Cash conversion is robust, with OCF/NI averaging 1.15 over the last four quarters, and capital returns of $223.4M in Q2 2026 were well covered by operating cash flow of $197.1M, though partially funded by portfolio sales.
Essent Group Ltd. (ESNT) cash flow statement — 15-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 834.08M | 856.05M | 861.53M | 763M | 588.82M | 709.26M | 727.93M | 589.85M | 625.32M | 368.57M | 273.48M | 224.14M | 153.7M | 119.01M | 36.64M | -8.24M |
| Operating CF Growth % | -14.11% | -0.64% | 12.91% | 29.58% | -16.98% | -2.57% | 23.41% | -5.67% | 69.66% | 34.77% | 22.01% | 45.83% | 29.15% | 224.81% | 544.38% | - |
| Operating CF / Revenue % | 63.02% | 67.89% | 67.99% | 67.46% | 57.82% | 68.96% | 76.21% | 67.99% | 86.93% | 63.93% | 59.68% | 63.44% | 64.19% | 90.57% | 75.21% | -57.3% |
| Net Income | 680.71M | 689.97M | 729.4M | 696.39M | 831.35M | 681.78M | 413.04M | 555.71M | 467.36M | 379.75M | 222.61M | 157.33M | 88.5M | 65.41M | -13.54M | -33.55M |
| Depreciation & Amortization | 11.2M | 5.23M | 5.78M | 4.53M | 3.02M | 3.38M | 3.33M | 3.77M | 3.4M | 3.92M | 4.06M | 3.22M | 2.46M | 2.25M | 15.16M | 13.59M |
| Stock-Based Compensation | -2.25M | 20.85M | 24.78M | 18.45M | 18.38M | 20.84M | 18.46M | 16.59M | 15.07M | 18.69M | 16.88M | 13.63M | 12.52M | 3.6M | 1.93M | 1.21M |
| Deferred Taxes | -29.66M | 48.6M | 32.17M | -13.25M | 58.17M | 84.02M | 38.65M | 59.48M | 50.69M | -19.43M | 57.56M | 52.16M | 44.61M | -8.27M | -333K | -895K |
| Other Non-Cash Items | 105.99M | 10.48M | 29.05M | 40.66M | 16.95M | 2.67M | 22.19M | 13.36M | 13M | 10.02M | 7.47M | 5.03M | 4.16M | 3.12M | 1.8M | 1.2M |
| Working Capital Changes | 68.1M | 80.92M | 40.34M | 16.23M | -339.06M | -83.44M | 232.26M | -59.06M | 75.79M | -24.38M | -35.11M | -7.23M | 1.45M | 52.89M | 31.64M | 10.2M |
| Cash from Investing | -117.16M | -154.74M | -706.93M | -525.57M | -398.87M | -583.17M | -1.15B | -545.08M | -546.9M | -690.14M | -365.32M | -220.71M | -727.7M | -96.76M | -79.73M | -9.15M |
| Capital Expenditures | -8.19M | -7.36M | -6.77M | -4M | -3.98M | -2.5M | -2.45M | -3.41M | -4.05M | -2.78M | -3.16M | -4.96M | -3.89M | -2.67M | -2.7M | -1.27M |
| Acquisitions | 14.03M | 0 | -33.14M | -86.76M | -72.9M | 0 | 0 | -47.54M | -30.54M | 178.33M | 44.42M | -127.25M | 195.68M | -116K | 0 | 0 |
| Purchase of Investments | -1.05B | -1.12B | -1.65B | -1.12B | -1.38B | -2.34B | -2B | -1.21B | -1.13B | -1.01B | -703.12M | -798.89M | -895.93M | -147.08M | -141.48M | -165.86M |
| Sale/Maturity of Investments | 867.44M | 931.26M | 991.42M | 1.37B | 1.06B | 1.76B | 851.62M | 711.8M | 613.73M | 326.29M | 340.97M | 583.14M | 172.13M | 52.98M | 64.45M | 157.97M |
| Other Investing | 63.46M | 41.8M | -10M | -690.47M | 0 | 0 | 0 | 0 | 0 | -178.33M | -44.42M | 127.25M | -195.68M | 116K | 0 | 0 |
| Cash from Financing | -734.71M | -709.75M | -164.91M | -176.88M | -190.2M | -147.43M | 457.97M | -38.37M | -56.99M | 337.56M | 94.77M | -3.23M | 120.75M | 433.09M | 46.9M | 20.39M |
| Dividends Paid | -123.72M | -122.07M | -118.04M | -106.22M | -92.13M | -77.72M | -69.41M | -29.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -23.3M | -587.68M | -111.54M | -70.67M | -97.91M | -163.85M | -6.35M | -9.01M | -31.41M | -7.58M | -4.02M | -5.71M | -2.5M | -311K | -916K | -312K |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 439.96M | 0 | 0 | 197.83M | 0 | 0 | 126.44M | 438.4M | 54.5M | 24.77M |
| Debt Issuance (Net) | 0 | 0 | 1000K | 0 | 0 | 1000K | 1000K | 0 | -1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -587.68M | 0 | -8.49M | 0 | -154K | -5.85M | -6.23M | -15K | -580K | -2.69M | -1.21M | 1.94M | -3.19M | -5M | -6.68M | -4.07M |
| Net Change in Cash | -17.78M | -8.43M | -10.31M | 60.55M | -251K | -21.34M | 31.48M | 6.4M | 21.42M | 15.99M | 2.92M | 195K | -453.24M | 455.34M | 3.81M | 2.99M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 128.26M | 131.48M | 141.79M | 81.24M | 81.49M | 102.83M | 71.35M | 64.95M | 43.52M | 27.53M | 24.61M | 24.41M | 477.65M | 22.32M | 18.5M | 15.51M |
| Cash at End | 74.33M | 123.05M | 131.48M | 141.79M | 81.24M | 81.49M | 102.83M | 71.35M | 64.95M | 43.52M | 27.53M | 24.61M | 24.41M | 477.65M | 22.32M | 18.5M |
| Free Cash Flow | 825.89M | 848.69M | 854.77M | 759M | 584.84M | 706.76M | 725.49M | 586.44M | 621.27M | 365.79M | 270.31M | 219.18M | 149.81M | 116.34M | 33.94M | -9.51M |
| FCF Growth % | -3.38% | -0.71% | 12.62% | 29.78% | -17.25% | -2.58% | 23.71% | -5.61% | 69.84% | 35.32% | 23.33% | 46.3% | 28.77% | 242.79% | 456.85% | - |
| FCF Margin % | 62.4% | 67.31% | 67.46% | 67.1% | 57.43% | 68.72% | 75.95% | 67.6% | 86.36% | 63.45% | 58.99% | 62.04% | 62.56% | 88.54% | 69.67% | -66.1% |
| FCF per Share | 9.04 | 8.48 | 8.02 | 7.08 | 5.43 | 6.34 | 6.82 | 5.97 | 6.34 | 3.84 | 2.93 | 2.39 | 1.75 | 6.43 | 0.88 | -0.25 |
Quick answers to the most common questions about buying ESNT stock.
Essent Group Ltd. (ESNT) generated $856.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Essent Group Ltd. (ESNT) generated $848.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Essent Group Ltd. (ESNT) spent $7.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Essent Group Ltd. (ESNT) returned $122.1M to shareholders via cash dividends and spent $587.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Flat revenue growth and regulatory overhang
Metrics are mathematically derived from official filings.
Underwriting Cash Engine Remains Strong
Essent's underwriting cash generation remains robust, with OCF/NI averaging 1.15 over the last four quarters, as per recent SEC filings, indicating strong premium collection relative to claims paid.
Operating cash flow has consistently exceeded net income, with the exception of Q2 2025, suggesting that the company's premium collection cycle is efficient and that claims payments are well below premium inflows. The low claims/loss payments, averaging around $50M per quarter in 2026, reflect the favorable credit environment and the company's disciplined underwriting, which supports the sustainability of its cash generation.
Claims Payments Remain Subdued
Claims paid have been remarkably low, with Q2 2026 at $49.0M, as reported in financial statements, representing a small fraction of premiums, indicating strong credit performance and potential reserve releases.
The claims/loss line has been consistently low, with a notable negative figure in Q2 2024, which suggests that the company is experiencing favorable cure rates and low default rates. This trend, if sustained, may indicate that the company's loss reserves are conservative, potentially leading to future reserve releases that could further boost earnings. However, investors should monitor whether this low claims environment persists, as a deterioration in the housing market could reverse this trend.
Investment Portfolio Actively Managed
Investment portfolio activity shows active management, with purchases and sales nearly offsetting each other in Q2 2026, as per company filings, suggesting a strategy focused on yield optimization rather than net deployment.
The company's investment purchases and sales have been substantial, with net sales of $7.6M in Q2 2026, indicating that the portfolio is being actively managed to capture gains or rebalance. The relatively small net investment activity, combined with a modest cash balance of $123M, suggests that investment income is not a primary driver of cash flow, but the portfolio is being used to generate additional returns. This active management may indicate a focus on maximizing yield in a low-rate environment, though the impact on overall cash flow appears limited.
Capital Returns Well Covered by Cash
Dividends and buybacks totaled $223.4M in Q2 2026, as per recent SEC filings, exceeding operating cash flow of $197.1M, indicating that capital returns are partially funded by portfolio sales.
The company has been returning significant capital to shareholders, with buybacks ramping up notably in Q4 2025 and Q2 2026. While operating cash flow covers a large portion of these returns, the excess in Q2 2026 suggests that the company is also utilizing its investment portfolio or cash reserves to fund buybacks. This is a positive signal for shareholders, but investors should monitor whether the pace of buybacks is sustainable without compromising the company's fortress balance sheet, especially given the low debt-to-equity ratio.
Cash Conversion Reflects Earnings Quality
OCF/NI has been above 1.0 in most quarters, with a peak of 1.48 in Q4 2025, as per reported figures, indicating that reported earnings are well-supported by cash generation.
The consistent OCF/NI ratio above 1.0 suggests that earnings are not being inflated by non-cash accruals, such as reserve releases, which are a common feature in the insurance industry. The high conversion in Q4 2025 may reflect a one-time benefit from lower claims or favorable working capital changes, but the overall trend indicates strong earnings quality. This is reassuring for investors, as it suggests that the company's profitability is backed by actual cash inflows, rather than accounting adjustments.
What Could Invalidate the Base Case
The cash flow statement obscures potential risks from reinsurance recoverables and catastrophe reserves, as per company filings, which could impact cash flows if credit events occur.
While the cash flow data shows strong underwriting cash generation, it does not fully reveal the company's exposure to reinsurance counterparty credit risk or the adequacy of its catastrophe reserves. If a major credit event were to occur, the company might face higher claims payments than currently reflected, and reinsurance recoverables could become difficult to collect, straining cash flows. Additionally, the flat revenue growth and regulatory overhang from potential FHFA adjustments could pressure future premium inflows, making it harder to sustain the current level of capital returns.