Security National Financial (SNFCA) Q3 2025 earnings summary

Executive summary

• After-tax earnings for Q3 2025 decreased 34% year-over-year to $7.8 million; nine-month after-tax earnings fell 30% to $18.7 million, reflecting higher expenses and amortization of deferred policy acquisition costs.

• Total revenues for the nine months ended September 30, 2025, increased 2.5% year-over-year to $261.6 million, driven by higher net investment income and mortgage fee income.

• Return on equity improved to 7.9% for the nine months, annualizing to 10.5%, up from 8.5% in June.

• Operational efficiencies offset increased personnel costs from talent hiring, with year-to-date personnel cost growth slowing from 10% in June to 6% in September; personnel costs were flat for the quarter.

• The company operates in three segments: life insurance, cemetery/mortuary, and mortgage, each facing unique market and operational dynamics.

Financial highlights

• Q3 2025 revenues rose 1.2% year-over-year to $89.3 million; earnings before taxes dropped 33.3% to $10.2 million.

• Net earnings for Q3 2025 were $7.8 million, down from $11.8 million in Q3 2024.

• Diluted EPS for Q3 2025 was $0.31, compared to $0.47 in Q3 2024; for the nine months, diluted EPS was $0.73, down from $1.05.

• Stockholders' equity increased to $365.4 million from $338.8 million at year-end 2024, and book value per share rose to $14.79 as of September 30, 2025.

• Net investment income for the nine months rose 7.4% year-over-year to $59.9 million.

Outlook and guidance

• Management expects improved sales and operational efficiencies to benefit future results, especially from recent talent investments.

• Continued focus on cost reduction, niche insurance products, cemetery/mortuary expansion, and leveraging the housing market for mortgage originations.

• Preparing for audit of internal controls and revamping Form 10-K due to LDTI adoption, which will cause significant adjustments to benefit reserves and deferred acquisition costs.

• Management remains confident in long-term profitability and financial health despite current headwinds.

• Adoption of new insurance accounting standards is expected to increase stockholders' equity by $4–6 million.