First American Financial Corp (FAF) Reports 41% Revenue Growth

By Bobby Samwell • Thursday, October 23 06:17 • Permanent Link

First American Financial Corporation (NYSE: FAF) has announced its financial results for the third quarter ended September 30, 2025, indicating a significant improvement in its performance compared to the same period in 2024.

The company reported total revenue of $2.0 billion for the third quarter, reflecting a substantial increase of 41% compared to the third quarter of 2024. Net income for the current quarter was $189.6 million, or $1.84 per diluted share, a remarkable turnaround from a net loss of $104 million, or $1.00 per diluted share, in the third quarter of 2024.

Adjusted net income for the third quarter of 2025 was $174.9 million, or $1.70 per diluted share, compared with $138.4 million, or $1.34 per diluted share, in the same period last year.

The company's title insurance and services segment saw total revenues of $1.8 billion, up 42% from the same quarter in 2024. Adjusted revenues for the segment in the current quarter were $1.8 billion, representing a 14% increase from last year. The segment also reported a substantial improvement in pretax margin, reaching 12.9%, compared to (10.1)% in the third quarter of 2024.

In terms of the home warranty segment, total revenues for the third quarter of 2025 were $115 million, marking a 3% increase from the prior year. The segment's pretax income also demonstrated significant growth, reaching $16 million, an 80% increase from the third quarter of 2024.

Moreover, the company's debt-to-capital ratio was reported at 33.0%, or 22.5% excluding secured financings payable of $1.1 billion. Cash flow from operations increased to $273 million from $237 million in the previous year.

Additionally, First American Financial Corporation repurchased 597,726 shares for a total of $34 million at an average price of $56.24 and raised its common stock dividend by 2% to an annual rate of $2.20 per share.

Mark Seaton, CEO of First American Financial Corporation, expressed optimism about the company's long-term outlook, emphasizing the strength of their commercial business, growth in investment income, and management of cost structure as key factors that contributed to the strong performance in the third quarter.

The market has reacted to these announcements by moving the company's shares -0.05% to a price of $61.07. Check out the company's full 8-K submission here.

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