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Fidelity National Financial, Inc. (FNF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered mixed results: consolidated revenue rose to $3.64B (+15% YoY) on strong Title and investment income, but adjusted EPS of $1.16 missed Street while revenue beat; Title adjusted pre-tax margin was 15.5% despite elevated health claims and higher tech/security spend .
  • Title revenue grew to $2.21B (+15% YoY) with commercial revenue up 22% YoY to $333M; direct premiums +12% and agency premiums +7% YoY; fee per file rose to $3,894 .
  • F&G AUM before flow reinsurance reached a record $69.2B (+13% YoY); adjusted net earnings were $89M, pressured by alternatives underperformance; F&G launched a $1B Blackstone-backed reinsurance sidecar to accelerate its capital-light, fee-based model .
  • Capital returns accelerated: FNF repurchased 2.9M shares for $159M at $55.20 average and paid a $0.50 dividend (new dividend declared again for Sept. 30, 2025); holding company cash ended at $583M .
  • Near-term stock catalysts: commercial strength and ongoing buybacks versus margin headwinds from healthcare claims and elevated shared-services spend; F&G’s new sidecar may support estimate revisions for fee-based earnings .

What Went Well and What Went Wrong

What Went Well

  • Industry-leading Title profitability sustained: adjusted pre-tax Title margin at 15.5% with strong incremental margins in direct and agency channels .
  • Commercial momentum: national and local commercial revenues both rose >22% YoY; total commercial revenue reached $333M, national revenue $178M, with opened orders up 7% and closed orders up 15% YoY .
  • Strategic capital-light growth at F&G: AUM before flow reinsurance rose to $69.2B (+13% YoY); launch of Blackstone-backed $1B reinsurance sidecar provides on-demand growth capital and supports a more fee-based model .
    “Importantly, these expense items did not impact the direct title and agency title businesses, which performed well and generated healthy incremental margins.” — CEO Mike Nolan .

What Went Wrong

  • EPS miss versus consensus: adjusted EPS of $1.16 versus ~$1.41 Street; alternative investments underperformed long-term return assumptions, pressuring F&G adjusted earnings .
  • Margin headwind from health claims and shared-services investments: ~60 bps or ~$12M impact from elevated medical claims; higher investment in security/technology and recruiting weighed on Title margins vs. prior year .
  • F&G net sales and adjusted earnings down YoY: net sales $2.7B vs. $3.4B prior year; adjusted net earnings $89M vs. $122M prior year as alternatives lagged and interest expense rose .

Financial Results

Consolidated Performance vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Billions)$3.62 $2.73 $3.64
Net Earnings Attributable to Common ($USD Millions)$450 $83 $278
Adjusted Net Earnings ($USD Millions)$366 $213 $318
Adjusted EPS ($USD)$1.34 $0.78 $1.16

Q2 2025 Actual vs S&P Global Consensus

MetricActual Q2 2025Consensus Q2 2025
Revenue ($USD Billions)$3.64 $3.54*
Adjusted EPS ($USD)$1.16 $1.41*

Values with asterisks retrieved from S&P Global.

  • Revenue: beat by ~$0.10B; EPS: miss by ~$0.25. Drivers: strong Title volumes and investment income vs. health claims and tech/security/recruiting spend; alternatives underperformed long-term expectations at F&G .

Segment Breakdown

MetricQ4 2024Q1 2025Q2 2025
Title Total Revenue ($USD Billions)$2.01 $1.77 $2.21
Title Adjusted Pre-Tax Earnings ($USD Millions)$343 $211 $337
Title Adjusted Pre-Tax Margin (%)16.6% 11.7% 15.5%
F&G Total Revenue ($USD Billions)$1.56 $0.91 $1.36
F&G Adjusted Net Earnings ($USD Millions)$123 $80 $89
Corporate Adjusted Net Earnings ($USD Millions)$8 $3 -$3

Title KPIs

KPIQ4 2024Q1 2025Q2 2025
Direct Title Premiums ($USD Millions)$625 $510 $632
Agency Title Premiums ($USD Millions)$787 $681 $839
Escrow, Title-Related and Other Fees ($USD Millions, Title)$560 $525 $613
Total Commercial Revenue ($USD Millions)$376 $293 $333
National Commercial Revenue ($USD Millions)$208 $149 $178
Total Fee per File ($USD)$3,909 $3,761 $3,894
Total Opened Orders per Day4.7 5.6 5.8
Total Closed Orders per Day3.7 3.3 3.9

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Title & Corporate Interest/Investment Income ($USD Millions per quarter)H2 2025~$85–$90 per quarter (assumes two Fed cuts) ~$90–$95 per quarter (assumes two Fed cuts) Raised range
F&G Dividend Income to Corporate ($USD Millions per quarter)H2 2025~$29 per quarter ~$28 per quarter Slightly lowered
Health Care Claims Expense Impact (bps of Title margin)2025Normal run-rate prior years 60 bps ($12M) in Q2; additional ~$12M likely over balance of year; normalization expected in 2026 Elevated in 2025
Share Repurchase Activity2025 cadenceResumed late Q1; opportunistic daily activity Active when not blacked out; $159M in Q2, ~2.9M shares Accelerated
DividendQ3 2025$0.50/share paid in Q1 Declared $0.50/share payable Sept. 30, 2025 Maintained
Regulated Dividend CapacityH2 2025Not disclosed~$250M from regulated subs; ~$60M from F&G; additional ~$200–$300M potential from non-regulated, subject to earnings/taxes New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/Technology & PlatformsHighlighted SoftPro/InHere; exploring generative AI for efficiency ; reiterated technology edge and AI investments Higher spend in security/technology; margin impact but building long-term capabilities Increasing investment
Macro Rates & HousingPurchase/Refi sensitive to rate volatility; typical seasonality Base case similar to 2024; rates ~6.6% noted; refi opened +28% YoY with modest rate movement Stable/muted purchase; improving refi
Commercial ActivityStrong national/local; Q4 best margins; multi-sector strength National and local revenues >22% YoY; five consecutive quarters of double-digit national opens Strengthening
Regulatory (FHFA pilot)Limited scope; minimal impact expected Pilot remains limited; Westcor added; continued engagement with regulators Monitored, low impact
Capital AllocationDividend sustained; buybacks resumed Q1 ($25M) Buybacks accelerated ($159M Q2); ongoing daily activity when not blacked out More active
F&G Strategy & CapitalRecord AUM; capital-light via flow reinsurance $1B Blackstone sidecar; move to fee-based model; supports growth Advancing capital-light model
Staffing/RecruitingField ops ~10.2k; tech-enabled efficiency Active revenue-attached recruiting; ~20 bps margin impact; field ops ~10.5k Increased hiring

Management Commentary

  • “We delivered another industry leading pre-tax Title margin while generating strong cash flows... Our direct title and agency title businesses performed well having generated healthy incremental margins.” — CEO Mike Nolan .
  • “We grew AUM before flow reinsurance to $69.2 billion... our ratio of operating expense to AUM... has decreased by 5 bps... we expect further improvement in the second half of the year.” — F&G CEO Chris Blunt .
  • “For the remainder of 2025, we expect to generate quarterly interest and investment income of $90–$95 million... and approximately $28 million per quarter of dividend income from F&G.” — CFO Tony Park .
  • “We repurchased 2.9 million shares for $159 million... and paid $135 million in dividends; we ended the quarter with $583 million at the holding company.” — Chairman William P. Foley II .

Q&A Highlights

  • Portfolio structure: Board remains pleased with F&G performance; F&G contributed ~32% of adjusted earnings in H1; sidecar supports capital-light, fee-based model; no need for incremental F&G capital from FNF currently .
  • Expense dynamics: Personnel and shared-services spend rose; recruiting was ~20 bps margin impact; elevated health claims added ~$12M in Q2 and likely ~$12M more across H2; normalization expected in 2026 .
  • Buyback cadence: Active daily when not blacked out; $159M in Q2; opportunistic based on share price weakness .
  • Cash upstream capacity: ~$250M from regulated subs in H2; ~$60M from F&G; potentially a couple hundred million from non-regulated depending on earnings/taxes .
  • Regulatory: FHFA title waiver pilot remains limited scope; Westcor added with a limited title option; FNF engaged with FHFA; minimal expected impact .

Estimates Context

  • Q2 2025: Revenue beat and EPS miss versus S&P Global consensus. Actual revenue $3.64B vs ~$3.54B consensus; adjusted EPS $1.16 vs ~$1.41 consensus. Revenue strength reflects Title volumes and investment income; EPS impacted by elevated health claims and higher shared-services spend, plus alternatives underperformance at F&G .
    Values for consensus retrieved from S&P Global.

  • Implications for estimates: Title margins should remain within the 15–20% target in a normalized market; near-term headwinds from health claims and tech/security spend may persist through 2025, but F&G’s sidecar and improving commercial/refi order trends could support revenue and fee-based earnings expectations .

Key Takeaways for Investors

  • Title segment resilience: margin leadership sustained at 15.5% despite temporary cost headwinds; commercial and direct/agency momentum supports continued top-line strength .
  • Mixed prints vs Street: Revenue beat vs. consensus but EPS miss; watch trajectory of health claims normalization and shared-services run-rate into H2 .
  • Capital returns: Accelerated buybacks ($159M in Q2) and maintained $0.50 dividend; holding company cash remains strong at $583M to fund returns/M&A .
  • F&G transition: Sidecar-backed capital-light model should increase fee-based earnings and ROE; alternatives performance variability remains a swing factor .
  • Macro sensitivity: Purchase volumes remain muted; refi improving with modest rate declines; national commercial pipeline robust (five consecutive quarters of double-digit opens) .
  • Regulatory watch: FHFA pilot limited scope; engagement ongoing; minimal expected impact near term .
  • Near-term trading lens: Commercial strength and buyback intensity are supportive; EPS misses tied to transitory health claims and investment timing could reverse as claims normalize and sidecar ramps .