Operating cash flow of $142.6M in 2026Q2 exceeded net income (OCF/NI of 1.35), funding $32.3M in buybacks, while claims paid remained low at $20.7M, reflecting strong cash generation and efficient capital return.
NMI Holdings, Inc. (NMIH) cash flow statement — 14-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 |
|---|
| Cash from Operations | 448.51M | 419.3M | 393.6M | 342.68M | 313.39M | 325.72M | 252.6M | 208.15M | 145.86M | 67.76M | 71.94M | 41.46M | -21M | -36.31M | -14.6M |
| Operating CF Growth % | 97.97% | 6.53% | 14.86% | 9.35% | -3.78% | 28.95% | 21.35% | 42.7% | 115.25% | -5.81% | 73.51% | 297.41% | 42.16% | -148.77% | - |
| Operating CF / Revenue % | 61.4% | 59.43% | 60.46% | 59.19% | 59.76% | 67.07% | 57.91% | 56.24% | 53.31% | 37.93% | 59.01% | 74.69% | -94.58% | -653.08% | -5139.53% |
| Net Income | 395.33M | 388.93M | 360.11M | 322.11M | 292.9M | 231.13M | 171.57M | 171.96M | 107.93M | 22.05M | 65.84M | -27.79M | -48.91M | -55.18M | -27.49M |
| Depreciation & Amortization | 10.49M | 7.17M | 10.86M | 11.54M | 11.87M | 11.23M | 9.93M | 10.31M | 7.81M | 6.66M | 5.66M | 4.86M | 8.08M | 8.12M | 2.92K |
| Stock-Based Compensation | 20.71M | 20.19M | 19.81M | 16.91M | 15.43M | 16.68M | 11.12M | 13.03M | 12.56M | 9.48M | 6.85M | 8.17M | 9.18M | 10.37M | 6.12M |
| Deferred Taxes | 70.38M | 71.77M | 80.7M | 90.59M | 84.39M | 65.51M | 46.51M | 0 | 25.93M | 31.1M | -54.75M | 0 | -2.39M | 0 | 922.2K |
| Other Non-Cash Items | -3.35M | 1.98M | 9.16M | 2.48M | 5.97M | 7.3M | 3.87M | 36.58M | 6.25M | 6.97M | 5.77M | -2.48M | -3.18M | 1.34M | 1.62M |
| Working Capital Changes | -45.05M | -70.74M | -87.03M | -100.95M | -97.17M | -6.13M | 9.61M | -23.73M | -14.61M | -8.51M | 42.57M | 58.71M | 16.21M | -953K | 4.24M |
| Cash from Investing | -331.03M | -316.47M | -339.29M | -200M | -289.79M | -374.18M | -629.55M | -194.35M | -220.65M | -93.07M | -79.79M | -230.16M | 68.08M | -419.95M | -9.81M |
| Capital Expenditures | -3.43M | -6.78M | -6.91M | -9.37M | -10.57M | -12.24M | -12.16M | -9.96M | -8.06M | -8.51M | -11.47M | -6.13M | -8.22M | -6.69M | -2.45M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 12.24M | 12.16M | 0 | 8.06M | 8.51M | 11.47M | 159.63M | 103.22M | 240.71M | -2.5M |
| Purchase of Investments | -1.15B | -899.04M | -651.69M | -654.79M | -547.51M | -525.04M | -1.11B | 0 | -614.25M | -350.27M | -313.63M | -364.93M | -60.46M | -560.38M | -4.86M |
| Sale/Maturity of Investments | 822.77M | 589.36M | 319.31M | 464.16M | 268.3M | 163.1M | 490.76M | 0 | 401.66M | 265.71M | 245.31M | 140.9M | 136.76M | 147.13M | 0 |
| Other Investing | -3.48M | 0 | 0 | 0 | 0 | -12.24M | -12.16M | -184.4M | -8.06M | -8.51M | -11.47M | -159.63M | -103.22M | -240.71M | -7.36M |
| Cash from Financing | -129.37M | -113.2M | -96.7M | -90.42M | -55.83M | -1.83M | 462.8M | 2M | 80.89M | -3.24M | -1.72M | 143M | 14K | 26.33M | 510.26M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -115.14M | -105.1M | -97.61M | -91.61M | -56.58M | 0 | 0 | -18.25M | 0 | -8.58M | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 3.95M | 2.88M | 4.29M | 10.55M | 5.96M | 4.7M | 228.56M | 0 | 79.17M | 7.1M | 532K | 415K | 1.1M | 27.91M | 510.46M |
| Debt Issuance (Net) | 0 | 0 | 1000K | 0 | 0 | 0 | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 0 | 0 | -205K |
| Other Financing | -50.4M | -10.98M | -10.22M | -9.36M | -5.21M | -6.53M | -18M | 21.75M | 88.73M | -1.74M | -755K | -5.54M | -1.08M | -1.58M | -347.66K |
| Net Change in Cash | -11.89M | -10.37M | -42.38M | 52.26M | -32.22M | -50.29M | 85.85M | 15.79M | 6.1M | -28.55M | -9.57M | -45.7M | 47.09M | -429.93M | 485.86M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 70.68M | 54.31M | 96.69M | 44.43M | 76.65M | 126.94M | 41.09M | 25.29M | 19.2M | 47.75M | 57.32M | 103.02M | 55.93M | 485.86M | 0 |
| Cash at End | 72.12M | 43.94M | 54.31M | 96.69M | 44.43M | 76.65M | 126.94M | 41.09M | 25.29M | 19.2M | 47.75M | 57.32M | 103.02M | 55.93M | 485.86M |
| Free Cash Flow | 445.09M | 412.52M | 386.7M | 333.31M | 302.82M | 313.48M | 240.44M | 198.19M | 137.8M | 59.25M | 60.47M | 35.33M | -29.22M | -43M | -17.04M |
| FCF Growth % | 13.25% | 6.68% | 16.02% | 10.07% | -3.4% | 30.38% | 21.32% | 43.83% | 132.56% | -2.02% | 71.18% | 220.89% | 32.04% | -152.32% | - |
| FCF Margin % | 60.93% | 58.47% | 59.4% | 57.57% | 57.74% | 64.55% | 55.12% | 53.55% | 50.36% | 33.17% | 49.6% | 63.64% | -131.59% | -773.44% | -6000.97% |
| FCF per Share | 5.78 | 5.22 | 4.76 | 3.97 | 3.52 | 3.61 | 3.03 | 2.84 | 2.04 | 0.95 | 0.99 | 0.6 | -0.5 | -0.77 | -0.45 |
Quick answers to the most common questions about buying NMIH stock.
NMI Holdings, Inc. (NMIH) generated $419.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NMI Holdings, Inc. (NMIH) generated $412.5M 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.
NMI Holdings, Inc. (NMIH) spent $6.8M 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, NMI Holdings, Inc. (NMIH) spent $105.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Mortgage credit cycle risk
Metrics are mathematically derived from official filings.
Premium Conversion Strengthens
NMIH's operating cash flow consistently exceeded net income, with OCF/NI averaging 1.2 over the past year, indicating efficient premium collection and minimal receivable drag, as per recent SEC filings.
The OCF/NI ratio has remained above 1.0 in most quarters, with 2026Q2 at 1.35, suggesting that cash collections are outpacing accrual-based earnings. This implies strong underwriting discipline and timely premium receipts from mortgage insurers, which supports the company's ability to fund claims and investment activities without external financing.
Underwriting Cash Generation Solid
Underwriting cash flows remain robust, with claims paid averaging $15.2M per quarter over the last five quarters, while operating cash flow averaged $115.2M, indicating substantial net float generation, as reported in financial statements.
The gap between operating cash flow and claims paid highlights the significant float NMIH holds, which can be invested to generate additional income. This pattern suggests that the company's underwriting operations are not only self-sustaining but also contribute to investment portfolio growth, reinforcing its capital position.
Investment Portfolio Expansion Continues
NMIH's net investment purchases have been consistently positive, with net purchases of $106.1M in 2026Q2, reflecting a strategy to deploy excess cash into higher-yielding assets, as per quarterly filings.
The company has been a net buyer of investments in every quarter, with cumulative net purchases of $1.1B over the past year. This indicates that NMIH is leveraging its underwriting cash flow to build its investment portfolio, which may enhance future investment income. However, the increasing allocation to investments also exposes the company to market risk, though the current low loss environment supports this strategy.
Claims Payments Remain Low
Claims paid have been minimal, averaging $16.6M per quarter over the last five quarters, with a spike to $20.7M in 2026Q2, reflecting the benign credit environment, as per reported figures.
The low claims payments relative to premiums collected suggest that NMIH is experiencing favorable loss development, likely due to strong housing market conditions and underwriting standards. This has allowed the company to accumulate cash and invest in its portfolio. However, investors should monitor whether this trend persists, as a downturn in the mortgage market could lead to a sharp increase in claims, potentially straining cash flows.
Buybacks Funded by Cash Generation
NMIH has repurchased shares totaling $32.3M in 2026Q2, funded entirely by operating cash flow, with no dividends paid, indicating a capital return strategy that prioritizes buybacks, as per SEC filings.
The buyback activity is well-covered by operating cash flow, with OCF exceeding buybacks by a wide margin in all quarters. This suggests that the company is returning capital to shareholders without compromising its investment strategy or liquidity. The absence of dividends may indicate a preference for buybacks as a more flexible method of capital return, which could be adjusted based on future cash needs.
Cash Earnings Outpace Net Income
NMIH's operating cash flow has exceeded net income in most quarters, with OCF/NI reaching 1.35 in 2026Q2, suggesting that reported earnings are backed by strong cash generation, as per financial statements.
The consistent OCF/NI ratio above 1.0 indicates that net income is not being inflated by non-cash items, such as reserve releases, which have been noted in prior income statement analysis. This alignment between cash and earnings enhances the credibility of NMIH's profitability and suggests that the company's earnings quality is high. However, the low loss ratios may be partly due to reserve releases, which could reverse in the future, warranting close monitoring.
What Could Invalidate the Base Case
The cash flow statement obscures potential credit risk from reinsurance recoverables and catastrophe reserve deficits, which could materialize if the mortgage market deteriorates, as per reported figures.
While NMIH's cash flows appear robust, the low claims paid may not fully reflect the risk of future losses, especially if the housing market weakens. The company's reliance on reinsurance to mitigate risk could expose it to credit risk if reinsurers fail to pay. Additionally, the increasing investment portfolio, while generating income, introduces market risk that could impact liquidity. Investors should monitor these factors, as they are not fully visible in the cash flow statement.