Revenue has been flat, with 2026Q2 down 2.9% YoY, but underwriting margins are at cyclical peaks, as the combined ratio of 19.1% and loss ratio of 4.2% in 2026Q2 indicate exceptional profitability.
MGIC Investment Corporation (MTG) annual income statement — 30-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 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 1.2B | 1.21B | 1.21B | 1.16B | 1.17B | 1.19B | 1.2B | 1.21B | 1.12B | 1.07B | 1.06B | 1.04B | 942.63M | 1.04B | 1.38B | 1.5B | 1.52B | 1.71B | 1.72B | 1.69B | 1.47B | 1.53B | 1.61B | 1.69B | 1.48B | 1.31B | 1.09B | 996.75M | 971.67M | 868.3M | 745.6M |
| Revenue Growth % | -1.88% | 0.49% | 4.56% | -1.51% | -1.09% | -1.12% | -1.22% | 8.02% | 5.42% | 0.34% | 2.04% | 10.47% | -9.31% | -24.59% | -8.37% | -1.07% | -11% | -0.76% | 1.67% | 15.25% | -3.76% | -5.34% | -4.31% | 13.53% | 12.94% | 20.76% | 9.2% | 2.58% | 11.9% | 16.46% | 20.67% |
| Medical Costs & Claims | 90.73M | 61.91M | -5.9M | -10.04M | -242.2M | 77.18M | 377.15M | 130.58M | 48.49M | 64.82M | 249.8M | 328.58M | 478.99M | 824.05M | 2.01B | 1.68B | 1.56B | 3.41B | 3.83B | 3.89B | 904.49M | 828.95M | 979.78M | 1.07B | 631.38M | 395.31M | 292.78M | 295.34M | 401.38M | 399.56M | 380.83M |
| Medical Cost Ratio % | 7.59% | 5.1% | -0.49% | -0.87% | -20.65% | 6.51% | 31.45% | 10.76% | 4.31% | 6.08% | 23.51% | 31.56% | 50.81% | 79.28% | 146.09% | 111.51% | 102.81% | 199.34% | 222.46% | 229.5% | 61.56% | 54.3% | 60.75% | 63.4% | 42.53% | 30.07% | 26.9% | 29.63% | 41.31% | 46.02% | 51.08% |
| Gross Profit | 1.1B | 1.15B | 1.21B | 1.17B | 1.41B | 1.11B | 821.99M | 1.08B | 1.08B | 1B | 812.68M | 712.7M | 463.65M | 215.39M | -635.3M | -173.16M | -42.73M | -1.7B | -2.11B | -2.19B | 564.68M | 697.58M | 632.91M | 616.91M | 853.18M | 919.15M | 795.7M | 701.41M | 570.28M | 468.74M | 364.77M |
| Gross Margin % | 92.41% | 94.9% | 100.49% | 100.87% | 120.65% | 93.49% | 68.55% | 89.24% | 95.69% | 93.92% | 76.49% | 68.44% | 49.19% | 20.72% | -46.09% | -11.51% | -2.81% | -99.34% | -122.46% | -129.5% | 38.44% | 45.7% | 39.25% | 36.6% | 57.47% | 69.93% | 73.1% | 70.37% | 58.69% | 53.98% | 48.92% |
| Gross Profit Growth % | - | -5.1% | 4.16% | -17.66% | 27.65% | 34.85% | -24.13% | 0.75% | 7.4% | 23.2% | 14.03% | 53.72% | 115.26% | 133.9% | -266.89% | -305.23% | 97.48% | 19.49% | 3.85% | -488.31% | -19.05% | 10.22% | 2.59% | -27.69% | -7.18% | 15.51% | 13.44% | 22.99% | 21.66% | 28.51% | -40.97% |
| Operating Expenses | 203.8M | 223.24M | 244.93M | 262.91M | 324.95M | 306.72M | 262.73M | 235.42M | 231.2M | 216.74M | 297.97M | 225.02M | 208.93M | 261.54M | 293.34M | 311.14M | 316.67M | 67.73M | -1.16B | 41.99M | 39.35M | 41.09M | 41.13M | 41.11M | 36.78M | 30.62M | 28.76M | 20.4M | 15.7M | -393.16M | -377.03M |
| OpEx / Revenue % | 17.05% | 18.39% | 20.28% | 22.76% | 27.71% | 25.87% | 21.91% | 19.39% | 20.57% | 20.33% | 28.04% | 21.61% | 22.16% | 25.16% | 21.28% | 20.68% | 20.83% | 3.96% | -67.42% | 2.48% | 2.68% | 2.69% | 2.55% | 2.44% | 2.48% | 2.33% | 2.64% | 2.05% | 1.62% | -45.28% | -50.57% |
| Depreciation & Amortization | 3.51M | 6.95M | 18.44M | 35.23M | 54.25M | 66.01M | 57.81M | 48.78M | 58.22M | 64.43M | 61.34M | 52.56M | 48.86M | 69.2M | 100.14M | 84.83M | 60.88M | 60.35M | 33.69M | 25.18M | 22.32M | 39.32M | 47.65M | 50.68M | 38.15M | 30.51M | 6.86M | 11.75M | 7.74M | 29.6M | 35.7M |
| Combined Ratio % | 24.63% | 23.49% | 19.79% | 21.89% | 7.06% | 32.38% | 53.36% | 30.15% | 24.89% | 26.41% | 51.56% | 53.17% | 72.98% | 104.44% | 167.37% | 132.19% | 123.64% | 203.31% | 155.05% | 231.98% | 64.24% | 56.99% | 63.31% | 65.84% | 45.01% | 32.4% | 29.54% | 31.68% | 42.92% | 0.74% | 0.51% |
| Operating Income | 901.1M | 928.54M | 968.71M | 902.23M | 1.09B | 801.78M | 559.26M | 847.98M | 844.15M | 784.5M | 514.71M | 487.69M | 254.72M | -46.15M | -928.64M | -484.3M | -359.4M | -1.77B | -947.64M | -2.23B | 525.33M | 656.49M | 591.78M | 575.8M | 816.4M | 888.53M | 766.94M | 681.01M | 554.59M | 861.9M | 741.8M |
| Operating Margin % | 75.37% | 76.51% | 80.21% | 78.11% | 92.94% | 67.62% | 46.64% | 69.85% | 75.11% | 73.59% | 48.44% | 46.83% | 27.02% | -4.44% | -67.37% | -32.19% | -23.64% | -103.31% | -55.05% | -131.98% | 35.76% | 43.01% | 36.69% | 34.16% | 54.99% | 67.6% | 70.46% | 68.32% | 57.08% | 99.26% | 99.49% |
| Operating Income Growth % | - | -4.15% | 7.37% | -17.23% | 35.95% | 43.36% | -34.05% | 0.45% | 7.6% | 52.41% | 5.54% | 91.46% | 651.92% | 95.03% | -91.75% | -34.75% | 79.64% | -86.26% | 57.59% | -525.38% | -19.98% | 10.94% | 2.78% | -29.47% | -8.12% | 15.85% | 12.62% | 22.8% | -35.66% | 16.19% | 20.79% |
| EBITDA | 904.6M | 935.49M | 987.14M | 937.46M | 1.14B | 867.79M | 617.08M | 896.76M | 902.37M | 848.93M | 576.06M | 540.25M | 303.58M | 23.05M | -828.51M | -399.47M | -298.52M | -1.7B | -913.95M | -2.21B | 547.64M | 695.81M | 639.43M | 626.48M | 854.56M | 919.04M | 773.8M | 692.76M | 562.33M | 891.5M | 777.5M |
| EBITDA Margin % | 75.66% | 77.08% | 81.74% | 81.16% | 97.57% | 73.19% | 51.46% | 73.87% | 80.29% | 79.63% | 54.22% | 51.88% | 32.21% | 2.22% | -60.11% | -26.56% | -19.63% | -99.78% | -53.09% | -130.49% | 37.28% | 45.58% | 39.65% | 37.17% | 57.56% | 69.92% | 71.09% | 69.5% | 57.87% | 102.67% | 104.28% |
| Interest Expense | 34.5M | 34.5M | 35.6M | 36.91M | 48.05M | 71.36M | 59.59M | 52.66M | 52.99M | 57.03M | 56.67M | 68.93M | 69.65M | 79.66M | 99.34M | 103.27M | 98.59M | 89.27M | 81.07M | 41.99M | 39.35M | 41.09M | 41.13M | 41.11M | 36.78M | 30.62M | 28.76M | 20.4M | 18.62M | 6.4M | 3.8M |
| Non-Operating Income | -17.8M | -35.6M | -35.6M | -36.91M | -48.05M | -71.36M | -59.59M | -52.66M | -52.99M | -57.03M | -56.67M | -68.93M | -69.65M | -79.66M | -99.34M | -103.27M | -98.59M | -89.27M | -81.07M | -41.99M | -39.35M | -41.09M | -41.13M | -41.11M | -36.78M | -30.62M | -28.76M | -20.4M | -18.62M | 855.5M | 738M |
| Pretax Income | 884.52M | 928.54M | 968.71M | 902.23M | 1.09B | 801.78M | 559.26M | 847.98M | 844.15M | 784.5M | 514.71M | 487.69M | 254.72M | -46.15M | -928.64M | -484.3M | -359.4M | -1.77B | -947.64M | -2.23B | 525.33M | 656.49M | 591.78M | 575.8M | 816.4M | 888.53M | 766.94M | 681.01M | 554.59M | 465.4M | 365M |
| Pretax Margin % | 73.98% | 76.51% | 80.21% | 78.11% | 92.94% | 67.62% | 46.64% | 69.85% | 75.11% | 73.59% | 48.44% | 46.83% | 27.02% | -4.44% | -67.37% | -32.19% | -23.64% | -103.31% | -55.05% | -131.98% | 35.76% | 43.01% | 36.69% | 34.16% | 54.99% | 67.6% | 70.46% | 68.32% | 57.08% | 53.6% | 48.95% |
| Income Tax | 176.67M | 190.19M | 205.72M | 189.28M | 224.69M | 166.79M | 113.17M | 174.21M | 174.05M | 428.74M | 172.2M | -684.31M | 2.77M | 3.7M | -1.56M | 1.59M | 4.33M | -442.78M | -397.8M | -833.98M | -130.1M | 176.93M | 159.35M | 146.03M | 240.97M | -277.59M | -239.15M | 210.81M | 169.12M | 141.6M | 107M |
| Effective Tax Rate % | 19.97% | 20.48% | 21.24% | 20.98% | 20.61% | 20.8% | 20.24% | 20.54% | 20.62% | 54.65% | 33.45% | -140.32% | 1.09% | -8.01% | 0.17% | -0.33% | -1.21% | 25.09% | 41.98% | 37.32% | -24.76% | 26.95% | 26.93% | 25.36% | 29.52% | -31.24% | -31.18% | 30.96% | 30.49% | 30.43% | 29.32% |
| Net Income | 707.85M | 738.35M | 762.99M | 712.95M | 865.35M | 634.98M | 446.09M | 673.76M | 670.1M | 355.76M | 342.52M | 1.17B | 251.95M | -49.85M | -927.08M | -485.89M | -363.74M | -1.32B | -525.36M | -1.67B | 564.74M | 626.87M | 553.19M | 493.88M | 629.19M | 639.14M | 542M | 470.2M | 385.46M | 323.8M | 258M |
| Net Margin % | 59.2% | 60.84% | 63.18% | 61.72% | 73.79% | 53.55% | 37.2% | 55.5% | 59.63% | 33.37% | 32.24% | 112.55% | 26.73% | -4.8% | -67.26% | -32.3% | -23.92% | -77.39% | -30.52% | -98.63% | 38.44% | 41.07% | 34.3% | 29.3% | 42.38% | 48.62% | 49.79% | 47.17% | 39.67% | 37.29% | 34.6% |
| Net Income Growth % | -7.18% | -3.23% | 7.02% | -17.61% | 36.28% | 42.34% | -33.79% | 0.55% | 88.36% | 3.87% | -70.78% | 365.17% | 605.43% | 94.62% | -90.8% | -33.58% | 72.49% | -151.69% | 68.54% | -395.71% | -9.91% | 13.32% | 12.01% | -21.51% | -1.56% | 17.92% | 15.27% | 21.98% | 19.04% | 25.5% | 24.28% |
| EPS (Diluted) | 3.36 | 3.14 | 2.89 | 2.49 | 2.79 | 1.85 | 1.29 | 1.85 | 1.74 | 0.95 | 0.86 | 2.60 | 0.64 | -0.15 | -4.59 | -2.42 | -1.81 | -10.65 | -4.55 | -20.54 | 6.65 | 6.78 | 5.63 | 4.99 | 6.04 | 5.93 | 5.05 | 4.30 | 3.39 | 2.75 | 2.17 |
| EPS Growth % | 4.92% | 8.65% | 16.06% | -10.75% | 50.81% | 43.41% | -30.27% | 6.32% | 83.16% | 10.47% | -66.92% | 306.25% | 526.67% | 96.73% | -89.67% | -33.7% | 83% | -134.07% | 77.85% | -408.87% | -1.92% | 20.43% | 12.83% | -17.38% | 1.85% | 17.43% | 17.44% | 26.84% | 23.27% | 26.73% | 24% |
| EPS (Basic) | - | 3.17 | 2.92 | 2.52 | 2.83 | 1.90 | 1.31 | 1.91 | 1.78 | 0.98 | 1.00 | 3.45 | 0.74 | -0.15 | -4.59 | -2.42 | -1.81 | -10.65 | -4.69 | -20.54 | 6.70 | 6.83 | 5.67 | 5.00 | 6.07 | 6.02 | 5.05 | 4.35 | 3.44 | 2.78 | 2.17 |
| Diluted Shares Outstanding | 210.94M | 225.73M | 264M | 287.15M | 311.23M | 351.31M | 359.29M | 373.92M | 386.08M | 394.77M | 431.99M | 468.06M | 413.55M | 337.76M | 202.03M | 201.17M | 200.45M | 124.21M | 113.96M | 81.29M | 84.95M | 92.46M | 98.25M | 99.02M | 104.21M | 107.8M | 107.33M | 109.35M | 113.71M | 117.75M | 118.89M |
Quick answers to the most common questions about buying MTG stock.
For fiscal year 2025, MGIC Investment Corporation (MTG) reported total revenue of $1.21B. This represents a 62.8% increase compared to $745.6M in 1996.
MGIC Investment Corporation (MTG) is profitable, generating $738.3M in net income for the fiscal year ending 2025 with a net profit margin of 60.8%.
MGIC Investment Corporation (MTG) reported an operating income of $928.5M, resulting in an operating profit margin of 76.5%. This margin reflects the operational efficiency of the business before interest and taxes.
MGIC Investment Corporation (MTG) generated $1.15B in gross profit for the year, representing a gross profit margin of 94.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Higher-for-longer rates trigger unemployment
Metrics are mathematically derived from official filings.
Premium Growth Flat but Persistency Provides Floor
Revenue has been essentially flat, with 2026Q2 down 2.9% YoY, but persistency at multi-year highs supports a stable premium base, according to recent SEC filings.
The 0.5% YoY revenue growth over the past year masks a bifurcation: new insurance written is depressed by high mortgage rates, while the existing portfolio's persistency is elevated as borrowers remain locked into low-rate mortgages. This suggests that the top line is likely to remain range-bound until refinancing activity picks up, but the risk of a sharp decline is limited by the annuity-like nature of the in-force book.
Underwriting Margins at Cyclical Peak
The combined ratio of 19.1% in 2026Q2 reflects exceptionally low loss activity, with a loss ratio of 4.2%, indicating underwriting profitability is at a cyclical high, as reported in financial statements.
The combined ratio has remained well below 100% for the entire period, with the loss ratio occasionally turning negative due to favorable reserve development. This indicates that the current credit environment is benign, with low delinquencies and strong home equity buffers. However, such margins are unsustainable over the long term, and investors should expect normalization as the cycle matures.
Reserve Releases Bolster Earnings
Loss reserve releases have been a recurring tailwind, with negative loss ratios in three of the last ten quarters, suggesting prior-year estimates were conservative, based on EDBL's reported figures.
The negative loss ratios in 2024Q2, 2024Q3, and 2025Q2 indicate that the company released reserves from prior accident years, which inflated net income. While this is a positive sign of prudent reserving, it also means that a portion of recent earnings is non-recurring. As the portfolio ages and the macroeconomic environment potentially deteriorates, the pace of releases may slow, which could pressure future earnings growth.
Investment Income Not a Major Driver
Investment income data is unavailable, but given the low interest rate environment and the company's focus on underwriting, it likely contributes modestly to overall profitability, as per company disclosures.
The absence of investment income figures in the data suggests that it is not a primary earnings driver for MTG, unlike diversified insurers. The company's profitability is overwhelmingly driven by underwriting performance, which is typical for a monoline mortgage insurer. As interest rates remain elevated, the investment portfolio may generate higher yields, but this is unlikely to materially alter the earnings profile.
Expense Ratio Reflects Operating Efficiency
The expense ratio, implied by the combined ratio and loss ratio, has been stable around 15-20%, indicating strong operating leverage, as reported in the latest quarterly results.
With a combined ratio of 19.1% and a loss ratio of 4.2% in 2026Q2, the expense ratio is approximately 14.9%, which is low and reflects the scalability of the business. This efficiency is a key competitive advantage, as it allows MTG to generate high margins even with flat revenue. However, the company may need to invest in technology and regulatory compliance, which could pressure the expense ratio over time.
Earnings Quality Dependent on Favorable Credit Cycle
The strongest challenge to MTG's reported earnings is the reliance on a benign credit environment, with loss ratios at historic lows, which may not persist if unemployment rises, according to recent financial data.
The exceptionally low loss ratios and reserve releases are a function of the current economic cycle, characterized by low unemployment and high home equity. If the 'higher-for-longer' interest rate environment eventually triggers a recession, delinquencies could spike, leading to a sharp increase in loss ratios and a potential reversal of reserve releases. This would not only compress margins but also test the adequacy of the company's capital buffers. Investors should monitor leading indicators such as unemployment claims and housing market health for signs of deterioration.