Stewart Title Insurance Revenue Falls 12% as Deal Count Shrinks

Stewart Information Services posted a 12% drop in title insurance revenue for the second quarter, the company said July 23, as rising mortgage rates squeezed transaction volumes across its core markets.

The Houston-based title insurer reported $502 million in title revenue, down from $570 million a year earlier. Total operating revenue came in at $543 million, a 10% decline. Net earnings fell to $39 million, or $1.43 per diluted share, from $64 million, or $2.32, in the same quarter of 2025.

CEO Fred Eppinger told analysts on the earnings call that higher rates and low housing inventory were the main drags. "We're seeing fewer refinancings and a slower pace of purchase transactions," he said. "The market is adjusting to a higher-rate environment."

Commercial title revenue held up better, slipping just 3% to $121 million. The residential side took the heavier hit, down 14% to $381 million.

CFO David Hisey said the company has been cutting costs to offset the revenue decline. Operating expenses fell 8% year over year to $488 million, driven by lower employee costs and technology investments that reduced manual processing.

"We are managing what we can control," Hisey said. "The expense base is leaner than it was a year ago."

The title segment posted a pretax margin of 9.5%, down from 14.9% in the second quarter of 2025. Investment income from the title plant and other sources rose to $17 million, up from $14 million, helped by higher interest on cash balances.

Stewart's home warranty and other services segment reported revenue of $41 million, flat year over year. The unit posted a pretax loss of $2 million, compared with a $1 million loss in the prior-year quarter.

Shares of Stewart closed at $61.52 on July 22, down 3% from the previous session, before the earnings release. The stock has fallen 18% this year.