First American Corp【FAF】株式ニュース

First American Financial Reports First Quarter 2026 ResultsApril 22, 2026 4:15 PM
Business Wire
First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the first quarter ended March 31, 2026.

Current Quarter Highlights

Earnings per diluted share of $1.21, or $1.33 per share on an adjusted basis

Net investment losses of $9 million, or 7 cents per diluted share

Purchase-related intangible amortization of $7 million, or 5 cents per diluted share

Total revenue of $1.8 billion, up 16 percent compared with last year, on both a GAAP and adjusted basis

Title Insurance and Services segment investment income of $154 million, up 12 percent compared with last year

Title Insurance and Services segment pretax margin of 9.6 percent, or 10.4 percent on an adjusted basis

Commercial revenues of $271 million, up 48 percent compared with last year

Home Warranty segment pretax margin of 23.5 percent, or 23.8 percent on an adjusted basis

Debt-to-capital ratio of 32.2 percent, or 21.9 percent excluding secured financings payable of $1.1 billion

Repurchased 556,336 shares for a total of $33 million at an average price of $60.21

In the second quarter, through April 22, repurchased 295,872 shares for a total of $18 million at an average price of $61.61

In April, named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year

Selected Financial Information

($ in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Total revenue

$

1,838.0

$

1,582.3

Income before taxes

$

161.8

$

96.6

Net income

$

125.1

$

74.2

Net income per diluted share

$

1.21

$

0.71

Adjusted net income

$

137.3

$

87.9

Adjusted net income per diluted share

$

1.33

$

0.84

Total revenue for the first quarter of 2026 was $1.8 billion, up 16 percent compared with the first quarter of 2025. Net income in the current quarter was $125 million, or $1.21 per diluted share, compared with net income of $74 million, or 71 cents per diluted share, in the first quarter of 2025. Adjusted net income in the current quarter was $137 million, or $1.33 per diluted share, compared with $88 million, or 84 cents per diluted share, in the first quarter of last year. Net investment losses in the current quarter were $9 million, or 7 cents per diluted share, compared with net investment losses of $11 million, or 8 cents per diluted share, in the first quarter of last year. Purchase-related intangible amortization in both the current and prior year quarters was $7 million, or 5 cents per diluted share. The effective tax rate this quarter was 22.9 percent.

"We delivered a strong first quarter, with adjusted earnings per share up 58 percent compared to the prior year," said Mark Seaton, chief executive officer at First American Financial Corporation. "Our results were driven by our commercial business, which achieved record first-quarter revenue. In addition, investment income in our title segment grew 12 percent, despite a decline in the federal funds rate, in part due to continued success in capturing additional deposit sources at our bank. Our adjusted pretax title margin was 10.4 percent for the quarter, a great start to the year considering continued softness in the residential market.

"Beyond our financial results, we are committed to deploying AI solutions across the company to amplify the talents of our team, better serve our customers and strengthen our capabilities. Our combination of unique data assets, deep domain expertise, and innovative technology provides us with a competitive advantage as AI adoption accelerates. We are energized by the opportunities ahead and will continue to invest in our people, processes, and products as we work to extend our leadership position in the industry."

Title Insurance and Services

($ in millions, except average revenue per order)

Three Months Ended

March 31,

2026

2025

Total revenues

$

1,732.3

$

1,484.4

Income before taxes

$

167.0

$

106.8

Pretax margin

9.6

%

7.2

%

Adjusted pretax margin

10.4

%

7.9

%

Title open orders(1)

182,900

168,900

Title closed orders(1)

119,900

110,300

U.S. Commercial

Total revenues

$

271.2

$

183.8

Open orders

27,500

26,600

Closed orders

15,200

14,000

Average revenue per order

$

17,900

$

13,100

(1) U.S. direct title insurance orders only.

Total revenues for the Title Insurance and Services segment on both a GAAP and adjusted basis were $1.7 billion in the first quarter, up 17 percent compared with the same quarter of 2025. Direct premiums and escrow fees increased by 21 percent compared with the first quarter of last year, driven by a 13 percent increase in the average revenue per order closed and a 9 percent increase in the number of direct title orders closed in our domestic operations. The average revenue per direct title order rose to $4,229, primarily due to an increase in the average revenue per order for commercial transactions, partially offset by a shift in the mix from higher premium purchase transactions to lower premium refinance transactions. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, were up 16 percent compared with last year.

Information and other revenues were $269 million during the quarter, up $33 million, or 14 percent, compared with last year. The increase was primarily driven by revenue growth in the company's subservicing business, higher demand for non-insured information products and services, and refinance activity in the company's Canadian operations.

Investment income was $154 million in the first quarter, up $17 million compared with the same quarter last year. The increase was primarily driven by higher interest income from the company's investment portfolio and warehouse lending business. Net investment losses were $8 million in the current quarter compared with $4 million in the same quarter last year.

Personnel costs were $546 million in the first quarter, up $62 million, or 13 percent, compared with the same quarter of 2025. The increase in personnel costs was primarily attributable to incentive compensation expense resulting from higher revenue and profitability, and higher salary expense.

Other operating expenses of $277 million in the current quarter were up $31 million, or 13 percent, compared with the first quarter of 2025, primarily due to higher production expense driven by higher volumes and increased software expense.

The provision for policy losses and other claims was $40 million in the first quarter, or 3.0 percent of title premiums and escrow fees, unchanged from the prior year. The first quarter rate reflects an ultimate loss rate of 3.75 percent for the current policy year and a net decrease of $10 million in the loss reserve estimate for prior policy years.

Depreciation and amortization expense was $53 million in the first quarter, up $2 million, or 4 percent, compared with the same period last year.

Interest expense was $27 million in the current quarter, up $7 million, or 34 percent, compared with last year due to higher interest expense in the warehouse lending business and on deposit balances at the company's bank subsidiary.

The Title Insurance and Services segment posted pretax income of $167 million in the first quarter, compared with pretax income of $107 million in the first quarter of 2025. Pretax margin was 9.6 percent in the current quarter, compared with 7.2 percent last year. Adjusted pretax margin was 10.4 percent in the current period, compared with 7.9 percent last year.

Home Warranty

($ in millions)

Three Months Ended

March 31,

2026

2025

Total revenues

$

109.8

$

107.8

Income before taxes

$

25.8

$

24.7

Pretax margin

23.5

%

22.9

%

Adjusted pretax margin

23.8

%

23.5

%

Total revenues for the Home Warranty segment were $110 million in the first quarter, up 2 percent compared with last year. The segment posted pretax income of $26 million this quarter, up 4 percent compared with last year. The claim loss rate improved to 36 percent in the first quarter, compared with 37 percent last year, due to small reductions in the number and severity of claims. Home Warranty’s pretax margin was 23.5 percent this quarter, compared with 22.9 percent last year. Adjusted pretax margin was 23.8 percent this quarter, compared with 23.5 percent last year.

Corporate

The Corporate segment pretax loss was $31 million in the first quarter, compared with a loss of $35 million last year. Excluding net investment gains and losses, the Corporate pretax loss was $30 million in the current quarter, compared with a $28 million loss in the first quarter of last year.

Teleconference/Webcast

First American’s first quarter 2026 results will be discussed in more detail on Thursday, April 23, 2026, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is +1-877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through May 7, 2026, by dialing +1-201-612-7415 and using the conference ID 13759993. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in conditions of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; severe weather conditions, health crises, terrorist attacks and other catastrophes; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; provision of capital to subsidiaries that could affect the company’s liquidity position; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified employees; the company’s use of a global workforce; inability of the company to fulfill parent company obligations and/or pay dividends; inability to realize anticipated synergies or produce returns that justify investment in acquired businesses; a reduction in the deposits at the company’s federal savings bank subsidiary; claims of infringement or inability to adequately protect the company’s intellectual property; and other factors described in the company’s annual report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted pretax margin, adjusted net income, and adjusted earnings per share. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

First American Financial Corporation

Summary of Consolidated Financial Results and Selected Information

(in millions, except per share amounts and title orders, unaudited)

Three Months Ended

March 31,

2026

2025

Total revenues

$

1,838.0

$

1,582.3

Income before income taxes

$

161.8

$

96.6

Income tax expense

37.0

21.8

Net income

124.8

74.8

Less: Net (loss) income attributable to noncontrolling interests

(0.3

)

0.6

Net income attributable to the Company

$

125.1

$

74.2

Net income per share attributable to stockholders:

Basic

$

1.21

$

0.72

Diluted

$

1.21

$

0.71

Cash dividends declared per share

$

0.55

$

0.54

Weighted average common shares outstanding:

Basic

103.0

103.8

Diluted

103.3

104.2

Selected Title Insurance Segment Information

Title orders opened(1)

182,900

168,900

Title orders closed(1)

119,900

110,300

Paid title claims

$

41.7

$

38.4

(1) U.S. direct title insurance orders only.

First American Financial Corporation

Selected Consolidated Balance Sheet Information

(in millions, unaudited)

March 31,

December 31,

2026

2025

Cash and cash equivalents

$

2,436.2

$

1,387.3

Investments

9,930.2

9,394.3

Goodwill and other intangible assets, net

1,912.9

1,919.3

Total assets

17,936.6

16,228.8

Reserve for claim losses

1,166.3

1,169.6

Notes and contracts payable

1,545.2

1,545.4

Total stockholders’ equity

$

5,489.6

$

5,499.5

First American Financial Corporation

Segment Information

(in millions, unaudited)

Three Months Ended

Title

Home

Corporate

March 31, 2026

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

660.2

$

557.1

$

103.1

$

0.0

Agent premiums

759.4

759.4

—

—

Information and other

275.1

269.2

5.9

0.0

Net investment income (loss)

152.4

154.2

1.3

(3.1

)

Net investment gains (losses)

(9.1

)

(7.6

)

(0.5

)

(1.0

)

1,838.0

1,732.3

109.8

(4.1

)

Expenses

Personnel costs

568.2

546.4

21.0

0.8

Premiums retained by agents

602.2

602.2

—

—

Other operating expenses

310.4

277.4

23.3

9.7

Provision for policy losses and other claims

77.8

39.5

37.2

1.1

Depreciation and amortization

54.6

53.1

1.4

0.1

Premium taxes

21.1

20.0

1.1

0.0

Interest

41.9

26.7

—

15.2

1,676.2

1,565.3

84.0

26.9

Income (loss) before income taxes

$

161.8

$

167.0

$

25.8

$

(31.0

)

Three Months Ended

Title

Home

Corporate

March 31, 2025

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

561.1

$

459.6

$

101.6

$

(0.1

)

Agent premiums

654.6

654.6

—

—

Information and other

242.2

236.0

6.2

(0.0

)

Net investment income (loss)

135.2

137.7

0.8

(3.3

)

Net investment gains (losses)

(10.8

)

(3.5

)

(0.8

)

(6.5

)

1,582.3

1,484.4

107.8

(9.9

)

Expenses

Personnel costs

506.7

484.8

20.5

1.4

Premiums retained by agents

525.5

525.5

—

—

Other operating expenses

278.3

246.4

22.5

9.4

Provision for policy losses and other claims

70.1

33.4

37.7

(1.0

)

Depreciation and amortization

52.5

51.2

1.3

(0.0

)

Premium taxes

17.4

16.3

1.1

(0.0

)

Interest

35.2

20.0

—

15.2

1,485.7

1,377.6

83.1

25.0

Income (loss) before income taxes

$

96.6

$

106.8

$

24.7

$

(34.9

)

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions, except margin and per share amounts, unaudited)

Consolidated

Three Months Ended

March 31,

2026

2025

Total revenues

$

1,838.0

$

1,582.3

Non-GAAP adjustments:

Less: Net investment gains (losses)

(9.1

)

(10.8

)

Adjusted total revenues

$

1,847.1

$

1,593.1

Pretax income

$

161.8

$

96.6

Non-GAAP adjustments:

Less: Net investment gains (losses)

(9.1

)

(10.8

)

Plus: Purchase-related intangible amortization

6.7

6.8

Adjusted pretax income

$

177.6

$

114.2

Pretax margin

8.8

%

6.1

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

(0.5

)%

(0.6

)%

Plus: Purchase-related intangible amortization

0.3

%

0.5

%

Adjusted pretax margin

9.6

%

7.2

%

Net income

$

125.1

$

74.2

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

(7.0

)

(8.4

)

Plus: Purchase-related intangible amortization

5.2

5.3

Adjusted net income

$

137.3

$

87.9

Earnings per diluted share (EPS)

$

1.21

$

0.71

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

$

(0.07

)

$

(0.08

)

Plus: Purchase-related intangible amortization

$

0.05

$

0.05

Adjusted EPS

$

1.33

$

0.84

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions except margin, unaudited)

By Segment

Three Months Ended

March 31,

2026

2025

Title Insurance and Services Segment

Total revenues

$

1,732.3

$

1,484.4

Non-GAAP adjustments:

Less: Net investment gains (losses)

(7.6

)

(3.5

)

Adjusted total revenues

$

1,739.9

$

1,487.9

Pretax income

$

167.0

$

106.8

Non-GAAP adjustments:

Less: Net investment gains (losses)

(7.6

)

(3.5

)

Plus: Purchase-related intangible amortization

6.7

6.8

Adjusted pretax income

$

181.3

$

117.1

Pretax margin

9.6

%

7.2

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

(0.4

)%

(0.2

)%

Plus: Purchase-related intangible amortization

0.4

%

0.5

%

Adjusted pretax margin

10.4

%

7.9

%

Home Warranty Segment

Total revenues

$

109.8

$

107.8

Non-GAAP adjustments:

Less: Net investment gains (losses)

(0.5

)

(0.8

)

Adjusted total revenues

$

110.3

$

108.6

Pretax income

$

25.8

$

24.7

Non-GAAP adjustments:

Less: Net investment gains (losses)

(0.5

)

(0.8

)

Adjusted pretax income

$

26.3

$

25.5

Pretax margin

23.5

%

22.9

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

(0.3

)%

(0.6

)%

Adjusted pretax margin

23.8

%

23.5

%

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation

Expense and Success Ratio Reconciliation

Title Insurance and Services Segment

($ in millions, unaudited)

Three Months Ended

March 31,

2026

2025

Total revenues

$

1,732.3

$

1,484.4

Less: Net investment gains (losses)

(7.6

)

(3.5

)

Net investment income (loss)

154.2

137.7

Premiums retained by agents

602.2

525.5

Net operating revenues

$

983.5

$

824.7

Personnel and other operating expenses

$

823.8

$

731.2

Ratio (% net operating revenues)

83.8

%

88.7

%

Ratio (% total revenues)

47.6

%

49.3

%

Change in net operating revenues

$

158.8

Change in personnel and other operating expenses

92.6

Success Ratio(1)

58

%

(1) Change in personnel and other operating expenses divided by change in net operating revenues.

First American Financial Corporation

Supplemental Direct Title Insurance Order Information(1)

(unaudited)

Q126

Q425

Q325

Q225

Q125

Open Orders per Day

Purchase

1,429

1,100

1,375

1,554

1,491

Refinance

838

768

771

623

566

Refinance as % of residential orders

37

%

41

%

36

%

29

%

28

%

Commercial

451

444

441

437

436

Default and other

280

346

402

307

277

Total open orders per day

2,998

2,657

2,989

2,920

2,769

Closed Orders per Day

Purchase

839

953

1,062

1,110

893

Refinance

616

629

503

494

393

Refinance as % of residential orders

42

%

40

%

32

%

31

%

31

%

Commercial

249

289

238

240

230

Default and other

262

375

413

318

292

Total closed orders per day

1,966

2,246

2,216

2,161

1,807

Average Revenue per Order (ARPO)(2)

Purchase

$

3,740

$

3,704

$

3,689

$

3,693

$

3,643

Refinance

1,130

1,146

1,034

998

1,002

Commercial

17,851

18,605

16,119

15,267

13,123

Default and other

126

366

343

539

394

Total ARPO

$

4,229

$

4,350

$

3,801

$

3,897

$

3,747

Business Days

61

63

64

64

61

(1) U.S. operations only.

(2) Average revenue per order (ARPO) defined as direct premiums and escrow fees divided by closed title orders.

Please note that during the fourth quarter of 2025, the company revised refinance order counts and corresponding total order counts for all periods prior to the third quarter of 2025, which impacted all related year-over-year metrics, due to certain home equity orders that were previously excluded. These revised order counts also impacted ARPO previously reported in earnings releases for the periods prior to the third quarter of 2025; however, there was no change to reported revenues.

Totals may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422259888/en/
Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

714-250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

714-250-5214

Original: First American Financial Reports First Quarter 2026 Results

First American Financial Reports Results for the Fourth Quarter and Full Year of 2025February 11, 2026 4:15 PM
Business Wire
First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the fourth quarter and year ended Dec. 31, 2025.

Current Quarter Highlights

Earnings per diluted share of $2.05, or $1.99 per share on an adjusted basis

Net investment gains of $15 million, or 11 cents per diluted share

Purchase-related intangible amortization of $7 million, or 5 cents per diluted share

Total revenue of $2.0 billion, up 22 percent compared with last year

Adjusted total revenue of $2.0 billion, up 15 percent compared with last year

Title Insurance and Services segment investment income of $157 million, up 1 percent compared with last year

Title Insurance and Services segment pretax margin of 14.9 percent, or 14.0 percent on an adjusted basis

Commercial revenues of $339 million, up 35 percent compared with last year

Home Warranty segment pretax margin of 21.1 percent, or 21.0 percent on an adjusted basis

Debt-to-capital ratio of 30.7 percent, or 21.9 percent excluding secured financings payable of $906 million

Cash flow from operations of $369 million compared with $324 million last year

Full Year Highlights

Earnings per diluted share of $6.00, or $6.05 per share on an adjusted basis

Net investment gains of $21 million, or 15 cents per diluted share

Purchase-related intangible amortization of $27 million, or 20 cents per diluted share

Total revenue of $7.5 billion, up 22 percent compared with last year

Adjusted total revenue of $7.4 billion, up 14 percent compared with last year

Title Insurance and Services segment investment income of $595 million, up 11 percent compared with last year

Title Insurance and Services segment pretax margin of 12.1 percent, or 12.2 percent on an adjusted basis

Commercial revenues of $1.0 billion, up 32 percent compared with last year

Home Warranty pretax margin of 19.5 percent, or 19.6 percent on an adjusted basis

Repurchased 2.1 million shares for a total of $122 million at an average price of $58.54

Raised the common stock dividend by 2 percent to an annual rate of $2.20 per share

Cash flow from operations of $951 million compared with $897 million last year

Named one of the 100 Best Companies to Work For by Great Places to Work® and Fortune Magazine for the tenth consecutive year

Selected Financial Information

($ in millions, except per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2025

2024

2025

2024

Total revenue

$

2,049.7

$

1,685.1

$

7,452.2

$

6,128.1

Income before taxes

$

287.4

$

99.9

$

826.2

$

165.4

Net income

$

211.9

$

72.4

$

621.8

$

131.1

Net income per diluted share

$

2.05

$

0.69

$

6.00

$

1.26

Adjusted net income

$

205.7

$

141.6

$

626.6

$

459.0

Adjusted net income per diluted share

$

1.99

$

1.35

$

6.05

$

4.40

Total revenue for the fourth quarter of 2025 was $2 billion, up 22 percent compared with the fourth quarter of 2024. Net income in the current quarter was $212 million, or $2.05 per diluted share, compared with net income of $72 million, or 69 cents per diluted share, in the fourth quarter of 2024. Net investment gains in the current quarter were $15 million, or 11 cents per diluted share, compared with net investment losses of $86 million, or 61 cents per diluted share, in the fourth quarter of last year. The net investment gains in the current quarter were primarily due to recognized gains in the company's venture portfolio. Net investment losses in the same quarter of last year were due to asset impairments and recognized losses in the company's venture portfolio.

Adjusted net income in the current quarter was $206 million, or $1.99 per diluted share, compared with $142 million, or $1.35 per diluted share, in the fourth quarter of last year. The effective tax rate in the current quarter of 25.7 percent was higher than the company's normalized tax rate of 24 percent, primarily due to higher income from the company's non-insurance businesses which are taxed at a higher rate relative to its insurance businesses which pay state premium tax in lieu of income tax. This resulted in a reduction in earnings of 4 cents per diluted share.

Total revenue for the full year 2025 was $7.5 billion, up 22 percent compared with the prior year. Net income in 2025 was $622 million, or $6.00 per diluted share, compared with net income of $131 million, or $1.26 per diluted share in 2024. Adjusted net income in 2025 was $627 million, or $6.05 per diluted share, compared with $459 million, or $4.40 per diluted share in 2024. The effective tax rate for the full year 2025 was 24.3 percent.

"We delivered a strong quarter, with adjusted revenue up 15 percent and adjusted earnings per share up 47 percent, reflecting solid execution across the company,” said Mark Seaton, chief executive officer at First American Financial Corporation. "Our commercial performance was particularly strong, with revenue up 35 percent, driven by continued momentum across most asset classes. These results reflect both market tailwinds and our continued focus on operating leverage."

"Looking ahead to 2026, we expect an improving real estate market to support a record year in our commercial business, moderate growth in purchase, and a meaningful pickup in refinance activity. At the same time, execution of our strategic technology initiatives - particularly those leveraging AI - are progressing as planned. We remain optimistic that the combination of our proprietary data and technology capabilities are building durable competitive differentiation that will drive long-term value creation."

Title Insurance and Services

($ in millions, except average revenue per order)

Three Months Ended

December 31,

2025

2024

Total revenues

$

1,934.5

$

1,605.3

Income before taxes

$

287.7

$

126.4

Pretax margin

14.9

%

7.9

%

Adjusted pretax margin

14.0

%

11.8

%

Title open orders(1)

167,400

147,100

Title closed orders(1)

141,500

123,900

U.S. Commercial

Total revenues

$

339.0

$

252.0

Open orders

27,900

25,000

Closed orders

18,200

16,500

Average revenue per order

$

18,600

$

15,200

(1) U.S. direct title insurance orders only.

Total revenues for the Title Insurance and Services segment during the fourth quarter were $1.9 billion, up 21 percent compared with the same quarter of 2024. Direct premiums and escrow fees were 19 percent higher compared with the fourth quarter of 2024, driven by a 14 percent increase in the number of direct title orders closed in our domestic operations and a 4 percent increase in the average revenue per order closed. The average revenue per direct title order rose to $4,350, primarily due to a 22 percent increase in the average revenue per order for commercial transactions, partly offset by a shift in the closed order mix to lower-premium refinance and default transactions. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, grew by 13 percent in the current quarter compared with last year.

Information and other revenues were $274 million during the quarter, up $36 million, or 15 percent, compared with last year. This increase was primarily driven by refinance activity in the company's Canadian operations, revenue growth in the company's subservicing business, and higher demand for non-insured information products and services.

Investment income was $157 million in the fourth quarter, up $2 million, or 1 percent, compared with the same quarter last year. This increase was primarily driven by higher interest income from the company's investment portfolio due to an increase in average balances, mostly offset by lower interest income from operating cash due to a decline in average balances as well as lower short-term interest rates. Net investment gains totaled $28 million in the current quarter, compared with net investment losses of $62 million in the fourth quarter of 2024. The net investment gains in the current quarter were primarily due to recognized gains in the venture portfolio, while net investment losses last year were primarily due to asset impairments.

Personnel costs were $581 million in the fourth quarter, up $57 million, or 11 percent, compared with the same quarter of 2024. The increase in personnel costs was primarily due to higher incentive compensation expense as a result of improved financial performance.

Other operating expenses were $282 million in the fourth quarter, an increase of $19 million, or 7 percent, compared with the fourth quarter of 2024. The increase was primarily attributable to higher production expense across several business units due to higher transaction volumes and higher software expense. These higher costs were partly offset by a $13 million reserve release in Canada.

The provision for policy losses and other claims was $44 million in the fourth quarter, or 3.0 percent of title premiums and escrow fees, unchanged from the prior year. The fourth quarter rate reflects an ultimate loss rate of 3.75 percent for the current policy year and a net decrease of $11 million in the loss reserve estimate for prior policy years.

Depreciation and amortization expense was $55 million in the fourth quarter, up $4 million, or 8 percent from last year, due to higher amortization of internally developed software.

Interest expense was $29 million in the current quarter, up $2 million, or 8 percent from last year, primarily due to higher interest expense related to deposits at the company's bank subsidiary.

Pretax income for the Title Insurance and Services segment was $288 million in the fourth quarter, compared with $126 million in the fourth quarter of 2024. Pretax margin was 14.9 percent in the current quarter, compared with 7.9 percent last year. Adjusted pretax margin was 14.0 percent in the current period, compared with 11.8 percent last year.

Home Warranty

($ in millions)

Three Months Ended

December 31,

2025

2024

Total revenues

$

110.3

$

102.8

Income before taxes

$

23.3

$

18.6

Pretax margin

21.1

%

18.1

%

Adjusted pretax margin

21.0

%

18.2

%

Total revenues for the Home Warranty segment were $110 million in the fourth quarter, up $8 million compared with the fourth quarter of 2024. The segment posted pretax income of $23 million this quarter, compared with $19 million last year. The claim loss rate was 40.1 percent in the fourth quarter, compared with 43.7 percent last year, due to fewer claims, partly offset by higher claim severity. Home Warranty’s pretax margin was 21.1 percent this quarter, compared with 18.1 percent last year. Adjusted pretax margin was 21.0 percent this quarter, compared with 18.2 percent last year.

Corporate

The Corporate segment recorded a net pretax loss of $24 million this quarter compared with a loss of $45 million in the prior year. Excluding net investment losses, adjusted pretax loss was $10 million in the current quarter compared with $22 million last year. The current quarter benefited from a $15 million insurance recovery.

Teleconference/Webcast

First American’s fourth quarter 2025 results will be discussed in more detail on Thursday, Feb. 12, 2026, at 11 a.m. EST, via teleconference. The toll-free dial-in number is +1-877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through Feb. 27, 2026, by dialing +1-201-612-7415 and using the conference ID 13758180. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2025, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the tenth consecutive year. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in conditions of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; severe weather conditions, health crises, terrorist attacks, and other catastrophes; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; provision of capital to subsidiaries that could affect the company's liquidity position; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified employees; the company’s use of a global workforce; inability of the company to fulfill parent company obligations and/or pay dividends; inability to realize anticipated synergies or produce returns that justify investment in acquired businesses; a reduction in the deposits at the company’s federal savings bank subsidiary; claims of infringement or inability to adequately protect the company’s intellectual property; and other factors described in the company’s quarterly report on Form 10-Q for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted pretax margin, adjusted net income, and adjusted earnings per share. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

First American Financial Corporation

Summary of Consolidated Financial Results and Selected Information

(in millions, except per share amounts and title orders, unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2025

2024

2025

2024

Total revenues

$

2,049.7

$

1,685.1

$

7,452.2

$

6,128.1

Income before income taxes

$

287.4

$

99.9

$

826.2

$

165.4

Income tax expense

74.0

27.0

201.0

32.8

Net income

213.4

72.9

625.2

132.6

Less: Net income attributable to noncontrolling interests

1.5

0.5

3.4

1.5

Net income attributable to the Company

$

211.9

$

72.4

$

621.8

$

131.1

Net income per share attributable to stockholders:

Basic

$

2.06

$

0.70

$

6.02

$

1.26

Diluted

$

2.05

$

0.69

$

6.00

$

1.26

Cash dividends declared per share

$

0.55

$

0.54

$

2.18

$

2.14

Weighted average common shares outstanding:

Basic

102.8

103.7

103.3

103.9

Diluted

103.2

104.2

103.7

104.3

Selected Title Insurance Segment Information

Title orders opened(1)

167,400

147,100

714,500

646,400

Title orders closed(1)

141,500

123,900

531,900

480,700

Paid title claims

$

52.5

$

53.2

$

181.1

$

204.0

(1) U.S. direct title insurance orders only.

First American Financial Corporation

Selected Consolidated Balance Sheet Information

(in millions, unaudited)

December 31,

December 31,

2025

2024

Cash and cash equivalents

$

1,387.3

$

1,718.1

Investments

9,394.3

8,042.6

Goodwill and other intangible assets, net

1,919.3

1,929.5

Total assets

16,228.8

14,908.6

Reserve for claim losses

1,169.6

1,193.4

Notes and contracts payable

1,545.4

1,546.6

Total stockholders’ equity

$

5,499.5

$

4,908.5

First American Financial Corporation

Segment Information

(in millions, unaudited)

Three Months Ended

Title

Home

Corporate

December 31, 2025

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

789.4

$

686.0

$

103.3

$

0.1

Agent premiums

789.5

789.5

—

—

Information and other

293.9

274.1

5.2

14.6

Net investment income

161.8

156.9

1.6

3.3

Net investment gains (losses)

15.1

28.0

0.2

(13.1

)

2,049.7

1,934.5

110.3

4.9

Expenses

Personnel costs

607.3

580.7

21.5

5.1

Premiums retained by agents

634.9

634.9

—

—

Other operating expenses

313.7

281.9

21.6

10.2

Provision for policy losses and other claims

83.8

44.3

41.4

(1.9

)

Depreciation and amortization

55.9

54.5

1.4

(0.0

)

Premium taxes

22.8

21.8

1.1

(0.1

)

Interest

43.9

28.7

—

15.2

1,762.3

1,646.8

87.0

28.5

Income (loss) before income taxes

$

287.4

$

287.7

$

23.3

$

(23.6

)

Three Months Ended

Title

Home

Corporate

December 31, 2024

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

672.8

$

575.9

$

97.0

$

(0.1

)

Agent premiums

697.9

697.9

—

—

Information and other

243.7

238.4

5.1

0.2

Net investment income

156.6

155.4

0.8

0.4

Net investment (losses)

(85.9

)

(62.3

)

(0.1

)

(23.5

)

1,685.1

1,605.3

102.8

(23.0

)

Expenses

Personnel costs

541.9

523.4

20.0

(1.5

)

Premiums retained by agents

557.9

557.9

—

—

Other operating expenses

290.8

263.4

19.3

8.1

Provision for policy losses and other claims

79.2

38.2

42.4

(1.4

)

Depreciation and amortization

52.0

50.6

1.4

0.0

Premium taxes

19.7

18.7

1.1

(0.1

)

Interest

43.7

26.7

—

17.0

1,585.2

1,478.9

84.2

22.1

Income (loss) before income taxes

$

99.9

$

126.4

$

18.6

$

(45.1

)

First American Financial Corporation

Segment Information

(in millions, unaudited)

Year Ended

Title

Home

Corporate

December 31, 2025

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

2,762.7

$

2,347.5

$

415.2

$

(0.0

)

Agent premiums

2,959.4

2,959.4

—

—

Information and other

1,088.2

1,050.5

23.0

14.7

Net investment income

621.0

594.8

5.0

21.2

Net investment gains (losses)

20.9

25.5

(0.3

)

(4.3

)

7,452.2

6,977.7

442.9

31.6

Expenses

Personnel costs

2,260.0

2,131.4

84.1

44.5

Premiums retained by agents

2,374.0

2,374.0

—

—

Other operating expenses

1,210.6

1,081.7

90.4

38.5

Provision for policy losses and other claims

326.6

159.2

171.9

(4.5

)

Depreciation and amortization

216.2

210.8

5.3

0.1

Premium taxes

81.6

77.0

4.7

(0.1

)

Interest

157.0

96.2

—

60.8

6,626.0

6,130.3

356.4

139.3

Income (loss) before income taxes

$

826.2

$

847.4

$

86.5

$

(107.7

)

Year Ended

Title

Home

Corporate

December 31, 2024

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

$

2,446.0

$

2,048.3

$

397.8

$

(0.1

)

Agent premiums

2,561.9

2,561.9

—

—

Information and other

960.8

938.2

22.5

0.1

Net investment income

561.0

534.3

4.0

22.7

Net investment (losses) gains

(401.6

)

(345.4

)

1.4

(57.6

)

6,128.1

5,737.3

425.7

(34.9

)

Expenses

Personnel costs

2,059.4

1,953.2

81.2

25.0

Premiums retained by agents

2,044.6

2,044.6

—

—

Other operating expenses

1,113.4

992.5

86.0

34.9

Provision for policy losses and other claims

320.0

138.3

184.4

(2.7

)

Depreciation and amortization

207.4

202.2

5.1

0.1

Premium taxes

68.3

63.7

4.6

—

Interest

149.6

96.6

—

53.0

5,962.7

5,491.1

361.3

110.3

Income (loss) before income taxes

$

165.4

$

246.2

$

64.4

$

(145.2

)

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions, except margin and per share amounts, unaudited)

Consolidated

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2025

2024

2025

2024

Total revenues

$

2,049.7

$

1,685.1

$

7,452.2

$

6,128.1

Non-GAAP adjustments:

Less: Net investment gains (losses)

15.1

(85.9

)

20.9

(401.6

)

Adjusted total revenues

$

2,034.6

$

1,771.0

$

7,431.3

$

6,529.7

Pretax income

$

287.4

$

99.9

$

826.2

$

165.4

Non-GAAP adjustments:

Less: Net investment gains (losses)

15.1

(85.9

)

20.9

(401.6

)

Plus: Purchase-related intangible amortization

6.7

7.3

27.2

32.7

Adjusted pretax income

$

279.0

$

193.1

$

832.5

$

599.7

Pretax margin

14.0

%

5.9

%

11.1

%

2.7

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

0.6

%

(4.6

)%

0.3

%

(6.0

)%

Plus: Purchase-related intangible amortization

0.3

%

0.4

%

0.4

%

0.5

%

Adjusted pretax margin

13.7

%

10.9

%

11.2

%

9.2

%

Net income

$

211.9

$

72.4

$

621.8

$

131.1

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

11.2

(63.8

)

15.8

(303.2

)

Plus: Purchase-related intangible amortization

5.0

5.4

20.6

24.7

Adjusted net income

$

205.7

$

141.6

$

626.6

$

459.0

Earnings per diluted share (EPS)

$

2.05

$

0.69

$

6.00

$

1.26

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

$

0.11

$

(0.61

)

$

0.15

$

(2.91

)

Plus: Purchase-related intangible amortization

$

0.05

$

0.05

$

0.20

$

0.24

Adjusted EPS

$

1.99

$

1.35

$

6.05

$

4.40

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions except margin, unaudited)

By Segment

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2025

2024

2025

2024

Title Insurance and Services Segment

Total revenues

$

1,934.5

$

1,605.3

$

6,977.7

$

5,737.3

Non-GAAP adjustments:

Less: Net investment gains (losses)

28.0

(62.3

)

25.5

(345.4

)

Adjusted total revenues

$

1,906.5

$

1,667.6

$

6,952.2

$

6,082.7

Pretax income

$

287.7

$

126.4

$

847.4

$

246.2

Non-GAAP adjustments:

Less: Net investment gains (losses)

28.0

(62.3

)

25.5

(345.4

)

Plus: Purchase-related intangible amortization

6.7

7.3

27.1

32.6

Adjusted pretax income

$

266.4

$

196.0

$

849.0

$

624.2

Pretax margin

14.9

%

7.9

%

12.1

%

4.3

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

1.3

%

(3.4

)%

0.3

%

(5.4

)%

Plus: Purchase-related intangible amortization

0.4

%

0.5

%

0.4

%

0.6

%

Adjusted pretax margin

14.0

%

11.8

%

12.2

%

10.3

%

Home Warranty Segment

Total revenues

$

110.3

$

102.8

$

442.9

$

425.7

Non-GAAP adjustments:

Less: Net investment gains (losses)

0.2

(0.1

)

(0.3

)

1.4

Adjusted total revenues

$

110.1

$

102.9

$

443.2

$

424.3

Pretax income

$

23.3

$

18.6

$

86.5

$

64.4

Non-GAAP adjustments:

Less: Net investment gains (losses)

0.2

(0.1

)

(0.3

)

1.4

Adjusted pretax income

$

23.1

$

18.7

$

86.8

$

63.0

Pretax margin

21.1

%

18.1

%

19.5

%

15.1

%

Non-GAAP adjustments:

Less: Net investment gains (losses)

0.1

%

(0.1

)%

(0.1

)%

0.3

%

Adjusted pretax margin

21.0

%

18.2

%

19.6

%

14.8

%

Purchase-related intangible amortization includes amortization of noncompete agreements, customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

First American Financial Corporation

Expense and Success Ratio Reconciliation

Title Insurance and Services Segment

($ in millions, unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2025

2024

2025

2024

Total revenues

$

1,934.5

$

1,605.3

$

6,977.7

$

5,737.3

Less: Net investment gains (losses)

28.0

(62.3

)

25.5

(345.4

)

Net investment income

156.9

155.4

594.8

534.3

Premiums retained by agents

634.9

557.9

2,374.0

2,044.6

Net operating revenues

$

1,114.7

$

954.3

$

3,983.4

$

3,503.8

Personnel and other operating expenses

$

862.6

$

786.8

$

3,213.1

$

2,945.7

Ratio (% net operating revenues)

77.4

%

82.4

%

80.7

%

84.1

%

Ratio (% total revenues)

44.6

%

49.0

%

46.0

%

51.3

%

Change in net operating revenues

$

160.4

$

479.6

Change in personnel and other operating expenses

75.8

267.4

Success Ratio(1)

47

%

56

%

(1) Change in personnel and other operating expenses divided by change in net operating revenues.

First American Financial Corporation

Supplemental Direct Title Insurance Order Information(1)

(unaudited)

Q425

Q325

Q225

Q125

Q424

Open Orders per Day

Purchase

1,100

1,375

1,554

1,491

1,178

Refinance

768

771

623

566

517

Refinance as % of residential orders

41

%

36

%

29

%

28

%

31

%

Commercial

444

441

437

436

397

Default and other

346

402

307

277

244

Total open orders per day

2,657

2,989

2,920

2,769

2,336

Closed Orders per Day

Purchase

953

1,062

1,110

893

1,030

Refinance

629

503

494

393

436

Refinance as % of residential orders

40

%

32

%

31

%

31

%

30

%

Commercial

289

238

240

230

263

Default and other

375

413

318

292

237

Total closed orders per day

2,246

2,216

2,161

1,807

1,966

Average Revenue per Order (ARPO)(2)

Purchase

$

3,704

$

3,689

$

3,693

$

3,643

$

3,578

Refinance

1,146

1,034

998

1,002

1,123

Commercial

18,605

16,119

15,267

13,123

15,239

Default and other

366

343

539

394

344

Total ARPO

$

4,350

$

3,801

$

3,897

$

3,747

$

4,201

Business Days

63

64

64

61

63

(1) U.S. operations only.

(2) Average revenue per order (ARPO) defined as direct premiums and escrow fees divided by closed title orders.

Please note that during the fourth quarter of 2025, the company revised refinance order counts and corresponding total order counts for all periods prior to the third quarter of 2025, which impacted all related year-over-year metrics, due to certain home equity orders that were previously excluded. These revised order counts also impacted ARPO previously reported in earnings releases for the periods prior to the third quarter of 2025; however, there was no change to reported revenues.

Totals may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211425396/en/
Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

714-250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

714-250-5214

Original: First American Financial Reports Results for the Fourth Quarter and Full Year of 2025