Executive Summary

Q1 2025 missed Street on both revenue and EPS as mark-to-market losses and F&G spread pressure outweighed strong Title operating execution; consolidated revenue was $2.73B and adjusted EPS $0.78, versus S&P Global consensus of ~$3.32B and ~$1.11, respectively, while Title delivered an industry-leading 11.7% adjusted pre-tax margin . Revenue Consensus Mean: $3.324B*; Primary EPS Consensus Mean: $1.11*.
Title momentum improved: direct premiums +16% y/y, agency +15% y/y, commercial revenue +23% y/y; adjusted pre-tax Title earnings rose to $211M (+23% y/y) despite low transactions, underscoring structural efficiency gains from SoftPro/inHere and tech/AI investments .
F&G AUM before flow reinsurance grew 16% y/y to $67.4B; adjusted net earnings were $80M as alternatives underperformed long-term expectations by $52M, compressing margins near-term; management expects spread pressures to abate as cash is redeployed at attractive yields .
Capital allocation accelerated: dividend maintained at $0.50/share and buybacks restarted ($25M; 390K shares); FNF invested $150M in F&G’s equity offering to keep ownership >80% and support growth . Stock reaction catalysts: mortgage-rate trajectory (purchase/refi orders), sustained national commercial strength, Texas rate outcome, and F&G spread normalization .

What Went Well and What Went Wrong

What Went Well
- Title execution: Adjusted pre-tax Title margin rose 100 bps y/y to 11.7% and adjusted pre-tax Title earnings grew to $211M on higher direct/agency volumes and strong commercial . CEO: “Our investments are enabling us to deliver margins above prior market troughs… and higher margins at the peak of the next cycle” .
- Commercial strength: Direct commercial revenue reached $293M (+23% y/y); national commercial daily opens posted a fourth straight quarter of double-digit growth .
- Strategic/financial flexibility: $687M holding company liquidity post-dividend, buybacks, and $150M F&G participation; plan includes ~“$29M per quarter” of F&G dividends to Corporate and $85–$90M per quarter Title/Corporate investment income (assuming two Fed cuts) .
What Went Wrong
- Consensus miss: Adjusted EPS $0.78 vs ~$1.11*; revenue $2.73B vs ~$3.32B*, driven by $287M net recognized losses and lower F&G alternatives income, offsetting Title strength . Revenue/EPS Consensus Means: $3.324B*, $1.11*.
- F&G margin compression: Adjusted net earnings fell to $80M (from $95M) on spread pressure, lower owned distribution margin, and higher interest expense; alternatives -$52M vs long-term expectation .
- Macro drag on orders: April purchase opens down ~3% y/y amid rate volatility; while refi opens +41% y/y in April, visibility remains rate-dependent .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($USD Billions)	$3.60	$3.62	$2.73
GAAP Diluted EPS ($)	$0.97	$1.65	$0.30
Adjusted EPS ($)	$1.30	$1.34	$0.78
Adjusted Pre-tax Title Margin (%)	15.9%	16.6%	11.7%
Adjusted Pre-tax Title Earnings ($MM)	$323	$343	$211

Q1 2025 vs S&P Global consensus (significant surprises in bold):

Metric	Actual	Consensus	Surprise
Revenue ($USD Billions)	$2.73	$3.324*	MISS
Adjusted EPS ($)	$0.78	$1.11*	MISS

Note: Values marked with * are retrieved from S&P Global.

Segment breakdown – Q1 2025:

Segment	Revenue ($MM)	Adjusted Pre-tax Earnings ($MM)	Adjusted Net Earnings ($MM)
Title	$1,774	$211	$158
F&G	$908	$122	$80
Corporate & Other	$75	-$5	$3
Elimination	-$28	-$28	-$28
Consolidated	$2,729	$300	$213

Title KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Direct Title Premiums ($MM)	$571	$625	$510
Agency Title Premiums ($MM)	$789	$787	$681
Commercial Revenue ($MM)	$290	$376	$293
Fee per File ($)	$3,708	$3,909	$3,761
Total Opened Orders per day	5.5	4.7	5.6
Total Closed Orders per day	3.6	3.7	3.3

F&G KPIs (Q1 2025)

KPI	Q1 2025
AUM before Flow Reinsurance ($B)	$67.4
AUM ($B)	$54.5
Gross Sales ($B)	$2.9
Net Sales ($B)	$2.2
Adjusted Net Earnings ($MM)	$80

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Interest & Investment Income (Title+Corporate)	Each quarter in 2025	~$95–$100M per quarter (prior commentary referenced in Q&A)	~$85–$90M per quarter assuming two Fed cuts	Lowered
F&G Dividends to Corporate	2025 run-rate	N/A	~ $29M per quarter	New detail
Common Dividend	Quarterly	$0.50/share (Q4 2024)	$0.50/share declared for 6/30/25	Maintained
Share Repurchases	2025 cadence	Paused in 2024 exit	Restarted; 390K shares/$25M in Q1; “regular cadence” when not blacked out	Relaunched
F&G Ownership	Ongoing	Target >80%	~82% as of 3/31/25; $150M participation in FG equity raise	Reaffirmed >80% objective

No formal revenue/EPS guidance was provided; commentary emphasized macro sensitivity (rates), commercial pipeline strength, and spread normalization at F&G .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
AI/Technology initiatives	Investing through cycle; SoftPro rollout; inHere digital platform; tech underpinning margins	“Differentiated technology foundation… integrating AI capabilities to increase efficiency and productivity”	Increasing emphasis and integration
Macro/Interest rates & demand	Limited rate impact in Q3; positioned to capture upside when rates fall	April purchase opens -3% y/y on rate volatility; refi opens +41% y/y in April; Q2 margin seasonally up but growth pace uncertain	Mixed: purchase sensitive, refi responsive
Commercial pipeline	Strong revenue and orders; national opens rising	Second-best Q1 commercial revenue; 4 straight quarters of double-digit national daily opens	Improving pipeline
Regulatory/legal	—	CFPB waiver pilot seen de minimis; Texas proposed 10% rate cut under review; estimated ~$70M gross revenue and ~$14–$15M profit impact if enacted	Manageable with cost actions
Capital allocation	Dividend sustained; cash strong	Buybacks restarted; dividend maintained; invested $150M to keep FG >80%	More active
M&A	Strategic acquisitions ongoing	Expect more title M&A than 2024; tuck-in focus, open to larger if compelling	Likely to increase

Management Commentary

Mike Nolan, CEO: “We delivered an adjusted pretax Title margin of 11.7%, an increase of 100 basis points… Our investments are enabling us to deliver margins above prior market troughs… and higher margins at the peak of the next cycle” . On AI: “Powerful foundation… gives us an advantage when it comes to integrating and leveraging AI… to increase efficiency and productivity” .
Bill Foley, Chairman: “Our Title business… delivering impressive profitability and cash flows… we participated in F&G’s March capital raise by investing $150 million… We also returned capital… restarting the share repurchase program while paying our quarterly cash dividend” .
Tony Park, CFO: Expect ~$85–$90M per quarter of Title/Corporate investment income in 2025 (assumes two Fed cuts) and ~$29M per quarter of F&G common/preferred dividends to Corporate; ended Q1 with $687M holdco liquidity after $0.50 dividend, $25M buybacks, and $150M FG investment .
Chris Blunt, CEO F&G: “Headwinds… starting to abate… getting cash put to work at attractive rates/spreads… expect improvement; portfolio 96% investment grade; confident in delivering medium-term targets” .

Q&A Highlights

Orders and April read-through: Purchase opens -3% y/y in April with limited intra-month variability; total opened orders 5,800/day in April (-5% vs March). Refi opens +41% y/y in April, highlighting rate sensitivity .
Investment income outlook: Title/Corporate investment income revised to ~$85–$90M per quarter from prior ~$95–$100M amid expected Fed cuts .
Buyback cadence: Opportunistic with regular daily activity when not blacked out; likely stronger than Q1 given late start .
F&G spreads: Near-term pressure viewed as temporary; redeployment of cash at attractive spreads underway; some owned distribution income impact was transitory .
FG equity raise rationale: Support growth and preserve >80% ownership to maintain tax-free spin optionality; $150M outlay modest vs liquidity .
Title margin sustainability: Broad-based outperformance across channels; seasonal margin expansion in Q2 expected, but growth rate uncertain given macro; commercial upside building .
Regulatory: CFPB waiver pilot de minimis; Texas 10% rate reduction, if finalized, estimated ~$70M gross revenue and ~$14–$15M profit impact pre-mitigation; management would offset via costs/mix .

Estimates Context

Q1 2025 vs Street: Adjusted EPS $0.78 vs ~$1.11*; Revenue $2.73B vs ~$3.32B* — both misses, driven by $287M net recognized losses and F&G alternatives underperformance offsetting Title strength . Revenue/EPS Consensus Means from S&P Global.
Near-term estimate implications:
- Title: Positive revisions to Title margin run-rate plausible given y/y improvement and strong commercial pipeline, but macro (rates) tempers volume visibility .
- F&G: Expectation resets around spread/alternatives should reflect management’s view of abating pressures as cash is redeployed; AUM growth trajectory remains intact .
Next quarter context (directional): Management signaled seasonal margin expansion in Q2 for Title with uncertain growth pace; this may support stable-to-improving EPS assumptions contingent on rate path and commercial conversion .