Revenue growth has been flat, with Q2 2026 up 11.2% YoY but decelerating, while the combined ratio improved to 36.5% from 42.5% in Q4 2024, indicating exceptional underwriting profitability.
Essent Group Ltd. (ESNT) annual income statement — 15-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 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Revenue | 1.32B | 1.26B | 1.27B | 1.13B | 1.02B | 1.03B | 955.15M | 867.57M | 719.35M | 576.51M | 458.26M | 353.29M | 239.47M | 131.4M | 48.72M | 14.39M |
| Revenue Growth % | 1.34% | -0.49% | 12.03% | 11.07% | -0.99% | 7.68% | 10.1% | 20.6% | 24.78% | 25.8% | 29.71% | 47.53% | 82.24% | 169.73% | 238.59% | - |
| Medical Costs & Claims | 198.17M | 149.34M | 81.22M | 31.54M | -174.7M | 31.06M | 301.29M | 32.99M | 11.57M | 27.23M | 0 | 0 | 6.31M | 2.32M | 0 | 0 |
| Medical Cost Ratio % | 14.97% | 11.84% | 6.41% | 2.79% | -17.16% | 3.02% | 31.54% | 3.8% | 1.61% | 4.72% | 0% | 0% | 2.63% | 1.77% | 0% | 0% |
| Gross Profit | 1.13B | 1.11B | 1.19B | 1.1B | 1.19B | 997.45M | 653.86M | 834.58M | 707.78M | 549.28M | 458.26M | 353.29M | 233.16M | 129.08M | 48.72M | 14.39M |
| Gross Margin % | 85.03% | 88.16% | 93.59% | 97.21% | 117.16% | 96.98% | 68.46% | 96.2% | 98.39% | 95.28% | 100% | 100% | 97.37% | 98.23% | 100% | 100% |
| Gross Profit Growth % | - | -6.27% | 7.86% | -7.84% | 19.61% | 52.55% | -21.65% | 17.92% | 28.86% | 19.86% | 29.71% | 51.52% | 80.63% | 164.97% | 238.59% | - |
| Operating Expenses | 304.54M | 289.74M | 330.44M | 276.54M | 204.85M | 175.14M | 163.76M | 175.52M | 161.08M | 150.71M | 146.38M | 124.89M | 97.23M | 71.06M | 62.59M | 48.84M |
| OpEx / Revenue % | 23.01% | 22.98% | 26.08% | 24.45% | 20.12% | 17.03% | 17.15% | 20.23% | 22.39% | 26.14% | 31.94% | 35.35% | 40.6% | 54.07% | 128.48% | 339.44% |
| Depreciation & Amortization | 3.75M | 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 |
| Combined Ratio % | 37.98% | 34.82% | 32.49% | 27.24% | 2.96% | 20.05% | 48.69% | 24.03% | 24% | 30.87% | 31.94% | 35.35% | 43.24% | 55.84% | 128.48% | 339.44% |
| Operating Income | 820.73M | 821.86M | 855.49M | 823M | 988.19M | 822.31M | 490.1M | 659.06M | 546.7M | 398.57M | 311.88M | 228.4M | 135.93M | 58.03M | -13.88M | -34.45M |
| Operating Margin % | 62.02% | 65.18% | 67.51% | 72.76% | 97.04% | 79.95% | 51.31% | 75.97% | 76% | 69.13% | 68.06% | 64.65% | 56.76% | 44.16% | -28.48% | -239.44% |
| Operating Income Growth % | - | -3.93% | 3.95% | -16.72% | 20.17% | 67.79% | -25.64% | 20.55% | 37.17% | 27.79% | 36.55% | 68.03% | 134.25% | 518.18% | 59.72% | - |
| EBITDA | 832.63M | 827.1M | 861.27M | 827.52M | 991.21M | 825.69M | 493.42M | 662.83M | 550.1M | 402.49M | 315.95M | 231.62M | 138.39M | 60.28M | 1.28M | -20.86M |
| EBITDA Margin % | 62.91% | 65.59% | 67.97% | 73.16% | 97.34% | 80.28% | 51.66% | 76.4% | 76.47% | 69.81% | 68.95% | 65.56% | 57.79% | 45.87% | 2.63% | -144.97% |
| Interest Expense | 32.7M | 32.7M | 35.32M | 30.14M | 15.61M | 8.28M | 9.07M | 10.15M | 10.18M | 5.18M | 426K | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -32.7M | -32.7M | -35.32M | -30.14M | -15.61M | -8.28M | -9.07M | -10.15M | -10.18M | -5.18M | -426K | 0 | 0 | 0 | 1.28M | -20.86M |
| Pretax Income | 820.73M | 821.86M | 855.49M | 823M | 988.19M | 822.31M | 490.1M | 659.06M | 546.7M | 398.57M | 311.88M | 228.4M | 135.93M | 58.03M | -13.88M | -34.45M |
| Pretax Margin % | 62.02% | 65.18% | 67.51% | 72.76% | 97.04% | 79.95% | 51.31% | 75.97% | 76% | 69.13% | 68.06% | 64.65% | 56.76% | 44.16% | -28.48% | -239.44% |
| Income Tax | 140.02M | 131.89M | 126.09M | 126.61M | 156.83M | 140.53M | 77.06M | 103.35M | 79.34M | 18.82M | 89.28M | 71.07M | 47.43M | -7.39M | -333K | -895K |
| Effective Tax Rate % | 17.06% | 16.05% | 14.74% | 15.38% | 15.87% | 17.09% | 15.72% | 15.68% | 14.51% | 4.72% | 28.62% | 31.12% | 34.89% | -12.73% | 2.4% | 2.6% |
| 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 |
| Net Margin % | 51.43% | 54.72% | 57.56% | 61.57% | 81.64% | 66.29% | 43.24% | 64.05% | 64.97% | 65.87% | 48.58% | 44.53% | 36.96% | 49.78% | -27.8% | -233.22% |
| Net Income Growth % | -4.78% | -5.41% | 4.74% | -16.23% | 21.94% | 65.06% | -25.67% | 18.9% | 23.07% | 70.59% | 41.49% | 77.78% | 35.29% | 583% | 59.64% | - |
| EPS (Diluted) | 7.45 | 6.90 | 6.85 | 6.50 | 7.72 | 6.11 | 3.88 | 5.66 | 4.77 | 3.99 | 2.41 | 1.72 | 1.03 | 0.70 | -0.35 | -0.87 |
| EPS Growth % | 4.67% | 0.73% | 5.38% | -15.8% | 26.35% | 57.47% | -31.45% | 18.66% | 19.55% | 65.56% | 40.12% | 66.99% | 47.14% | 300% | 59.77% | - |
| EPS (Basic) | - | 6.97 | 6.92 | 6.56 | 7.75 | 6.13 | 3.89 | 5.68 | 4.80 | 4.07 | 2.45 | 1.74 | 1.05 | 0.90 | -0.35 | -0.87 |
| Diluted Shares Outstanding | 91.39M | 100.02M | 106.55M | 107.13M | 107.65M | 111.56M | 106.38M | 98.23M | 97.97M | 95.21M | 92.25M | 91.74M | 85.6M | 18.1M | 38.45M | 38.45M |
Quick answers to the most common questions about buying ESNT stock.
For fiscal year 2025, Essent Group Ltd. (ESNT) reported total revenue of $1.26B. This represents a 8663.8% increase compared to $14.4M in 2011.
Essent Group Ltd. (ESNT) is profitable, generating $690.0M in net income for the fiscal year ending 2025 with a net profit margin of 54.7%.
Essent Group Ltd. (ESNT) reported an operating income of $821.9M, resulting in an operating profit margin of 65.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Essent Group Ltd. (ESNT) generated $1.11B in gross profit for the year, representing a gross profit margin of 88.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Flat revenue growth and regulatory overhang
Metrics are mathematically derived from official filings.
Flat Top-Line, Resilient Persistency
Revenue growth has been flat, with Q2 2026 up 11.2% YoY but overall trend decelerating, as per recent SEC filings, reflecting high mortgage rates suppressing new originations.
The 11.2% YoY revenue growth in Q2 2026 is a rebound from the -7.9% contraction in Q4 2025, but the overall trajectory remains choppy. The flat revenue growth (-0.5% YoY) suggests that the company is relying on persistency of its existing book rather than new volume. This is consistent with a high-rate environment where refinancing is low, but new originations are also weak. Investors should monitor whether the company can reaccelerate growth without loosening underwriting standards.
Underwriting Discipline Drives Margins
Combined ratio improved to 36.5% in Q2 2026 from 42.5% in Q4 2024, as reported in financial statements, indicating exceptional underwriting profitability and strong credit performance.
The combined ratio of 36.5% in Q2 2026 is exceptionally low, reflecting a loss ratio of 13.5% and an expense ratio of 23.0%. This is a testament to the company's underwriting discipline and the high credit quality of its book. The loss ratio has been volatile, ranging from -0.1% to 17.9% over the past ten quarters, but the overall trend is favorable. The strong margins are supported by a stable employment environment and high home equity, which reduce claim frequency. However, the sustainability of these margins depends on the macroeconomic environment and the company's ability to maintain its underwriting standards.
Reserve Releases Bolster Earnings
Reserve releases appear to be a significant earnings driver, as evidenced by the negative loss ratio in Q2 2024, based on reported figures, suggesting prior-year estimates were conservative.
The negative loss ratio of -0.1% in Q2 2024 indicates that the company released reserves from prior years, which inflated earnings. This is a common phenomenon in mortgage insurance when delinquent loans cure faster than expected. While reserve releases are a legitimate source of earnings, they are not sustainable in the long term. Analysts should adjust for these releases to assess the underlying run-rate profitability. The company's loss triangle data would provide more insight into the quality of its reserve estimates, but this is not disclosed in the provided data.
Investment Income Not a Major Driver
Investment income data is unavailable, but with only $123M in cash, its contribution to earnings appears minimal, as per company filings, making underwriting the primary profit source.
The investment income line is not reported in the provided data, and the company's cash position is relatively small at $123M. This suggests that investment income is not a significant contributor to overall profitability. The company's earnings are almost entirely driven by underwriting performance, which is reflected in the high net margin of 54.72%. This makes the company more sensitive to credit cycles than to interest rate movements. However, the investment portfolio may be larger than the cash balance, and its yield could become more important if the company accumulates more capital.
Efficiency Gains Offset Flat Revenue
Expense ratio has been stable around 23%, as per financial statements, indicating that the company is achieving operating leverage despite flat revenue growth, supporting strong net margins.
The expense ratio, derived from the combined ratio minus the loss ratio, has remained relatively stable at around 23% over the past ten quarters. This suggests that the company is effectively managing its fixed costs, which is crucial in a low-growth environment. The operating margin of 63.5% in Q2 2026 is among the highest in the peer group, reflecting the company's scale and efficiency. The company's investment in technology, such as the EssentEDGE platform, may be contributing to these efficiencies, but the data does not provide direct evidence of this.
Earnings Quality Under Scrutiny
The strong EPS beat in Q2 2026 may be driven by reserve releases and expense discipline rather than core growth, as per reported figures, raising questions about sustainability.
The Q2 2026 EPS of $2.08 significantly beat consensus, but revenue growth was only 11.2% YoY, and the overall trend is flat. This suggests that the earnings beat is not driven by top-line expansion but by credit performance and cost control. Reserve releases, which are a non-cash accounting gain, may have contributed to the beat. Additionally, the company's expansion into title insurance introduces a lower-margin business that could dilute its overall profitability. Investors should monitor whether the company can maintain its underwriting discipline while diversifying its revenue streams. The potential FHFA adjustments to GSE pricing could also narrow the competitive window for private mortgage insurance, posing a risk to future growth.