Security National Financial (SNFCA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues increased 4.4% year-over-year to $89.5M, driven by higher net investment income and gains on investments, but net earnings declined 10% to $6.5M due to increased expenses and lower segment profits.

• Life segment performance and investment gains supported improved stockholders' equity, while mortgage and funeral/cemetery segments faced headwinds.

• The company was added to the Russell 2000 and transitioned to accelerated SEC filer status, impacting audit and reporting requirements.

• A 5% stock dividend was distributed in July 2025.

• For the six months ended June 30, 2025, net earnings totaled $10.8M, down from $14.7M in the prior year period.

Financial highlights

• Q2 2025 net investment income rose 14.1% year-over-year to $20.6M, mainly from higher mortgage loan interest.

• Cash decreased by $60M due to increased investments in bonds, real estate, and mortgage loans.

• Book value per share rose to $14.35 as of June 30, 2025, from $13.76 at year-end 2024.

• As of June 30, 2025, total assets were $1.54B and stockholders' equity was $354.8M.

• Total benefits and expenses increased to $81.2M (90.7% of revenues) from $76.4M (89.1%) year-over-year.

Outlook and guidance

• Management expects improved ROE as mortgage segment stabilizes and life insurance premium rate increases take effect.

• The company is confident in meeting new accelerated filing and internal control audit requirements by year-end.

• Adoption of ASU 2018-12 (LDTI) is on track for year-end, with Q3 10-Q to disclose expected impact.

• Continued investment in residential land and builder relationships is expected to yield higher future returns.

• The company is assessing the impact of the One Big Beautiful Bill Act (OBBBA) but does not expect a material effect on financials.