Tiptree Announces Third Quarter 2025 Results and Sale of Reliance First Capital

GREENWICH, Conn.--( BUSINESS WIRE)--Tiptree Inc. (NASDAQ:TIPT) (“Tiptree” or the “Company”), today announced its financial results for the three and nine months ended September 30, 2025.

Third Quarter 2025 Highlights

($ in thousands, except per share information)

Three Months Ended

September 30,

Nine Months Ended

September 30,

GAAP:

2025

2024

2025

2024

Total revenues

540,302

494,362

1,566,478

1,539,256

Net income (loss) attributable to common stockholders

6,421

11,915

31,016

33,816

Diluted earnings per share

0.13

0.29

0.68

0.83

Cash dividends paid per common share

0.06

0.18

Return on average equity

5.1

10.6

8.6

10.3

Non-GAAP: (1)

Adjusted net income

28,764

27,872

79,223

72,827

Adjusted return on average equity

22.9

24.8

21.9

22.1

(1) See “—Non-GAAP Reconciliations” for a discussion of non-GAAP financial measures. Adjusted net income is presented after the impacts of non-controlling interests.

Third Quarter 2025 Financial Highlights

Non-GAAP

Management uses Adjusted net income and Adjusted return on average equity as measurements of operating performance. Management believes these measures provide supplemental information useful to investors as they are frequently used by the financial community to analyze financial performance and comparison among companies. Management uses Adjusted net income and Adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. Adjusted net income represents income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, stock-based compensation, net realized and unrealized gains (losses), and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. Adjusted net income and Adjusted return on average equity are presented before the impacts of non-controlling interests. Adjusted net income and Adjusted return on average equity are not measurements of financial performance or liquidity under GAAP and should not be considered as an alternative or substitute for GAAP net income. See “Non-GAAP Reconciliations” for a reconciliation of these measures to their GAAP equivalents.

About Tiptree

Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, Tiptree has a significant track record investing across a variety of industries and asset types, including the insurance, asset management, specialty finance, real estate and shipping sectors. With proprietary access and a flexible capital base, Tiptree seeks to uncover compelling investment opportunities and support management teams in unlocking the full value potential of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.

Forward-Looking Statements

This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “should,” “target,” “will,” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations for our businesses and intentions. In addition, we make certain forward-looking statements regarding the Company’s plans to take Fortegra public. Any initial public offering by Fortegra would be subject to a variety of factors, including market conditions, and may not be consummated. The forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to those described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, and as described in the Company’s other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this release. The factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could affect our forward-looking statements. Consequently, our actual performance could be materially different from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.

Tiptree Inc.

Condensed Consolidated Balance Sheets (Unaudited)

($ in thousands, except share data)

As of

September 30,

2025

December 31,

2024

Assets:

Investments:

Available for sale securities, at fair value, net of allowance for credit losses

1,305,403

1,107,929

Loans, at fair value

90,422

81,330

Equity securities

171,673

108,620

Other investments

53,501

53,084

Total investments

1,620,999

1,350,963

Cash and cash equivalents

366,087

320,067

Restricted cash

113,473

96,197

Notes and accounts receivable, net

813,622

799,131

Reinsurance recoverable

1,345,662

992,883

Prepaid reinsurance premiums

1,100,965

1,046,253

Deferred acquisition costs

572,790

565,872

Goodwill

207,802

206,706

Intangible assets, net

93,672

102,859

Other assets

181,197

213,858

Total assets

6,416,269

5,694,789

Liabilities and Stockholders’ Equity

Liabilities:

Debt, net

507,560

427,089

Unearned premiums

1,920,104

1,766,068

Policy liabilities and unpaid claims

1,615,702

1,298,081

Deferred revenue

654,504

695,772

Reinsurance payable

470,505

443,083

Other liabilities and accrued expenses

506,476

407,925

Total liabilities

5,674,851

5,038,018

Stockholders’ Equity:

Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued or outstanding

—

Common stock: $0.001 par value, 200,000,000 shares authorized, 37,820,120 and 37,255,838 shares issued and outstanding, respectively"

Additional paid-in capital

392,947

389,693

Accumulated other comprehensive income (loss), net of tax

(7,756

)

(27,750

)

Retained earnings

119,945

95,718

Total Tiptree Inc. stockholders’ equity

505,174

457,698

Non-controlling interests:

Fortegra preferred interests

77,679

Common interests

158,565

121,394

Total non-controlling interests

236,244

199,073

Total stockholders’ equity

741,418

656,771

Total liabilities and stockholders’ equity

6,416,269

5,694,789

Tiptree Inc.

Condensed Consolidated Statements of Operations (Unaudited)

($ in thousands, except share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues:

Earned premiums, net

383,881

359,496

1,129,259

1,105,273

Service and administrative fees

95,821

95,362

289,966

311,696

Ceding commissions

3,483

3,716

10,658

11,525

Net investment income

7,397

9,111

29,631

22,250

Net realized and unrealized gains (losses)

34,879

8,316

62,354

36,518

Other revenue

14,841

18,361

44,610

51,994

Total revenues

540,302

494,362

1,566,478

1,539,256

Expenses:

Policy and contract benefits

217,330

203,442

653,115

645,081

Commission expense

144,919

154,005

437,005

484,232

Employee compensation and benefits

62,094

52,335

171,701

151,438

Interest expense

10,690

7,614

31,912

23,919

Depreciation and amortization

5,259

5,395

15,064

16,254

Other expenses

61,734

34,790

141,343

111,206

Total expenses

502,026

457,581

1,450,140

1,432,130

Income (loss) before taxes

38,276

36,781

116,338

107,126

Less: provision (benefit) for income taxes

22,666

16,308

56,656

48,799

Net income (loss)

15,610

20,473

59,682

58,327

Less: net income (loss) attributable to non-controlling interests

9,189

8,558

28,666

24,511

Net income (loss) attributable to common stockholders

6,421

11,915

31,016

33,816

Net income (loss) per common share:

Basic earnings per share

0.17

0.32

0.82

0.91

Diluted earnings per share

0.13

0.29

0.68

0.83

Weighted average number of common shares:

Basic

37,565,019

36,789,571

37,470,832

36,781,408

Diluted

38,583,747

37,818,491

38,550,969

37,784,637

Dividends declared per common share

0.06

0.18

Tiptree Inc.

Non-GAAP Financial Measures — Adjusted net income and Adjusted return on average equity (Unaudited)

Adjusted net income is defined as income before taxes, less provision (benefit) for income taxes, and excluding the after-tax impact of various expenses that we consider to be unique and non-recurring in nature, including merger and acquisition related expenses, stock-based compensation, net realized and unrealized gains (losses) and intangibles amortization associated with purchase accounting, all of which is reduced for non-controlling interests. The calculation of adjusted net income excludes net realized and unrealized gains (losses) that relate to investments or assets rather than business operations. Adjusted net income is presented before the impacts of non-controlling interests. Adjusted return on average equity represents adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Management uses Adjusted net income and adjusted return on average equity as part of its capital allocation process and to assess comparative returns on invested capital. We believe adjusted net income provides additional clarity on the results of the Company’s underlying business operations as a whole for the periods presented by excluding distortions created by the unpredictability and volatility of realized and unrealized gains (losses). We also believe adjusted net income provides useful supplemental information to investors as it is frequently used by the financial community to analyze financial performance between periods and for comparison among companies.

Three Months Ended September 30, 2025

($ in thousands)

Tiptree Capital

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

55,223

202

1,366

(18,515

)

38,276

Less: Income tax (benefit) expense

(18,378

)

(314

)

(313

)

(3,661

)

(22,666

)

Less: Net realized and unrealized gains (losses) (1)

(24,761

)

530

(275

)

—

(24,506

)

Plus: Intangibles amortization (2)

3,362

—

3,362

Plus: Stock-based compensation expense

4,133

—

1,494

5,627

Plus: Non-recurring expenses (3)

9,417

—

3,084

12,501

Plus: Non-cash fair value adjustments (4)

16,967

—

16,967

Plus: Impact of tax deconsolidation of Fortegra (5)

—

5,943

Less: Tax on adjustments (6)

3,580

138

(52

)

3,736

Adjusted net income (before NCI)

49,543

556

848

(11,707

)

39,240

Less: Impact of non-controlling interests

(10,476

)

—

(10,476

)

Adjusted net income

39,067

556

848

(11,707

)

28,764

Adjusted net income (before NCI)

49,543

556

848

(11,707

)

39,240

Average stockholders’ equity

753,591

55,931

75,031

(152,159

)

732,394

Adjusted return on average equity (7)

26.3

4.0

4.5

NM%

21.4

Three Months Ended September 30, 2024

($ in thousands)

Tiptree Capital

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

47,209

(89

)

(2,603

)

(7,736

)

36,781

Less: Income tax (benefit) expense

(12,114

)

104

(4,330

)

(16,308

)

Less: Net realized and unrealized gains (losses) (1)

(2,218

)

1,877

2,764

—

2,423

Plus: Intangibles amortization (2)

3,859

—

3,859

Plus: Stock-based compensation expense

4,195

—

1,762

5,957

Plus: Non-recurring expenses (3)

119

—

119

Plus: Non-cash fair value adjustments (4)

946

—

946

Plus: Impact of tax deconsolidation of Fortegra (5)

—

5,907

Less: Tax on adjustments (6)

(1,954

)

(461

)

(223

)

(860

)

(3,498

)

Adjusted net income (before NCI)

40,042

1,359

(5,257

)

36,186

Less: Impact of non-controlling interests

(8,314

)

—

(8,314

)

Adjusted net income

31,728

1,359

(5,257

)

27,872

Adjusted net income (before NCI)

40,042

1,359

(5,257

)

36,186

Average stockholders’ equity

577,776

53,272

59,943

(53,856

)

637,135

Adjusted return on average equity (7)

27.7

10.2

0.3

NM%

22.7

Nine Months Ended September 30, 2025

($ in thousands)

Tiptree Capital

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

160,421

230

(1,755

)

(42,558

)

116,338

Less: Income tax (benefit) expense

(43,862

)

(283

)

(642

)

(11,869

)

(56,656

)

Less: Net realized and unrealized gains (losses) (1)

(33,310

)

1,327

441

—

(31,542

)

Plus: Intangibles amortization (2)

10,047

—

10,047

Plus: Stock-based compensation expense

7,231

—

5,253

12,484

Plus: Non-recurring expenses (3)

13,623

—

1,350

3,084

18,057

Plus: Non-cash fair value adjustments (4)

17,560

—

17,560

Plus: Impact of tax deconsolidation of Fortegra (5)

—

18,603

Less: Tax on adjustments (6)

3,480

(91

)

598

(1,259

)

2,728

Adjusted net income (before NCI)

135,190

1,183

)

(28,746

)

107,619

Less: Impact of non-controlling interests

(28,396

)

—

(28,396

)

Adjusted net income

106,794

1,183

)

(28,746

)

79,223

Adjusted net income (before NCI)

135,190

1,183

)

(28,746

)

107,619

Average stockholders’ equity

700,867

55,901

52,401

(110,074

)

699,095

Adjusted return on average equity (7)

25.7

2.8

(0.0

NM%

20.5

Nine Months Ended September 30, 2024

($ in thousands)

Tiptree Capital

Insurance

Mortgage

Other

Corporate

Total

Income (loss) before taxes

135,270

1,192

602

(29,938

)

107,126

Less: Income tax (benefit) expense

(35,604

)

(244

)

(704

)

(12,247

)

(48,799

)

Less: Net realized and unrealized gains (losses) (1)

(7,582

)

428

726

—

(6,428

)

Plus: Intangibles amortization (2)

11,557

—

11,557

Plus: Stock-based compensation expense

5,999

—

7,190

13,189

Plus: Non-recurring expenses (3)

3,455

—

3,455

Plus: Non-cash fair value adjustments (4)

6,018

—

6,018

Plus: Impact of tax deconsolidation of Fortegra (5)

—

16,729

Less: Tax on adjustments (6)

(4,622

)

(145

)

246

(1,752

)

(6,273

)

Adjusted net income (before NCI)

114,491

1,231

870

(20,018

)

96,574

Less: Impact of non-controlling interests

(23,747

)

—

(23,747

)

Adjusted net income

90,744

1,231

870

(20,018

)

72,827

Adjusted net income (before NCI)

114,491

1,231

870

(20,018

)

96,574

Average stockholders’ equity

529,486

52,771

91,263

(57,137

)

616,383

Adjusted return on average equity (7)

28.8

3.1

1.3

NM%

20.9

Notes

(1)

Net realized and unrealized gains (losses) added back in Adjusted net income excludes net realized and unrealized gains (losses) from the mortgage segment and unrealized gains (losses) on mortgage servicing rights.

(2)

Specifically associated with acquisition purchase accounting. See Note (7) Goodwill and Intangible Assets, net, of the Company’s Form 10-Q for the period ended September 30, 2025.

(3)

For the three and nine months ended September 30, 2025 and 2024 , included in other expenses were expenses related to legal, banker, and other expenses including expenses associated with preparation of the registration statement for the withdrawn Fortegra initial public offering in 2024, and $5.7 million of the incentive fee related to realized and unrealized gains on equities and alternatives securities in 2025 periods.

(4)

For the three and nine months ended September 30, 2025 and 2024, non-cash fair-value adjustments represent a change in fair value of the Fortegra Additional Warrant liability.

(5)

For the three and nine months ended September 30, 2025 and 2024, included in the adjustment is an add-back of $5.9 million and $18.6 million, respectively, and $5.9 million and $16.7 million, related to deferred tax expense from the WP Transaction.

(6)

Tax on adjustments represents the tax applied to the total non-GAAP adjustments and includes adjustments for non-recurring or discrete tax impacts.

(7)

Total Adjusted return on average equity after non-controlling interests was 22.9% and 24.8% for the three months ended September 30, 2025 and 2024, respectively, based on $28.8 million and $27.9 million of Adjusted net income over $502.6 million and $449.2 million of average Tiptree Inc. stockholders’ equity. Total Adjusted return on average equity after non-controlling interests was 21.9% and 22.1% for the nine months ended September 30, 2025 and 2024, respectively, based on $79.2 million and $72.8 million of Adjusted net income over $481.5 million and $439.4 million of average Tiptree Inc. stockholders’ equity.