Company: TIPT
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393726-25-000055
Chunk: 74

Company: TIPTREE INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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2025 was $0.4 million, compared to the adjusted net income of $0.7 million in 2024, with the decrease driven by increased other expenses, and lower interest income on cash and cash equivalents and U.S. Treasury securities recorded in other income.

61

Corporate

The following table presents a summary of corporate results for the following periods:

Results of Operations

($ in thousands)Three Months EndedMarch 31,20252024Employee compensation and benefits$2,163 $1,796 Employee incentive compensation expense7,068 6,594 Interest expense1,172 — Depreciation and amortization357 360 Other expenses1,918 2,108 Total expenses$12,678 $10,858 

Corporate expenses include expenses of the holding company for employee compensation and benefits, interest expense, and public company and other expenses. Corporate employee compensation and benefits includes the expense of management, legal and accounting staff. Other expenses primarily consisted of audit and professional fees, insurance, office rent and other related expenses.

Employee compensation and benefits, including incentive compensation expense, were $9.2 million for the three months ended March 31, 2025, compared to $8.4 million for the prior year period, driven by an increase in accrued incentive compensation expense. Of the incentive compensation expense in the three months ended March 31, 2025, $6.9 million was stock-based compensation expense, compared to $3.1 million in 2024. The interest expense was $1.2 million as of March 31, 2025. As of March 31, 2025 the outstanding borrowing on the facility was $74.8 million compared to no outstanding borrowings in 2024. Other expenses declined to $1.9 million driven primarily by decreased professional fees.

Provision for Income Taxes

The total income tax expense of $12.4 million and $13.8 million for the three months ended March 31, 2025 and 2024, respectively, is reflected as a component of net income (loss). For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was equal to 48.8% and 46.5%, respectively, with both significantly higher than the U.S. statutory income tax rate of 21.0%, primarily due to the impact of outside basis deferred taxes on Tiptree’s investment in Fortegra.

On April 15