Summary of FNF Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $4.1 billion, with $3.7 billion excluding net recognized gains, up from $3.5 billion in Q2 2025.

Net Earnings: $288 million, including net recognized gains of $333 million, compared to $278 million with $98 million in recognized gains in Q2 2025.

Adjusted Net Earnings: $370 million ($1.39 per diluted share), up from $318 million ($1.16 per share) in the prior year.

Title Segment: Adjusted pretax earnings of $448 million, up 33% year-over-year, with a margin of 17.8%, an increase of 230 basis points from Q2 2025.

F&G Segment: Contributed $65 million to adjusted net earnings, down from $89 million in Q2 2025 due to reduced ownership stake.

2Strategic Updates and Business Highlights

Title Business: Strong performance in commercial, residential, and agency sectors, with commercial revenue reaching $778 million for the first half of 2026, up 24% year-over-year.

Technology Investments: Continued deployment of the inHere digital transaction platform, now engaging 80% of residential sales transactions, enhancing efficiency and customer experience.

F&G Segment: Assets under management (AUM) reached $74.7 billion, up 8% year-over-year. Strategic focus on transitioning to a fee-based, higher-margin business model.

Recruitment and Acquisitions: Strong recruiting performance and several tuck-in acquisitions aimed at expanding capacity, particularly in residential markets.

3Forward Guidance and Outlook

Commercial Momentum: Expected to continue, but caution expressed regarding residential purchase and refinance activity for the remainder of the year.

Margins: Anticipated modest compression in adjusted pretax title margin in the second half of 2026 due to increased expenses from recruiting and acquisitions.

Long-term Potential: Optimism about recovery in residential transaction volumes once mortgage rates improve, which could enhance earnings power.

4Bad News, Challenges, or Points of Concern

Residential Market: Existing home sales remain low at around 4 million annually due to high mortgage rates, impacting purchase and refinance volumes.

Margin Compression: Anticipated due to upfront expenses from strategic investments and recruiting, which may not immediately translate into revenue.

F&G Performance: Decline in adjusted net earnings contribution from F&G due to reduced ownership stake and competitive pressures in the insurance market.

5Notable Q&A Insights

Margin Drivers: CEO Mike Nolan highlighted that margin compression is expected relative to Q2 2026 and will be influenced by staffing and expense management.

Commercial Deal Flow: Strong pipeline of commercial orders, with a notable increase in large transactions, although future volumes remain uncertain.

Technology Impact: While efficiencies from the inHere platform are recognized, quantifying specific cost savings remains challenging.

F&G Strategic Alternatives: Discussion on exploring strategic options for Peak Altitude, with a preference for a 51% partner to drive growth without diluting control. Overall, FNF reported strong financial results driven by its title business while navigating challenges in the residential market. The company remains focused on strategic investments and technology to sustain long-term growth.