
*Adjusted net income, adjusted pretax margin and adjusted net income per diluted share are non-GAAP measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.
Title Segment
Summary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
Quarter Ended September
30,
2026 2025 % Change
Operating revenues 690.5 659.9 5 %
Investment income 13.7 14.8 (8 %)
Net realized and unrealized gains 4.2 (100 %)
Pretax income 47.5 62.0 (23 %)
Non-GAAP adjustments to pretax income* 4.4 (1.2) 473 %
Adjusted pretax income* 51.9 60.8 (15 %)
Pretax margin 6.7 % 9.1 %
Adjusted pretax margin* 7.4 % 9.0 %
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.
Title segment operating revenues increased $30.6 million (5 percent) in the third quarter 2026 compared to the third quarter 2025, primarily driven by growth in agency title revenues. Agency gross title revenues increased $24.6 million (7 percent), while direct title revenues increased $6.1 million (2 percent) primarily due to higher domestic commercial activity during the third quarter 2026. Net of agency retention, agency title revenues increased $5.0 million (8 percent), consistent with the increase in gross agency revenues.
Combined employee costs and other operating expenses increased $16.5 million (6 percent) in the third quarter 2026 compared to the prior year quarter, primarily driven by higher title revenues, which resulted in increased salaries and employee benefits and higher title search and third-party service fees. As a percentage of title operating revenues, these expenses were approximately 44 percent, which is comparable to the third quarter 2025. Title loss expense increased $4.0 million (20 percent) compared with the prior year quarter, primarily due to higher title revenues. The title loss ratio, as a percentage of title operating revenues, remained comparable to the prior year quarter.
Investment income decreased $1.1 million (8 percent) in the third quarter 2026, primarily due to lower interest income resulting from reduced eligible escrow balances compared to the prior year quarter. Net realized and unrealized gains in the third quarter 2025 were primarily related to net unrealized gains on fair value changes of equity securities investments. In addition to net realized and unrealized gains, adjusted title pretax income included total non-GAAP expense adjustments of $4.4 million and $3.0 million, in the third quarters 2026 and 2025, respectively, primarily related to acquisition-related intangible asset amortization, third-party acquisition consulting fees and severance expenses (refer to Appendix A for details).
Direct title revenues information is presented below (dollars in millions):
Quarter Ended September
30,
2026 2025 % Change
Non-commercial:
Domestic 179.8 176.8 2 %
International 32.3 32.5 (1 %)
212.2 209.3 1 %
Commercial:
Domestic 86.4 79.1 9 %
International 7.3 11.3 (35 %)
93.7 90.4 4 %
Total direct title
revenues 305.8 299.7 2 %
Domestic commercial revenues increased $7.3 million (9 percent) in the third quarter 2026, primarily due to higher commercial transaction activity. Domestic commercial closed orders improved 18 percent, while the average domestic commercial fee per file decreased 8 percent to $16,300 compared to $17,700 from the prior year quarter, primarily due to reduced data center and energy transaction size and volume. Domestic non-commercial revenues increased $3.0 million (2 percent) in the third quarter 2026. Average domestic residential fee per file in the third quarter 2026 was $3,200, which was comparable to the prior year quarter. Total international revenues decreased $4.2 million (10 percent) in the third quarter 2026, primarily due to a large commercial transaction that closed in the prior year quarter.
Real Estate Solutions Segment
Summary results of the real estate solutions (RES) segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):
Quarter Ended September
30,
2026 2025 % Change
Total revenues 196.5 116.6 68 %
Pretax income 10.3 7.3 41 %
Non-GAAP adjustments to pretax income* 10.3 5.9 75 %
Adjusted pretax income* 20.6 13.2 56 %
Pretax margin 5.2 % 6.2 %
Adjusted pretax margin* 10.5 % 11.3 %
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments.
Segment revenues increased $79.9 million (68 percent) in the third quarter 2026 compared to the prior year quarter, primarily driven by the recent MCS acquisition and higher revenues from credit information and valuation services. Combined employee costs and other operating expenses increased $72.7 million (71 percent), primarily due to higher costs of services associated with increased revenues and increased employee count from acquisitions. Non-GAAP adjustments to pretax income in both third quarters 2026 and 2025 were primarily related to acquisition-related intangible asset amortization. Additionally, third quarter 2026 adjustments included MCS integration costs.
Corporate Segment
Expenses attributable to corporate operations for the third quarter 2026 increased to $12.2 million compared to $9.5 million in the third quarter 2025, primarily due to higher interest expense on increased debt balances.
Expenses
Consolidated employee costs increased $19.7 million (9 percent) in the third quarter 2026 compared to the prior year quarter, primarily due to higher salaries and employee benefit expenses resulting from a 12 percent higher average employee count. As a percentage of total operating revenues, consolidated employee costs improved to 26.0 percent in the third quarter 2026, compared to 27.2 percent in the prior year quarter, primarily due to higher operating revenues.
Consolidated other operating expenses increased $69.6 million (38 percent) in the third quarter 2026 compared to the prior year quarter, primarily due to increased real estate solutions service expenses and higher title search and third-party services fees associated with higher operating revenues. As a percentage of total operating revenues, consolidated other operating expenses increased to 28.7 percent compared to 23.8 percent in the prior year quarter primarily due to higher costs of services from real estate solutions.
Other
Net cash provided by operations was $46.6 million in the third quarter 2026, compared to $92.6 million in the third quarter 2025, primarily due to lower net income and the timing of payments related to operating liabilities during the quarter.
Third Quarter Earnings Call
Stewart will hold a conference call to discuss the third quarter 2026 earnings at 8:30 a.m. Eastern Time on Thursday, October 22, 2026. To participate, dial 833-419-0865 (USA) or 785-838-9333 (International) - access code STCQ326. Additionally, participants can listen to the conference call through Stewart's Investor Relations website at https://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on October 22, 2026 until midnight on October 29, 2026 by dialing (800) 839-5241 (USA) or (402) 220-2698 (International).
About Stewart
Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage and real estate industries, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we are dedicated to becoming the premier title services company and we are committed to doing so by partnering with our customers to create mutual success. Learn more at stewart.com.
Cautionary statement regarding forward-looking statements. Certain statements in this press release are "forward-looking statements", including statements related to Stewart's future business plans and expectations, including our plans to achieve market growth and our expectations regarding challenging industry conditions. Forward-looking statements, by their nature, are subject to various risks and uncertainties that could cause our actual results to differ materially. Such risks and uncertainties include the volatility of general economic conditions, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, and adverse changes in the level of real estate activity, as well as a number of other risks and uncertainties discussed in detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this press release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.
ST-IR
STEWART INFORMATION SERVICES CORPORATION
CONDENSED STATEMENTS OF INCOME
(In thousands of dollars, except per share amounts and except where noted)
Quarter Ended Nine Months Ended
September 30, September 30,
2026 2025 2026 2025
Revenues:
Title revenues:
Direct title 305,770 299,690 882,537 822,631
Agency title 384,739 360,186 1,094,781 928,989
Real estate solutions 196,446 116,607 555,164 326,334
Total operating revenues 886,955 776,483 2,532,482 2,077,954
Investment income 13,700 14,819 42,390 43,733
Net realized and unrealized gains 24 5,614 6,352 9,394
900,679 796,916 2,581,224 2,131,081
Expenses:
Amounts retained by agencies 319,050 299,523 910,082 773,012
Employee costs 230,921 211,221 693,080 605,240
Other operating expenses 254,729 185,165 713,297 519,605
Title losses and related claims 23,514 19,546 64,022 58,701
Depreciation and amortization 19,290 15,391 53,778 45,863
Interest 7,618 4,898 22,685 14,812
855,122 735,744 2,456,944 2,017,233
Income before taxes and noncontrolling interests 45,557 61,172 124,280 113,848
Income tax expense (11,630) (12,975) (29,533) (24,600)
Net income 33,927 48,197 94,747 89,248
Less net income attributable to noncontrolling interests 3,606 3,938 10,245 9,990
Net income attributable to Stewart 30,321 44,259 84,502 79,258
Net earnings per diluted share attributable to Stewart 0.98 1.55 2.74 2.79
Diluted average shares outstanding (000) 30,976 28,491 30,875 28,386
Selected financial information:
Net cash provided by operations 46,610 92,645 102,619 116,146
Other comprehensive (loss) income (11,339) (1,922) (17,984) 18,903
Third Quarter Domestic Order Counts:
Opened Orders July August Sept Total Closed Orders July August Sept Total
2026: 2026:
Commercial 1,830 1,583 2,135 5,548 Commercial 1,788 1,586 1,928 5,302
Purchase 16,976 16,295 15,307 48,578 Purchase 12,324 11,112 10,893 34,329
Refinancing 6,347 5,995 5,879 18,221 Refinancing 3,913 3,702 3,824 11,439
Other 3,764 3,534 6,362 13,660 Other 1,985 4,603 4,106 10,694
Total 28,917 27,407 29,683 86,007 Total 20,010 21,003 20,751 61,764
Opened Orders July August Sept Total Closed Orders July August Sept Total
2025: 2025:
Commercial 1,391 1,565 1,564 4,520 Commercial 1,443 1,514 1,521 4,478
Purchase 18,255 16,378 16,028 50,661 Purchase 12,601 12,016 11,592 36,209
Refinancing 6,620 6,961 8,818 22,399 Refinancing 4,113 4,096 4,569 12,778
Other 2,971 4,277 2,575 9,823 Other 2,060 1,834 1,953 5,847
Total 29,237 29,181 28,985 87,403 Total 20,217 19,460 19,635 59,312
STEWART INFORMATION SERVICES CORPORATION
CONDENSED BALANCE SHEETS
(In thousands of dollars)
September 30, December 31,
2026 2025
Assets:
Cash and cash equivalents 152,313 321,775
Short-term investments 53,661 47,899
Investments in debt and equity securities, at fair value 596,168 606,170
Receivables - premiums from agencies 38,731 38,286
Receivables - other 202,639 159,583
Allowance for uncollectible amounts (8,889) (7,805)
Property and equipment, net 104,711 85,330
Operating lease assets, net 117,608 106,034
Title plants 84,108 81,670
Goodwill 1,418,014 1,271,958
Intangible assets, net of amortization 291,377 325,135
Deferred tax assets 8,139 7,656
Other assets 238,261 209,114
3,296,841 3,252,805
Liabilities:
Notes payable 654,911 646,606
Accounts payable and accrued liabilities 236,784 255,852
Operating lease liabilities 133,420 122,153
Estimated title losses 521,498 524,473
Deferred tax liabilities 66,951 53,323
1,613,564 1,602,407
Stockholders' equity:
Common Stock and additional paid-in capital 535,941 520,243
Retained earnings 1,180,234 1,145,415
Accumulated other comprehensive loss (39,892) (21,908)
Treasury stock (2,666) (2,666)
Stockholders' equity attributable to Stewart 1,673,617 1,641,084
Noncontrolling interests 9,660 9,314
Total stockholders' equity 1,683,277 1,650,398
3,296,841 3,252,805
Number of shares outstanding (000) 30,526 30,223
Book value per share 54.82 54.30
STEWART INFORMATION SERVICES CORPORATION
SEGMENT INFORMATION
(In thousands of dollars)
Quarter Ended:
September 30, 2026
September 30, 2025
Title Real Corporate Total Title Real Corporate Total
Estate Estate
Solutions Solutions
Revenues:
Operating revenues 690,509 196,446 886,955 659,876 116,607 776,483
Investment income 13,664 36 13,700 14,787 32 14,819
Net realized and unrealized gains 24 24 4,236 1,378 5,614
704,197 196,482 900,679 678,899 116,639 1,378 796,916
Expenses:
Amounts retained by agencies 319,050 319,050 299,523 299,523
Employee costs 203,066 25,109 2,746 230,921 191,598 16,094 3,529 211,221
Other operating expenses 102,516 150,202 2,011 254,729 97,482 86,479 1,204 185,165
Title losses and related claims 23,514 23,514 19,546 19,546
Depreciation and amortization 8,145 10,855 290 19,290 8,356 6,777 258 15,391
Interest 455 3 7,160 7,618 419 4,479 4,898
656,746 186,169 12,207 855,122 616,924 109,350 9,470 735,744
Income (loss) before taxes 47,451 10,313 (12,207) 45,557 61,975 7,289 (8,092) 61,172
Nine Months Ended:
September 30, 2026
September 30, 2025
Title Real Corporate Total Title Real Corporate Total
Estate Estate
Solutions Solutions
Revenues:
Operating revenues 1,977,318 555,164 2,532,482 1,751,620 326,334 2,077,954
Investment income 42,280 110 42,390 43,643 90 43,733
Net realized and unrealized gains (losses) 6,552 (200) 6,352 8,059 1,335 9,394
2,026,150 555,274 (200) 2,581,224 1,803,322 326,424 1,335 2,131,081
Expenses:
Amounts retained by agencies 910,082 910,082 773,012 773,012
Employee costs 610,760 72,852 9,468 693,080 549,634 45,266 10,340 605,240
Other operating expenses 294,102 414,405 4,790 713,297 272,241 243,494 3,870 519,605
Title losses and related claims 64,022 64,022 58,701 58,701
Depreciation and amortization 24,828 28,160 790 53,778 25,413 19,574 876 45,863
Interest 1,367 11 21,307 22,685 1,265 2 13,545 14,812
1,905,161 515,428 36,355 2,456,944 1,680,266 308,336 28,631 2,017,233
Income (loss) before taxes 120,989 39,846 (36,555) 124,280 123,056 18,088 (27,296) 113,848
Appendix A
Non-GAAP Adjustments
Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, acquisition-related intangible asset amortization, acquisition and integration expenses (related to third-party acquisition consulting fees and integration of the recent MCS acquisition), and severance and office closure expenses. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Adjusted pretax margin is calculated using adjusted pretax income divided by adjusted total revenues. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses.
Below are reconciliations of the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the quarter and nine months ended September 30, 2026 and 2025 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding).
Quarter Ended September
30, Nine Months Ended
September 30,
2026 2025 % Chg 2026 2025 % Chg
Total revenues 900.7 796.9 13 % 2,581.2 2,131.1 21 %
Non-GAAP revenue adjustment:
Net realized and unrealized gains (5.6) (6.4) (9.4)
Adjusted total revenues 900.7 791.3 14 % 2,574.9 2,121.7 21 %
Net realized and unrealized gains:
Net unrealized gains on equity securities fair value changes 4.3 6.5 9.9
Net gains (losses) from fixed asset disposals 1.2 (0.2) 0.8
Net (losses) gains on sale of securities investments (0.1) 0.4 (0.4)
Net losses from acquisition liability adjustments (1.0)
Other items, net 0.2 (0.3) 0.1
Total 5.6 (100 %) 6.4 9.4 (32 %)
Pretax income 45.6 61.2 (26 %) 124.3 113.8 9 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains (5.6) (6.4) (9.4)
Intangible asset amortization 11.4 8.5 30.7 25.2
Acquisition and integration expenses 2.4 6.1
Severance and office closure expenses 0.9 0.4 1.5 1.0
Adjusted pretax income 60.3 64.5 (7 %) 156.3 130.6 20 %
GAAP pretax margin 5.1 % 7.7 % 4.8 % 5.3 %
Adjusted pretax margin 6.7 % 8.1 % 6.1 % 6.2 %
Net income attributable to Stewart 30.3 44.3 (32 %) 84.5 79.3 7 %
Non-GAAP pretax adjustments:
Net realized and unrealized gains (5.6) (6.4) (9.4)
Intangible asset amortization 11.4 8.5 30.7 25.2
Acquisition and integration expenses 2.4 6.1
Severance and office closure expenses 0.9 0.4 1.5 1.0
Net tax effects of non-GAAP adjustments (3.8) (0.9) (8.3) (4.3)
Non-GAAP adjustments, after taxes 10.9 2.4 23.7 12.4
Adjusted net income attributable to Stewart 41.2 46.7 (12 %) 108.2 91.6 18 %
Diluted average shares outstanding (000) 30,976 28,491 30,875 28,386
GAAP net income per share 0.98 1.55 2.74 2.79
Adjusted net income per share 1.33 1.64 3.50 3.23
Quarter Ended September
30, Nine Months Ended
September 30,
2026 2025 % Chg 2026 2025 % Chg
Title Segment:
Revenues 704.2 678.9 4 % 2,026.2 1,803.3 12 %
Net realized and unrealized gains (4.2) (6.6) (8.1)
Adjusted revenues 704.2 674.7 4 % 2,019.6 1,795.3 12 %
Pretax income 47.5 62.0 (23 %) 121.0 123.1 (2 %)
Non-GAAP pretax adjustments:
Net realized and unrealized gains (4.2) (6.6) (8.1)
Intangible asset amortization 2.1 2.8 7.5 8.4
Acquisition expenses 1.5 1.5
Severance and office closure expenses 0.9 0.3 1.5 0.9
Adjusted pretax income 51.9 60.8 (15 %) 125.0 124.2 1 %
GAAP pretax margin 6.7 % 9.1 % 6.0 % 6.8 %
Adjusted pretax margin 7.4 % 9.0 % 6.2 % 6.9 %
Real Estate Solutions Segment:
Revenues 196.5 116.6 68 % 555.3 326.4 70 %
Pretax income 10.3 7.3 41 % 39.8 18.1 120 %
Non-GAAP pretax adjustment:
Intangible asset amortization 9.3 5.8 23.2 16.8
MCS integration expenses 0.9 4.6
Severance expenses 0.1 0.1 0.1
Adjusted pretax income 20.6 13.2 56 % 67.7 35.0 93 %
GAAP pretax margin 5.2 % 6.2 % 7.2 % 5.5 %
Adjusted pretax margin 10.5 % 11.3 % 12.2 % 10.7 %
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SOURCE Stewart Information Services Corporation
