Revenue growth has decelerated to 0.4% year over year in Q3 2026 at $312.9M, while the combined ratio of 35.1% and net income of $158.9M reflect underwriting margins that remain far above typical mortgage insurance benchmarks despite a sequential rise in loss ratio to 15.1%.
Enact Holdings Inc. (ACT) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Revenue | 1.25B | 1.23B | 1.2B | 1.15B | 1.09B | 1.12B | 1.11B | 978.85M | 841.1M |
| Revenue Growth % | 2.35% | 2.37% | 4.18% | 5.37% | -2.26% | 1.24% | 13.04% | 16.38% | - |
| Medical Costs & Claims | 135.59M | 109.53M | 261.63M | 250.31M | 145.13M | 371.63M | 615.8M | 260.68M | 0 |
| Medical Cost Ratio % | 10.82% | 8.9% | 21.77% | 21.7% | 13.25% | 33.18% | 55.65% | 26.63% | 0% |
| Gross Profit | 1.12B | 1.12B | 940.31M | 903.38M | 949.75M | 748.55M | 490.66M | 718.17M | 841.1M |
| Gross Margin % | 89.18% | 91.1% | 78.23% | 78.3% | 86.75% | 66.82% | 44.35% | 73.37% | 100% |
| Gross Profit Growth % | - | 19.2% | 4.09% | -4.88% | 26.88% | 52.56% | -31.68% | -14.62% | - |
| Operating Expenses | 258.67M | 262.02M | 62.24M | 51.87M | 51.53M | 53.34M | 18.24M | 0 | 191.02M |
| OpEx / Revenue % | 20.63% | 21.3% | 5.18% | 4.5% | 4.71% | 4.76% | 1.65% | 0% | 22.71% |
| Depreciation & Amortization | 4.25M | 0 | 0 | 0 | 5.2M | 3.33M | 0 | 15.06M | 0 |
| Combined Ratio % | 31.45% | 30.2% | 26.95% | 26.19% | 17.96% | 37.94% | 57.3% | 26.63% | 22.71% |
| Operating Income | 859.47M | 858.84M | 878.06M | 851.51M | 898.22M | 695.22M | 472.42M | 718.17M | 613.67M |
| Operating Margin % | 68.55% | 69.8% | 73.05% | 73.81% | 82.04% | 62.06% | 42.7% | 73.37% | 72.96% |
| Operating Income Growth % | - | -2.19% | 3.12% | -5.2% | 29.2% | 47.16% | -34.22% | 17.03% | - |
| EBITDA | 901.03M | 908.79M | 929.22M | 903.38M | 903.42M | 698.54M | 490.66M | 733.24M | 613.67M |
| EBITDA Margin % | 71.87% | 73.86% | 77.31% | 78.3% | 82.51% | 62.36% | 44.35% | 74.91% | 72.96% |
| Interest Expense | 49.79M | 49.95M | 51.16M | 51.87M | 51.7M | 51.01M | 18.24M | 0 | 0 |
| Non-Operating Income | -49.79M | -49.95M | -51.16M | -51.87M | -51.7M | -51.01M | -18.24M | 0 | 227.43M |
| Pretax Income | 859.47M | 858.84M | 878.06M | 851.51M | 898.22M | 695.22M | 472.42M | 718.17M | 613.67M |
| Pretax Margin % | 68.55% | 69.8% | 73.05% | 73.81% | 82.04% | 62.06% | 42.7% | 73.37% | 72.96% |
| Income Tax | 180.79M | 184.59M | 189.99M | 186M | 194.06M | 148.53M | 102M | 155.83M | 129.81M |
| Effective Tax Rate % | 21.04% | 21.49% | 21.64% | 21.84% | 21.61% | 21.36% | 21.59% | 21.7% | 21.15% |
| Net Income | 678.68M | 674.24M | 688.07M | 665.51M | 704.16M | 546.68M | 370.42M | 677.63M | 483.86M |
| Net Margin % | 54.13% | 54.8% | 57.25% | 57.69% | 64.31% | 48.8% | 33.48% | 69.23% | 57.53% |
| Net Income Growth % | 2.86% | -2.01% | 3.39% | -5.49% | 28.8% | 47.58% | -45.34% | 40.05% | - |
| EPS (Diluted) | 4.91 | 4.52 | 4.37 | 4.11 | 4.31 | 3.36 | 2.27 | 3.45 | 2.97 |
| EPS Growth % | 10.6% | 3.43% | 6.33% | -4.64% | 28.27% | 48.02% | -34.2% | 16.16% | - |
| EPS (Basic) | - | 4.54 | 4.40 | 4.14 | 4.32 | 3.36 | 2.27 | 3.45 | 2.97 |
| Diluted Shares Outstanding | 138.29M | 149.32M | 157.55M | 161.85M | 163.29M | 162.88M | 162.84M | 162.84M | 162.84M |
Quick answers to the most common questions about buying ACT stock.
For fiscal year 2025, Enact Holdings Inc. (ACT) reported total revenue of $1.23B. This represents a 46.3% increase compared to $841.1M in 2018.
Enact Holdings Inc. (ACT) is profitable, generating $674.2M in net income for the fiscal year ending 2025 with a net profit margin of 54.8%.
Enact Holdings Inc. (ACT) reported an operating income of $858.8M, resulting in an operating profit margin of 69.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Enact Holdings Inc. (ACT) generated $1.12B in gross profit for the year, representing a gross profit margin of 91.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Earnings momentum softening
Metrics are mathematically derived from official filings.
Top Line Growth Decelerating to Low Single Digits
Based on ACT's reported figures, quarterly revenue grew just 0.4% year over year in Q3 2026 to $312.9M, down from 4.2% in Q2, suggesting premium growth is flattening as the insurance in force base matures.
The deceleration from mid-single-digit growth in early 2026 to near-zero in the latest quarter may indicate that new insurance written is not keeping pace with policy runoff, though persistency remains elevated. Investors should monitor whether this reflects a slowing housing transaction market or a deliberate pricing discipline in a competitive environment. Revenue quality appears durable given the recurring nature of premiums, but the growth trajectory itself is no longer a source of earnings support.
Underwriting Profitability Remains Exceptionally Wide
As reported in ACT's financial statements, the Q3 2026 combined ratio of 35.1% and operating income of $203.0M reflect an underwriting margin that remains far above typical mortgage insurance benchmarks despite a sequential rise in losses.
The loss ratio rose from 10.5% in Q2 to 15.1% in Q3, which may indicate early normalization of claims from a historically benign credit cycle rather than a single anomalous quarter. The expense base appears to be tightly controlled given the sustained high margin, though the combined ratio figures warrant verification against the reported definition used. Sustained margin compression toward the sector average would meaningfully reduce earnings power.
Reserve Releases Likely Flattering Recent Earnings
Based on ACT's reported figures, the unusually low Q4 2025 loss ratio of 5.7% compared with 28.5% in Q3 2025 suggests reserve adjustments may have materially inflated that quarter's net income.
The sharp swing in claims expense across adjacent quarters is consistent with reserve releases rather than a sustained improvement in loss experience, though the filings alone do not confirm the drivers. Underlying run-rate profitability should therefore be assessed on a multi-quarter average rather than on any single period. Investors should monitor future reserve development disclosures to determine whether earnings quality is being supported by estimate changes.
Investment Income Not Separately Disclosed
Investment income and yield data are unavailable in the supplied quarterly figures, so the contribution of portfolio earnings to ACT's $158.9M Q3 2026 net income cannot be quantified from this dataset.
Without reported investment income, it is not possible to assess how much of net income depends on float yield versus underwriting results. Data unavailable for this metric limits conclusions about rate sensitivity of the investment portfolio. Analysts should consult the full statutory filings to evaluate this contribution directly.
Earnings Momentum Shows Signs of Softening
According to recent SEC filings, Q3 2026 EPS of $1.15 missed the $1.18 consensus after a $1.25 beat in Q2, and the sequential decline in net income from $174.8M to $158.9M reinforces a potential moderation in earnings momentum.
A single quarter miss may reflect transient factors, but the combination of rising losses, flat revenue, and a shift toward more cautious guidance tone could indicate a broader turn in credit performance. Strong margins currently offset these pressures, yet the trend suggests the earnings base is less cushioned than the headline operating margin implies. Investors should monitor whether loss ratios continue to climb toward more normalized levels.