Executive Summary

Q3 2025 showed modest top-line growth but stronger underlying profitability: total revenue was $62.8M (+1.8% YoY), adjusted total revenue $64.1M (+5% YoY), and adjusted diluted EPS was $0.07 vs $0.04 a year ago; GAAP diluted EPS was $0.04 vs $0.05 YoY .
Versus S&P Global consensus, CIA delivered an adjusted EPS beat ($0.07 vs $0.06*) but a slight revenue miss ($62.8M vs $63.5M*); only one estimate in each case, limiting breadth of coverage. The company reiterated a constructive 2026 view (revenue and profit growth) which can support sentiment despite mixed prints .
Sequentially, revenue declined from Q2 ($65.1M to $62.8M) as Q3 included unrealized investment losses and elevated matured endowment payments; adjusted profits improved YoY on higher investment income (one-time dividend) and lower commission burden due to reinsurance sharing .
Strategic execution continues: producing agents +19% YoY and total direct insurance in force reached a record $5.38B, underpinning growth runway; management expects full-year 2026 revenue and profit growth, highlighting improving operating leverage .

What Went Well and What Went Wrong

What Went Well
- “For twelve consecutive quarters, Citizens has delivered year-over-year growth in first year premiums,” aided by expanding products/distribution and a 19% YoY increase in producing agents .
- Highest-ever total direct insurance in force of $5.38B, up 3.7% YoY, supporting durable renewal revenue and long-term value creation .
- Adjusted total revenue rose 5% YoY to $64.1M, driven by +$1.7M in net investment income, +$1.0M in other income (supplemental contracts), and +$0.4M in premiums; adjusted diluted EPS rose to $0.07 from $0.04 YoY .
What Went Wrong
- GAAP diluted EPS declined YoY to $0.04 (from $0.05), with higher tax expense and unrealized investment losses (notably related to a BlackRock ESG holding) weighing on reported results .
- Elevated matured endowment payments pressured insurance benefits in Q3; management noted 2025 is the high-water mark for these maturities, with relief expected beginning in 2026 .
- Higher general expenses tied to business investments and equity compensation (reflecting share price appreciation and more participants) tempered operating leverage in the quarter .

Financial Results

Quarterly actuals (oldest → newest):

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($M)	$55.7	$65.1	$62.8
Adjusted Total Revenues ($M)	$58.5	$62.7	$64.1
Total Benefits & Expenses ($M)	$57.4	$58.2	$58.3
Income (Loss) Before Federal Income Tax ($M)	$(1.8)	$6.9	$4.5
Net Income ($M)	$(1.6)	$6.5	$2.4
Diluted EPS (GAAP)	$(0.03)	$0.13	$0.04
Adjusted Diluted EPS	$0.02	$0.08	$0.07

Q3 2025 vs Q3 2024:

Metric	Q3 2024	Q3 2025
Total Revenues ($M)	$61.7	$62.8
Adjusted Total Revenues ($M)	$60.9	$64.1
Net Income ($M)	$2.8	$2.4
Diluted EPS (GAAP)	$0.05	$0.04
Adjusted Net Income ($M)	$2.0	$3.4
Adjusted Diluted EPS	$0.04	$0.07

Q3 2025 vs S&P Global consensus:

Metric	Consensus	Actual
Revenue ($M)	$63.5*	$62.8
Primary EPS	$0.06*	$0.07 (adjusted/“Primary EPS”)

Consensus count: 1 estimate for revenue and EPS in Q3 2025*.
Asterisked values retrieved from S&P Global.

Segment breakdown (Q3 YoY):

Segment	Q3 2024 Total Revenues ($M)	Q3 2025 Total Revenues ($M)	Q3 2024 PBT ($M)	Q3 2025 PBT ($M)
Life Insurance	$47.3	$47.6	$4.4	$3.5
Home Service Insurance	$14.1	$14.9	$(0.1)	$3.0

Key KPIs:

KPI	Q3 2024	Q3 2025
Total Direct Insurance In Force ($B)	$5.19	$5.38
Net Investment Income ($M)	$17.4	$19.1
Avg. Pre-tax Portfolio Yield	4.59%	4.62%
Cash & Cash Equivalents ($M)	—	$23.1
Book Value per Share (Diluted)	$4.16	$4.49
Book Value per Share ex-AOCI (Diluted)	$6.06	$6.26

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2026	None disclosed	“Expect revenue growth for full year 2026”	Introduced (qualitative)
Profit	FY 2026	None disclosed	“Expect profit growth for full year 2026”	Introduced (qualitative)
Operating Leverage	FY 2026	—	“Showcasing improving operating leverage”	New qualitative color
Dividends/Capital	—	—	No updates disclosed in Q3 release	—

Note: No quantified guidance ranges were provided; management shared qualitative outlook for FY26.

Earnings Call Themes & Trends

No earnings call transcript was available in the document set for Q3 2025; themes below reflect management’s published commentary across Q1–Q3 press releases.

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
Sales force expansion	Agents +50% YoY; 10th consecutive quarter of YoY first-year premium growth	Agents +53% YoY; 11th consecutive quarter of YoY growth	Agents +19% YoY; 12th consecutive quarter of YoY growth	Strong, sustaining
Product & distribution	New products and channels driving higher first-year and renewals	Continued product and channel expansion	Broadening offerings and channels underpin record insurance in force	Improving
Investment portfolio	Net investment income stable; GRP III unrealized loss drove Q1 investment losses	Investment gains up $2.7M YoY; yield 4.50%	One-time $1.7M dividend; initiating private placements/structured notes; yield 4.62%	Improving income, strategy shift
Matured endowments	Higher benefits from maturing endowments pressured results	Higher matured endowments in intl business	Q3 maturities at 2025 peak; lower from 2026	Headwind easing in 2026
Expense/Comp	Higher other general expenses as business scales	Lower YoY due to prior-year legal accrual; higher equity comp	Higher general expenses, including equity comp	Mixed (scale vs comp)
2026 outlook	Positive long-term positioning; growth focus	Expect revenue and profit growth in 2026	Expect revenue and profit growth; improving operating leverage	Firming

Management Commentary

“We are delivering tangible results on our strategic roadmap to accelerate growth... highest-ever total direct insurance in force of $5.38 billion. Our producing agents have increased by 19% since Q3 2024…” — Jon Stenberg, President & CEO .
“Looking ahead to 2026, we expect revenue growth and profit growth for the full year 2026, showcasing improving operating leverage…” .
On revenue drivers: adjusted total revenue growth was driven by higher net investment income (+$1.7M), higher other income (+$1.0M, supplemental contracts), and higher premium revenue (+$0.4M) .
On investment strategy: “begun investing in investment-grade private placement fixed income and structured notes where we expect higher returns,” contributing to higher NII and a 4.62% average portfolio yield .

Q&A Highlights

No public earnings call transcript was available for Q3 2025 in the document set; no Q&A highlights to report [ListDocuments confirmation of no earnings-call-transcript].

Estimates Context

Q3 2025 vs S&P Global consensus: adjusted/Primary EPS $0.07 vs $0.06* (beat); revenue $62.8M vs $63.5M* (miss). Coverage is thin (1 estimate for each), so estimate dispersion is limited. Asterisked values retrieved from S&P Global.
Revision considerations: management’s reiterated view of FY26 revenue and profit growth, combined with record insurance in force and continued agent expansion, supports a constructive outer-year bias; near-term modeling should incorporate elevated matured endowment seasonality (peaking in 2025) and variability in investment-related gains/losses .

Key Takeaways for Investors

Underlying growth intact: record insurance in force and sustained first-year premium momentum support durable revenue and adjusted earnings trajectory into 2026 .
Mixed headline: GAAP EPS was softer on taxes and unrealized investment losses, but adjusted EPS expanded materially YoY; monitor investment marks and tax rate dynamics .
Segment mix: Home Service profitability inflected (PBT +$3.1M YoY) while Life PBT moderated on higher claims/maturities; portfolio balance is improving .
Investment pivot: entry into private placements/structured notes and a one-time dividend boosted NII; sustaining the 4.6% yield would aid earnings carry .
2026 setup: maturities expected to decline, improving benefit ratio tailwinds; management explicitly guides to revenue and profit growth with better operating leverage .
Near-term trading catalyst: credible FY26 growth outlook and an adjusted EPS beat vs a thin consensus could support shares, while revenue softness vs consensus and investment mark volatility are watchpoints .

Appendix: Additional Disclosures

Balance sheet: total assets $1.74B; cash and cash equivalents $23.1M; no debt (as of 9/30/25) .
Governance: appointment of independent director Michael Harwood (former Chief Actuary, AIG L&R/Corebridge; MetLife) adds actuarial depth to the Board .

Asterisked values retrieved from S&P Global.

CITIZENS, INC. (CIA)·Q3 2025 Earnings Summary