Oct 22, 2026 earnings call — Commercial strength and AI platform rollout
Adjusted EPS rose to $1.78, a 5% increase, while commercial revenue set a third-quarter record at $297 million.
Revenue $2.1B (est $2.1B) · EPS $1.78 (est $1.81)
Key quotes
"Sequoia already reduces processing time by 2/3 compared with our traditional process, and we expect it to become even more efficient over time."
"Our commercial business had another outstanding quarter, with National Commercial Services generating its highest third-quarter revenue on record."
"Over the last six months, the 30-year fixed mortgage rate has increased approximately 100 basis points to 7.5%, the highest since the second quarter of 2024."
Analyst Q&A 4
2027 margins and platform costs
Q (Bose George · KBW): He asked how margins should look in 2027 if residential volumes stay near $2 trillion (or lower) and commercial is flat, and asked when expense savings from Sequoia and Endpoint will show up.
A: Management said they expect 2027 revenue to be essentially flat versus full-year 2026, with commercial potentially modestly up and residential down. They expect investment income net of interest expense to grow (about 8% year-to-date) and normal inflationary pressure on salaries and tech; Sequoia will start saving as it rolls out and Endpoint benefits should appear over time, with more visible gains in 2028 if execution goes well.
"I would say the margin right now, I don't see a lot of room for expansion." — Matt Wajner (CFO)
Pre-tax margin, investment income, commercial
Q (Mark Hughes · Truist): He asked whether pre-tax title margin will be stable if investment income rises but expenses do too, how Q4 investment income looks, and how sensitive commercial is to higher-for-longer rates.
A: They said margins could be stable to slightly pressured, with no large deviation expected today. For Q4, investment income net of interest expense should grow at roughly the same rate as the first three quarters (year-to-date investment income up 11%, interest expense up 31%, net up 8%), and commercial is not very sensitive to interest rates because many big commercial deals and shorter-term loans reduce rate sensitivity.
"Fortunately for us, Mark, it's just not as sensitive to interest rates." — Mark Seaton (CEO)
Sustaining title margins and commercial pipeline
Q (Terry Ma · Barclays): He asked how they can sustain title margins if residential worsens and commercial momentum softens, what expense levers exist, and asked for color on the commercial pipeline and ARPA deceleration.
A: They said the market is tough (open refinance orders down 30%+ in October; open purchase orders down 8%) but they plan to gain share and invest in platforms rather than cut to the point of losing long-term position; they have gained 60 basis points of market share in the last 12 months with no acquisitions. On commercial, they are very bullish for Q4 with a strong, broad pipeline and have closed three deals over $1 million in premium; ARPA was still healthy—ARPA expanded year-over-year, and National Commercial Services ARPA was up year-over-year and sequentially, with the Q2 record ARPA helped by some large non-centralized deals.
"In the last 12 months, we've gained 60 basis points of market share, and we've done zero acquisitions." — Mark Seaton (CEO)
Endpoint risks, bank growth, reserves
Q (Oscar Nieves · Stephens Incorporated): He asked the biggest execution risks as Endpoint goes national and whether costs will rise before benefits, then asked how big the bank can grow and its sensitivity to rates and deposit mix, and finally how to think about reserves and the provision going forward.
A: For Endpoint, they say the main technology risk is gone and the biggest remaining risk is change management; they do not expect a material increase in costs next year and see it as worth the investment. On the bank, it's a strategic advantage that improves operations and earns spread; they are growing non-title deposits (including about $1 billion in 1031 Exchange balances) though they do not expect the recent ~38% deposit growth pace to continue. On reserves, they are reserving at 3% currently: 3.75% for the current policy year with a 75 basis point release from prior years that gets the company to 3%, and they view 3.75% as the right loss reserve for new policies today.
"I think the risk now is more on the change management side." — Mark Seaton (CEO)