Form 8-K

8-K — First American Financial Corp

Accession: 0001193125-26-312415

Filed: 2026-07-22

Period: 2026-07-22

CIK: 0001472787

SIC: 6361 (TITLE INSURANCE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — faf-20260722.htm (Primary)

EX-99.1 (faf-ex99_1.htm)

GRAPHIC (img156783994_0.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: faf-20260722.htm · Sequence: 1

8-K

false0001472787First American Financial Corp00014727872026-07-222026-07-22

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2026

FIRST AMERICAN FINANCIAL CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Delaware

001-34580

26-1911571

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

1 First American Way

Santa Ana, California

92707-5913

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (714) 250-3000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock, $0.00001 par value

FAF

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 22, 2026, First American Financial Corporation issued a press release announcing its financial results for the quarter ended June 30, 2026. The full text of the press release is attached hereto as Exhibit 99.1.

The information in this Item 2.02, including Exhibit 99.1 hereto, is being “furnished” in accordance with General Instruction B.2 of Form 8-K. As such, this information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filings with the SEC unless it shall be explicitly so incorporated in such filings.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number

Description

99.1

Press Release, dated July 22, 2026*

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FIRST AMERICAN FINANCIAL CORPORATION

Date:

July 22, 2026

By:

/s/ Lisa W. Cornehl

Name: Lisa W. Cornehl

Title: Senior Vice President, Chief Legal Officer

EX-99.1

Filename: faf-ex99_1.htm · Sequence: 2

EX-99.1

Exhibit 99.1

NEWS

FOR

IMMEDIATE

RELEASE

FIRST AMERICAN FINANCIAL REPORTS second quarter 2026 results

SANTA ANA, Calif., July 22, 2026 – First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the second quarter ended June 30, 2026.

Current Quarter Highlights

•

Earnings per diluted share of $2.12, or $2.08 per share on an adjusted basis

- Net investment gains of $12 million, or 9 cents per diluted share

- Purchase-related intangible amortization of $7 million, or 5 cents per diluted share

•

Total revenue of $2.1 billion, up 15 percent compared with last year

- Adjusted total revenue of $2.1 billion, up 14 percent compared with last year

•

Title Insurance and Services segment investment income of $164 million, up 11 percent compared with last year

•

Title Insurance and Services segment pretax margin of 15.7 percent, or 14.0 percent on an adjusted basis

•

Commercial revenues of $314 million, up 34 percent compared with last year

•

Home Warranty segment pretax margin of 21.3 percent, or 20.2 percent on an adjusted basis

•

Debt-to-capital ratio of 31.4 percent, or 21.5 percent excluding secured financings payable of $1.0 billion

•

Repurchased 330,405 shares for a total of $20 million at an average price of $61.99

Selected Financial Information

($ in millions, except per share data)

Three Months Ended

June 30,

2026

2025

Total revenue

2,117.3

1,841.3

Income before taxes

283.9

195.2

Net income

218.5

146.1

Net income per diluted share

2.12

1.41

Adjusted net income

214.4

158.4

Adjusted net income per diluted share

2.08

1.53

Total revenue for the second quarter of 2026 was $2.1 billion, up 15 percent compared with the second quarter of 2025. Net income in the current quarter was $218 million, or $2.12 per diluted share, compared with net income of $146 million, or $1.41 per diluted share, in the second quarter of 2025. Adjusted net income in the current quarter was $214 million, or $2.08 per diluted share, compared with $158 million, or $1.53 per diluted share, in the second quarter of last year. Net investment gains in the current quarter were $12 million, or 9 cents per diluted share, compared with net investment losses of $10

First American Financial Reports Second Quarter 2026 Results

Page 2

million, or 7 cents per diluted share, in the second quarter of last year. Purchase-related intangible amortization in both the current and prior year quarters was $7 million, or 5 cents per diluted share. The effective tax rate this quarter was 22.8 percent.

"Our earnings momentum continued in the second quarter, with adjusted earnings per share up 36 percent compared with the prior year,” said Mark Seaton, chief executive officer at First American Financial Corporation. "Our results were driven by our commercial business, which is on pace for a record year in 2026. In addition, investment income in our title segment grew 11 percent, despite a decline in the federal funds rate. Our adjusted pretax title margin was 14 percent for the quarter, a strong result given continued weakness in the residential market.

"Our primary strategic focus is to leverage AI across our business. We are integrating this technology into our workflows to enhance our employees' effectiveness, deliver a better experience for customers, and improve the way we operate. As these capabilities evolve, we will continue investing in our people, platforms, and products to drive innovation and reinforce our leadership in the markets we serve."

Title Insurance and Services

($ in millions, except average revenue per order)

Three Months Ended

June 30,

2026

2025

Total revenues

2,014.6

1,722.9

Income before taxes

315.9

216.7

Pretax margin

15.7

12.6

Adjusted pretax margin

14.0

13.2

Title open orders(1)

188,200

186,907

Title closed orders(1)

137,300

138,324

U.S. Commercial

Total revenues

314.1

234.2

Open orders

29,700

27,900

Closed orders

15,700

15,300

Average revenue per order

19,980

15,267

(1) U.S. direct title insurance orders only.

Total revenues for the Title Insurance and Services segment were $2.0 billion in the second quarter, up 17 percent compared with the same quarter of 2025. Total adjusted revenues in the current quarter were $2.0 billion, up 14 percent compared with last year. Direct premiums and escrow fees were $689 million, an increase of 15 percent compared with the second quarter of last year, driven by a 17 percent increase in the average revenue per order closed, partially offset by a 1 percent decline in the number of direct title orders closed in our domestic operations. The average revenue per direct title order

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First American Financial Reports Second Quarter 2026 Results

Page 3

rose to $4,572, primarily due to an increase in the average revenue per order for commercial transactions, partially offset by a shift in the mix to lower premium refinance transactions. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, were $820 million, up 14 percent compared with last year.

Information and other revenues were $295 million during the quarter, up $31 million, or 12 percent, compared with last year. The increase was primarily driven by revenue growth in the company's subservicing business, higher demand for non-insured information products and services, and refinance activity in the company's Canadian operations.

Investment income was $164 million in the second quarter, up $17 million, or 11 percent, compared with the same quarter last year. The increase was primarily driven by higher interest income from the company's investment portfolio. Net investment gains were $47 million in the current quarter, primarily attributable to increases in the fair values of marketable equity securities, compared with losses of $5 million in the same quarter last year.

Personnel costs were $572 million in the second quarter, up $49 million, or 9 percent, compared with the same quarter of 2025. The increase in personnel costs was primarily attributable to incentive compensation expense resulting from higher revenue and profitability, and higher salary expense.

Other operating expenses of $319 million in the current quarter were up $41 million, or 15 percent, compared with the second quarter of 2025, primarily due to higher production expense driven by higher volumes and an increase in software expense.

The provision for policy losses and other claims was $45 million in the second quarter, or 3.0 percent of title premiums and escrow fees, unchanged from the prior year. The second quarter rate reflects an ultimate loss rate of 3.75 percent for the current policy year and a net decrease of $11 million in the loss reserve estimate for prior policy years.

Depreciation and amortization expense was $52 million in the second quarter, up $1 million, or 1 percent, compared with the same period last year.

Interest expense was $30 million in the current quarter, up $8 million, or 33 percent, compared with last year primarily due to higher interest expense on deposit balances at the company's bank subsidiary.

The Title Insurance and Services segment posted pretax income of $316 million in the second quarter, compared with pretax income of $217 million in the second quarter of 2025. Pretax margin was 15.7 percent in the current quarter, compared with 12.6 percent last year. Adjusted pretax margin was 14.0 percent in the current period, compared with 13.2 percent last year.

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First American Financial Reports Second Quarter 2026 Results

Page 4

Home Warranty

($ in millions)

Three Months Ended

June 30,

2026

2025

Total revenues

113.8

110.2

Income before taxes

24.2

22.3

Pretax margin

21.3

20.2

Adjusted pretax margin

20.2

20.7

Total revenues for the Home Warranty segment were $114 million in the second quarter, up 3 percent compared with last year. Total adjusted revenues in the current quarter were $112 million, up 1 percent compared with last year. The segment posted pretax income of $24 million this quarter, up 9 percent compared with last year. The claim loss rate declined to 40 percent in the second quarter, compared with 41 percent last year, primarily due to lower claim frequency, partially offset by higher claim severity. Home Warranty’s pretax margin was 21.3 percent this quarter, compared with 20.2 percent last year. Adjusted pretax margin was 20.2 percent this quarter, compared with 20.7 percent last year.

Corporate

The Corporate segment pretax loss was $56 million in the second quarter, compared with a loss of $44 million last year. Excluding net investment gains and losses, the Corporate pretax loss was $20 million in the current quarter, compared with a $40 million loss in the second quarter of last year. The current quarter benefited from a $7 million insurance recovery, while the prior period included a $13 million one-time expense related to executive separation costs.

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First American Financial Reports Second Quarter 2026 Results

Page 5

Teleconference/Webcast

First American’s second quarter 2026 results will be discussed in more detail on Thursday, July 23, 2026, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is +1-877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through Aug. 6, 2026, by dialing +1-201-612-7415 and using the conference ID 13761705. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

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First American Financial Reports Second Quarter 2026 Results

Page 6

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in conditions of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; severe weather conditions, health crises, terrorist attacks and other catastrophes; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; provision of capital to subsidiaries that could affect the company’s liquidity position; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified employees; the company’s use of a global workforce; inability of the company to fulfill parent company obligations and/or pay dividends; inability to realize anticipated synergies or produce returns that justify investment in acquired businesses; a reduction in the deposits at the company’s federal savings bank subsidiary; claims of infringement or inability to adequately protect the company’s intellectual property; and other factors described in the company’s annual report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted pretax margin, adjusted net income, and adjusted earnings per share. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

714-250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

714-250-5214

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First American Financial Reports Second Quarter 2026 Results

Page 7

First American Financial Corporation

Summary of Consolidated Financial Results and Selected Information

(in millions, except per share amounts and title orders, unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Total revenues

2,117.3

1,841.3

3,955.3

3,423.6

Income before income taxes

283.9

195.2

445.7

291.8

Income tax expense

64.8

48.1

101.8

69.9

Net income

219.1

147.1

343.9

221.9

Less: Net income attributable to noncontrolling interests

0.6

1.0

0.3

1.6

Net income attributable to the Company

218.5

146.1

343.6

220.3

Net income per share attributable to stockholders:

Basic

2.13

1.41

3.34

2.12

Diluted

2.12

1.41

3.33

2.12

Cash dividends declared per share

0.55

0.54

1.10

1.08

Weighted average common shares outstanding:

Basic

102.6

103.5

102.8

103.7

Diluted

103.0

103.8

103.1

104.0

Selected Title Insurance Segment Information

Title orders opened(1)

188,200

186,907

371,100

355,836

Title orders closed(1)

137,300

138,324

257,200

248,576

Paid title claims

61.9

47.3

103.6

85.7

(1) U.S. direct title insurance orders only.

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First American Financial Reports Second Quarter 2026 Results

Page 8

First American Financial Corporation

Selected Consolidated Balance Sheet Information

(in millions, unaudited)

June 30,

December 31,

2026

2025

Cash and cash equivalents

2,624.8

1,387.3

Investments

10,733.7

9,394.3

Goodwill and other intangible assets, net

1,903.7

1,919.3

Total assets

18,941.0

16,228.8

Reserve for claim losses

1,151.6

1,169.6

Notes and contracts payable

1,546.5

1,545.4

Total stockholders’ equity

5,620.8

5,499.5

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First American Financial Reports Second Quarter 2026 Results

Page 9

First American Financial Corporation

Segment Information

(in millions, unaudited)

Three Months Ended

Title

Home

Corporate

June 30, 2026

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

794.1

689.2

104.8

0.1

Agent premiums

819.7

—

Information and other

307.8

295.0

6.2

6.6

Net investment income

183.7

164.0

1.3

18.4

Net investment gains (losses)

12.0

46.7

1.5

(36.2

)

2,117.3

2,014.6

113.8

(11.1

)

Expenses

Personnel costs

614.3

572.5

22.0

19.8

Premiums retained by agents

658.6

—

Other operating expenses

352.1

319.0

23.3

9.8

Provision for policy losses and other claims

87.3

45.3

41.7

0.3

Depreciation and amortization

53.6

52.3

1.4

(0.1

)

Premium taxes

21.8

20.6

1.2

(0.0

)

Interest

45.7

30.4

—

15.3

1,833.4

1,698.7

89.6

45.1

Income (loss) before income taxes

283.9

315.9

24.2

(56.2

)

Three Months Ended

Title

Home

Corporate

June 30, 2025

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

704.2

600.4

103.7

0.1

Agent premiums

716.5

—

Information and other

270.1

264.3

5.9

(0.1

)

Net investment income

160.2

147.1

1.2

11.9

Net investment losses

(9.7

)

(5.4

)

(0.6

)

(3.7

)

1,841.3

1,722.9

110.2

8.2

Expenses

Personnel costs

571.1

523.0

20.7

27.4

Premiums retained by agents

573.5

—

Other operating expenses

309.4

277.8

21.9

9.7

Provision for policy losses and other claims

81.9

39.5

42.8

(0.4

)

Depreciation and amortization

53.0

51.6

1.3

0.1

Premium taxes

19.2

18.0

1.2

0.0

Interest

38.0

22.8

—

15.2

1,646.1

1,506.2

87.9

52.0

Income (loss) before income taxes

195.2

216.7

22.3

(43.8

)

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First American Financial Reports Second Quarter 2026 Results

Page 10

First American Financial Corporation

Segment Information

(in millions, unaudited)

Six Months Ended

Title

Home

Corporate

June 30, 2026

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

1,454.3

1,246.3

207.9

0.1

Agent premiums

1,579.1

—

Information and other

582.9

564.2

12.1

6.6

Net investment income

336.1

318.2

2.6

15.3

Net investment gains (losses)

2.9

39.1

1.0

(37.2

)

3,955.3

3,746.9

223.6

(15.2

)

Expenses

Personnel costs

1,182.5

1,118.9

43.0

20.6

Premiums retained by agents

1,260.8

—

Other operating expenses

662.5

596.4

46.6

19.5

Provision for policy losses and other claims

165.1

84.8

78.9

1.4

Depreciation and amortization

108.2

105.4

2.8

(0.0

)

Premium taxes

42.9

40.6

2.3

(0.0

)

Interest

87.6

57.1

—

30.5

3,509.6

3,264.0

173.6

72.0

Income (loss) before income taxes

445.7

482.9

50.0

(87.2

)

Six Months Ended

Title

Home

Corporate

June 30, 2025

Consolidated

Insurance

Warranty

(incl. Elims.)

Revenues

Direct premiums and escrow fees

1,265.3

1,060.0

205.3

Agent premiums

1,371.1

—

Information and other

512.3

500.3

12.1

(0.1

)

Net investment income

295.4

284.8

2.0

8.6

Net investment losses

(20.5

)

(8.9

)

(1.4

)

(10.2

)

3,423.6

3,207.3

218.0

(1.7

)

Expenses

Personnel costs

1,077.8

1,007.8

41.2

28.8

Premiums retained by agents

1,099.0

—

Other operating expenses

587.7

524.2

44.4

19.1

Provision for policy losses and other claims

152.0

72.9

80.5

(1.4

)

Depreciation and amortization

105.5

102.8

2.6

0.1

Premium taxes

36.6

34.3

2.3

—

Interest

73.2

42.8

—

30.4

3,131.8

2,883.8

171.0

77.0

Income (loss) before income taxes

291.8

323.5

47.0

(78.7

)

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First American Financial Reports Second Quarter 2026 Results

Page 11

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions, except margin and per share amounts, unaudited)

Consolidated

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Total revenues

2,117.3

1,841.3

3,955.3

3,423.6

Non-GAAP adjustments:

Less: Net investment gains (losses)

12.0

(9.7

)

2.9

(20.5

)

Adjusted total revenues

2,105.3

1,851.0

3,952.4

3,444.1

Pretax income

283.9

195.2

445.7

291.8

Non-GAAP adjustments:

Less: Net investment gains (losses)

12.0

(9.7

)

2.9

(20.5

)

Plus: Purchase-related intangible amortization

6.7

6.6

13.5

13.4

Adjusted pretax income

278.6

211.5

456.3

325.7

Pretax margin

13.4

10.6

11.3

8.5

Non-GAAP adjustments:

Less: Net investment gains (losses)

0.5

(0.5

0.1

(0.6

Plus: Purchase-related intangible amortization

0.3

0.4

Adjusted pretax margin

13.2

11.4

11.5

9.5

Net income

218.5

146.1

343.6

220.3

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

9.3

(7.3

)

2.2

(15.6

)

Plus: Purchase-related intangible amortization

5.2

5.0

10.4

10.2

Adjusted net income

214.4

158.4

351.8

246.1

Earnings per diluted share (EPS)

2.12

1.41

3.33

2.12

Non-GAAP adjustments, net of tax:

Less: Net investment gains (losses)

0.09

(0.07

)

0.02

(0.15

)

Plus: Purchase-related intangible amortization

0.05

0.10

Adjusted EPS

2.08

1.53

3.41

2.37

Purchase-related intangible amortization includes amortization of noncompete agreements,

customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

-more-

First American Financial Reports Second Quarter 2026 Results

Page 12

First American Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(in millions except margin, unaudited)

By Segment

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Title Insurance and Services Segment

Total revenues

2,014.6

1,722.9

3,746.9

3,207.3

Non-GAAP adjustments:

Less: Net investment gains (losses)

46.7

(5.4

)

39.1

(8.9

)

Adjusted total revenues

1,967.9

1,728.3

3,707.8

3,216.2

Pretax income

315.9

216.7

482.9

323.5

Non-GAAP adjustments:

Less: Net investment gains (losses)

46.7

(5.4

)

39.1

(8.9

)

Plus: Purchase-related intangible amortization

6.7

6.5

13.4

13.3

Adjusted pretax income

275.9

228.6

457.2

345.7

Pretax margin

15.7

12.6

12.9

10.1

Non-GAAP adjustments:

Less: Net investment gains (losses)

2.0

(0.3

0.9

(0.2

Plus: Purchase-related intangible amortization

0.3

0.4

Adjusted pretax margin

14.0

13.2

12.3

10.7

Home Warranty Segment

Total revenues

113.8

110.2

223.6

218.0

Non-GAAP adjustments:

Less: Net investment gains (losses)

1.5

(0.6

)

1.0

(1.4

)

Adjusted total revenues

112.3

110.8

222.6

219.4

Pretax income

24.2

22.3

50.0

47.0

Non-GAAP adjustments:

Less: Net investment gains (losses)

1.5

(0.6

)

1.0

(1.4

)

Adjusted pretax income

22.7

22.9

49.0

48.4

Pretax margin

21.3

20.2

22.4

21.6

Non-GAAP adjustments:

Less: Net investment gains (losses)

1.1

(0.5

0.4

(0.5

Adjusted pretax margin

20.2

20.7

22.0

22.1

Purchase-related intangible amortization includes amortization of noncompete agreements,

customer relationships, and trademarks acquired in business combinations.

Totals may not sum due to rounding.

-more-

First American Financial Reports Second Quarter 2026 Results

Page 13

First American Financial Corporation

Expense and Success Ratio Reconciliation

Title Insurance and Services Segment

($ in millions, unaudited)

Three Months Ended

Six Months Ended

June 30,

2026

2025

2026

2025

Total revenues

2,014.6

1,722.9

3,746.9

3,207.3

Less: Net investment gains (losses)

46.7

(5.4

)

39.1

(8.9

)

Net investment income

164.0

147.1

318.2

284.8

Premiums retained by agents

658.6

573.5

1,260.8

1,099.0

Net operating revenues

1,145.3

1,007.7

2,128.8

1,832.4

Personnel and other operating expenses

891.5

800.8

1,715.3

1,532.0

Ratio (% net operating revenues)

77.8

79.5

80.6

83.6

Ratio (% total revenues)

44.3

46.5

45.8

47.8

Change in net operating revenues

137.6

296.4

Change in personnel and other operating expenses

90.7

183.3

Success Ratio(1)

(1) Change in personnel and other operating expenses divided by change in net operating revenues.

-more-

First American Financial Reports Second Quarter 2026 Results

Page 14

First American Financial Corporation

Supplemental Direct Title Insurance Order Information(1)

(unaudited)

Q226

Q126

Q425

Q325

Q225

Open Orders per Day

Purchase

1,516

1,429

1,100

1,375

1,554

Refinance

662

838

768

771

623

Refinance as % of residential orders

Commercial

465

451

444

441

437

Default and other

297

280

346

402

307

Total open orders per day

2,941

2,998

2,657

2,989

2,920

Closed Orders per Day

Purchase

1,072

839

953

1,062

1,110

Refinance

555

616

629

503

494

Refinance as % of residential orders

Commercial

246

249

289

238

240

Default and other

273

262

375

413

318

Total closed orders per day

2,145

1,966

2,246

2,216

2,161

Average Revenue per Order (ARPO)(2)

Purchase

3,900

3,740

3,704

3,689

3,693

Refinance

1,050

1,130

1,146

1,034

998

Commercial

19,980

17,851

18,605

16,119

15,267

Default and other

503

126

366

343

539

Total ARPO

4,572

4,229

4,350

3,801

3,897

Business Days

(1) U.S. operations only.

(2) Average revenue per order (ARPO) defined as direct premiums and escrow fees divided by closed title orders.

Please note that during the fourth quarter of 2025, the company revised refinance order counts and

corresponding total order counts for all periods prior to the third quarter of 2025, which impacted all

related year-over-year metrics, due to certain home equity orders that were previously excluded.

These revised order counts also impacted ARPO previously reported in earnings releases for the

periods prior to the third quarter of 2025; however, there was no change to reported revenues.

Totals may not sum due to rounding.

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