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Mgic Investment (MTG) FY2025 results: revenue $1.2 billion, up 0.5% on the year

Mgic Investment Corp. (MTG) reported revenue of $1.2 billion for fiscal 2025, the year ended 31 December 2025, up 0.5% on the year before. Net income was $738 million, down 3.2%, and diluted earnings per share $3.14. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$1.2 billion
+0.5% on the year
FY2018FY2025
Operating margin
76.5%
80.2% a year earlier
FY2018FY2025
Net income
$738 million
-3.2% on the year
FY2018FY2025
Diluted EPS
$3.14
+8.7% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 kept.

  • Fourth-quarter net income declined: Net income was $169.3 million, or $0.75 per diluted share, against $191.1 million, or $0.83, in the third quarter and $184.7 million, or $0.72, a year earlier. Adjusted net operating income was $168.4 million.
  • Quarterly losses increased: Net losses incurred were $31.2 million in the fourth quarter, against $10.9 million in the third quarter and $8.7 million a year earlier. The loss ratio was 13.2%, against 4.5% and 3.6%.
  • Delinquency inventory rose: Primary delinquency inventory rose to 27,072 loans from 25,747 in the third quarter. The count-based delinquency rate was 2.43%, against 2.32% in the third quarter and 2.40% a year earlier.
  • Net premium yield declined: Net premium yield was 31.2 basis points, against 32.3 in the third quarter and 32.9 a year earlier.
  • New insurance written increased: New insurance written was $17.1 billion in the fourth quarter, against $16.5 billion in the third quarter and $15.9 billion a year earlier. Full-year NIW was $60.2 billion, against $55.7 billion.
Read the Q4 FY2025 earnings call summary

From this 10-K

MGIC Investment is a holding company whose subsidiaries provide private mortgage insurance, other mortgage credit risk management solutions and ancillary services. Its principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), was licensed in all 50 states, the District of Columbia, Puerto Rico and Guam as of December 31, 2025, and wrote new insurance in each of them during 2025. The company states that it established the modern private mortgage insurance industry in 1957 as a private alternative to federal government insurance programs. It is a Wisconsin corporation organized in 1984, with its principal office in Milwaukee.

Mgic Investment Corp., the 10-K for 2025

MGIC Investment is a holding company whose subsidiaries provide private mortgage insurance, other mortgage credit risk management solutions and ancillary services. Its principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), was licensed in all 50 states, the District of Columbia, Puerto Rico and Guam as of December 31, 2025, and wrote new insurance in each of them during 2025. The company states that it established the modern private mortgage insurance industry in 1957 as a private alternative to federal government insurance programs. It is a Wisconsin corporation organized in 1984, with its principal office in Milwaukee.

What it insures

Private mortgage insurance covers losses when homeowners default on residential mortgage loans, and it lets lenders sell low down payment mortgages to Fannie Mae and Freddie Mac, which cannot buy such loans without some form of credit enhancement. Its primary insurance covers a percentage of the unpaid principal, delinquent interest and certain foreclosure expenses on individual loans, and it is generally written on first mortgages on owner occupied one-to-four family homes and condominiums. It writes primary insurance on a flow basis, loan by loan, or on a bulk basis for a whole portfolio. Through the credit risk transfer programs of Fannie Mae and Freddie Mac, one of its insurance subsidiaries also insures and reinsures portions of the credit risk on certain pools of mortgages they acquire.

Reinsurance and ratings

It uses quota share and excess of loss reinsurance, including transactions with special purpose insurers it calls Home Re that issue insurance linked notes, and its reinsurance strategy focuses on its most recent or future new insurance. At the time the report was finalized, MGIC's financial strength was rated A by A.M. Best, A2 by Moody's Investors Service and A- by Standard & Poor's Global Ratings.

Competition

Its employees sell its insurance products throughout the United States, Puerto Rico and Guam. It competes with other private mortgage insurers, with government-backed mortgage insurance programs, principally those of the FHA and the VA, and with products designed to remove the need for private mortgage insurance. The U.S. industry consists of six active mortgage insurers and their affiliates, including MGIC.

People

As of December 31, 2025 it had 542 co-workers, not including on-call and part-time co-workers.

From MGIC Investment's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,2141,2081,155+0.5%
Operating income929969902-4.1%
Operating margin76.5%80.2%78.1%
Interest expense35.635.636.9+0.0%
Pre-tax income929969902-4.1%
Income tax190206189-7.5%
Effective tax rate20.5%21.2%21.0%
Net income738763713-3.2%
Net margin60.8%63.2%61.7%
Diluted EPS$3.14$2.89$2.49+8.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow853725713+17.6%
Capital expenditure1.01.22.0-12.7%
Free cash flow852724711+17.7%
Free cash flow margin70.2%59.9%61.5%
Cash from investing228-142-179
Cash from financing-940-719-496
Depreciation and amortisation6.918.435.2-62.3%
Share-based compensation24.431.331.6-22.0%
Buybacks789569337+38.5%
Dividends paid132130123+1.5%
Diluted shares, weighted235m264m287m-10.9%
Shares outstanding at period end219m248m272m-11.7%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity5,1485,1725,072-0.5%
Debtn/an/a643
Other liabilities1,4921,375823+8.5%
Total liabilities and equity6,6396,5476,538+1.4%
Fixed assets32.535.738.8-9.0%
Securities held for sale or to maturity5,7915,8525,723-1.0%
Cash and equivalents369229364+60.8%
Other assets447430413+3.8%
Total assets6,6396,5476,538+1.4%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.