Stewart Information Services (STC) Financials

Stewart Information Services (NYSE: STC) has shown a broad improvement in earnings since 2023, although quarterly results remain sensitive to operating working capital, investment activity and acquisition-related balance-sheet changes. The most recent period, Q2 2026, was notably stronger than both Q1 2026 and Q2 2025.

• Q2 earnings accelerated. Revenue increased to $576.9 million from $465.1 million in Q2 2025, while net income attributable to common shareholders rose 16.5% to $37.2 million. Basic EPS increased to $1.22 from $1.14.
• Sequential profitability improved sharply. Compared with Q1 2026, Q2 revenue rose approximately 16%, common net income more than doubled from $17.0 million to $37.2 million, and basic EPS increased from $0.56 to $1.22.
• The company has moved substantially higher from early 2023 levels. Q2 revenue grew approximately 55% from $372.5 million in Q2 2023, while common net income increased from $15.8 million to $37.2 million. STC also moved from a $0.30 per-share loss in Q1 2023 to $0.56 per share in Q1 2026.
• Operating cash flow recovered. Q2 2026 operating cash flow was $60.5 million, compared with negative $4.5 million in Q1 2026 and $53.4 million in Q2 2025. This suggests that the large working-capital drag recorded in Q1 was largely temporary.
• Liquidity has improved over the longer period. Cash and equivalents increased to $261.6 million in Q2 2026 from $190.0 million in Q2 2023, despite the company continuing to pay regular dividends and repurchase shares.
• Shareholder distributions remain meaningful. Q2 2026 dividend payments were $19.1 million, and Q1 2026 dividends per common share were $0.53. Based on Q2 common earnings, the quarterly cash dividend represented roughly half of earnings attributable to common shareholders.
• Investment securities remain an important part of the balance sheet. Trading account securities totaled $606.4 million at Q2 2026, while the company purchased $102.9 million and sold or received maturities of $51.4 million during the quarter. This activity supports liquidity but can also make cash flows and reported gains more volatile.
• The balance sheet has expanded significantly. Total assets reached $3.29 billion in Q2 2026, up from $2.68 billion in Q2 2023. Equity also increased to $1.67 billion from $1.37 billion, providing a larger capital base as the business grows.
• Operating expenses are rising almost as quickly as revenue. Q2 2026 non-interest expenses increased 24.7% year over year to $521.8 million, slightly faster than the 24.0% increase in revenue. Other operating expenses rose approximately 39%, and salaries and employee benefits increased about 16%.
• Leverage and intangible-asset exposure are higher. Long-term debt rose to $646.7 million in Q2 2026 from $446.0 million in Q2 2025 and approximately $445.0 million in Q2 2023. Goodwill increased to $1.29 billion and intangible assets to $321.6 million, meaning a sizable portion of assets is tied to acquisition-related assets and could be vulnerable to future impairment charges.

Overall, STC's recent financial profile is improving: earnings, EPS and operating cash flow are higher than a year ago and substantially above early-2023 levels. However, investors should monitor whether revenue growth continues to outpace expense growth, whether debt remains elevated, and whether cash generation stays positive after investment purchases, dividends and other financing commitments.

The supplied statements include several restated periods and some nonstandard or inconsistent income-statement labels, particularly within non-interest income. Comparisons should therefore be viewed as directional and confirmed against the company's latest filings.